Paylocity Stock Analysis, Valuation (NASDAQ:PCTY)

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$45.88 $0.36 (0.79%) PCTY stock closing price Feb 21, 2018 (Closing)
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Paylocity
Updated on : Feb 21, 2018
previous close
PCTY 45.9 (0%)
NASDAQ 7218.2 (0%)
Closing Price On: Feb 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q2
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
3.6%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$26M
Net Income:
$0.4M
PROS      CONS
Recent Growth
ROIC
ROE
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PCTY PS :
7.2
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
25.3%
Return on Equity:
8.2%
Free Cash Flow Margin:
20.1%
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Paylocity Stock Analysis

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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 3/5

Amigobulls PCTY stock analysis uses latest quarter 2018 Q2 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 sales grew by 25.3% year on year in 2018 Q2.
  • Paylocity's return on invested capital of 25.3% is good.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Paylocity at 8.2%.
  • Paylocity has a healthy FCF (Free Cash Flow) margin of 20.1%.

Should you sell PCTY stock?

  • PCTY stock is trading at a PE ratio of 176.5, which is worse than the industry average multiple of 25.3.
  • The company is trading at a price to sales multiple of 7.2, which is higher in comparison to the Internet Software industry average of 2.8, making PCTY stock expensive.

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.