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 moderate 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

5.5%

NasdaqGS:PCTY

2.4%

US Software

2.1%

US Market


1 Year Return

46.0%

NasdaqGS:PCTY

17.5%

US Software

-0.04%

US Market

PCTY outperformed the Software industry which returned 19.1% over the past year.

PCTY outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

PCTYIndustryMarket
7 Day5.5%2.4%2.1%
30 Day4.2%-3.7%-3.2%
90 Day8.3%4.0%2.8%
1 Year46.0%46.0%19.2%17.5%2.2%-0.04%
3 Year141.8%141.8%116.1%107.6%41.5%32.3%
5 Year383.3%383.3%164.7%145.6%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

108x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Paylocity Holding's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Paylocity Holding's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Paylocity Holding is overvalued based on earnings compared to the US Software industry average.

Paylocity Holding is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Paylocity Holding is poor value based on expected growth next year.


Price Based on Value of Assets

Paylocity Holding is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

How is Paylocity Holding expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Paylocity Holding's revenue is expected to grow by 15.6% yearly, however this is not considered high growth (20% yearly).

Paylocity Holding's earnings are expected to grow by 19.8% yearly, however this is not considered high growth (20% yearly).

Paylocity Holding's revenue growth is expected to exceed the United States of America market average.

Paylocity Holding's earnings growth is expected to exceed the United States of America market average.

Paylocity Holding's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Paylocity Holding will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Paylocity Holding has delivered over 20% year on year earnings growth in the past 5 years.

Paylocity Holding's 1-year earnings growth is less than its 5-year average (39.4% vs 76%)

Paylocity Holding's earnings growth has not exceeded the US Software industry average in the past year (39.4% vs 45.5%).


Return on Equity

Paylocity Holding has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Paylocity Holding used its assets less efficiently than the US Software industry average last year based on Return on Assets.


Return on Capital Employed

Paylocity Holding has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Paylocity Holding's financial position?


Financial Position Analysis

Paylocity Holding is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Paylocity Holding's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Paylocity Holding has no debt.

Paylocity Holding currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Paylocity Holding has no debt, it does not need to be covered by operating cash flow.

Paylocity Holding has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Paylocity Holding has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Paylocity Holding's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Paylocity Holding's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Paylocity Holding has not reported any payouts.

Unable to verify if Paylocity Holding's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Paylocity Holding has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Paylocity Holding's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Steve Beauchamp (47yo)

12.6yrs

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

Steve's remuneration is about average for companies of similar size in United States of America.

Steve's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

47yo

Average Age

The average tenure for the Paylocity Holding management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.9yrs

Average Tenure

53yo

Average Age

The tenure for the Paylocity Holding board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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: 12.6yrs
    • Compensation: US$6.29m
  • Steve Sarowitz (53yo)

    Chairman of the Board

    • Tenure: 22.6yrs
    • Compensation: US$196.88k
  • Mark Kinsey (49yo)

    Senior Vice President of Operations

    • Tenure: 4.3yrs
    • Compensation: US$1.61m
  • Michael Haske (47yo)

    President & COO

    • Tenure: 2.0yrs
    • Compensation: US$3.44m
  • Toby Williams (46yo)

    Chief Financial Officer

    • Tenure: 1.9yrs
    • Compensation: US$4.10m
  • Ted Gaty (46yo)

    Senior Vice President of Product & Technology

    • Tenure: 0.0yrs
    • Compensation: US$1.88m
  • Chris Moriarty

    Vice President of Tax & Compliance

    • Tenure: 0.0yrs
  • Susan Jacobson

    VP & General Counsel

    • Tenure: 1.6yrs
  • Andy Cappotelli (48yo)

    Chief Accounting Officer

    • Tenure: 1.2yrs
  • Ryan Glenn

    Vice President of FP&A and Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Ginnie Breen (55yo)

    Independent Director

    • Tenure: 0.9yrs
  • Ellen Carnahan (63yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$213.63k
  • Ronald Waters (67yo)

    Lead Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$242.77k
  • Jeff Diehl (49yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$216.88k
  • Steve Beauchamp (47yo)

    CEO & Director

    • Tenure: 12.6yrs
    • Compensation: US$6.29m
  • Steve Sarowitz (53yo)

    Chairman of the Board

    • Tenure: 22.6yrs
    • Compensation: US$196.88k
  • Andres Reiner (48yo)

    Director

    • Tenure: 4.9yrs
    • 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$5.832b
  • 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 Analysis2019/08/23 00:35
End of Day Share Price2019/08/22 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.