Paylocity Holding Corp (PCTY) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Paylocity Holding Corp Do?
Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for medium-sized organizations in the United States. The company offers Payroll and Tax Services solution to simplify payroll, automate processes and manage compliance requirements within one system; expense management, on demand payment, and garnishment solutions; human capital management and employee self-service solutions, document library, compliance dashboard, and HR edge; time and attendance solution, which tracks time and attendance data, eliminating the need for manual tracking of accruals and reducing administrative tasks; schedule tracking services; and time collection devices, including kiosks, time clocks, and mobile and web applications. In addition, the company offers talent management solutions comprising recruiting and onboarding, as well as learning, performance, and compensation management; employee benefits management and third-party administrative solutions; modern workforce solutions consisting of community, premium video, survey, and peer recognition; and analytics and insights solutions covering modern workforce index, data insights, and reporting. Further, it provides implementation and training, client, and tax and regulatory services. The company's clients include 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. Paylocity Holding Corp (PCTY) is classified as a mid-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO Steven R. Beauchamp and employs approximately 5,300 people, headquartered in Arlington Heights, Illinois. With a market capitalization of $5.7B, PCTY is one of the notable companies in the Technology sector.
Paylocity Holding Corp (PCTY) Stock Rating — Reduce (April 2026)
As of April 2026, Paylocity Holding Corp receives a Reduce rating with a composite score of 41.8/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.PCTY ranks #2,835 out of 4,446 stocks in our coverage universe. Within the Technology sector, Paylocity Holding Corp ranks #314 of 584 stocks, placing it in the lower half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
PCTY Stock Price and 52-Week Range
Paylocity Holding Corp (PCTY) currently trades at $95.10. The stock lost $0.08 (0.1%) in the most recent trading session. The 52-week high for PCTY is $201.97, which means the stock is currently trading -52.9% from its annual peak. The 52-week low is $100.50, putting the stock -5.4% above its annual trough. Recent trading volume was 1.1M shares, reflecting moderate market activity.
Is PCTY Overvalued or Undervalued? — Valuation Analysis
Paylocity Holding Corp (PCTY) carries a value factor score of 43/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 25.21x, compared to the Technology sector average of 45.27x — a discount of 44%. The price-to-book ratio stands at 5.21x, versus the sector average of 3.16x. The price-to-sales ratio is 3.46x, compared to 1.06x for the average Technology stock. On an enterprise value basis, PCTY trades at 18.25x EV/EBITDA, versus 12.79x for the sector.
Overall, PCTY's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Paylocity Holding Corp Profitability — ROE, Margins, and Quality Score
Paylocity Holding Corp (PCTY) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 20.7%, compared to the Technology sector average of -1.4%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 3.3% versus the sector average of -1.0%.
On a margin basis, Paylocity Holding Corp reports gross margins of 68.7%, compared to 50.9% for the sector. The operating margin is 18.9% (sector: -0.5%). Net profit margin stands at 13.5%, versus -1.5% for the average Technology stock. Revenue growth is running at 14.6% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
PCTY Debt, Balance Sheet, and Financial Health
Paylocity Holding Corp has a debt-to-equity ratio of 7.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.04x, suggesting adequate working capital coverage. Total debt on the balance sheet is $81M.
PCTY has a beta of 0.69, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Paylocity Holding Corp is 65/100, reflecting average volatility within the normal range for its sector.
Paylocity Holding Corp Revenue and Earnings History — Quarterly Trend
In TTM 2026, Paylocity Holding Corp reported revenue of $1.66B and earnings per share (EPS) of $0.93. Net income for the quarter was $227M. Gross margin was 68.7%. Operating income came in at $318M.
In Q2 2026, Paylocity Holding Corp reported revenue of $416M and earnings per share (EPS) of $0.93. Net income for the quarter was $50M. Gross margin was 67.8%. Revenue grew 10.4% year-over-year compared to Q2 2025. Operating income came in at $70M.
In Q1 2026, Paylocity Holding Corp reported revenue of $408M and earnings per share (EPS) of $0.87. Net income for the quarter was $48M. Gross margin was 68.5%. Revenue grew 12.5% year-over-year compared to Q1 2025. Operating income came in at $74M.
In FY 2025, Paylocity Holding Corp reported revenue of $1.60B and earnings per share (EPS) of $4.08. Net income for the quarter was $227M. Gross margin was 68.8%. Revenue grew 13.7% year-over-year compared to FY 2024. Operating income came in at $304M.
Over the past 8 quarters, Paylocity Holding Corp has demonstrated a growth trajectory, with revenue expanding from $1.40B to $1.66B. Investors analyzing PCTY stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
PCTY Dividend Yield and Income Analysis
Paylocity Holding Corp (PCTY) does not currently pay a dividend. This is common among smaller companies in the Computer Software industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
PCTY Momentum and Technical Analysis Profile
Paylocity Holding Corp (PCTY) has a momentum factor score of 18/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 27/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 65/100 reflects moderate short selling activity.
PCTY vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, Paylocity Holding Corp (PCTY) ranks #314 out of 584 stocks based on the Blank Capital composite score. This places PCTY in the lower half of all Technology stocks in our coverage universe.
Comparing PCTY against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PCTY vs S&P 500 (SPY) comparison to assess how Paylocity Holding Corp stacks up against the broader market across all factor dimensions.
PCTY Next Earnings Date
No upcoming earnings date has been announced for Paylocity Holding Corp (PCTY) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy PCTY? — Investment Thesis Summary
The quantitative profile for Paylocity Holding Corp suggests caution. Momentum is weak at 18/100, a headwind for near-term performance. Low volatility (stability score 65/100) reduces downside risk.
In summary, Paylocity Holding Corp (PCTY) earns a Reduce rating with a composite score of 41.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PCTY stock.
Related Resources for PCTY Investors
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