Analyzing the Quality Characteristics of PAYLOCITY HOLDING CORP (NASDAQ:PCTY).

In this article we will dive into PAYLOCITY HOLDING CORP (NASDAQ:PCTY) as a possible candidate for quality investing. Investors should always do their own research, but we noticed PAYLOCITY HOLDING CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into PAYLOCITY HOLDING CORP's Quality Metrics.

• PAYLOCITY HOLDING CORP has shown strong performance in revenue growth over the past 5 years, with a 24.57% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• The ROIC excluding cash and goodwill of PAYLOCITY HOLDING CORP stands at 47.3%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a Debt/Free Cash Flow Ratio of 0.97, PAYLOCITY HOLDING CORP exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• PAYLOCITY HOLDING CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 129.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• With a robust 5-year EBIT growth of 35.86%, PAYLOCITY HOLDING CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• PAYLOCITY HOLDING CORP has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 6 out of 10 to PCTY. PCTY was compared to 82 industry peers in the Professional Services industry. PCTY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PCTY shows excellent growth, but is valued quite expensive already. These ratings would make PCTY suitable for growth and quality investing!

Our latest full fundamental report of PCTY contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.