PCTY
Technology · Software - Application
Performance
PCTY (PCTY) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
PCTY (PCTY) operates in the Software - Application space within the Technology sector. With a market cap of $5.6B, it qualifies as a small-cap company. The company is growing revenue strongly while maintaining healthy profitability — a combination that investors typically reward with a premium valuation.
- Forward P/E (12.1×) is lower than trailing P/E (22.4×) — analysts expect earnings to improve
- Revenue growth of 11% YoY shows solid business momentum
- Earnings grew 27% YoY — bottom-line is expanding fast
- Healthy profit margin of 14.9%
- ROE of 21.6% shows management efficiently converts equity into profit
- Price is near its 52-week low — potential entry point with asymmetric upside
- Low beta of 0.51 — less volatile than the market, suitable for conservative portfolios
- High debt-to-equity of 11.40× increases financial risk, especially with elevated interest rates
- No dividend history — total return depends entirely on price appreciation
Verdict
Strong Buy
Multiple fundamental strengths with few red flags. Long-term buyers may find this compelling.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Related Articles
Revenue & Results
Dividends
This stock does not pay dividends.
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
Earnings
Next Earnings
Aug 4, 2026
49
days
EPS (TTM)
$4.68
P/E (TTM)
22.4
Fwd P/E
12.1
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $104.89
Graham Number
√(22.5 × EPS × Book Value)
$47.39
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
N/A
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
6/10
75% score
Pays dividends
No dividend history found
Dividend consistency (5Y+)
Uninterrupted dividend payments for at least 5 years
ROE above 10%
21.6%Return on equity — measures how efficiently capital is used
Positive profit margin
14.9%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
+10.5%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
+27.3%Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
11.40×Low financial leverage reduces risk of distress
Current ratio above 1
1.08×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$81M/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
Stock must distribute income to shareholders
Related Assets
Technology
About PCTY
Paylocity Holding Corporation provides cloud-based human capital management, payroll software, and spend management solutions for the workforce in the United States. The company offers payroll solutions comprising payroll and tax services, global payroll, on-demand payment, and garnishments; human resources (HR) solutions consisting of human resources, employee self-service, workflows and documents, HR compliance dashboard, and HR edge; time and attendance, scheduling, and time collection; time and labor solutions, including time and attendance, scheduling, and time collection; and talent solutions, such as recruiting, onboarding, market pay, learning, performance, and compensation. It also provides benefits solutions comprising benefit enrollment and updates, and third-party administrative solutions; employee experiences consisting of community, video, employee voice, recognition and rewards, modern workforce index, data insights, and reporting; and Paylocity for finance solutions, such as headcount planning, expense management, accounts payable automation, corporate cards, and guided procurement. In addition, the company offers implementation and training, client services, and tax and regulatory services. It serves for-profit and non-profit organizations across industries, including business services, financial services, healthcare, manufacturing, restaurants, retail, technology, and others. The company also sells its products through sales representatives. Paylocity Holding Corporation was founded in 1997 and is headquartered in Schaumburg, Illinois.
Sector
Technology
Industry
Software - Application
Location
Schaumburg, United States
Employees
6,700