PAYLOCITY HOLDING CORP (PCTY) Stock Fundamental Analysis
USA - NASDAQ:PCTY - US70438V1061 - Common Stock
164.08 USD
-1.08 (-0.65%)
We assign a fundamental rating of 6 out of 10 to PCTY. PCTY was compared to 81 industry peers in the Professional Services industry. PCTY scores excellent on profitability, but there are some minor concerns on its financial health. PCTY is valued quite expensively, but it does show have an excellent growth rating. These ratings could make PCTY a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
PCTY had positive earnings in the past year.
PCTY had a positive operating cash flow in the past year.
Each year in the past 5 years PCTY has been profitable.
Each year in the past 5 years PCTY had a positive operating cash flow.
1.2 Ratios
PCTY has a Return On Assets of 5.17%. This is comparable to the rest of the industry: PCTY outperforms 58.02% of its industry peers.
PCTY has a better Return On Equity (18.41%) than 70.37% of its industry peers.
PCTY has a better Return On Invested Capital (15.17%) than 82.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PCTY is in line with the industry average of 12.93%.
The last Return On Invested Capital (15.17%) for PCTY is above the 3 year average (14.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 18.41% | ||
| ROIC | 15.17% |
ROA(3y)4.62%
ROA(5y)3.73%
ROE(3y)18.38%
ROE(5y)16.95%
ROIC(3y)14.9%
ROIC(5y)12.43%
1.3 Margins
With an excellent Profit Margin value of 14.24%, PCTY belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
PCTY's Profit Margin has improved in the last couple of years.
The Operating Margin of PCTY (19.06%) is better than 85.19% of its industry peers.
PCTY's Operating Margin has improved in the last couple of years.
PCTY has a better Gross Margin (68.77%) than 82.72% of its industry peers.
In the last couple of years the Gross Margin of PCTY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.06% | ||
| PM (TTM) | 14.24% | ||
| GM | 68.77% |
OM growth 3Y23.16%
OM growth 5Y8.88%
PM growth 3Y10.17%
PM growth 5Y4.38%
GM growth 3Y1.21%
GM growth 5Y0.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PCTY is still creating some value.
Compared to 1 year ago, PCTY has less shares outstanding
PCTY has more shares outstanding than it did 5 years ago.
PCTY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.72 indicates that PCTY is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.72, PCTY is in line with its industry, outperforming 45.68% of the companies in the same industry.
The Debt to FCF ratio of PCTY is 0.47, which is an excellent value as it means it would take PCTY, only 0.47 years of fcf income to pay off all of its debts.
PCTY has a Debt to FCF ratio of 0.47. This is in the better half of the industry: PCTY outperforms 79.01% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that PCTY is not too dependend on debt financing.
PCTY has a better Debt to Equity ratio (0.13) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.47 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.73
WACC8.79%
2.3 Liquidity
A Current Ratio of 1.14 indicates that PCTY should not have too much problems paying its short term obligations.
PCTY has a worse Current ratio (1.14) than 62.96% of its industry peers.
A Quick Ratio of 1.14 indicates that PCTY should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.14, PCTY is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
PCTY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.97%, which is quite good.
PCTY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.84% yearly.
PCTY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.74%.
PCTY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.23% yearly.
EPS 1Y (TTM)8.97%
EPS 3Y30.18%
EPS 5Y30.84%
EPS Q2Q%5.41%
Revenue 1Y (TTM)13.74%
Revenue growth 3Y23.22%
Revenue growth 5Y23.23%
Sales Q2Q%12.16%
3.2 Future
Based on estimates for the next years, PCTY will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.32% on average per year.
The Revenue is expected to grow by 9.36% on average over the next years. This is quite good.
EPS Next Y3.69%
EPS Next 2Y6.48%
EPS Next 3Y10.15%
EPS Next 5Y16.32%
Revenue Next Year8.49%
Revenue Next 2Y8.73%
Revenue Next 3Y9.69%
Revenue Next 5Y9.36%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.88 indicates a rather expensive valuation of PCTY.
PCTY's Price/Earnings is on the same level as the industry average.
PCTY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.29.
With a Price/Forward Earnings ratio of 22.07, PCTY is valued on the expensive side.
PCTY's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, PCTY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.88 | ||
| Fwd PE | 22.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PCTY is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PCTY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.41 | ||
| EV/EBITDA | 21.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PCTY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.21
PEG (5Y)0.74
EPS Next 2Y6.48%
EPS Next 3Y10.15%
5. Dividend
5.1 Amount
No dividends for PCTY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:PCTY (9/25/2025, 2:36:08 PM)
164.08
-1.08 (-0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners80.09%
Inst Owner Change-6.23%
Ins Owners19.68%
Ins Owner Change0.37%
Market Cap9.05B
Analysts81.54
Price Target227.83 (38.85%)
Short Float %2.56%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.67%
Min EPS beat(2)9.93%
Max EPS beat(2)11.41%
EPS beat(4)4
Avg EPS beat(4)10.35%
Min EPS beat(4)4.67%
Max EPS beat(4)15.39%
EPS beat(8)8
Avg EPS beat(8)12.18%
EPS beat(12)12
Avg EPS beat(12)18.36%
EPS beat(16)16
Avg EPS beat(16)25.25%
Revenue beat(2)2
Avg Revenue beat(2)0.72%
Min Revenue beat(2)0.3%
Max Revenue beat(2)1.15%
Revenue beat(4)3
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-0.16%
Max Revenue beat(4)1.15%
Revenue beat(8)4
Avg Revenue beat(8)-1.32%
Revenue beat(12)8
Avg Revenue beat(12)-0.31%
Revenue beat(16)11
Avg Revenue beat(16)0.22%
PT rev (1m)0.27%
PT rev (3m)-0.73%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)1.55%
EPS NY rev (1m)0%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.88 | ||
| Fwd PE | 22.07 | ||
| P/S | 5.67 | ||
| P/FCF | 26.41 | ||
| P/OCF | 21.64 | ||
| P/B | 7.34 | ||
| P/tB | 13.6 | ||
| EV/EBITDA | 21.99 |
EPS(TTM)7.17
EY4.37%
EPS(NY)7.43
Fwd EY4.53%
FCF(TTM)6.21
FCFY3.79%
OCF(TTM)7.58
OCFY4.62%
SpS28.92
BVpS22.37
TBVpS12.07
PEG (NY)6.21
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 18.41% | ||
| ROCE | 20.48% | ||
| ROIC | 15.17% | ||
| ROICexc | 20.73% | ||
| ROICexgc | 43.47% | ||
| OM | 19.06% | ||
| PM (TTM) | 14.24% | ||
| GM | 68.77% | ||
| FCFM | 21.49% |
ROA(3y)4.62%
ROA(5y)3.73%
ROE(3y)18.38%
ROE(5y)16.95%
ROIC(3y)14.9%
ROIC(5y)12.43%
ROICexc(3y)21.81%
ROICexc(5y)18.03%
ROICexgc(3y)37.42%
ROICexgc(5y)29.81%
ROCE(3y)20.12%
ROCE(5y)16.79%
ROICexcg growth 3Y31.79%
ROICexcg growth 5Y13.02%
ROICexc growth 3Y20.86%
ROICexc growth 5Y3.12%
OM growth 3Y23.16%
OM growth 5Y8.88%
PM growth 3Y10.17%
PM growth 5Y4.38%
GM growth 3Y1.21%
GM growth 5Y0.35%
F-Score8
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.47 | ||
| Debt/EBITDA | 0.4 | ||
| Cap/Depr | 75.75% | ||
| Cap/Sales | 4.73% | ||
| Interest Coverage | 23.83 | ||
| Cash Conversion | 103.61% | ||
| Profit Quality | 150.91% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.72 |
F-Score8
WACC8.79%
ROIC/WACC1.73
Cap/Depr(3y)96.22%
Cap/Depr(5y)96.41%
Cap/Sales(3y)5.35%
Cap/Sales(5y)5.64%
Profit Quality(3y)150.71%
Profit Quality(5y)137.52%
High Growth Momentum
Growth
EPS 1Y (TTM)8.97%
EPS 3Y30.18%
EPS 5Y30.84%
EPS Q2Q%5.41%
EPS Next Y3.69%
EPS Next 2Y6.48%
EPS Next 3Y10.15%
EPS Next 5Y16.32%
Revenue 1Y (TTM)13.74%
Revenue growth 3Y23.22%
Revenue growth 5Y23.23%
Sales Q2Q%12.16%
Revenue Next Year8.49%
Revenue Next 2Y8.73%
Revenue Next 3Y9.69%
Revenue Next 5Y9.36%
EBIT growth 1Y16.89%
EBIT growth 3Y51.75%
EBIT growth 5Y34.18%
EBIT Next Year27.56%
EBIT Next 3Y17.85%
EBIT Next 5Y18.79%
FCF growth 1Y12.04%
FCF growth 3Y49.54%
FCF growth 5Y37.24%
OCF growth 1Y8.72%
OCF growth 3Y39.19%
OCF growth 5Y29.99%