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Paylocity Holding Corporation (PCTY)

POSITIVE
TechnologySoftware - ApplicationUnited States

Fondamental

81

Prix

$153.20

Capitalisation boursière

$8.49B

Partie 1 · Ce que vaut l'entreprise

Vue d'ensemble

Paylocity sells cloud software that runs a company's payroll, benefits enrollment, time tracking and other HR tasks from one system. Employers pay a subscription priced per employee per month, and the platform's mobile app targets a modern, often non-desk workforce — retail, healthcare, hospitality — not just office staff. Between withholding an employee's pay and remitting it to tax authorities and benefit providers, Paylocity briefly holds client funds and earns interest on that float.

Comment l'entreprise gagne de l'argent

Almost all revenue is recurring: clients pay per employee per pay cycle for access to the software, so revenue grows with a client's headcount as well as with new client wins. A smaller, separate line comes from interest earned on payroll funds held briefly before disbursement — a source that shrinks when short-term interest rates fall, independent of how the underlying software business performs.

Chiffre d'affaires par segment

Recurring and other revenue92.3%

Per-employee subscription fees for the HCM and payroll platform, plus small one-time implementation charges.

Interest income on client funds7.7%

Interest earned on payroll and tax funds held briefly between withholding and remittance, a byproduct of running payroll.

Avantage concurrentiel

Coûts de changement · Étroit

Once payroll history, tax filings and employee records live inside a platform, moving to a competitor means re-entering years of compliance-sensitive data and retraining staff, which discourages switching. But the HCM software market has several well-funded rivals offering similar functionality, so the advantage is real but not decisive.

Ce qui stimule la demande

Modérément cyclique

Revenue tracks the number of employees on clients' payrolls, so it grows when clients hire and shrinks when they lay off staff, making Paylocity sensitive to the broader labor market without being as exposed as a cyclical goods business. New client acquisition adds a layer of growth that partly offsets a softening job market.

Principaux risques

  • Crowded, well-funded competition — The company names ADP, Paycom, Paycor, Dayforce and Paychex among direct competitors, all offering comparable payroll and HR functionality, which limits pricing power.
  • Interest income depends on rates — A meaningful slice of revenue comes from interest on client funds; when central banks cut short-term rates, that revenue line falls even if the software business is healthy.
  • Sensitivity to employment levels — Because pricing is per employee, a broad slowdown in hiring or layoffs among existing clients directly reduces revenue without any client leaving the platform.
  • Handling sensitive payroll data — The platform stores compensation, banking and tax data for millions of employees; a security breach would carry both direct liability and reputational cost.

Concentration des clients

Paylocity serves tens of thousands of small and mid-sized employers and does not disclose a concentration figure; the client base is broad by nature of the target market.

Les arguments en faveur

Buyers argue that the mobile-first design wins disproportionately with a non-desk, younger workforce that rivals built for office workers struggle to serve, and that the subscription model keeps growing as clients add headcount even without new sales.

Les arguments contre

Sellers fear that a crowded field of well-capitalized HCM vendors will compress pricing over time, and that a chunk of reported profitability rests on interest income that erodes automatically whenever rates fall.

Written by the editors, published on 18 août 2026

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Bilan & Liquidités

Chiffre d'affaires

$1.65B

12 derniers mois (au 30/06/2026)

Résultat net

$270M

12 derniers mois (au 30/06/2026)

Flux de trésorerie libre

$497M

Capitaux propres totaux

$1.22B

Passif total

$3.66B

Ratio de liquidité général

1.09

Couverture des intérêts

-

Dette/EBITDA

0.27

Bénéfice par action

Chiffre d'affaires & Résultat net

Flux de trésorerie libre

Décomposition du résultat

État historique

Marges dans le temps

La dette dans le temps

Le poids de la dette

Grille de la croissance

Croissance — Chiffre d'affaires

Estimation de la juste valeur

Sous-évalué

Juste valeur

$390.09

Prix actuel

$153.20

Marge de sécurité

+60.7%

Fourchette de juste valeur

$253.56 - $526.62

Méthodes d'estimation

Analyst Target:$172.00
DCF:$853.29
PE-based:$77.31
Graham Growth:$253.28
EPV:$70.54
Consensus des analystes:Achat fort (23B / 4H / 0S)
Dernière surprise sur les résultats:+11.69%

Indicateurs de valorisation

Ratio P/E

30.99

ROE

22.1%

Ratio P/B

6.62

P/FCF

16.27

Marge brute

74.2%

ROIC

20.8%

Radar de rentabilité

Value Creation (Economic Moat)

ROIC

20.8%

WACC

7.9%

ROIC − WACC

+13.0 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Critères d'analyse fondamentale

Réussi (23)

  • EPS shows upward trend
  • EPS CAGR 48.18%
  • Price CAGR 17.72%
  • ROIC 20.8%
  • Gross Margin 74.2%
  • P/FCF 16.27
  • Debt/Equity ratio
  • Operating Margin 23.4%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 23.4%
  • Revenue Growth 5Y 22.8%
  • Analyst Consensus 85% Buy
  • Earnings Surprise avg 10.0%
  • PEG Ratio 0.96
  • Earnings Quality (OCF/NI) 1.98
  • Share Dilution -3.0%
  • Net Margin Trend 16.3% vs 15.4%
  • Piotroski F-Score 6/9

Échoué (3)

  • P/B Ratio 6.62
  • Price below Graham Number
  • DCF valuation (Overvalued)

Indisponible (2)

  • Dividend Payout NaN%
  • Interest Coverage

Score F de Piotroski

6/9

Signaux mixtes : certains domaines nécessitent attention

score
criteria

Qualité des bénéfices

1.98

Qualité élevée : bénéfices soutenus par la trésorerie

Dilution du capital

-3.0%

Rachat d'actions. Favorable aux actionnaires

Gouvernance

Équipe dirigeante

NomTitreÂge
Mr. Steven R. BeauchampExecutive Chairman of the Board53
Mr. Toby J. Williams J.D.President, CEO & Director52
Mr. Steven I. SarowitzFounder & Director59
Mr. Ryan GlennChief Financial Officer43
Mr. Andrew J. CappotelliSenior Vice President of Operations54
Ms. Melissa KingSenior Vice President of Product & Technology50
Mr. Joshua ScuttSenior Vice President of Sales54
Mr. Nicholas RostVP, Chief Accounting Officer & Treasurer45
Ms. Amber LivingstonVP & General Counsel-
Mr. Adam ByerleyVice President of Strategy & Corporate Development-

Risque d'audit

1

Risque du conseil

5

Risque de rémunération

2

Risque droits des actionnaires

7

Partie 2 · Le prix et le moment d'entrer

Cette partie ne dit pas si l'entreprise vaut la peine : elle aide à choisir quand l'acheter, une fois que les fondamentaux vous ont convaincu. À l'intérieur : analyse technique, potentiel, baisses historiques, exposition gamma.

Latest News

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