Paylocity PCTY
United StatesTechnology · Software - ApplicationUSD
172.20 USD (+16.3%)
20 analysts
Trading 2120.30 €Open account ↗
Lightyear0.90 €Open account ↗
N260.90 €Open account ↗
XTB1.00 €★ featured · affiliateOpen account ↗Trading 2120.30 €Open account ↗Lightyear0.90 €Open account ↗XTB1.00 €★ featured · affiliateOpen account ↗200.00 € order · cheapest cheapest available in your country iCompare all 22 brokers →What does it do?
Paylocity is a software-as-a-service (SaaS) company that offers a comprehensive cloud-based payroll and human resources (HR) management platform for mid-sized companies in the United States.
Key points
from its scores- ✓High-quality business8.6
- ✓Favourable backdrop8.4
- ✓Strong growth7.5
- ✕Little or no dividend1.5
- !Weak share-price trend5.5
AI analysis
bottom line, main risk, context and newsHold or buy on pullbacks, given the solid growth and quality profile, although recent negative momentum suggests waiting for a better entry point.
Paylocity shows solid financial health with net cash (Net Debt/EBITDA of -0.32), a wide competitive moat (ROIC of 25.9%, gross margin of 69.28%), and earnings growth of 27.6%. Its valuation, with a forward P/E of 15.23, seems reasonable for the quality of the business.
The main risk is intense competition in the payroll and HR software market, which could pressure margins and slow revenue growth.
Context and risks
Paylocity is a cloud software company with net cash and an operating margin of 19%. The rise in US interest rates and the strength of the dollar do not materially affect its business, as it does not depend on external financing or commodities. Its exposure to the AI cycle is indirect and not relevant to its valuation.
Is Paylocity stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Technology median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 30.1 | 31.3 | −4% |
| EV / EBITDA | 18.0 | 20.4 | −12% |
| Price / book | 6.7 | 6.3 | +7% |
| Price / sales | 4.4 | 5.3 | −16% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.5 out of 10 (median for Technology: 5.3).
Average analyst target: 172.20 USD, +16.3% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 30.1
- Forward P/E
- 15.2
- EV / EBITDA
- 18.0
- Price / book
- 6.7
- Price / sales
- 4.4
- PEG
- 1.18
- Market cap
- 7.9B USD
- Enterprise value
- 7.7B USD
Profitability
- ROE
- 22.0%
- ROA
- 5.2%
- ROIC (approx.)
- 25.9%
- Gross margin
- 69.3%
- Operating margin
- 19.1%
- Net margin
- 15.2%
- Free cash flow
- 359.9M USD
- FCF yield
- 4.6%
- Cash conversion
- 84%
Solvency
- Total debt
- 133.0M USD
- Net debt
- −138.9M USD
- Cash
- 271.9M USD
- EBITDA
- 428.0M USD
- Net debt / EBITDA
- −0.32
- Debt / equity
- 10.89
- Current ratio
- 1.09
- Quick ratio
- 0.09
Growth
- Revenue growth
- +11.0%
- Earnings growth
- +27.6%
- EPS (TTM)
- 4.92 USD
- EPS (forward)
- 9.72 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 0.50
- Analyst consensus
- Strong buy (20)
- Target price
- 172.20 USD
- 52-week range
- 92.99 – 161.93
Recent news
All PCTY news →Compare it with its sector
All 283 in Technology →Frequently asked questions about Paylocity
Is Paylocity stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Technology median (within 15%). Valuation score: 6.5 out of 10 (median for Technology: 5.3). Average analyst target: 172.20 USD, +16.3% versus the price. This is not investment advice.
What score does Paylocity get on MeridIAn Screener?
It scores 7.2 out of 10, rank 143 of 2,130 (better than 93% of the companies analysed). Its strongest category is Quality / Moat (8.6) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Paylocity's P/E ratio?
Its P/E is 30.1: the share price equals 30.1 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 15.2.
How much is Paylocity worth on the stock market?
Its market capitalisation is 7.9B USD and its enterprise value, debt included, is 7.7B USD.
How much debt does Paylocity have?
It has more cash than debt: net cash of 138.9M USD.
Does Paylocity pay a dividend?
It pays no dividend, or almost none.
How has Paylocity stock performed over the last year?
It has fallen 1.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 92.99 and 161.93 USD. Past performance does not guarantee future results.
What do analysts think of Paylocity?
20 analysts cover it; their average recommendation is “Strong buy” and their average target is 172.20 USD (+16.3% versus the price). It is an estimate, not market data.