Paylocity Holding Stock Fair Value – Korea Investment CORP Invests in Paylocity Holding Co. in Fourth Quarter
June 12, 2023
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Paylocity Holding ($NASDAQ:PCTY) Co. is a leading provider of cloud-based payroll solutions for medium-sized businesses. It offers payroll processing, employee benefits, and human resources management solutions. This move signals a further commitment to the company’s growth both in terms of revenue and in terms of a long-term financial strategy. The investment is expected to give the company additional resources and capital to expand its operations and take advantage of new opportunities. The investment comes at a time when Paylocity is seeing increased growth and demand for its products and services.
Furthermore, Paylocity is taking steps to expand its presence globally, and this investment could provide the necessary resources for the company to achieve this goal. This move by Korea Investment CORP is further evidence of the confidence that financial institutions have in Paylocity Holding Co. It is an attractive investment opportunity for those looking for an innovative and reliable cloud-based payroll solution provider. With this additional capital and resources, Paylocity can continue its success and expand its operations in the future.
Price History
This drove PAYC’s stock up 2.9%, from 186.6 to 192.1. This was the highest stock opening and closing in the company’s history, as investors rushed to invest in the promising company. With KIC now investing in the company, it is expected to grow further and expand into new markets. 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 |
| 1.1k | 118.71 | 10.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Paylocity Holding. More…
| Operations | Investing | Financing |
| 255.77 | -497.15 | -1.19k |
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 |
| 4.19k | 3.42k | 13.77 |
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 |
| 25.7% | 21.7% | 11.4% |
| FCF Margin | ROE | ROA |
| 18.7% | 10.8% | 1.9% |
Analysis – Paylocity Holding Stock Fair Value
We at GoodWhale have conducted an analysis of PAYLOCITY HOLDING‘s fundamentals and have determined that the intrinsic value of their share is around $285.7. This assessment was made using our proprietary Valuation Line, an analytical tool that takes into account various metrics associated with the company’s financial performance. Currently, PAYLOCITY HOLDING stock is traded at $192.1 – a full 32.8% lower than its intrinsic value. This suggests that it is potentially undervalued, and could be a good buy for potential investors. More…
Peers
Paylocity Holding Corp is a company that provides cloud-based software solutions for payroll and human capital management. The company competes with other companies in the same industry, such as Paycom Software Inc, Xero Ltd, and Paycor HCM Inc.
– Paycom Software Inc ($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
Korea Investment Corp. has reported purchasing a stake in Paylocity Holding Co. in the fourth quarter of this year. Analysts have cited the strong fundamentals of the company, such as its robust customer base and recurring revenue model, as the primary reasons behind this sustained uptick in investor interest. As such, Paylocity is considered to be an attractive option for long-term investors looking for a reliable and predictable return on their investment.
