(PCTY) Paylocity Holding - Overview
Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 6.154m USD | Total Return: -41.4% in 12m
Avg Turnover: 75.4M
EPS Trend: 27.0%
Qual. Beats: 1
Rev. Trend: 97.5%
Qual. Beats: 1
Warnings
Beneish M-Score -0.76 > -1.5 - likely earnings manipulation
Altman Z'' -2.82 < 1.0 - financial distress zone
Tailwinds
Confidence
Paylocity Holding Corporation (NASDAQ: PCTY) is a provider of cloud-based human capital management (HCM) and payroll software solutions tailored for small to mid-sized organizations in the United States. Its integrated platform automates core administrative functions, including tax filing, time tracking, talent acquisition, and employee benefits administration. The company operates under a Software-as-a-Service (SaaS) business model, typically generating recurring revenue through per-employee-per-month subscription fees.
The company has expanded its ecosystem to include spend management and financial tools, such as accounts payable automation and expense tracking. In the HCM sector, consolidation and the integration of artificial intelligence for talent analytics are current primary drivers of product development. Investors may find it useful to review ValueRay for further data on these industry trends. Based in Schaumburg, Illinois, Paylocity serves a diverse client base across industries including healthcare, manufacturing, and professional services.
- SMB client growth and retention drive core recurring subscription revenue expansion
- High interest rates bolster float income on client funds held for payroll
- Expansion into spend management and HR automation increases average revenue per user
- Competitive pressure from ADP and Paychex impacts market share and pricing power
- Employment levels and wage growth fluctuations directly influence per-employee-per-month service fees
| Net Income: 258.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 1.26 > 1.0 |
| NWC/Revenue: -203.7% < 20% (prev 31.73%; Δ -235.4% < -1%) |
| CFO/TA 0.09 > 3% & CFO 507.9m > Net Income 258.0m |
| Net Debt (-111.9m) to EBITDA (478.7m): -0.23 < 3 |
| Current Ratio: 0.13 > 1.5 & < 3 |
| Outstanding Shares: last quarter (55.0m) vs 12m ago -3.11% < -2% |
| Gross Margin: 69.30% > 18% (prev 68.62%; Δ 0.68% > 0.5%) |
| Asset Turnover: 32.55% > 50% (prev 29.15%; Δ 3.40% > 0%) |
| Interest Coverage Ratio: 28.32 > 6 (EBIT TTM 369.6m / Interest Expense TTM 13.1m) |
| A: -0.65 (Total Current Assets 519.9m - Total Current Liabilities 4.04b) / Total Assets 5.44b |
| B: 0.20 (Retained Earnings 1.11b / Total Assets 5.44b) |
| C: 0.07 (EBIT TTM 369.6m / Avg Total Assets 5.31b) |
| D: 0.28 (Book Value of Equity 1.18b / Total Liabilities 4.26b) |
| Altman-Z'' = -2.82 = D |
| DSRI: 0.97 (Receivables 48.4m/43.6m, Revenue 1.73b/1.51b) |
| GMI: 0.99 (GM 68.62% / 69.30%) |
| AQI: 4.71 (AQ_t 0.89 / AQ_t-1 0.19) |
| SGI: 1.15 (Revenue 1.73b / 1.51b) |
| TATA: -0.05 (NI 258.0m - CFO 507.9m) / TA 5.44b) |
| Beneish M = -0.76 (Cap -4..+1) = D |
As of June 07, 2026, the stock is trading at USD 113.46 with a total of 630,893 shares traded.
Over the past week, the price has changed by -1.28%,
over one month by +5.37%,
over three months by -2.18% and
over the past year by -41.43%.
Paylocity Holding has received a consensus analysts rating of 4.15. Therefore, it is recommended to buy PCTY.
- StrongBuy: 10
- Buy: 4
- Hold: 5
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 152.9 | 34.7% |
P/E Trailing = 24.6103
P/E Forward = 13.0039
P/S = 3.5626
P/B = 5.2087
P/EG = 0.9033
Revenue TTM = 1.73b USD
EBIT TTM = 369.6m USD
EBITDA TTM = 478.7m USD
Long Term Debt = 81.2m USD (from longTermDebt, last quarter)
Short Term Debt = 9.37m USD (from shortTermDebt, last quarter)
Debt = 187.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 53.3m
Net Debt = -111.9m USD (calculated: Debt 187.9m - CCE 299.7m)
Enterprise Value = 6.04b USD (6.15b + Debt 187.9m - CCE 299.7m)
Interest Coverage Ratio = 28.32 (Ebit TTM 369.6m / Interest Expense TTM 13.1m)
EV/FCF = 12.85x (Enterprise Value 6.04b / FCF TTM 470.1m)
FCF Yield = 7.78% (FCF TTM 470.1m / Enterprise Value 6.04b)
FCF Margin = 27.22% (FCF TTM 470.1m / Revenue TTM 1.73b)
Net Margin = 14.94% (Net Income TTM 258.0m / Revenue TTM 1.73b)
Gross Margin = 69.30% ((Revenue TTM 1.73b - Cost of Revenue TTM 530.3m) / Revenue TTM)
Gross Margin QoQ = 72.31% (prev 67.80%)
Tobins Q-Ratio = 1.11 (Enterprise Value 6.04b / Total Assets 5.44b)
Interest Expense / Debt = 6.95% (Interest Expense 13.1m / Debt 187.9m)
Taxrate = 30.06% (110.9m / 368.9m)
NOPAT = 258.5m (EBIT 369.6m * (1 - 30.06%))
Current Ratio = 0.13 (Total Current Assets 519.9m / Total Current Liabilities 4.04b)
Debt / Equity = 0.16 (Debt 187.9m / totalStockholderEquity, last quarter 1.18b)
Debt / EBITDA = -0.23 (Net Debt -111.9m / EBITDA 478.7m)
Debt / FCF = -0.24 (Net Debt -111.9m / FCF TTM 470.1m)
Total Stockholder Equity = 1.15b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.86% (Net Income 258.0m / Total Assets 5.44b)
RoE = 22.36% (Net Income TTM 258.0m / Total Stockholder Equity 1.15b)
RoCE = 29.92% (EBIT 369.6m / Capital Employed (Equity 1.15b + L.T.Debt 81.2m))
RoIC = 19.45% (NOPAT 258.5m / Invested Capital 1.33b)
WACC = 7.26% (E(6.15b)/V(6.34b) * Re(7.33%) + D(187.9m)/V(6.34b) * Rd(6.95%) * (1-Tc(0.30)))
Discount Rate = 7.33% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -77.78 | Cagr: -1.45%
[DCF] Terminal Value 77.97% ; FCFF base≈434.6m ; Y1≈498.2m ; Y5≈733.2m
[DCF] Fair Price = 208.2 (EV 11.0b - Net Debt -111.9m = Equity 11.1b / Shares 53.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 27.04 | EPS CAGR: 2.45% | SUE: 2.45 | # QB: 1
Revenue Correlation: 97.47 | Revenue CAGR: 13.02% | SUE: 1.45 | # QB: 1
EPS next Quarter (2026-09-30): EPS=1.88 | Chg30d=+1.43% | Revisions=+18% | Analysts=18
EPS current Year (2026-06-30): EPS=8.08 | Chg30d=+4.19% | Revisions=+83% | GrowthEPS=+12.7% | GrowthRev=+10.2%
EPS next Year (2027-06-30): EPS=8.70 | Chg30d=+4.38% | Revisions=+58% | GrowthEPS=+7.7% | GrowthRev=+7.7%
[Analyst] Revisions Ratio: +83%