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Paylocity Holding has the Financial Strength Rank of 5.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Paylocity Holding's interest coverage with the available data.
Paylocity Holding's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.07.
As of today, Paylocity Holding's Altman Z-Score is 2.36.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Paylocity Holding has the Financial Strength Rank of 5.
Paylocity Holding Financial Strength Related Terms
PCTY vs TTAN, IDCC, PAYC: Financial Strength Comparison
For the Software - Application subindustry, Paylocity Holding's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Paylocity Holding Financial Strength vs Software Industry
For the Software industry and Technology sector, Paylocity Holding's Financial Strength distribution charts can be found below:
* The bar in red indicates where Paylocity Holding's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
GuruFocus does not calculate Paylocity Holding's interest coverage with the available data.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Paylocity Holding Corp has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Paylocity Holding's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Paylocity Holding has a Z-score of 2.36, indicating it is in Grey Zones. This implies that Paylocity Holding is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.36 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Paylocity Holding (PCTY) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Paylocity Holding and its competitors. This is 17% below median its historical median of 6.00. Over the past decade, Paylocity Holding's Financial Strength has ranged from 5.00 to 9.00.
Is Paylocity Holding's Financial Strength too high?
Paylocity Holding's current Financial Strength of 5 is 17% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 9.00. Overall, Paylocity Holding has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paylocity Holding's Financial Strength compare to TTAN and IDCC?
Paylocity Holding's Financial Strength of 5 can be compared against companies in the Software industry. Historically, Paylocity Holding's own Financial Strength has ranged from 5.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Software company?
A good Financial Strength depends on the Software industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Paylocity Holding and its competitors. Paylocity Holding's current Financial Strength is 5, which is 17% below median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paylocity Holding stock overvalued right now?
Based on GuruFocus' analysis, Paylocity Holding (PCTY) is currently considered Significantly Undervalued. The stock's GF Value™ is $217.59, compared to a current price of $151.88 — trading 30.2% below its estimated fair value. The current Financial Strength is 5, which is 17% below median its 10-year median of 6.00. Paylocity Holding's overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Paylocity Holding (PCTY), the current Financial Strength is 5 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Paylocity Holding (PCTY) Overvalued in 2026?
Based on GuruFocus' analysis, Paylocity Holding stock appears to be undervalued.
The current stock price of $151.88 is trading 30.2% below its estimated GF Value™ of $217.59.
GuruFocus considers Paylocity Holding to be Significantly Undervalued.
Key valuation signals for PCTY:
Financial Strength: 5 (17% below median its 10-year median of 6.00)
GF Value™: $217.59 vs. price of $151.88 (30.2% below fair value)
No single metric tells the full story. See the PCTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paylocity is a cloud-based human capital management provider offering payroll, compliance, and human resources management solutions. With the addition of expense and IT management modules, Paylocity unifies back-office operations spanning HR, finance, and IT on a single platform and bills customers on a subscription basis. The firm's customer base skews toward the midmarket and is primarily based in the US. As of fiscal 2025, Paylocity has nearly 42,000 customers.
84GF Score
Get the complete analysis for PCTY
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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