Good morning,
$PAYC joining S&P500 $SPY $SPX500 !
I am excited about the news. I have an important position in the portfolio of Paycom.
Company fundamentals are great with high gross margin, reasonable SG&A expense, and meets the software Rule of 40.
The rule of 40% is nothing more than a rule of thumb to analyze the health of a software/SaaS business. It takes into consideration two of the most important metrics for a subscription company: growth and profit.
GP Ratio = Growth rate + Profit
Which means that your growth rate plus your profit should add up to 40%.
https://seekingalpha.com/news/3533738-paycom-will-join-s-and-p-500-sharesplus-4
Best regards
Santiago
