NasdaqGS:PCTY

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Executive Summary

Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for medium-sized organizations in the United States. More Details


Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Paylocity Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PCTY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.8%

PCTY

-7.0%

US Software

-5.3%

US Market


1 Year Return

80.8%

PCTY

43.3%

US Software

10.4%

US Market

Return vs Industry: PCTY exceeded the US Software industry which returned 46.8% over the past year.

Return vs Market: PCTY exceeded the US Market which returned 12% over the past year.


Shareholder returns

PCTYIndustryMarket
7 Day-2.8%-7.0%-5.3%
30 Day14.2%-4.6%-2.1%
90 Day39.3%2.7%1.7%
1 Year80.8%80.8%44.3%43.3%12.9%10.4%
3 Year268.8%268.8%122.2%114.8%34.3%25.4%
5 Year327.8%327.8%219.7%201.2%73.7%54.3%

Price Volatility Vs. Market

How volatile is Paylocity Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Paylocity Holding undervalued compared to its fair value and its price relative to the market?

154.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PCTY ($185.52) is trading above our estimate of fair value ($80.68)

Significantly Below Fair Value: PCTY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PCTY is poor value based on its PE Ratio (154.1x) compared to the US Software industry average (60.5x).

PE vs Market: PCTY is poor value based on its PE Ratio (154.1x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: PCTY is poor value based on its PEG Ratio (6.7x)


Price to Book Ratio

PB vs Industry: PCTY is overvalued based on its PB Ratio (25.4x) compared to the US Software industry average (6.9x).


Next Steps

Future Growth

How is Paylocity Holding forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

23.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCTY's forecast earnings growth (23% per year) is above the savings rate (2.2%).

Earnings vs Market: PCTY's earnings (23% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PCTY's revenue (16.4% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: PCTY's revenue (16.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PCTY's Return on Equity is forecast to be high in 3 years time (21.6%)


Next Steps

Past Performance

How has Paylocity Holding performed over the past 5 years?

63.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCTY has high quality earnings.

Growing Profit Margin: PCTY's current net profit margins (11.5%) are lower than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: PCTY has become profitable over the past 5 years, growing earnings by 63.1% per year.

Accelerating Growth: PCTY's earnings growth over the past year (19.7%) is below its 5-year average (63.1% per year).

Earnings vs Industry: PCTY earnings growth over the past year (19.7%) exceeded the Software industry 15.7%.


Return on Equity

High ROE: PCTY's Return on Equity (16.4%) is considered low.


Next Steps

Financial Health

How is Paylocity Holding's financial position?


Financial Position Analysis

Short Term Liabilities: PCTY's short term assets ($1.7B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: PCTY's short term assets ($1.7B) exceed its long term liabilities ($183.8M).


Debt to Equity History and Analysis

Debt Level: PCTY's debt to equity ratio (25.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if PCTY's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PCTY's debt is well covered by operating cash flow (112.7%).

Interest Coverage: PCTY earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Paylocity Holding current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PCTY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PCTY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PCTY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PCTY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PCTY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Steve Beauchamp (48 yo)

13.75yrs

Tenure

US$9,104,808

Compensation

Mr. Steven R. Beauchamp, also known as Steve, serves as the Chief Executive Officer of Paylocity Holding Corporation. Mr. Beauchamp has been the President and Chief Operating Officer at Paylocity Corporati ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD9.10M) is about average for companies of similar size in the US market ($USD11.21M).

Compensation vs Earnings: Steve's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Beauchamp
CEO & Director13.75yrsUS$9.10m3.38%
$ 339.8m
Michael Haske
President & COO3.17yrsUS$3.93m1.4%
$ 141.2m
Toby Williams
Chief Financial Officer3yrsUS$3.85m0.067%
$ 6.7m
Edward Gaty
Senior Vice President of Product & Technologyno dataUS$2.64m0.097%
$ 9.8m
Mark Kinsey
Senior Vice President of Operations5.42yrsUS$2.52m0.051%
$ 5.1m
Andrew Cappotelli
Chief Accounting Officer2.25yrsno data0.00020%
$ 20.1k
Ryan Glenn
Vice President of FP&A and Investor Relationsno datano datano data
Christina Moriarty
Vice President of Tax & Complianceno datano datano data
Susan Jacobson
VP & General Counsel2.75yrsno datano data
Holly Fulp
VP & Head of Corporate Development2.75yrsno datano data
Alison Challman
Chief Marketing Officer2.75yrsno datano data
Josh Scutt
Vice President of Sales1.75yrsno datano data

2.8yrs

Average Tenure

48yo

Average Age

Experienced Management: PCTY's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Beauchamp
CEO & Director13.75yrsUS$9.10m3.38%
$ 339.8m
Virginia Breen
Independent Director2yrsUS$204.19k0.0068%
$ 682.3k
Ellen Carnahan
Independent Director3.83yrsUS$214.19k0.022%
$ 2.2m
Ronald Waters
Lead Independent Director4.25yrsUS$238.19k0.029%
$ 2.9m
Robin Pederson
Independent Director0.58yrUS$63.34k0.0010%
$ 100.6k
Jeffrey Diehl
Independent Director12.42yrsUS$209.19k0.040%
$ 4.0m
Steven Sarowitz
Founder & Chairman23.75yrsUS$189.19k24.65%
$ 2.5b
Andres Reiner
Independent Director6yrsUS$201.69k0.040%
$ 4.0m
Kenneth Robinson
Independent Director0.58yrUS$63.55k0.0010%
$ 100.6k

4.3yrs

Average Tenure

56yo

Average Age

Experienced Board: PCTY's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Paylocity Holding Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Paylocity Holding Corporation
  • Ticker: PCTY
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$10.063b
  • Shares outstanding: 54.24m
  • Website: https://www.paylocity.com

Number of Employees


Location

  • Paylocity Holding Corporation
  • 1400 American Lane
  • Schaumburg
  • Illinois
  • 60173
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCTYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2014
0P7DB (Deutsche Boerse AG)YesCommon StockDEEURMar 2014

Biography

Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for medium-sized organizations in the United States. The company offers Payroll module that enable ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 01:23
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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 here.