Provides cloud-based payroll processing and tax services. Offers human capital management (HCM) solutions, including employee self-service and document management. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
Average growth of 20% a year over the last 4 years. Every year shown ended in profit.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly above the class average — a step short of the very top.
The cash pile is strong; debt and other items pull the grade toward the middle.
The price isn’t cheap next to earnings — that’s why this grade sits in the middle.
Sales are growing strongly for its sector.
Clearly above the class average — a step short of the very top.
No real weak spot in any of the five subjects — a balanced report card.
The stock trades 54% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 15% — still a thick cushion, though costs have been eating into it lately.
Over the last 4 years, sales grew about 20% a year on average.
There is $271.9M in the vault; even if every debt were paid off, $148.5M would remain.
Over the last 12 months, executives reported 109 sells against just 34 buys. Not an alarm bell by itself, but a number worth watching.
On our five-subject report card, PCTY sits near the top of the class. A high grade doesn’t mean “guaranteed win” — it means “the evidence looks strong for now.”
The takeaway: PCTY is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s what that quality should cost.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.