Paylocity Holding Corporation Common Stock (PCTY)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Paylocity as a business, not a stock chart. It sells cloud software for payroll, HR, time tracking and related compliance work. That can be a sticky business because once a company runs payroll through a provider, switching is costly and risky. The filed numbers show progress: in fiscal 2026, the year ended 2026-06-30, revenue was $1.7B, net income $269.7M, and diluted EPS $4.92, up from $1.5B, $227.1M, and $4.02 in fiscal 2025. In fiscal Q3 2026, the quarter ended 2026-03-31, revenue was $469.9M and net income $111.3M, versus $421.1M and $91.5M in fiscal Q3 2025. That is real growth and healthy profitability. The balance sheet also looks conservative, with debt-to-equity of 0.11, and trailing free cash flow of $427.8M gives a 5.1% FCF yield at the 2026-10-13 close. Return on equity is 21.97%, though return on capital is only 5.21%, a reminder that accounting returns and capital efficiency are not the same. The trouble is price. At $158.11, the P/E is 32.14, P/B is 7.17, and PEG is 1.34. Graham Number is $50.38, leaving a margin of safety of minus 213.83%. Piotroski is 5/9 and Altman Z is 1.93. FairStock calls it a FAST GROWER, citing 30.7% annual profit growth and 21.2% revenue growth over five years. Quality is evident, but the price already assumes much of the growth continues. I would want a wider discount before calling it a Graham-style bargain.

In plain English: Paylocity sells cloud software that helps companies run payroll, human resources, and time tracking. The business looks strong: sales and profits have been growing, it produces plenty of cash, and it carries little debt. But the stock price looks high compared with the company's profits and net assets, so it does not appear cheap on the numbers shown.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer