Paylocity Holding Corporation (PCTY) on Decifer

Decifer ranks PCTY number 153 of 274 tracked names on durable business quality.

Why it ranks here

• It earns strong returns on the money it puts to work, around 18% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is growing about 11% a year and profits grew 22% over the past year.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• Our durability check found pressure on this name, which costs it a few points.
• Returns near 18%, widening margins, and momentum of 22 out of 35 are attractive, but revenue growing about 11% and no funded role limit the growth upside.

The current read

The evidence on PCTY lines up on the supportive side: a live market force supports this name through its theme connection. One signal disagrees: the longer-term story is intact, but price is not rewarding it: semiconductor stocks are down 1.3% this week. The drop is large enough to signal near-term caution, worth watching but not the weight of the evidence.

Read the full PCTY research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.