Paylocity Holding Corp

PCTY

Services-Prepackaged Software

Mkt Cap

$8.531B

PE

43.71

Debt

Cash

$3.577B

EV

FCF

$356.5M

Market Cap

$8.531B

P/E Ratio

43.71

Debt

Cash

$3.577B

EV

FCF

$356.5M

Charts data: {"Earnings":[{"time":"2014-06-29","value":-9392000},{"time":"2015-06-29","value":-13972000},{"time":"2016-06-29","value":-3851000},{"time":"2017-06-29","value":6718000},{"time":"2018-06-29","value":38598000},{"time":"2019-06-29","value":53823000},{"time":"2020-06-29","value":64455000},{"time":"2021-06-29","value":70819000},{"time":"2022-06-29","value":90777000},{"time":"2023-06-29","value":140822000}],"Sales":[{"time":"2014-06-29","value":108687000},{"time":"2015-06-29","value":152698000},{"time":"2016-06-29","value":230701000},{"time":"2017-06-29","value":300010000},{"time":"2018-06-29","value":377527000},{"time":"2019-06-29","value":467633000},{"time":"2020-06-29","value":561329000},{"time":"2021-06-29","value":635627000},{"time":"2022-06-29","value":852651000},{"time":"2023-06-29","value":1174598000}],"Net Margins":[{"time":"2014-06-29","value":-0.08641327849696837},{"time":"2015-06-29","value":-0.09150087100027506},{"time":"2016-06-29","value":-0.01669260211269132},{"time":"2017-06-29","value":0.02239258691376954},{"time":"2018-06-29","value":0.10223904515438631},{"time":"2019-06-29","value":0.11509666768598452},{"time":"2020-06-29","value":0.11482570827447006},{"time":"2021-06-29","value":0.11141597194581099},{"time":"2022-06-29","value":0.10646442682879631},{"time":"2023-06-29","value":0.11988952816197541}],"Assets":[{"time":"2014-06-29","value":528151000},{"time":"2015-06-29","value":720548000},{"time":"2016-06-29","value":1390689000},{"time":"2017-06-29","value":1137441000},{"time":"2018-06-29","value":1507599000},{"time":"2019-06-29","value":1803941000},{"time":"2020-06-29","value":1985648000},{"time":"2021-06-29","value":2414885000},{"time":"2022-06-29","value":4809014000},{"time":"2023-06-29","value":3695680000}],"Stockholders Equity":[{"time":"2014-06-29","value":91134000},{"time":"2015-06-29","value":107580000},{"time":"2016-06-29","value":119572000},{"time":"2017-06-29","value":147613000},{"time":"2018-06-29","value":212824000},{"time":"2019-06-29","value":307964000},{"time":"2020-06-29","value":392908000},{"time":"2021-06-29","value":476930000},{"time":"2022-06-29","value":613463000},{"time":"2023-06-29","value":842863000}],"ROE":[{"time":"2014-06-29","value":-0.10305703689073233},{"time":"2015-06-29","value":-0.12987544153188324},{"time":"2016-06-29","value":-0.03220653664737564},{"time":"2017-06-29","value":0.04551089673673728},{"time":"2018-06-29","value":0.1813611246851859},{"time":"2019-06-29","value":0.17477042771233},{"time":"2020-06-29","value":0.16404603622221997},{"time":"2021-06-29","value":0.14848929612312078},{"time":"2022-06-29","value":0.14797469448035172},{"time":"2023-06-29","value":0.16707578811740462}],"ROA":[{"time":"2014-06-29","value":-0.007227099825618052},{"time":"2015-06-29","value":-0.019245074582123607},{"time":"2016-06-29","value":-0.0025526915075908415},{"time":"2017-06-29","value":0.006478577789968886},{"time":"2018-06-29","value":0.011111044780475445},{"time":"2019-06-29","value":0.03217732730726781},{"time":"2020-06-29","value":0.03380155999452068},{"time":"2021-06-29","value":0.024035513078262526},{"time":"2022-06-29","value":0.017590716101055226},{"time":"2023-06-29","value":0.04291875919993073}]}

Paylocity Holding Corporation provides cloud-based human capital management and payroll software solutions for workforce in the United States. The company offers Payroll and Tax Services solution to simplifies payroll, automates processes, and manages compliance requirements within one system; and expense management, on demand payment, and garnishment solutions. It also provides human capital management and employee self-service solutions, document library, compliance dashboard, and HR edge; time and attendance solution; schedule tracking services; and time collection devices, including kiosks, time clocks, and mobile and web applications. In addition, the company offers talent management solutions comprising recruiting and onboarding, as well as learning, performance, and compensation management; employee benefits management and third-party administrative solutions; employee experiences solutions, including community, premium video, survey, and peer recognition; and insights and recommendations solutions, such as modern workforce index, data insights, and reporting. Further, it provides implementation and training, client, and tax and regulatory services. The company serves for-profit and non-profit organizations across industries, including business services, financial services, healthcare, manufacturing, restaurants, retail, technology, and others. It sells its products through sales representatives. The company was founded in 1997 and is headquartered in Schaumburg, Illinois.

Sector

10-Q
9/30/23
10-K
6/30/23
10-Q
3/31/23
10-Q
12/31/22
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9/30/22
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6/30/22
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3/31/22
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12/31/21
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9/30/21
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6/30/21
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3/31/21
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12/31/20
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3/31/20
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12/31/19
10-Q
9/30/19
10-K
6/30/19
10-Q
3/31/19
10-Q
12/31/18
10-Q
9/30/18
10-K
6/30/18
10-Q
3/31/18
10-Q
12/31/17

DCF

Discounted Cash Flow Valuation of Paylocity Holding Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$356.5M	$463.5M	$589.6M	$733.8M	$892.7M	$1.061B	$1.232B	$1.397B	$1.544B	$1.664B	$1.747B	$17.47B
DCF		$403M	$445.8M	$482.5M	$510.4M	$527.7M	$532.8M	$525.1M	$504.8M	$473.1M	$431.9M	$4.319B
Value	$9.156B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 45%

Earnings Stability 58%

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.

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

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	06-2015	06-2016	06-2017	06-2018	06-2019	06-2020	06-2021	06-2022	06-2023	TTM
Net Margin	-9.2%	-1.7%	2.2%	10%	12%	11%	11%	11%	12%	14%
ROA	-1.9%	-0.26%	0.65%	1.1%	3.2%	3.4%	2.4%	1.8%	4.3%	5.3%
ROE	-13%	-3.2%	4.6%	18%	17%	16%	15%	15%	17%	18%

What is the average Net Margin?

The average Net Margin over the past 5 years is +11.17%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.17%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +2.69%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.3%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +16.4%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.48%.

Safety & Stabiliy

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.

Data are missing

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	06-2015	06-2016	06-2017	06-2018	06-2019	06-2020	06-2021	06-2022	06-2023	TTM
Debt FCF	-	-	-	-	-	1.04	-	-	-	-
Debt Equity	-	-	-	-	-	0.25	-	-	-	-
MIN
Graham Stability	-	-	-	-	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

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.

Earnings growth has not been increasing in the past years.

Years	06-2016	06-2018	06-2020	06-2022	Trend
Revenue	26%	25%	28%	38%	-1.7%
Net Income	-	30%	30%	55%	-61%
Stockholders Equity	32%	32%	29%	37%	1.8%
FCF	48%	28%	39%	90%	-54%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +25.48%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.69%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +29.55%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -61.16%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +31.69%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.82%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +27.9%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -53.64%.