Skip to Content

Paylocity Holding Corp - Stock Quote PCTY

Rating as of

Morningstar's Paylocity Holding Corp Stock Analysis

Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Paylocity Continues Impressive Growth, but We Lower FVE 15% to $180 on Revised Cash Tax Assumptions

Emma Williams Equity Analyst

Analyst Note

| Emma Williams |

Narrow-moat Paylocity delivered robust third-quarter fiscal-year 2022 results, with group revenue increasing 32% on the prior year supported by strong sales execution and resilient retention. While we expect top-line growth was aided by greater module uptake and a skew to larger businesses, we anticipate the company outpaced industry growth, resulting in modest market share gains. We think the strong performance was underpinned by continued demand for solutions to engage and retain employees amid sustained dispersed workforces and fierce competition for labor. Paylocity’s adjusted EBITDA margin of 34.8% during the quarter exceeded our expectations as improved operating leverage from increased scale and solid retention offset the dilutive impact of recent bolt-on acquisitions.

Read Full Analysis

Paylocity Holding Corp's Company Profile

Business Description

Paylocity is a provider of payroll and human capital management, or HCM, solutions servicing small- to mid-size clients in the United States. The company was founded in 1997 and targets businesses with 10 to 5,000 employees and services about 28,750 clients as of fiscal 2021. Alongside core payroll services, Paylocity offers HCM solutions such as time and attendance and recruiting software, as well workplace collaboration and communication tools.

1400 American Lane
Schaumburg, IL, 60173
T +1 847 463-3200
Sector Technology
Industry Software - Application
Most Recent Earnings Mar 31, 2022
Fiscal Year End Jun 30, 2022
Stock Type Aggressive Growth
Employees 4,150