PAYLOCITY HOLDING CORP (PCTY) Stock Fundamental Analysis

NASDAQ:PCTY • US70438V1061

103.78 USD
+0.64 (+0.62%)
At close: Feb 25, 2026
103.78 USD
0 (0%)
After Hours: 2/25/2026, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Overall PCTY gets a fundamental rating of 6 out of 10. We evaluated PCTY against 88 industry peers in the Professional Services industry. PCTY scores excellent on profitability, but there are some minor concerns on its financial health. PCTY is growing strongly while it is still valued neutral. This is a good combination! This makes PCTY very considerable for growth investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year PCTY was profitable.
  • In the past year PCTY had a positive cash flow from operations.
  • PCTY had positive earnings in each of the past 5 years.
  • Each year in the past 5 years PCTY had a positive operating cash flow.
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

  • The Return On Assets of PCTY (3.42%) is comparable to the rest of the industry.
  • Looking at the Return On Equity, with a value of 21.69%, PCTY is in the better half of the industry, outperforming 73.86% of the companies in the same industry.
  • PCTY has a better Return On Invested Capital (19.33%) than 88.64% 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 12.91%.
  • The last Return On Invested Capital (19.33%) for PCTY is above the 3 year average (14.90%), which is a sign of increasing profitability.
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

  • PCTY's Profit Margin of 14.19% is amongst the best of the industry. PCTY outperforms 81.82% of its industry peers.
  • PCTY's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 20.11%, PCTY belongs to the best of the industry, outperforming 84.09% of the companies in the same industry.
  • In the last couple of years the Operating Margin of PCTY has grown nicely.
  • With an excellent Gross Margin value of 68.97%, PCTY belongs to the best of the industry, outperforming 87.50% 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. Health

2.1 Basic Checks

  • PCTY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • Compared to 1 year ago, PCTY has less shares outstanding
  • PCTY has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for PCTY is higher compared to a year ago.
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

  • PCTY has an Altman-Z score of 1.21. This is a bad value and indicates that PCTY is not financially healthy and even has some risk of bankruptcy.
  • PCTY has a Altman-Z score of 1.21. This is in the lower half of the industry: PCTY underperforms 67.05% 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.
  • PCTY's Debt to FCF ratio of 0.20 is amongst the best of the industry. PCTY outperforms 84.09% of its industry peers.
  • A Debt/Equity ratio of 0.07 indicates that PCTY is not too dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.07, PCTY is doing good in the industry, outperforming 68.18% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.2
Altman-Z 1.21
ROIC/WACC2.22
WACC8.72%
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.
  • Looking at the Current ratio, with a value of 1.04, PCTY is doing worse than 73.86% of the companies in the same industry.
  • A Quick Ratio of 1.04 indicates that PCTY should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.04, PCTY is doing worse than 73.86% of the companies in the same industry.
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. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 10.48% over the past year.
  • Measured over the past years, PCTY shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.84% on average per year.
  • The Revenue has grown by 12.08% in the past year. This is quite good.
  • Measured over the past years, PCTY shows a very strong growth in Revenue. The Revenue has been growing by 23.23% on average per year.
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

  • PCTY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.32% yearly.
  • 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 Y7.55%
EPS Next 2Y8.22%
EPS Next 3Y10.71%
EPS Next 5Y16.32%
Revenue Next Year9.79%
Revenue Next 2Y8.9%
Revenue Next 3Y9.21%
Revenue Next 5Y9.51%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 13.67, which indicates a correct valuation of PCTY.
  • PCTY's Price/Earnings ratio is a bit cheaper when compared to the industry. PCTY is cheaper than 70.45% of the companies in the same industry.
  • PCTY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.05, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 12.36, PCTY is valued correctly.
  • Based on the Price/Forward Earnings ratio, PCTY is valued a bit cheaper than 69.32% of the companies in the same industry.
  • PCTY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.03.
Industry RankSector Rank
PE 13.67
Fwd PE 12.36
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

  • Based on the Enterprise Value to EBITDA ratio, PCTY is valued a bit cheaper than the industry average as 61.36% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of PCTY indicates a somewhat cheap valuation: PCTY is cheaper than 72.73% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 14.09
EV/EBITDA 12.29
PCTY Per share dataPCTY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PCTY does not grow enough to justify the current Price/Earnings ratio.
  • PCTY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.81
PEG (5Y)0.44
EPS Next 2Y8.22%
EPS Next 3Y10.71%

More info and screens

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

0

5. Dividend

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

PAYLOCITY HOLDING CORP

NASDAQ:PCTY (2/25/2026, 8:00:01 PM)

After market: 103.78 0 (0%)

103.78

+0.64 (+0.62%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners79.86%
Inst Owner Change0.52%
Ins Owners19.38%
Ins Owner Change-1.27%
Market Cap5.59B
Revenue(TTM)1.68B
Net Income(TTM)238.28M
Analysts82.86
Price Target196.17 (89.02%)
Short Float %5.1%
Short Ratio2.86
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)-0.25%
PT rev (3m)-0.98%
EPS NQ rev (1m)2.16%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)0.47%
EPS NY rev (3m)3.72%
Revenue NQ rev (1m)1.18%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)1.2%
Valuation
Industry RankSector Rank
PE 13.67
Fwd PE 12.36
P/S 3.33
P/FCF 14.09
P/OCF 11.75
P/B 5.09
P/tB 10.39
EV/EBITDA 12.29
EPS(TTM)7.59
EY7.31%
EPS(NY)8.4
Fwd EY8.09%
FCF(TTM)7.37
FCFY7.1%
OCF(TTM)8.83
OCFY8.51%
SpS31.17
BVpS20.38
TBVpS9.99
PEG (NY)1.81
PEG (5Y)0.44
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 1.21
F-Score6
WACC8.72%
ROIC/WACC2.22
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 Y7.55%
EPS Next 2Y8.22%
EPS Next 3Y10.71%
EPS Next 5Y16.32%
Revenue 1Y (TTM)12.08%
Revenue growth 3Y23.22%
Revenue growth 5Y23.23%
Sales Q2Q%10.39%
Revenue Next Year9.79%
Revenue Next 2Y8.9%
Revenue Next 3Y9.21%
Revenue Next 5Y9.51%
EBIT growth 1Y20.68%
EBIT growth 3Y51.75%
EBIT growth 5Y34.18%
EBIT Next Year29.03%
EBIT Next 3Y17.53%
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 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 7.55% in the next year.