Paylocity Holding Balance Sheet Health
Financial Health criteria checks 5/6
Paylocity Holding has a total shareholder equity of $1.2B and total debt of $81.3M, which brings its debt-to-equity ratio to 6.9%. Its total assets and total liabilities are $5.4B and $4.3B respectively. Paylocity Holding's EBIT is $368.7M making its interest coverage ratio 45.7. It has cash and short-term investments of $299.7M.
Key information
6.88%
Debt to equity ratio
US$81.25m
Debt
| Interest coverage ratio | 45.7x |
| Cash | US$299.73m |
| Equity | US$1.18b |
| Total liabilities | US$4.26b |
| Total assets | US$5.44b |
Recent financial health updates
Recent updates
Analysis Article • May 16
We Like Paylocity Holding's (NASDAQ:PCTY) Earnings For More Than Just Statutory Profit
Paylocity Holding Corporation's ( NASDAQ:PCTY ) solid earnings announcement recently didn't do much to the stock price...Analysis Article • May 11
Paylocity Holding Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
Paylocity Holding Corporation ( NASDAQ:PCTY ) just released its latest third-quarter results and things are looking...
Narrative Update • May 09
PCTY: Mixed Revisions And Execution Risks Will Shape Future Share Performance
Analysts have adjusted their views on Paylocity Holding, resulting in a modest $1 change in the average price target. This reflects slightly updated assumptions on discount rates, revenue growth, profit margins, and future P/E multiples following a series of mixed target revisions across the Street.Narrative Update • Apr 25
PCTY: Lower Multiple And Buybacks Will Support Future Share Price Rebound
Analysts have reduced the Paylocity Holding price target by $52.88. The updated $114.00 level reflects revised expectations for growth, profitability and future P/E multiples following a series of downward target moves across the Street.
Narrative Update • Apr 09
PCTY: 2026 Software Rebound And Buybacks Will Support Upside Potential
Paylocity Holding's updated analyst price target edges slightly higher to about $228, as analysts factor in modestly adjusted assumptions for fair value, discount rate, revenue growth, profit margin and future P/E following a broad round of lowered Street targets across the payroll software group. Analyst Commentary Recent research on Paylocity shows a cluster of price target resets across the payroll software peer group, with analysts fine tuning their models on fair value, discount rates, revenue assumptions and profit margins.
Narrative Update • Mar 26
PCTY: Stable Margins And Buybacks Will Drive Long Term Upside
Analysts trimmed the Paylocity Holding fair value estimate by about $1 to $169.43 per share. The change reflects updated price targets across the Street and slightly higher discount rate and future P/E assumptions, while revenue growth and profit margin expectations remain essentially unchanged.Narrative Update • Mar 10
PCTY: 2026 Software Setup And Buybacks Will Support Upside Potential
Analyst price targets for Paylocity Holding have been reset lower, with a series of cuts ranging from $5 to $75 as analysts factor updated macro assumptions, sector-wide software rerating, and company specific expectations into their models. Analyst Commentary Despite the latest round of lower price targets, some bullish analysts are still highlighting areas where they see potential upside for Paylocity, particularly around execution and the setup for software over the next couple of years.Narrative Update • Feb 23
PCTY: 2026 Sector Setup And Buybacks Will Drive Upside
Our updated narrative on Paylocity reflects a reduced analyst price target of about $226, in line with a broad round of target cuts across the Street as analysts recalibrate for slightly lower revenue growth, narrower profit margin assumptions, a modestly higher discount rate, and a marginally higher future P/E multiple. Analyst Commentary Across the Street, most recent research has centered on recalibrating Paylocity price targets, with a cluster of firms trimming targets by between $5 and $75.Seeking Alpha • Feb 10
Paylocity: Appears Undervalued With Decent Rebound Potential
Summary Paylocity (PCTY) remains a Buy, with robust fundamentals and a $131 price target, implying 11% upside into FY 2027. PCTY delivered 10.4% YoY recurring revenue growth in Q2 2026, 92% retention, and expanding profitability, supported by strong FCF and aggressive share repurchases. Integration of Airbase and AI-driven enhancements are driving cross-sell opportunities and deeper wallet share, positioning PCTY for continued double-digit growth. Competitive risk from ADP and other large HCM players persists, but PCTY appears oversold after a -19% YTD decline. Read the full article on Seeking AlphaAnalysis Article • Feb 10
What You Can Learn From Paylocity Holding Corporation's (NASDAQ:PCTY) P/E After Its 25% Share Price Crash
Paylocity Holding Corporation ( NASDAQ:PCTY ) shareholders that were waiting for something to happen have been dealt a...Narrative Update • Feb 08
PCTY: Beat And Raise Cadence Will Drive Long Term Upside Potential
Analysts have reduced their Paylocity Holding price targets, reflected in our fair value update from $192.19 to $170.38. They largely cite sector wide target cuts and lower assumed future P/E multiples, even as revenue growth and profit margin assumptions in their models remain relatively steady.Narrative Update • Jan 25
PCTY: Beat And Raise Cadence Will Support Long Term Upside Potential
Narrative Update on Paylocity Holding Analysts have trimmed their fair value estimate for Paylocity Holding by about $1.66 to $192.19. This reflects a mix of lowered and raised price targets as they update assumptions on discount rates, long term margins, and future P/E multiples in light of recent sector outlooks and company specific research.Narrative Update • Jan 10
PCTY: Beat And Raise Cadence Will Support Long Term Capital Appreciation
Analysts have made a slight adjustment to their Paylocity fair value estimate to $193.85, reflecting updated assumptions for interest rates, earnings multiples, and recent research that includes both higher and lower price targets across firms. Analyst Commentary Recent research on Paylocity reflects a mix of optimism on execution and caution around the operating backdrop, with price targets clustering between US$175 and US$245 compared with the updated fair value estimate of US$193.85.Analysis Article • Jan 05
Shareholders Would Enjoy A Repeat Of Paylocity Holding's (NASDAQ:PCTY) Recent Growth In Returns
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...Narrative Update • Dec 25
PCTY Beat And Raise Cadence Will Drive Upside Through Fiscal 2026
Analysts have reduced their fair value estimate for Paylocity Holding to $250 from $270, citing a higher discount rate that more than offsets improving growth, margin expectations, and confidence in a beat and raise earnings trajectory reflected in recent, albeit lowered, price targets across the Street. Analyst Commentary Bullish analysts acknowledge the higher discount rate but continue to underscore Paylocity's ability to execute consistently, highlighting recent results and guidance that have outpaced muted investor expectations.Narrative Update • Dec 11
PCTY: Beat And Raise Cadence Will Drive Long Term Capital Appreciation
Narrative Update on Paylocity Holding Analyst Price Target Analysts have modestly fine tuned their price target assumptions for Paylocity Holding, maintaining fair value near $194 per share. Slight adjustments to discount rates and long term growth expectations reflect confidence in the company’s ability to deliver a beat and raise cadence and attractive long term appreciation, despite mixed target revisions across the Street.Narrative Update • Nov 27
PCTY: Beat-And-Raise Execution And Share Buyback Will Drive Outperformance In 2026
The analyst average price target for Paylocity was slightly reduced to $194.16 from $194.28, as analysts balanced steady fundamentals and recent guidance with ongoing sector volatility and cautious optimism around the company's growth prospects. Analyst Commentary Recent street research reveals both optimism and caution among analysts regarding Paylocity's outlook.Narrative Update • Nov 12
PCTY: Beat-And-Raise Cadence And Share Buybacks Will Drive Renewed Outperformance
Analysts have revised their price target for Paylocity Holding downward by approximately $20 to $194. This adjustment reflects tempered growth expectations and recent market commentary that highlights both near-term sector headwinds and the company's continued potential for long-term outperformance.Narrative Update • Oct 29
Recurring Revenue Strength And AI Integration Will Drive Long-Term Sector Gains
Analysts have slightly reduced their price target for Paylocity Holding, lowering it by about $1 to $214.58. They cite lower sector sentiment and expectations for subdued near-term performance despite stable company fundamentals.Narrative Update • Oct 15
Unified HR And Finance Solutions Will Empower Digital Transformation
Analysts have modestly reduced their fair value estimate for Paylocity Holding, lowering the price target by approximately $4.53 per share. They cited updated macroeconomic expectations and sector volatility as key factors behind the adjustment.Analysis Article • Jul 30
An Intrinsic Calculation For Paylocity Holding Corporation (NASDAQ:PCTY) Suggests It's 30% Undervalued
Key Insights Using the 2 Stage Free Cash Flow to Equity, Paylocity Holding fair value estimate is US$273 Paylocity...Analysis Article • Jul 17
Paylocity Holding (NASDAQ:PCTY) Is Looking To Continue Growing Its Returns On Capital
What are the early trends we should look for to identify a stock that could multiply in value over the long term...Analysis Article • Jul 03
Why We're Not Concerned About Paylocity Holding Corporation's (NASDAQ:PCTY) Share Price
Paylocity Holding Corporation's ( NASDAQ:PCTY ) price-to-earnings (or "P/E") ratio of 43.7x might make it look like a...Analysis Article • Jun 19
Does Paylocity Holding (NASDAQ:PCTY) Have A Healthy Balance Sheet?
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...Analysis Article • May 23
Here's Why Paylocity Holding (NASDAQ:PCTY) Has Caught The Eye Of Investors
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...Seeking Alpha • Mar 13
Paylocity: Airbase Integration To Strengthen Positioning
Summary Paylocity is a cloud payroll/HCM software provider with steady growth, recently acquiring Airbase to strengthen its market positioning and product offerings. Despite recent volatility, I maintain an overweight rating on PCTY, projecting a 10% return based on its solid fundamentals and revenue predictability. PCTY's Q2 2025 revenue grew 15.5% YoY, with strong liquidity and a healthy debt-to-equity ratio, though OCF showed seasonal decline. The Airbase acquisition expands PCTY's TAM and product integration, but potential pricing adjustments, if it happens, may pose a moderate risk to future revenue retention. Read the full article on Seeking AlphaSeeking Alpha • Dec 26
Paylocity: A Strong And Interesting HCM Play
Summary Paylocity Holding Corporation's recent sales growth exceeded expectations, but the stock's 50 times earnings multiple is too high given the slower growth rate. The company is a leader in cloud-based HR and payroll software, serving nearly 40,000 clients and showing impressive revenue growth, which ten folded over the past decade. The acquisition of Airbase aims to expand Paylocity's software offerings, but the deal's high cost and impact on margins warrant caution. Despite a strong track record and high insider ownership, the current valuation is demanding; I prefer to wait for more attractive entry points. Read the full article on Seeking AlphaSeeking Alpha • Oct 05
Paylocity: A Storm On The Horizon?
Summary FY 2025 projection of 8.3% vs. 19% in FY 2024 shows market saturation and difficulty in differentiating from competitors. R&D and SG&A expenses are up, impacting profitability and future growth. No signs that these expenses will decrease in the next quarters. Major players like ADP and Workday intensifying AI investment, threatening Paylocity’s position. The company has already invested in AI, but this trend could increase significantly R&D costs. Several executives and directors recently offloading stock despite buybacks suggest, in my view, weak confidence. High multiples (P/S 6.7, EV/EBITDA 31) indicate overvaluation despite solid fundamentals. I maintain a Hold rating for now. Read the full article on Seeking Alpha
New Narrative • Aug 27
Innovative Software And AI-driven Solutions Propel Market Dominance And Revenue Surge
Offering modern software and investing in product development, such as Advanced Scheduling and AI-driven tools, aims to attract clients and increase revenue.Seeking Alpha • Jul 21
Paylocity: Underappreciated Durable Growth
Summary Paylocity, a leading provider of cloud-based HR and payroll software, has been delivering strong and consistent revenue growth for many years. Despite its robust growth and profitability, Paylocity's stock appears undervalued, especially when compared to AI and semiconductor companies, making it worthy of investment consideration. Paylocity offers solid revenue growth, improving profit margins, and increasing earnings per share at a very attractive valuation. Read the full article on Seeking AlphaSeeking Alpha • Jun 28
Paylocity Stock Deserves A Closer Look At A 4-Year Low
Summary Paylocity is down 20% in 2024, trading at its lowest level since 2020. Uncertainties toward the U.S. labor market and its impact on demand for human capital management software have added volatility. PCTY stock remains well positioned to rebound, with its outlook supported by strong fundamentals. Read the full article on Seeking AlphaFinancial Position Analysis
Short Term Liabilities: PCTY's short term assets ($4.4B) exceed its short term liabilities ($4.0B).
Long Term Liabilities: PCTY's short term assets ($4.4B) exceed its long term liabilities ($225.8M).
Debt to Equity History and Analysis
Debt Level: PCTY has more cash than its total debt.
Reducing Debt: PCTY's debt to equity ratio has increased from 0% to 6.9% over the past 5 years.
Debt Coverage: PCTY's debt is well covered by operating cash flow (625.1%).
Interest Coverage: PCTY's interest payments on its debt are well covered by EBIT (45.7x coverage).
Balance Sheet
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/17 09:17 |
| End of Day Share Price | 2026/05/15 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/06/30 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
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Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Paylocity Holding Corporation is covered by 39 analysts. 20 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Mark Marcon | Baird |
| Raimo Lenschow | Barclays |
| Daniel Jester | BMO Capital Markets Equity Research |