PAYLOCITY HOLDING CORP (PCTY) Fundamental Analysis & Valuation

NASDAQ:PCTY • US70438V1061

Current stock price

112.52 USD
+1.62 (+1.46%)
At close:
112.52 USD
0 (0%)
After Hours:

This PCTY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. PCTY Profitability Analysis

1.1 Basic Checks

  • In the past year PCTY was profitable.
  • In the past year PCTY had a positive cash flow from operations.
  • Each year in the past 5 years PCTY has been profitable.
  • PCTY had a positive operating cash flow in each of the past 5 years.
PCTY Yearly Net Income VS EBIT VS OCF VS FCFPCTY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M 300M 400M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.42%, PCTY is in line with its industry, outperforming 51.72% of the companies in the same industry.
  • PCTY has a better Return On Equity (21.69%) than 74.71% of its industry peers.
  • The Return On Invested Capital of PCTY (19.33%) is better than 87.36% of its industry peers.
  • PCTY had an Average Return On Invested Capital over the past 3 years of 14.90%. This is above the industry average of 12.58%.
  • The 3 year average ROIC (14.90%) for PCTY is below the current ROIC(19.33%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.42%
ROE 21.69%
ROIC 19.33%
ROA(3y)4.62%
ROA(5y)3.73%
ROE(3y)18.38%
ROE(5y)16.95%
ROIC(3y)14.9%
ROIC(5y)12.43%
PCTY Yearly ROA, ROE, ROICPCTY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15 20

1.3 Margins

  • The Profit Margin of PCTY (14.19%) is better than 81.61% of its industry peers.
  • PCTY's Profit Margin has improved in the last couple of years.
  • PCTY has a better Operating Margin (20.11%) than 85.06% of its industry peers.
  • In the last couple of years the Operating Margin of PCTY has grown nicely.
  • Looking at the Gross Margin, with a value of 68.97%, PCTY belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
  • PCTY's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 20.11%
PM (TTM) 14.19%
GM 68.97%
OM growth 3Y23.16%
OM growth 5Y8.88%
PM growth 3Y10.17%
PM growth 5Y4.38%
GM growth 3Y1.21%
GM growth 5Y0.35%
PCTY Yearly Profit, Operating, Gross MarginsPCTY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. PCTY Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PCTY is creating value.
  • PCTY has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, PCTY has more shares outstanding
  • PCTY has a worse debt/assets ratio than last year.
PCTY Yearly Shares OutstandingPCTY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
PCTY Yearly Total Debt VS Total AssetsPCTY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • Based on the Altman-Z score of 1.26, we must say that PCTY is in the distress zone and has some risk of bankruptcy.
  • PCTY's Altman-Z score of 1.26 is on the low side compared to the rest of the industry. PCTY is outperformed by 66.67% of its industry peers.
  • The Debt to FCF ratio of PCTY is 0.20, which is an excellent value as it means it would take PCTY, only 0.20 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of PCTY (0.20) is better than 82.76% of its industry peers.
  • PCTY has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.07, PCTY is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.2
Altman-Z 1.26
ROIC/WACC2.13
WACC9.06%
PCTY Yearly LT Debt VS Equity VS FCFPCTY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 1.04 indicates that PCTY should not have too much problems paying its short term obligations.
  • PCTY has a Current ratio of 1.04. This is in the lower half of the industry: PCTY underperforms 74.71% of its industry peers.
  • PCTY has a Quick Ratio of 1.04. This is a normal value and indicates that PCTY is financially healthy and should not expect problems in meeting its short term obligations.
  • PCTY's Quick ratio of 1.04 is on the low side compared to the rest of the industry. PCTY is outperformed by 74.71% of its industry peers.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 1.04
PCTY Yearly Current Assets VS Current LiabilitesPCTY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. PCTY Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 10.48% over the past year.
  • The Earnings Per Share has been growing by 30.84% on average over the past years. This is a very strong growth
  • The Revenue has grown by 12.08% in the past year. This is quite good.
  • PCTY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.23% yearly.
EPS 1Y (TTM)10.48%
EPS 3Y30.18%
EPS 5Y30.84%
EPS Q2Q%21.71%
Revenue 1Y (TTM)12.08%
Revenue growth 3Y23.22%
Revenue growth 5Y23.23%
Sales Q2Q%10.39%

3.2 Future

  • The Earnings Per Share is expected to grow by 16.32% on average over the next years. This is quite good.
  • PCTY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.51% yearly.
EPS Next Y10.21%
EPS Next 2Y8.98%
EPS Next 3Y10.53%
EPS Next 5Y16.32%
Revenue Next Year10.22%
Revenue Next 2Y9.07%
Revenue Next 3Y9.21%
Revenue Next 5Y9.51%

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.
PCTY Yearly Revenue VS EstimatesPCTY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1B 2B 3B
PCTY Yearly EPS VS EstimatesPCTY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 2 4 6 8 10

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Find the best growth stocksShow best growing peers

5

4. PCTY Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 14.82, the valuation of PCTY can be described as correct.
  • Based on the Price/Earnings ratio, PCTY is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
  • PCTY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.23.
  • PCTY is valuated correctly with a Price/Forward Earnings ratio of 13.21.
  • 66.67% of the companies in the same industry are more expensive than PCTY, based on the Price/Forward Earnings ratio.
  • PCTY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.28.
Industry RankSector Rank
PE 14.82
Fwd PE 13.21
PCTY Price Earnings VS Forward Price EarningsPCTY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • PCTY's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, PCTY is valued a bit cheaper than 66.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.27
EV/EBITDA 13.43
PCTY Per share dataPCTY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • PCTY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.45
PEG (5Y)0.48
EPS Next 2Y8.98%
EPS Next 3Y10.53%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. PCTY Dividend Analysis

5.1 Amount

  • PCTY does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

PCTY Fundamentals: All Metrics, Ratios and Statistics

PAYLOCITY HOLDING CORP

NASDAQ:PCTY (3/20/2026, 8:16:25 PM)

After market: 112.52 0 (0%)

112.52

+1.62 (+1.46%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners82.27%
Inst Owner Change0.57%
Ins Owners19.5%
Ins Owner Change-1.47%
Market Cap6.06B
Revenue(TTM)1.68B
Net Income(TTM)238.28M
Analysts84.29
Price Target169.92 (51.01%)
Short Float %5.27%
Short Ratio2.61
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)9.39%
Min EPS beat(2)9.32%
Max EPS beat(2)9.46%
EPS beat(4)4
Avg EPS beat(4)10.03%
Min EPS beat(4)9.32%
Max EPS beat(4)11.41%
EPS beat(8)8
Avg EPS beat(8)10.21%
EPS beat(12)12
Avg EPS beat(12)11.71%
EPS beat(16)16
Avg EPS beat(16)19.61%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)0.1%
Revenue beat(4)3
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-0.16%
Max Revenue beat(4)1.15%
Revenue beat(8)5
Avg Revenue beat(8)-0.94%
Revenue beat(12)7
Avg Revenue beat(12)-0.86%
Revenue beat(16)10
Avg Revenue beat(16)-0.07%
PT rev (1m)-13.38%
PT rev (3m)-13.95%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)2.73%
EPS NY rev (1m)2.48%
EPS NY rev (3m)3.66%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)1.19%
Valuation
Industry RankSector Rank
PE 14.82
Fwd PE 13.21
P/S 3.61
P/FCF 15.27
P/OCF 12.74
P/B 5.52
P/tB 11.26
EV/EBITDA 13.43
EPS(TTM)7.59
EY6.75%
EPS(NY)8.52
Fwd EY7.57%
FCF(TTM)7.37
FCFY6.55%
OCF(TTM)8.83
OCFY7.85%
SpS31.17
BVpS20.38
TBVpS9.99
PEG (NY)1.45
PEG (5Y)0.48
Graham Number59
Profitability
Industry RankSector Rank
ROA 3.42%
ROE 21.69%
ROCE 26.09%
ROIC 19.33%
ROICexc 22.1%
ROICexgc 43.73%
OM 20.11%
PM (TTM) 14.19%
GM 68.97%
FCFM 23.63%
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%
ROICexgc growth 3Y31.79%
ROICexgc 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-Score6
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.2
Debt/EBITDA 0.18
Cap/Depr 73.48%
Cap/Sales 4.71%
Interest Coverage 30.63
Cash Conversion 106.85%
Profit Quality 166.57%
Current Ratio 1.04
Quick Ratio 1.04
Altman-Z 1.26
F-Score6
WACC9.06%
ROIC/WACC2.13
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)10.48%
EPS 3Y30.18%
EPS 5Y30.84%
EPS Q2Q%21.71%
EPS Next Y10.21%
EPS Next 2Y8.98%
EPS Next 3Y10.53%
EPS Next 5Y16.32%
Revenue 1Y (TTM)12.08%
Revenue growth 3Y23.22%
Revenue growth 5Y23.23%
Sales Q2Q%10.39%
Revenue Next Year10.22%
Revenue Next 2Y9.07%
Revenue Next 3Y9.21%
Revenue Next 5Y9.51%
EBIT growth 1Y20.68%
EBIT growth 3Y51.75%
EBIT growth 5Y34.18%
EBIT Next Year30.47%
EBIT Next 3Y16.72%
EBIT Next 5Y18.79%
FCF growth 1Y49.78%
FCF growth 3Y49.54%
FCF growth 5Y37.24%
OCF growth 1Y39.55%
OCF growth 3Y39.19%
OCF growth 5Y29.99%

PAYLOCITY HOLDING CORP / PCTY Fundamental Analysis FAQ

What is the ChartMill fundamental rating of PAYLOCITY HOLDING CORP (PCTY) stock?

ChartMill assigns a fundamental rating of 6 / 10 to PCTY.


What is the valuation status of PAYLOCITY HOLDING CORP (PCTY) stock?

ChartMill assigns a valuation rating of 5 / 10 to PAYLOCITY HOLDING CORP (PCTY). This can be considered as Fairly Valued.


How profitable is PAYLOCITY HOLDING CORP (PCTY) stock?

PAYLOCITY HOLDING CORP (PCTY) has a profitability rating of 8 / 10.


What is the earnings growth outlook for PAYLOCITY HOLDING CORP?

The Earnings per Share (EPS) of PAYLOCITY HOLDING CORP (PCTY) is expected to grow by 10.21% in the next year.