Paylocity Holding Corp

Technology
Computer Software: Prepackaged Software
www.paylocity.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $11.45B
PE 52
Debt $325.00M
Cash $2.61B
EV $9.17B
FCF $397.08M

Earnings

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Sales & Net Margins

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Earnings	$221.82M
EBIT	$301.49M
ROE	20%
ROA	7%
FCF	$397.08M
Equity	$1.11B
Growth Stability	100%
PE	51.62
PEG	1.6
PB	10.35
P/FCF	28.84
P/S	7.91
Price/Cash	0.23
Debt/Equity	0.29
Debt/FCF	0.82
Net Margins	14%
Gross Margins	69%
Op. Margins	21%
Earnings CAGR	42%
Sales Growth YoY	14%
Sales Growth QoQ	2%
Sales CAGR	25%
FCF CAGR	41%
Equity CAGR	30%
Earnings Stability	0.77
Earnings Growth YoY	44%
Earnings Growth QoQ	2%

Earnings CAGR 5Y	32%
Sales CAGR 5Y	27%
FCF CAGR 5Y	41%
Equity CAGR 5Y	30%
Earnings CAGR 3Y	29%
Sales CAGR 3Y	29%
FCF CAGR 3Y	62%
Equity CAGR 3Y	35%
Market Cap	$11.45B
Revenue	$1.45B
Assets	$4.02B
Total Debt	$325.00M
Cash	$2.61B
Shares Outstanding	55.64M
EV	9.17B
Earnings Score	94%
Moat Score	91%
Safety Score	96%
Final Score	93%
Working Capital	795.57M
Current Ratio	1.32
Gross Profit	$992.66M
Shares Growth 3y	1%
Equity Growth QoQ	7%
Equity Growth YoY	24%

Assets & ROA

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Stockholders Equity & ROE

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Paylocity is a provider of payroll and human capital management, or HCM, solutions servicing small- to mid-size clients in the United States. The company was founded in 1997 and targets businesses with 10 to 5,000 employees and services about 28,750 clients as of fiscal 2021. Alongside core payroll services, Paylocity offers HCM solutions such as time and attendance and recruiting software, as well workplace collaboration and communication tools.

SEC Filings

Direct access to Paylocity Holding Corp (PCTY) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31

Sector Comparison

How does Paylocity Holding Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Paylocity Holding Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 42%

Stability 77%

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Paylocity Holding Corp Discounted Cash Flow

Fully customizable DCF calculator online for Paylocity Holding Corp.

Years

Calculation mode

= $68B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$397M	$560M	$791M	$1.1B	$1.6B	$2.2B	$3.1B	$4.4B	$6.2B	$8.8B	$12B	$124B
DCF		$509M	$653M	$838M	$1.1B	$1.4B	$1.8B	$2.3B	$2.9B	$3.7B	$4.8B	$48B
Value	$68B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Net Margins	-9%	-2%	2%	10%	12%	11%	11%	11%	12%	15%	14%
ROA	-	-0%	1%	1%	3%	3%	2%	2%	4%	7%	7%
ROE	-	-3%	5%	18%	17%	16%	15%	15%	17%	20%	20%

Good Net Margins (13.66%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Debt over FCF	-	-	-	-	-	1.04	-	-	-	0	0.82
Debt over Equity	-	-	-	-	-	0.25	-	-	-	0	0.29
Growth Stability	-	-	-	-	100%	100%	100%	100%	100%	100%	100%

Good Debt/FCF ratio (0.82)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.29)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	51%	30%	26%	24%	20%	13%	34%	38%	19%	27%
Earnings YoY growth	-	-72%	-274%	475%	39%	20%	10%	28%	55%	47%	32%
Equity YoY growth	-	11%	23%	44%	45%	28%	21%	29%	37%	23%	30%
FCF YoY growth	-	711%	140%	87%	36%	-7%	20%	19%	90%	41%	41%