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Upturn AI SWOT - About
PCTY 
Paylocity Holdng (PCTY)
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Upturn Advisory Summary
09/12/2025: 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
Well-followed company, solid analyst reports, reliable data for confident investing.
1 Year Target Price $220.16
1 Year Target Price $220.16
| 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 09/12/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 9.36B USD | Price to earnings Ratio 42.21 | 1Y Target Price 220.16 |
Price to earnings Ratio 42.21 | 1Y Target Price 220.16 | ||
Volume (30-day avg) 20 | Beta 0.52 | 52 Weeks Range 156.55 - 223.80 | Updated Date 09/14/2025 |
52 Weeks Range 156.55 - 223.80 | Updated Date 09/14/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 4.02 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 14.24% | Operating Margin (TTM) 5.43% |
Management Effectiveness
Return on Assets (TTM) 4.42% | Return on Equity (TTM) 20.04% |
Valuation
Trailing PE 42.21 | Forward PE 27.93 | Enterprise Value 9179647869 | Price to Sales(TTM) 5.87 |
Enterprise Value 9179647869 | Price to Sales(TTM) 5.87 | ||
Enterprise Value to Revenue 5.75 | Enterprise Value to EBITDA 22.74 | Shares Outstanding 55161600 | Shares Floating 44393526 |
Shares Outstanding 55161600 | Shares Floating 44393526 | ||
Percent Insiders 20.07 | Percent Institutions 82.05 |
Upturn AI SWOT
Paylocity Holdng
Company Overview
History and Background
Paylocity was founded in 1997. It started as a payroll service provider and gradually expanded its offerings to include HR, talent management, and benefits administration software. It has grown through organic growth and strategic acquisitions.
Core Business Areas
- Payroll Services: Automated payroll processing, tax compliance, and reporting.
- HR Management: HR information system (HRIS), employee self-service, and workflow automation.
- Talent Management: Recruiting, onboarding, performance management, and learning management.
- Benefits Administration: Benefits enrollment, administration, and compliance.
- Workforce Management: Time and attendance tracking and scheduling.
Leadership and Structure
Chad Richison is the CEO and Chairman. The company has a typical corporate structure with departments for finance, sales, marketing, product development, and customer support.
Top Products and Market Share
Key Offerings
- Web Pay: Cloud-based payroll processing platform. Paylocity focuses on mid-market companies. Competitors include ADP, Paychex, and Workday. Market share is around 6% within the payroll segment (based on industry estimates).
- HR & Talent Management Suite: Integrated HR platform covering HRIS, talent acquisition, and performance management. Competitors include Workday, BambooHR, and Ceridian. Revenue from this is not explicitly separated from payroll. Difficult to isolate exact market share due to bundled offering and many segments in HR software.
- Community: Employee collaboration and communication platform with survey capabilities. It is estimated to be used by over 35,000 clients. This integrates directly within their platform. Primary competitor is Slack in the collaboration component and SurveyMonkey for employee surveys.
Market Dynamics
Industry Overview
The payroll and HR software market is competitive and growing. The industry is driven by increasing complexity of labor laws, greater need for automation, and need to enhance employee experience.
Positioning
Paylocity focuses on mid-market companies (50-1,000 employees). It is known for its strong customer service and integrated platform. Differentiates through user experience and mobile app adoption.
Total Addressable Market (TAM)
The TAM for HR and payroll software is estimated to be over $40 billion globally. Paylocity is well-positioned to capture a larger share of the mid-market segment with its integrated platform.
Upturn SWOT Analysis
Strengths
- Strong customer service
- Integrated platform
- User-friendly interface
- Focus on mid-market
- High employee retention rate among clients
Weaknesses
- Smaller market share compared to ADP and Paychex
- Limited international presence
- Pricing can be higher than some competitors
- Reliance on a direct sales force.
Opportunities
- Expanding into new HR functionalities
- Acquiring smaller companies to expand product offerings
- Growing international presence through partnerships
- Leveraging AI to enhance platform capabilities
- Greater adoption by larger businesses
Threats
- Increased competition from larger players
- Changing regulations and compliance requirements
- Economic downturn affecting client base
- Data security and privacy concerns
- Emergence of new disruptive technologies
Competitors and Market Share
Key Competitors
- ADP (ADP)
- Paychex (PAYX)
- Workday (WDAY)
Competitive Landscape
Paylocity is smaller than ADP and Paychex but competes effectively in the mid-market segment. Workday targets larger enterprises but competes with Paylocity's talent management offerings. Paylocity's strengths lie in its customer service and integrated platform.
Major Acquisitions
Talentcare
- Year: 2018
- Acquisition Price (USD millions): 25
- Strategic Rationale: Expanded Paylocity's talent management capabilities.
VidGrid
- Year: 2021
- Acquisition Price (USD millions): 100
- Strategic Rationale: Enhanced their learning platform with video learning capabilities
Growth Trajectory and Initiatives
Historical Growth: Paylocity has experienced strong revenue and earnings growth over the past decade. The company has benefited from the increasing demand for cloud-based HR solutions.
Future Projections: Analysts predict continued revenue growth for Paylocity in the coming years, driven by increasing adoption of its integrated platform. Earnings are expected to grow at a similar pace.
Recent Initiatives: Recent initiatives include expanding its talent management offerings, enhancing its mobile app, and investing in AI-powered features.
Summary
Paylocity is a strong player in the mid-market HR and payroll software space, offering an integrated platform with good customer satisfaction. Its growth has been consistent, though it faces significant competition from larger, more established players. Paylocity's focus on innovation and customer service helps differentiate it, but it needs to manage competitive pressures to maintain its growth trajectory.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q)
- Analyst reports
- Industry publications
- Paylocity Investor Relations Website
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market share estimates are based on available data and may not be precise. Financial data is subject to change.
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 6700 | Website https://www.paylocity.com |
Full time employees 6700 | Website https://www.paylocity.com | ||
Paylocity Holding Corporation provides cloud-based human capital management, payroll software, and spend management solutions for the workforce in the United States. The company offers payroll solutions comprising payroll and tax services, global payroll, on-demand payment, and garnishments; human resources (HR) solutions consisting of human resources, employee self-service, workflows and documents, HR compliance dashboard, and HR edge; time and attendance, scheduling, and time collection; time and labor solutions, including time and attendance, scheduling, and time collection; and talent solutions, such as recruiting, onboarding, market pay, learning, performance, and compensation. It also provides benefits solutions comprising benefit enrollment and updates, and third-party administrative solutions; employee experiences consisting of community, video, employee voice, recognition and rewards, modern workforce index, data insights, and reporting; and Paylocity for finance solutions, such as headcount planning, expense management, accounts payable automation, corporate cards, and guided procurement. In addition, the company offers implementation and training, client services, and tax and regulatory services. It serves for-profit and non-profit organizations across industries, including business services, financial services, healthcare, manufacturing, restaurants, retail, technology, and others. The company also sells its products through sales representatives. Paylocity Holding Corporation was founded in 1997 and is headquartered in Schaumburg, Illinois.
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