146.81 USD
-0.52 (-0.35%)
146.81 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PCTY. PCTY was compared to 87 industry peers in the Professional Services industry. PCTY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PCTY is not overvalued while it is showing excellent growth. This is an interesting combination. This makes PCTY very considerable for growth and quality 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.
In the past 5 years PCTY always reported a positive cash flow from operatings.
1.2 Ratios
PCTY has a Return On Assets of 5.32%. This is comparable to the rest of the industry: PCTY outperforms 59.77% of its industry peers.
PCTY has a Return On Equity of 20.44%. This is in the better half of the industry: PCTY outperforms 71.26% of its industry peers.
PCTY has a Return On Invested Capital of 18.02%. This is amongst the best in the industry. PCTY outperforms 85.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PCTY is above the industry average of 12.15%.
The last Return On Invested Capital (18.02%) for PCTY is above the 3 year average (14.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 20.44% | ||
| ROIC | 18.02% |
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
Looking at the Profit Margin, with a value of 13.75%, PCTY belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
In the last couple of years the Profit Margin of PCTY has grown nicely.
With an excellent Operating Margin value of 19.15%, PCTY belongs to the best of the industry, outperforming 85.06% of the companies in the same industry.
PCTY's Operating Margin has improved in the last couple of years.
The Gross Margin of PCTY (68.81%) is better than 83.91% 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 | 19.15% | ||
| PM (TTM) | 13.75% | ||
| GM | 68.81% |
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
PCTY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
PCTY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PCTY has been increased compared to 5 years ago.
The debt/assets ratio for PCTY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.54 indicates that PCTY is not a great score, but indicates only limited risk for bankruptcy at the moment.
PCTY has a Altman-Z score of 2.54. This is comparable to the rest of the industry: PCTY outperforms 47.13% of its industry peers.
The Debt to FCF ratio of PCTY is 0.24, which is an excellent value as it means it would take PCTY, only 0.24 years of fcf income to pay off all of its debts.
PCTY's Debt to FCF ratio of 0.24 is amongst the best of the industry. PCTY outperforms 80.46% 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.
The Debt to Equity ratio of PCTY (0.07) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 2.54 |
ROIC/WACC2.07
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.07 indicates that PCTY should not have too much problems paying its short term obligations.
PCTY has a Current ratio of 1.07. This is in the lower half of the industry: PCTY underperforms 72.41% of its industry peers.
PCTY has a Quick Ratio of 1.07. This is a normal value and indicates that PCTY is financially healthy and should not expect problems in meeting its short term obligations.
PCTY has a Quick ratio of 1.07. This is in the lower half of the industry: PCTY underperforms 71.26% of its industry peers.
PCTY does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.14% 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.
PCTY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.30%.
The Revenue has been growing by 23.23% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)6.14%
EPS 3Y30.18%
EPS 5Y30.84%
EPS Q2Q%5.42%
Revenue 1Y (TTM)13.3%
Revenue growth 3Y23.22%
Revenue growth 5Y23.23%
Sales Q2Q%12.46%
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.
PCTY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.50% yearly.
EPS Next Y3.7%
EPS Next 2Y6.42%
EPS Next 3Y10.73%
EPS Next 5Y16.32%
Revenue Next Year8.49%
Revenue Next 2Y8.73%
Revenue Next 3Y9.62%
Revenue Next 5Y9.5%
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
Based on the Price/Earnings ratio of 20.22, the valuation of PCTY can be described as rather expensive.
PCTY's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.11. PCTY is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.08, which indicates a rather expensive current valuation of PCTY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PCTY is on the same level as its industry peers.
PCTY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.22 | ||
| Fwd PE | 18.08 |
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.
PCTY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.76 | ||
| EV/EBITDA | 18.83 |
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.
The excellent profitability rating of PCTY may justify a higher PE ratio.
PEG (NY)5.47
PEG (5Y)0.66
EPS Next 2Y6.42%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
PCTY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
146.81
-0.52 (-0.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners82.09%
Inst Owner Change3.36%
Ins Owners20.07%
Ins Owner Change0.59%
Market Cap7.98B
Revenue(TTM)1.64B
Net Income(TTM)225.54M
Analysts80.74
Price Target198.11 (34.94%)
Short Float %3.74%
Short Ratio2.53
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)9.7%
Min EPS beat(2)9.46%
Max EPS beat(2)9.93%
EPS beat(4)4
Avg EPS beat(4)8.87%
Min EPS beat(4)4.67%
Max EPS beat(4)11.41%
EPS beat(8)8
Avg EPS beat(8)10.83%
EPS beat(12)12
Avg EPS beat(12)15.11%
EPS beat(16)16
Avg EPS beat(16)22.66%
Revenue beat(2)2
Avg Revenue beat(2)0.63%
Min Revenue beat(2)0.1%
Max Revenue beat(2)1.15%
Revenue beat(4)4
Avg Revenue beat(4)0.56%
Min Revenue beat(4)0.1%
Max Revenue beat(4)1.15%
Revenue beat(8)5
Avg Revenue beat(8)-1.1%
Revenue beat(12)8
Avg Revenue beat(12)-0.59%
Revenue beat(16)11
Avg Revenue beat(16)0.08%
PT rev (1m)-11.58%
PT rev (3m)-13.05%
EPS NQ rev (1m)4.48%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.22 | ||
| Fwd PE | 18.08 | ||
| P/S | 4.87 | ||
| P/FCF | 23.76 | ||
| P/OCF | 19.32 | ||
| P/B | 7.23 | ||
| P/tB | 14.81 | ||
| EV/EBITDA | 18.83 |
EPS(TTM)7.26
EY4.95%
EPS(NY)8.12
Fwd EY5.53%
FCF(TTM)6.18
FCFY4.21%
OCF(TTM)7.6
OCFY5.18%
SpS30.17
BVpS20.29
TBVpS9.92
PEG (NY)5.47
PEG (5Y)0.66
Graham Number57.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 20.44% | ||
| ROCE | 24.33% | ||
| ROIC | 18.02% | ||
| ROICexc | 20.67% | ||
| ROICexgc | 41.44% | ||
| OM | 19.15% | ||
| PM (TTM) | 13.75% | ||
| GM | 68.81% | ||
| FCFM | 20.48% |
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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.24 | ||
| Debt/EBITDA | 0.19 | ||
| Cap/Depr | 73.14% | ||
| Cap/Sales | 4.71% | ||
| Interest Coverage | 21 | ||
| Cash Conversion | 98.47% | ||
| Profit Quality | 148.99% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.54 |
F-Score6
WACC8.69%
ROIC/WACC2.07
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)6.14%
EPS 3Y30.18%
EPS 5Y30.84%
EPS Q2Q%5.42%
EPS Next Y3.7%
EPS Next 2Y6.42%
EPS Next 3Y10.73%
EPS Next 5Y16.32%
Revenue 1Y (TTM)13.3%
Revenue growth 3Y23.22%
Revenue growth 5Y23.23%
Sales Q2Q%12.46%
Revenue Next Year8.49%
Revenue Next 2Y8.73%
Revenue Next 3Y9.62%
Revenue Next 5Y9.5%
EBIT growth 1Y10.97%
EBIT growth 3Y51.75%
EBIT growth 5Y34.18%
EBIT Next Year28.11%
EBIT Next 3Y18.14%
EBIT Next 5Y18.79%
FCF growth 1Y30.6%
FCF growth 3Y49.54%
FCF growth 5Y37.24%
OCF growth 1Y25.83%
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.
Can you provide the valuation status for PAYLOCITY HOLDING CORP?
ChartMill assigns a valuation rating of 4 / 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.
Can you provide the PE and PB ratios for PCTY stock?
The Price/Earnings (PE) ratio for PAYLOCITY HOLDING CORP (PCTY) is 20.22 and the Price/Book (PB) ratio is 7.23.
What is the financial health of PAYLOCITY HOLDING CORP (PCTY) stock?
The financial health rating of PAYLOCITY HOLDING CORP (PCTY) is 7 / 10.