PCTY

Paylocity Holding Corporation provides cloud-based human capital management and payroll software solutions for workforce in the United States. The company offers Payroll and Tax Services solution to simplifies payroll, automates processes, and manages compliance requirements within one system; and expense management, on demand payment, and garnishment solutions. It also provides human capital management and employee self-service solutions, document library, compliance dashboard, and HR edge; time and attendance solution; 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; employee experiences solutions, including community, premium video, survey, and peer recognition; and insights and recommendations solutions, such as modern workforce index, data insights, and reporting. Further, it provides implementation and training, client, and tax and regulatory services. The company serves 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.

🏛️ Investment Memo: PCTY

Recommendation: {{ACTION}} (Target: ${{PRICE}}) Current Price: ${{CURRENT_PRICE}} Implied Upside: {{UPSIDE}}%

1. The Executive Thesis (The "Elevator Pitch")

The Opportunity: [Focus on asymmetry. e.g. "A mispriced compounder trading at 12x FCF despite 20% growth."]
The Portfolio Fit: [Explain correlation. e.g. "This asset provides exposure to AI growth but with Utility-like defensive cash flows."]

2. The "Quality" Scorecard

Capital Allocation: [Does management buy back stock or waste money? Recent M&A track record?]
ROIC Trend: [Is it >15%? Is it rising or falling? Why?]
The "Moat" Durability: [Why will margins remain high for 5 years? Switching costs or Network effects?]

3. Valuation & Margin of Safety

Base Case: [Assumptions: {{GROWTH}}% growth, {{MULTIPLE}}x multiple = ${{PRICE}}/share]
Bear Case (The "Kill" Criteria): [What happens if growth hits 0%? e.g. "Even with 0% growth, the 5% dividend yield provides a floor."]

4. Key Risks (Pre-Mortem)

Risk 1: [Customer Concentration (>10% of revenue)]
Risk 2: [Regulatory headwinds]
Risk 3: [Management turnover]

Disclaimer: This is for informational purposes only and does not constitute financial advice.

PCTY

🏛️ Investment Memo: PCTY

1. The Executive Thesis (The "Elevator Pitch")

2. The "Quality" Scorecard

3. Valuation & Margin of Safety

4. Key Risks (Pre-Mortem)

Competitive Advantage (Moat)

PCTY Valuation Model

Paylocity (PCTY): The Sticky HR SaaS Provider Capitalizing on Mid-Market Growth

Paylocity (PCTY): The Sticky HR SaaS Provider Capitalizing on Mid-Market Growth

Investment Memo: PCTY