PCTY Stock Analysis: Paylocity Holding | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 9.245m USD | 12M Return: 12.9% | US70438V1061 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 91.5M
EPS Trend: 96.6%
Qual. Beats: 16
Rev. Trend: 99.5%
Qual. Beats: 2
Warnings
No concerns identified
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Paylocity Holding Corporation (NASDAQ: PCTY) is a U.S.-based provider of cloud-based human capital management (HCM), payroll, finance, and IT software solutions, headquartered in Schaumburg, Illinois and founded in 1997. The company operates a multi-product platform spanning payroll, HR, time and labor, talent, benefits, employee experience, and IT services, supported by implementation, training, and tax/regulatory offerings.
Paylocity sells to a diverse customer base of for-profit and non-profit organizations across industries including business services, financial services, healthcare, manufacturing, restaurants, retail, and technology, primarily through a direct sales force. As a competitor in the cloud-based HCM market alongside firms such as ADP, Paylocity, and others, it serves mid-market employers with a bundled subscription model-an approach that has become the dominant delivery method in workforce management software due to lower upfront costs and faster deployment compared with legacy on-premise systems.
- Recurring subscription revenue growth fuels top-line expansion
- Interest income on client funds lifts margins amid rate environment
- Competition intensifies from ADP, Workday, and UKG in mid-market
| Net Income: 269.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 0.33 > 1.0 |
| NWC/Revenue: 17.10% < 20% (prev 26.24%; Δ -9.15% < -1%) |
| CFO/TA 0.11 > 3% & CFO 533.3m > Net Income 269.7m |
| Net Debt (-96.7m) to EBITDA (499.1m): -0.19 < 3 |
| Current Ratio: 1.09 > 1.5 & < 3 |
| Outstanding Shares: last quarter (54.8m) vs 12m ago -2.64% < -2% |
| Gross Margin: 69.19% > 18% (prev 68.72%; Δ 0.46% > 0.5%) |
| Asset Turnover: 38.20% > 50% (prev 35.31%; Δ 2.89% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.06 (Total Current Assets 3.72b - Total Current Liabilities 3.42b) / Total Assets 4.88b |
| B: 0.24 (Retained Earnings 1.17b / Total Assets 4.88b) |
| C: 0.08 (EBIT TTM 387.3m / Avg Total Assets 4.64b) |
| D: 0.33 (Book Value of Equity 1.22b / Total Liabilities 3.66b) |
| Altman-Z'' = 2.10 = BBB |
| DSRI: 1.05 (Receivables 50.1m/41.6m, Revenue 1.77b/1.55b) |
| GMI: 0.99 (GM 68.72% / 69.19%) |
| AQI: 0.83 (AQ_t 0.19 / AQ_t-1 0.22) |
| SGI: 1.14 (Revenue 1.77b / 1.55b) |
| TATA: -0.05 (NI 269.7m - CFO 533.3m) / TA 4.88b) |
| Beneish M = -2.99 (Cap -4..+1) = A |
As of October 29, 2026, the stock is trading at USD 168.50 with a total of 522,905 shares traded. Over the past week, the price has changed by -0.49%, over one month by +18.06%, over three months by +21.50% and over the past year by +12.86%.
Current recommended Stop Loss: 162.50 (which is 3.6% or 1.3 ATR below the current price).
Paylocity Holding has received a consensus analysts rating of 4.57. Therefore, it is recommended to buy PCTY.
- StrongBuy: 15
- Buy: 3
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 175.9 | 4.4% |
P/E Trailing = 36.0142
P/E Forward = 25.5102
P/S = 5.2191
P/B = 6.9302
P/EG = 1.6105
Revenue TTM = 1.77b USD
EBIT TTM = 387.3m USD
EBITDA TTM = 499.1m USD
Long Term Debt = 81.2m USD (from longTermDebt, last quarter)
Short Term Debt = 9.37m USD (from shortTermDebt, two quarters ago)
Debt = 175.2m USD (from shortLongTermDebtTotal, last quarter) + Leases 51.7m
Net Debt = -96.7m USD (calculated: Debt 175.2m - CCE 271.9m)
Enterprise Value = 9.15b USD (9.24b + Debt 175.2m - CCE 271.9m)
Interest Coverage Ratio = unknown (Ebit TTM 387.3m / Interest Expense TTM 0.0)
EV/FCF = 20.42x (Enterprise Value 9.15b / FCF TTM 448.0m)
FCF Yield = 4.90% (FCF TTM 448.0m / Enterprise Value 9.15b)
FCF Margin = 25.29% (FCF TTM 448.0m / Revenue TTM 1.77b)
Net Margin = 15.23% (Net Income TTM 269.7m / Revenue TTM 1.77b)
Gross Margin = 69.19% ((Revenue TTM 1.77b - Cost of Revenue TTM 545.8m) / Revenue TTM)
Gross Margin QoQ = 67.54% (prev 72.31%)
Tobins Q-Ratio = 1.87 (Enterprise Value 9.15b / Total Assets 4.88b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 175.2m)
Taxrate = 30.35% (117.6m / 387.3m)
NOPAT = 269.7m (EBIT 387.3m * (1 - 30.35%))
Current Ratio = 1.09 (Total Current Assets 3.72b / Total Current Liabilities 3.42b)
Debt / Equity = 0.14 (Debt 175.2m / totalStockholderEquity, last quarter 1.22b)
Debt / EBITDA = -0.19 (Net Debt -96.7m / EBITDA 499.1m)
Debt / FCF = -0.22 (Net Debt -96.7m / FCF TTM 448.0m)
Total Stockholder Equity = 1.15b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.82% (Net Income 269.7m / Total Assets 4.88b)
RoE = 23.44% (Net Income TTM 269.7m / Total Stockholder Equity 1.15b)
RoCE = 31.43% (EBIT 387.3m / Capital Employed (Equity 1.15b + L.T.Debt 81.2m))
RoIC = 19.61% (NOPAT 269.7m / Invested Capital 1.38b)
WACC = 6.41% (E(9.24b)/V(9.42b) * Re(6.53%) + D(175.2m)/V(9.42b) * Rd(0.0%) * (1-Tc(0.30)))
Discount Rate = 6.53% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -92.88 | Cagr: -1.79%
[DCF] Terminal Value 77.97% ; FCFF base≈424.1m ; Y1≈486.2m ; Y5≈715.5m
[DCF] Fair Price = 208.2 (EV 10.8b - Net Debt -96.7m = Equity 10.9b / Shares 52.2m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 96.64 | EPS CAGR: 12.24% | SUE: 4.0 | # QB: 16
Revenue Correlation: 99.54 | Revenue CAGR: 13.69% | SUE: 1.37 | # QB: 2
EPS current Quarter (2026-09-30): EPS=1.89 | Chg30d=-0.26% | Revisions=+55% | Analysts=18
EPS next Quarter (2026-12-31): EPS=1.89 | Chg30d=+0.06% | Revisions=+53% | Analysts=18
EPS current Year (2027-06-30): EPS=8.72 | Chg30d=+0.05% | Revisions=+25% | GrowthEPS=+5.0% | GrowthRev=+6.8%
EPS next Year (2028-06-30): EPS=9.68 | Chg30d=-0.05% | Revisions=+25% | GrowthEPS=+11.0% | GrowthRev=+7.8%
[Analyst] Revisions Ratio: +61% (up=29, down=6)