D/E 0.11 — below the Technology debt median (≈40th pctile)
P/E24.7xB+
P/E 24.7 — below the Technology median (≈40th pctile)
PEG0.89B+
PEG 0.89 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 88.3
Quality0.90
Growth0.94
Value0.81
Why this score
Buying back stock
Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week low
41% off the 12-month high
vs DCF fair value51% belowest. fair value ~$239
Quality signals · context only
Gross profitability20% · C+gross profit ÷ total assets (Novy-Marx)
ROIC24.6% · Areturn on invested capital — not score-weighted
Why now
Paylocity’s cloud‑based payroll and HR suite is locking in mid‑market employers with its on‑demand payment and talent solutions, creating a recurring revenue engine that compounds. The business is delivering 14.8% YoY revenue growth, 16.1% profit margin and a stellar 21.9% ROE, while trading at a sub‑2× PEG of 0.89. The thesis rests on the ability to keep expanding the payroll‑to‑talent flywheel, which drives sustainable cash‑flow growth.
Moat
The integrated payroll, tax, HR compliance dashboard and talent modules embed critical employee data across finance and HR, creating high switching costs for customers. This lock‑in fuels pricing power that lifts ROE above 20%, and the low 0.11 debt‑to‑equity ratio lets Paylocity reinvest cash without leverage constraints, a combination rivals can’t duplicate quickly.
Risk
The stock trades at a forward P/E of 24.6 despite a modest 14.8% growth rate, implying the market may be over‑paying if revenue growth stalls below 10% YoY or margins dip under 14%. A slowdown or a competitive win by larger HCM players would pressure the valuation and could push the price back toward the 52‑week low of $92.99, confirming the bear case.
Horizon
1-3 yr $152.58 (19-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $192.63 at ~11% CAGR — dividend + buyback compounding. 10 yr $247.04 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · PCTY
$
%
%
Shares to buy
17
Position size
$1,983
4.0% of portfolio
Stop price
$87.47
25% below $116.62
$ at risk if stopped
$495.63
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Paylocity Holding Corporation (PCTY) is a Software - Application company that scores 88.3 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (B+), D/E (B+) and P/E (B+). On valuation, PCTY sits about 51% below our discounted-cash-flow fair value (a margin of safety).
Is PCTY a good stock to buy?
Bull Rankings scores PCTY 88.3 out of 100 on its quality-growth model, which is a strong reading. That is driven by Rev (B+), D/E (B+) and P/E (B+). A score is a quantitative screen of Paylocity Holding Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does PCTY score 88.3 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). PCTY earns its highest marks on Rev (B+), D/E (B+) and P/E (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is PCTY overvalued or undervalued?
Based on $116.62, PCTY sits about 51% below our discounted-cash-flow fair value (a margin of safety). It trades at a 24.7x× P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in PCTY?
The stock trades at a forward P/E of 24.6 despite a modest 14.8% growth rate, implying the market may be over‑paying if revenue growth stalls below 10% YoY or margins dip under 14%. A slowdown or a competitive win by larger HCM players would pressure the valuation and could push the price back toward the 52‑week low of $92.99, confirming the bear case.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.