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Upturn AI Summary - About
Paylocity Holding Corporation(PCTY)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for PCTY
10/23/2026: PCTY (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Paylocity Holding Corporation is a cloud-native provider of payroll and human capital management software primarily serving small to mid-sized businesses. The company is recognized for its user-friendly platform and strong customer retention, which provide a stable foundation for recurring revenue growth. Its primary investment story hinges on expanding its module ecosystem and capturing more enterprise-level clients to sustain high growth rates. Key risks include intense competition from established HCM incumbents and the sensitivity of its business to macroeconomic hiring trends. The stock may best suit growth-oriented investors, with developments in AI-driven HR features and enterprise penetration serving as key metrics to monitor.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | Paylocity consistently demonstrates high revenue growth rates and expanding service offerings. |
| Momentum investor | Strong fit while signal remains positive | The stock often tracks with strong positive sentiment in the software sector during growth cycles. |
| Value investor | Weak fit | The company typically trades at a premium valuation typical of high-growth SaaS firms. |
| Dividend investor | Weak fit | Paylocity does not pay a dividend, as it retains earnings for growth. |
| Low-risk investor | Weak fit | The company's stock carries higher volatility associated with high-multiple growth equities. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | Growth stocks are sensitive to interest rate changes and shifts in market risk appetite. |
| Valuation risk | Medium / high | High P/E multiples require sustained growth to justify current share prices. |
| Competition risk (HCM software) | High | The market is saturated with powerful incumbents like ADP and Workday. |
| Business quality | Strong | The high recurring revenue model provides a stable long-term foundation. |
| Dividend income | Low / none | Investors seeking immediate cash yield will not find it here. |
| Execution risk | Medium | Success depends on constant product innovation and sales force effectiveness. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit 19.77% | Avg. Invested days 35 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 10/23/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 9.24B USD | Price to earnings Ratio 36.09 | 1Y Target Price 175.85 |
Price to earnings Ratio 36.09 | 1Y Target Price 175.85 | ||
Volume (30-day avg) 634.3K shares | Beta 0.5 | 52 Weeks Range 92.99 - 178.24 | Updated Date 10/24/2026 |
52 Weeks Range 92.99 - 178.24 | Updated Date 10/24/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 4.91 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Subscription Revenues | Recurring fees for accessing the Paylocity cloud platform and various HCM modules. | This is the company's core, stable income source generated by loyal clients. |
| Implementation & Other Fees | One-time fees for setting up new clients on the system and training. | These fees grow alongside the number of new client acquisitions. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Valuation
Trailing PE 36.09 | Forward PE 25.51 | Enterprise Value 8.37B | Price to Sales(TTM) 5.22 |
Enterprise Value 8.37B | Price to Sales(TTM) 5.22 | ||
Enterprise Value to Revenue 5.25 | Enterprise Value to EBITDA 20.73 | Shares Outstanding 52.17M | Shares Floating 42.51M |
Shares Outstanding 52.17M | Shares Floating 42.51M | ||
Percent Insiders 19.98 | Percent Institutions 89.12 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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