Paylocity Stock Analysis, Valuation (NASDAQ:PCTY)

Add to My Stocks
$69.66 $0.74 (1.07%) PCTY stock closing price Aug 20, 2018 (Closing)

Take a look at Amigobulls Paylocity stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for PCTY stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Paylocity Holding Corp Stock Rating 3.7/5

Amigobulls PCTY stock analysis uses latest quarter 2018 Q4 financial data like Paylocity revenue growth, profit margins and cash flows. Paylocity valuation forms a crucial part of our stock analysis. Our Paylocity stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy PCTY stock?

  • Paylocity's revenue growth came in at 25.6% in 2018-03.
  • Paylocity generates a high return on invested capital of 21.9.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Paylocity at 22.6.
  • The company has a good Free Cash Flow (FCF) margin of 26.

Should you sell PCTY stock?

  • Trading at a PE ratio of 166, PCTY stock is overvalued in comparison to sector average multiple of 25.4.
  • The company is trading at a price to sales multiple of 9.5, which is overvalued in comparison to the Computer and Technology sector average multiple of 2.9.

Comments on this video and Paylocity stock

Amigobulls Paylocity stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of PCTY stock. Company's fundamentals remain one of the key driver of PCTY stock and helps investors in making good buy and sell decision.

Paylocity revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Paylocity stock.