NasdaqGS:PCTY

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


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


Market Performance


7 Day Return

-3.5%

PCTY

-4.4%

US Software

0.07%

US Market


1 Year Return

55.7%

PCTY

19.3%

US Software

8.9%

US Market

Return vs Industry: PCTY exceeded the US Software industry which returned 19.3% over the past year.

Return vs Market: PCTY exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

PCTYIndustryMarket
7 Day-3.5%-4.4%0.07%
30 Day-4.4%-4.4%-0.3%
90 Day-9.4%-9.3%-1.6%
1 Year55.7%55.7%21.1%19.3%11.3%8.9%
3 Year117.6%117.6%108.2%99.8%46.3%36.8%
5 Year316.7%316.7%157.9%139.3%62.1%44.3%

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?

94.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PCTY ($95.96) is trading above our estimate of fair value ($72.55)

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 (94.3x) compared to the Software industry average (45x).

PE vs Market: PCTY is poor value based on its PE Ratio (94.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: PCTY is poor value based on its PEG Ratio (5.1x)


Price to Book Ratio

PB vs Industry: PCTY is overvalued based on its PB Ratio (16.5x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

How is Paylocity Holding forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCTY's forecast earnings growth (18.6% per year) is above the savings rate (2.7%).

Earnings vs Market: PCTY's earnings (18.6% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: PCTY's earnings are forecast to grow, but not significantly.

Revenue vs Market: PCTY's revenue (16.2% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: PCTY's revenue (16.2% 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 (21.1%)


Next Steps

Past Performance

How has Paylocity Holding performed over the past 5 years?

76.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PCTY has become profitable over the past 5 years, growing earnings by 76% per year.

Accelerating Growth: PCTY's earnings growth over the past year (39.4%) is below its 5-year average (76% per year).

Earnings vs Industry: PCTY earnings growth over the past year (39.4%) exceeded the Software industry 19.1%.


Return on Equity

High ROE: PCTY's Return on Equity (17.5%) is considered low.


Return on Assets

ROA vs Industry: PCTY's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: PCTY's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Paylocity Holding's financial position?


Financial Position Analysis

Short Term Liabilities: PCTY's short term assets ($1.6B) exceeds its short term liabilities ($1.5B)

Long Term Liabilities: PCTY's short term assets (1.6B) exceeds its long term liabilities (39.9M)


Debt to Equity History and Analysis

Debt Level: PCTY is debt free.

Reducing Debt: PCTY had no debt 5 years ago.

Debt Coverage: PCTY has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PCTY has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: PCTY has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if PCTY's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Paylocity Holding's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Steve Beauchamp (47yo)

12.8yrs

Tenure

US$6,290,454

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 ($USD6.29M) is about average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.1yrs

Average Tenure

47yo

Average Age

Experienced Management: PCTY's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

53yo

Average Age

Experienced Board: PCTY's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: PCTY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$14,242,92215 Aug 19
Steven Sarowitz
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares140,086
Max PriceUS$104.68
SellUS$5,257,17226 Feb 19
Adams Street Partners, LLC
EntityCompany
Shares58,700
Max PriceUS$89.56
SellUS$43,250,00026 Feb 19
Adams Street Partners, LLC
EntityCompany
Shares500,000
Max PriceUS$86.50

Ownership Breakdown


Management Team

  • Steve Beauchamp (47yo)

    CEO & Director

    • Tenure: 12.8yrs
    • Compensation: US$6.29m
  • Steve Sarowitz (53yo)

    Chairman of the Board

    • Tenure: 22.8yrs
    • Compensation: US$196.88k
  • Mark Kinsey (49yo)

    Senior Vice President of Operations

    • Tenure: 4.4yrs
    • Compensation: US$1.61m
  • Michael Haske (47yo)

    President & COO

    • Tenure: 2.2yrs
    • Compensation: US$3.44m
  • Toby Williams (46yo)

    Chief Financial Officer

    • Tenure: 2.1yrs
    • Compensation: US$4.10m
  • Ted Gaty (46yo)

    Senior Vice President of Product & Technology

    • Tenure: 0yrs
    • Compensation: US$1.88m
  • Chris Moriarty

    Vice President of Tax & Compliance

    • Tenure: 0yrs
  • Susan Jacobson

    VP & General Counsel

    • Tenure: 1.8yrs
  • Andy Cappotelli (48yo)

    Chief Accounting Officer

    • Tenure: 1.3yrs
  • Ryan Glenn

    Vice President of FP&A and Investor Relations

    • Tenure: 0yrs

Board Members

  • Ginnie Breen (55yo)

    Independent Director

    • Tenure: 1.1yrs
  • Ellen Carnahan (63yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$213.63k
  • Ronald Waters (67yo)

    Lead Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$242.77k
  • Jeff Diehl (49yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$216.88k
  • Steve Beauchamp (47yo)

    CEO & Director

    • Tenure: 12.8yrs
    • Compensation: US$6.29m
  • Steve Sarowitz (53yo)

    Chairman of the Board

    • Tenure: 22.8yrs
    • Compensation: US$196.88k
  • Andres Reiner (48yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$209.38k

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$5.094b
  • Shares outstanding: 53.08m
  • 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 Analysis2019/10/23 00:25
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.