Paylocity Holding CorporationPCTY
NASDAQ • Technology
$105.67
P/E
22.29
PEG
1.03
FCF Yield
—
Rev Growth YoY
+10.5% YoY
Gross Margin
72.3%
Health Score
8/10
D/E Ratio
0.18
Confidence
—
Business Snapshot
Paylocity provides cloud-based payroll, HR, and workforce management software to mid-market businesses. Its subscription-based revenue model generates predictable recurring income, with the company competing in the crowded human capital management (HCM) space against both legacy players and newer cloud-native rivals. With TTM revenue of $1.73B, Paylocity is a sizeable but not dominant player in the segment. The firm distinguishes itself through a high gross margin (72.3%) and strong free cash flow generation, enabling reinvestment into product development and sales.
Financial Health
Gross margin of 72.3% improved notably from 67.8% a year earlier, reflecting pricing power and operating leverage. Net margin reached 14.9%, indicating healthy profitability at the bottom line...
Risk Assessment
- 52-WEEK POSITION — Current price of $105.67 is 47.6% below the 52-week high of $201.62 and below the midpoint of the range, reflecting significant downside from the peak and potential negative momentum.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION — Price/Book of 8.13x implies a substantial premium to net asset value, typical for software but requiring sustained high returns on equity to justify.
- LIQUIDITY — Current ratio of 1.14x provides only a modest buffer for short-term obligations; any deterioration in working capital could pressure liquidity....