PAYLOCITY HOLDING CORP (PCTY)
US70438V1061 - Common Stock
Taking everything into account, PCTY scores 6 out of 10 in our fundamental rating. PCTY was compared to 81 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 is valued quite expensive, but it does show an excellent growth. These ratings would make PCTY suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year PCTY was profitable.
PCTY had a positive operating cash flow in the past year.
Each year in the past 5 years PCTY has been profitable.
Each year in the past 5 years PCTY had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PCTY (5.51%) is better than 61.04% of its industry peers.
PCTY has a better Return On Equity (20.06%) than 70.13% of its industry peers.
PCTY has a better Return On Invested Capital (15.17%) than 77.92% of its industry peers.
PCTY had an Average Return On Invested Capital over the past 3 years of 14.31%. This is in line with the industry average of 12.35%.
The 3 year average ROIC (14.31%) for PCTY is below the current ROIC(15.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 20.06% | ||
| ROIC | 15.17% |
ROA(3y)3.52%
ROA(5y)3.35%
ROE(3y)17.17%
ROE(5y)16.56%
ROIC(3y)14.31%
ROIC(5y)12.35%
1.3 Margins
Looking at the Profit Margin, with a value of 15.32%, PCTY belongs to the top of the industry, outperforming 88.31% of the companies in the same industry.
In the last couple of years the Profit Margin of PCTY has grown nicely.
The Operating Margin of PCTY (19.55%) is better than 87.01% of its industry peers.
PCTY's Operating Margin has improved in the last couple of years.
PCTY's Gross Margin of 68.56% is amongst the best of the industry. PCTY outperforms 80.52% of its industry peers.
PCTY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.55% | ||
| PM (TTM) | 15.32% | ||
| GM | 68.56% |
OM growth 3Y25.31%
OM growth 5Y9.06%
PM growth 3Y9.79%
PM growth 5Y5.08%
GM growth 3Y1.51%
GM growth 5Y0.41%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PCTY is creating some value.
PCTY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PCTY has been increased compared to 5 years ago.
PCTY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.32 indicates that PCTY is not in any danger for bankruptcy at the moment.
PCTY has a Altman-Z score (3.32) which is in line with its industry peers.
The Debt to FCF ratio of PCTY is 0.97, which is an excellent value as it means it would take PCTY, only 0.97 years of fcf income to pay off all of its debts.
PCTY has a better Debt to FCF ratio (0.97) than 80.52% of its industry peers.
PCTY has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
PCTY has a Debt to Equity ratio (0.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 3.32 |
ROIC/WACC1.68
WACC9.05%
2.3 Liquidity
A Current Ratio of 1.32 indicates that PCTY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.32, PCTY is in line with its industry, outperforming 45.45% of the companies in the same industry.
PCTY has a Quick Ratio of 1.32. This is a normal value and indicates that PCTY is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.32, PCTY perfoms like the industry average, outperforming 46.75% of the companies in the same industry.
The current and quick ratio evaluation for PCTY is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.58% over the past year.
The Earnings Per Share has been growing by 36.87% on average over the past years. This is a very strong growth
PCTY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.86%.
Measured over the past years, PCTY shows a very strong growth in Revenue. The Revenue has been growing by 24.57% on average per year.
EPS 1Y (TTM)22.58%
EPS 3Y46.1%
EPS 5Y36.87%
EPS Q2Q%18.57%
Revenue 1Y (TTM)16.86%
Revenue growth 3Y30.19%
Revenue growth 5Y24.57%
Sales Q2Q%14.29%
3.2 Future
Based on estimates for the next years, PCTY will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.66% on average per year.
Based on estimates for the next years, PCTY will show a quite strong growth in Revenue. The Revenue will grow by 13.77% on average per year.
EPS Next Y2.68%
EPS Next 2Y5.47%
EPS Next 3Y8.66%
EPS Next 5YN/A
Revenue Next Year10.75%
Revenue Next 2Y10.32%
Revenue Next 3Y10.62%
Revenue Next 5Y13.77%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.50, the valuation of PCTY can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PCTY is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.96. PCTY is around the same levels.
The Price/Forward Earnings ratio is 27.57, which means the current valuation is very expensive for PCTY.
Based on the Price/Forward Earnings ratio, PCTY is valued a bit more expensive than 64.94% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PCTY to the average of the S&P500 Index (23.82), we can say PCTY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.5 | ||
| Fwd PE | 27.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PCTY is valued a bit more expensive than the industry average as 70.13% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as PCTY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.54 | ||
| EV/EBITDA | 28.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PCTY does not grow enough to justify the current Price/Earnings ratio.
PCTY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)11.01
PEG (5Y)0.8
EPS Next 2Y5.47%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
No dividends for PCTY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PAYLOCITY HOLDING CORP
NASDAQ:PCTY (11/21/2024, 8:00:00 PM)
After market: 201.75 0 (0%)201.75
+6.47 (+3.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.25B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.5 | ||
| Fwd PE | 27.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)11.01
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 20.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.55% | ||
| PM (TTM) | 15.32% | ||
| GM | 68.56% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)22.58%
EPS 3Y46.1%
EPS 5Y
EPS Q2Q%
EPS Next Y2.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.86%
Revenue growth 3Y30.19%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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