Paylocity Holding Stock Intrinsic Value – PAYLOCITY HOLDING Reports FY2023 Q2 Earnings Results as of December 31, 2022 on February 2, 2023
February 10, 2023
Earnings report
Paylocity Holding Stock Intrinsic Value – PAYLOCITY HOLDING ($NASDAQ:PCTY), a leading provider of cloud-based solutions for payroll, payments, and human capital management, reported its FY2023 Q2 earnings results as of December 31, 2022 on February 2, 2023. The company, which is listed on the New York Stock Exchange, has seen a steady rise in stock price over the past year due to its innovative approach to digital transformation. Total revenue for the second quarter was USD 15.6 million, representing a 58.4% increase compared to the same period last year. This strong growth was driven by increased demand for PAYLOCITY HOLDING’s digital solutions. The company’s net income for the quarter was USD 273.0 million, a 39.3% year-on-year increase. The company’s earnings were driven by strong customer growth and increased utilization of its products and services.
In addition, the company’s subscription-based services have seen steady growth over the past several quarters, further driving its overall revenue growth. Overall, PAYLOCITY HOLDING reported strong results for the second quarter of its FY2023, as the company continues to drive innovation and digital transformation. The company is now well positioned to capitalize on future market opportunities and further increase its customer base. Investors should watch this stock closely as the company continues to deliver impressive financial results.
Share Price
The results showed that the company’s stock opened at $224.7 and closed at $226.0, up by 3.0% from the previous closing price of 219.5. The company reported a positive financial performance over the quarter with an increase in their revenue, net income and cash flow. The company’s strong financial performance was largely attributed to their cost-cutting initiatives and increased efficiency in operations. During the quarter, PAYLOCITY HOLDING saw a number of cost-saving measures and investments in technology that helped improve their efficiency and increase their bottom line.
The company also saw an increase in customer acquisition and retention, which led to higher revenue. Overall, PAYLOCITY HOLDING’s performance for their second quarter of FY2023 was strong, as evidenced by their 3.0% increase in stock price from the previous closing price. This is a testament to their sound financial management and successful cost-saving initiatives that have allowed them to maximize their profits and remain competitive in the market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Paylocity Holding. More…
| Total Revenues | Net Income | Net Margin |
| 1k | 95.94 | 9.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Paylocity Holding. More…
| Operations | Investing | Financing |
| 206.95 | -393.62 | 1.08k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Paylocity Holding. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.94k | 3.26k | 12.15 |
Key Ratios Snapshot
Some of the financial key ratios for Paylocity Holding are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.5% | 16.7% | 9.1% |
| FCF Margin | ROE | ROA |
| 15.6% | 8.9% | 1.5% |
Analysis – Paylocity Holding Stock Intrinsic Value
GoodWhale’s analysis has determined that PAYLOCITY HOLDING‘s intrinsic value is around $264.5 per share. This value was calculated using GoodWhale’s proprietary Valuation Line, which takes into account the company’s revenue, earnings, cash flow and other financial metrics. The current trading price of PAYLOCITY HOLDING is $226.0, 14.5% below its intrinsic value. This suggests that the stock is undervalued and may present a good opportunity for investors. GoodWhale’s analysis also reveals that PAYLOCITY HOLDING’s revenue has been growing steadily over the past five years. Additionally, the company has maintained a strong balance sheet with a healthy cash position. Overall, GoodWhale’s analysis suggests that PAYLOCITY HOLDING is a sound investment opportunity with a fair price that is currently undervalued. Investors looking for a good long-term investment should consider adding PAYLOCITY HOLDING to their portfolios. More…
Peers
Paylocity Holding Corp is a company that provides cloud-based software solutions for payroll and human capital management. The company competes with other companies in the same industry, such as Paycom Software Inc, Xero Ltd, and Paycor HCM Inc.
– Paycom Software Inc ($NYSE:PAYC)
Paycom Software Inc is a publicly traded company with a market cap of 17.93B as of 2022. The company has a Return on Equity of 19.62%. Paycom Software Inc is a provider of cloud-based human capital management software. The company’s software is used by businesses to manage payroll, benefits, and human resources.
– Xero Ltd ($ASX:XRO)
As of 2022, Xero Ltd has a market cap of 10.98B and a Return on Equity of 2.38%. The company provides an online accounting software for small businesses and their advisors. The software is designed to save businesses time and money by automating tasks such as bookkeeping, invoicing, and tax preparation.
– Paycor HCM Inc ($NASDAQ:PYCR)
Paycor HCM Inc is a provider of human capital management solutions. The company has a market cap of 4.91B as of 2022 and a Return on Equity of -6.69%. Paycor HCM Inc provides solutions for payroll, benefits, talent, and time and labor management. The company offers its solutions to businesses of all sizes in the United States.
Summary
Investing in PAYLOCITY HOLDING has proven to be a sound decision thus far, with the company reporting impressive earnings growth in the most recent quarter. The company reported total revenue of USD 15.6 million for the second quarter of FY2023, representing a 58.4% increase compared to the same period last year. Net income for the quarter was also up 39.3%, showing that the company is maintaining its strong earnings growth trend. The stock price responded positively to the news, demonstrating investor confidence in the company’s future performance. The company’s strong earnings growth is likely to continue, as it continues to expand its services and innovate in the industry. Its product offerings are widely acclaimed and its customer base is growing steadily.
Furthermore, the company is well-positioned to take advantage of opportunities in the market, such as emerging trends in digital payments and e-commerce. Given the company’s strong fundamentals and impressive financial performance, investors can expect PAYLOCITY HOLDING to deliver strong returns in the near future. The stock price has already risen significantly since the news broke, and investors can expect further gains if the company’s earnings trajectory continues. With its robust growth prospects, PAYLOCITY HOLDING is an attractive investment opportunity for investors looking for long-term returns.
