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Upturn AI SWOT - About
PCTY 
Paylocity Holdng (PCTY)
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Upturn Advisory Summary
06/30/2025: PCTY (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
20 Analysts rated it
Highly popular stock, broad analyst coverage, trusted insights, strong investor interest.
1 Year Target Price $220.78
1 Year Target Price $220.78
| 10 | Strong Buy |
| 4 | Buy |
| 5 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 5.25% | Avg. Invested days 48 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 06/30/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 10.01B USD | Price to earnings Ratio 44.85 | 1Y Target Price 220.78 |
Price to earnings Ratio 44.85 | 1Y Target Price 220.78 | ||
Volume (30-day avg) 20 | Beta 0.53 | 52 Weeks Range 130.51 - 223.80 | Updated Date 06/30/2025 |
52 Weeks Range 130.51 - 223.80 | Updated Date 06/30/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 4.04 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 14.65% | Operating Margin (TTM) 5.43% |
Management Effectiveness
Return on Assets (TTM) 3.68% | Return on Equity (TTM) 19.7% |
Valuation
Trailing PE 44.85 | Forward PE 30.03 | Enterprise Value 9830382993 | Price to Sales(TTM) 6.45 |
Enterprise Value 9830382993 | Price to Sales(TTM) 6.45 | ||
Enterprise Value to Revenue 6.33 | Enterprise Value to EBITDA 24.92 | Shares Outstanding 55230100 | Shares Floating 44533144 |
Shares Outstanding 55230100 | Shares Floating 44533144 | ||
Percent Insiders 19.72 | Percent Institutions 80.4 |
Analyst Ratings
Rating 5 | Target Price 220.78 | Buy 4 | Strong Buy 10 |
Buy 4 | Strong Buy 10 | ||
Hold 5 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Paylocity Holdng
Company Overview
History and Background
Paylocity was founded in 1997 and is headquartered in Schaumburg, Illinois. It initially focused on payroll services and has since evolved into a comprehensive cloud-based human capital management (HCM) and payroll solutions provider for small and medium-sized businesses (SMBs). They've grown through organic product development and strategic acquisitions.
Core Business Areas
- Payroll Solutions: Paylocity's core offering includes automated payroll processing, tax compliance, and reporting. It automates complex calculations and filings for businesses of all sizes.
- Human Capital Management (HCM): This encompasses HR functionalities like talent management, performance management, benefits administration, time and attendance tracking, and employee self-service.
- Workforce Management: Tools for managing timekeeping, scheduling, and employee absence.
- Benefits Administration: Streamlines the process of managing employee benefits programs.
- Talent Management: Helps companies with recruiting, onboarding, and performance reviews.
Leadership and Structure
Paylocity is led by CEO Steve Beauchamp. The company has a typical corporate structure with departments like sales, marketing, technology, finance, and operations. The board of directors provides oversight and strategic guidance.
Top Products and Market Share
Key Offerings
- Payroll: Paylocity's flagship payroll solution automates calculations, tax filings, and reporting. It holds an estimated market share of approximately 2-3% of the overall payroll processing market, but a significantly higher share within the SMB segment it targets. Competitors include ADP (ADP), Paychex (PAYX), and Workday (WDAY).
- marketshare: 0.025
- revenue: 450000000
- HCM Platform: The HCM platform integrates HR, payroll, and talent management into a single system. Specific market share for this integrated platform is difficult to isolate. Competitors include Workday (WDAY), BambooHR, and Ceridian HCM Holding Inc. (CDAY).
- marketshare: 0.005
- revenue: 350000000
Market Dynamics
Industry Overview
The HCM and payroll software market is highly competitive and fragmented, characterized by technological innovation (cloud computing, AI) and increasing regulatory complexity. The market is growing as businesses seek efficiency and compliance in managing their workforce.
Positioning
Paylocity is positioned as a modern, cloud-based HCM provider focused on the SMB market. Its competitive advantages include a user-friendly interface, strong customer service, and integrated solutions tailored for this specific segment.
Total Addressable Market (TAM)
The global HCM market is estimated to be valued at over $30 billion. Paylocity is targeting the SMB segment, which represents a significant portion of the overall market. They are well-positioned to capture additional market share within this segment with their focus and product offerings.
Upturn SWOT Analysis
Strengths
- Strong focus on the SMB market
- Cloud-based platform
- Integrated HCM and payroll solutions
- User-friendly interface
- Strong customer service
Weaknesses
- Smaller market share compared to larger players like ADP and Paychex
- Limited international presence
- Vulnerable to pricing pressure from competitors
- Reliance on the SMB market for growth
Opportunities
- Expanding product offerings within HCM
- Acquiring smaller HCM companies to expand market share
- Leveraging AI and automation to improve efficiency
- Expanding into adjacent markets such as benefits administration
- Partnerships and integrations with other business software
Threats
- Increased competition from larger players
- Economic downturn impacting SMB spending
- Data security and privacy concerns
- Changes in labor laws and regulations
- Rapid technological advancements rendering existing solutions obsolete
Competitors and Market Share
Key Competitors
- ADP (ADP)
- Paychex (PAYX)
- Workday (WDAY)
- Ceridian HCM Holding Inc. (CDAY)
Competitive Landscape
Paylocity competes effectively against larger players by focusing on the SMB market and providing a user-friendly, integrated HCM platform. It differentiates itself through customer service and innovation. Its smaller size can be a disadvantage in certain deals.
Major Acquisitions
VidCruiter
- Year: 2024
- Acquisition Price (USD millions): 300
- Strategic Rationale: Strengthens its talent acquisition capabilities by adding video interviewing and assessment tools.
Growth Trajectory and Initiatives
Historical Growth: Paylocity has exhibited strong historical growth, fueled by its focus on the SMB market and its comprehensive HCM platform.
Future Projections: Analysts project continued revenue growth for Paylocity in the coming years, driven by market demand for HCM solutions and the company's ability to acquire new customers and expand its product offerings.
Recent Initiatives: Recent initiatives include investments in AI-powered features, expansion of its benefits administration platform, and strategic partnerships to enhance its ecosystem.
Summary
Paylocity is a strong player in the SMB HCM market, demonstrating consistent revenue growth and profitability. Their focus on the SMB segment, user-friendly platform, and strong customer service are key strengths. They face challenges from larger competitors and need to continue innovating to maintain their competitive edge. Focus on improving marketing to increase market share is also important.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC filings, Analyst reports, Industry publications, Company press releases
- Yahoo Finance
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share data is approximate and based on available estimates. All investments carry risk. The AI based rating is for information purposes only.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Paylocity Holdng
Exchange NASDAQ | Headquaters Schaumburg, IL, United States | ||
IPO Launch date 2014-03-19 | President, CEO & Director Mr. Toby J. Williams J.D. | ||
Sector Technology | Industry Software - Application | Full time employees 6400 | Website https://www.paylocity.com |
Full time employees 6400 | Website https://www.paylocity.com | ||
Paylocity Holding Corporation engages in the provision of cloud-based human capital management and payroll software solutions for workforce in the United States. The company offers payroll software solution for global payroll, expense management, tax services, on demand payment, and garnishment managed services; and time and labor management software for time and attendance, scheduling, and time collection. It also provides human resources (HR) software solutions for employee self-service, compliance, HR edge, data analytics, and workflows and documents, as well as human resource management system; talent management system for recruiting, onboarding, performance, compensation, and learning; and benefits administration software. In addition, the company offers employee experience platform for community, employee voice, recognition and rewards, video, and modern workforce index; HR reporting software; and mobile HR solutions. Further, it provides implementation and training, client, and tax and regulatory services. The company serves for-profit and non-profit organizations across industries, including business services, financial services, healthcare, manufacturing, restaurants, retail, technology, and others. It sells its products through sales representatives. The company was founded in 1997 and is headquartered in Schaumburg, Illinois.
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