I own PAYC from 3 month ago @185$ This is an A+ business with 85% Gross Margin, it does not get much better then that (ADP 45%, PCTY 70%) My thesis is that BETI is a kind of tool that worth price raises over the next years, and revenue growth will reaccelerate. Seeing the CEO in this position is not ideal at all, that is one yellow flag. Great breakdown, love the insights!
I bought it with the same idea in mind, it’s cheap but I’ve come to realize it’s cheap for a reason and sold after a few weeks of further research. I think a succession is near as the founder and CEO is getting up there in age… more headwinds ahead I think.
The stock base compensation is eating a lot a lot of the net income. In the last few years. It was between 20% and 64% of the income. What is left for the shareholders!? It’s funny to see in the year 2022, this company has purchased shares with the value of $94 million shares but also issued the same number of shares with the value of $94m as a stock base compensation. The total is zero.
I thought I saw that stock-based compensation was pretty high. If so, this might explain the CEO's constant need to sell. Selling could be his source of personal cash.
I work in this industry, Paycom is not a good investment. Customer churn is the long term issue with this stock. They provide horrible support and have one of the worst API strategies in the market. Nearly no integrations in a world where everyone wants to integrate, crazy. Would NOT buy.
@@NathanXSavage I probably talk to a Paycom customer every week. Majority of them are not fans of it, BambooHR, Ceridian, UKG taking market share. I will say the financials tell a different story so I see the appeal of the investment, but just sharing what I hear.
