Paycom (PAYC STOCK): I LIKE IT! Will Bill Ackman Buy It?

Paycom is a leading software product powering payroll and human capital management solutions. PAYC is founder led, and has a long history of outperforming the indices. Why is the stock down over 50% in the past 3 years? Is now the time to buy? I like it.
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[@KingJack86]

Bro, your hair is unrivaled

[@theresamorgavi9196]

and his eyebrowns lol

[@drewshegda34]

Hahahahaha too good

[@Frogge.777]

proof Hims will 100x?

[@tomlyonette3527]

Top comment

[@Chris-vz2kv]

His hairline is so goated

[@freeasabird286]

Insiders are selling it like crazy

[@Dr.Dumpnpump]

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.

[@Pizza-gb1ch]

Improper succession planning?

[@Dr.Dumpnpump]

@@Pizza-gb1ch I believe it’s underway, but having the founder replaced isn’t ideal regardless.

[@arthurfarber3514]

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!

[@babyprince84uk]

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.

[@lowdowski5337]

Thanks. Been tracking it with Paylocity for a while now but havent yet pulled the trigger.

[@jeffmatthews9120]

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.

[@Rsonicus]

Bill Nygren is already betting big on this one... super interesting stock

[@marinus1234]

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've heard their customer support is great though.

[@marinus1234]

@@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.

[@HonestVirtue315]

@@marinus1234 as someone who uses Paycom, I am confused, what do you mean non integrated? What is Paycom missing?

[@leihoa]

I struggle to understand where the moat is here? It seems like any software, ok, sticky, clients seem to liek it - but can't any next IT-dude come with something even better? Again, not any espert on Saas businesses, but I really dont know where the moat is..

[@malonequinn3559]

To buy Fairfax shares in the u.s do we buy otc and pay commissions or go through the tsx somehow

[@Aerie499]

Not fair to have all that hair, agree your hair is unrivaled

[@StocksIn60Seconds]

Looks a lot like Mongo DB right now! Completely agree with your assessment. Hard to dispute the statistics.

[@6toolbaseball]

Love the business model, but the industry is highly competitive

[@andrewwild3493]

Can you do a video on BILL

[@chenfei7369]

Paychex, gusto are also prominent competitors.

[@Barkotina]

The CEO is kind of a douche and that's enough to deter me. Nice hair btw.

[@Kai-kd9qy]

Dayforce(DAY) is also probably better.

[@opencase9903]

I use df af work (payroll) and they're always breaking things

[@user-wv8zz1iv5v]

Like it to, thank you😊

[@TheEcaporaso]

Another great video!

[@unrivaled]

Glad you enjoyed it!

[@sebastianelias3538]

Hmm

[@the_investor9836]

Founder selling at 52-week low for highly priced stock? Next.

[@adamisonyoutube]

He has been selling his stock for years. Not saying its a good thing but because he's selling at lows means nothing.

[@the_investor9836]

@@adamisonyoutubeselling for years is pretty bad honestly. He has been selling before the declines. In either case the stock is pricey anyways

[@Eric-qm5xw]

2 July 24’ $142

[@LocalGeezah]

Not unrivaled

[@jeroen7356]

Paylocity is growing much faster now

[@6toolbaseball]

Problem is their SBc

[@Ak47vsColt]

does this dude actually ever buy a stock?

[@unrivaled]

czcams.com/video/nsxGizwLTd8/video.html

[@tnt_pkk1311]

Ackman is gross