| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 4/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
PCTY Stock Overview
Paylocity Holding Corporation provides cloud-based human capital management and payroll software solutions for workforce in the United States.
Rewards
Risk Analysis
No risks detected for PCTY from our risk checks.
Paylocity Holding Corporation Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$258.14 |
| 52 Week High | US$314.50 |
| 52 Week Low | US$152.01 |
| Beta | 1.27 |
| 1 Month Change | 31.41% |
| 3 Month Change | 59.63% |
| 1 Year Change | 2.36% |
| 3 Year Change | 137.52% |
| 5 Year Change | 453.47% |
| Change since IPO | 973.79% |
Recent News & Updates
Does This Valuation Of Paylocity Holding Corporation (NASDAQ:PCTY) Imply Investors Are Overpaying?
In this article we are going to estimate the intrinsic value of Paylocity Holding Corporation ( NASDAQ:PCTY ) by taking...
Paylocity Non-GAAP EPS of $0.80 beats by $0.27, revenue of $228.9M beats by $10.94M
Paylocity press release (NASDAQ:PCTY): FQ4 Non-GAAP EPS of $0.80 beats by $0.27. Revenue of $228.9M (+36.7% Y/Y) beats by $10.94M. “Recurring & other revenue grew 34% in fiscal 22 as our value proposition of providing the most modern software in the industry continues to resonate in the marketplace. Our products focused on the Modern Workforce have all seen significant increases in utilization, including Community, where monthly users has grown by more than 40% and video creation increased by over 80% in fiscal 22,” said Steve Beauchamp, Co-Chief Executive Officer of Paylocity.
Paylocity: Why I Won't Be Paying For This Stock
Paylocity is a provider of payroll and human capital management, or HCM, solutions servicing small- to mid-size clients in the United States. Overall, I think that Paylocity has a robust solution that could effectively compete in the fierce competition. Other competitors with more resources are ranked higher by reviews and thus will provide a substantial challenge. Moreover, Paylocity is much more expensively valued than its most comparable competitor, Paycom, while having weaker margins and sales growth. As a result of these factors, I set the recommendation for Paylocity to “Hold”. Introducing Paylocity Holding Paylocity (PCTY) is a United Stated based cloud company that provides both payroll and human capital management ('HCM') solutions. The HCM solutions include time and attendance, recruiting software, workplace collaboration, and communication tools. They target mostly businesses with 10 to 5000 employees. Industry Outlook I believe that the payroll and HCM solutions industry is set to grow at a decent pace. There are a lot of digitalization trends in this industry that I expect to give the industry's expansion a boost. Certain important trends are: COVID pandemic made employers aware of the digitization benefits of payroll and HCM solutions Cloud transformation The increasing need for cybersecurity Need for employee Privacy Incorporation of AI and automation into payroll and HCM solutions According to Future Market Insights, the global market for payroll and HR solutions and services is anticipated to reach US$ 58.3 billion by 2032, growing at a healthy CAGR of 7.7%. Competition As the industry's outlook is excellent, many (potential) competitors are trying to take their slice of the pie. I believe that the Payroll and HCM solutions are a competitive and fragmented industry. For each of the products, Paylocity has many different rivals, but they are mostly payroll and HR software and service providers, including Automatic Data Processing, Paychex, Paycom Software, Paycor, Ultimate Kronos Group, and other local and regional suppliers: Company Business Description Market Cap Last Year's Revenue Growth Paylocity Holding (PCTY) Paylocity is a United Stated based cloud company that provides both payroll and human capital management ('HCM') solutions. The HCM solutions include time and attendance, recruiting software, workplace collaboration, and communication tools. They target mostly businesses with 10 to 5000 employees. 10.78B 13.24% Paycom Software (PAYC) Paycom is a rapidly expanding provider of payroll and human capital management, or HCM, software that primarily serves American companies with between 50 and 10,000 workers. Approximately 16,000 clients are served by Paycom, which was founded in 1998. 19.55B 25.44% Paychex (PAYX) Paychex is a well-known provider of insurance, human resources management, and payroll services, particularly to small and medium businesses in the US. Over 1 in 12 Americans employed in the private sector are employed by the 1979-founded corporation, which serves over 730,000 customers. 44.07B 13.68% Automatic Data Processing (ADP) ADP serves a wide range of organizations, from small startups to large multinational corporations, by offering payroll and human resource management solutions. Over 920,000 clients are served by ADP, which was founded in 1949 and is based mostly in the US. 92.05B 2.85% Competitive Position I believe that the following are the main competitive elements on which Paylocity competes in its market: Products designed to engage with the workforce of today; A complete platform for payroll and human capital management products; Depth and breadth of the product's capability; Solutions' configurability and simplicity of usage; A contemporary, mobile, consumer-focused, and intuitive user experience; Benefits of a platform for cloud-based technologies; The capacity to develop and act quickly in response to customer demands; Domain knowledge in HCM and payroll; Customer service and implementation quality; Most of these are directly or indirectly related to the customer experience using the solutions. Thus, I reviewed how the solutions are viewed by others: In the G2 2022 Best Software Awards, Paylocity was listed among the Best HR Products and Best Software Products lists, appearing on both lists for the third year in a row. G2 states that By combining consumer-oriented experiences with an automated all-in-one platform that streamlines and automates manual HR tasks, Paylocity clients are seeing better results in retention and engagement—ultimately driving business success. The capacity to develop and act quickly in response to customer demands is evidenced by some of its product highlights. One example is the focus on new features related to workspace diversity and inclusiveness, according to G2: Paylocity has added a range of enhancements across its platform to help inform and equip clients' diversity, equity, inclusion, and accessibility (DEIA) efforts. These tools provide HR professionals with data-driven insights to better understand their workforce's needs, foster a more inclusive employee experience, and measure impact. While analyzing the Paylocity reviews, many aspects from the competitive elements list can be ticked off, such as the ease of use, intuitive one-solution platform, and depth of the product.
Shareholder Returns
| PCTY | US Software | US Market | |
|---|---|---|---|
| 7D | -2.6% | 0.2% | 1.4% |
| 1Y | 2.4% | -16.6% | -8.4% |
Return vs Industry: PCTY exceeded the US Software industry which returned -16.6% over the past year.
Return vs Market: PCTY exceeded the US Market which returned -8.4% over the past year.
Price Volatility
| PCTY volatility | |
|---|---|
| PCTY Average Weekly Movement | 8.2% |
| Software Industry Average Movement | 10.1% |
| Market Average Movement | 7.6% |
| 10% most volatile stocks in US Market | 17.1% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: PCTY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: PCTY's weekly volatility (8%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1997 | 5,300 | Steve Beauchamp | https://www.paylocity.com |
Paylocity Holding Corporation provides cloud-based human capital management and payroll software solutions for workforce in the United States. The company offers Payroll and Tax Services solution to simplifies payroll, automates processes, and manages compliance requirements within one system; and expense management, on demand payment, and garnishment solutions. It also provides human capital management and employee self-service solutions, document library, compliance dashboard, and HR edge; time and attendance solution; schedule tracking services; and time collection devices, including kiosks, time clocks, and mobile and web applications.
Paylocity Holding Corporation Fundamentals Summary
| PCTY fundamental statistics | |
|---|---|
| Market Cap | US$14.27b |
| Earnings (TTM) | US$90.78m |
| Revenue (TTM) | US$852.65m |
157.2x
P/E Ratio16.7x
P/S RatioIs PCTY overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PCTY income statement (TTM) | |
|---|---|
| Revenue | US$852.65m |
| Cost of Revenue | US$285.89m |
| Gross Profit | US$566.76m |
| Other Expenses | US$475.98m |
| Earnings | US$90.78m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.64 |
| Gross Margin | 66.47% |
| Net Profit Margin | 10.65% |
| Debt/Equity Ratio | 0% |
How did PCTY perform over the long term?
See historical performance and comparison