Quick Note: This payroll processing and human resources Software-as-a-Service holding is up 14% on strong quarterly results. The company exceeded street expectations on both earnings and revenues.
Paylocity’s business has continued to post solid growth in recent years but the growth rate slowed and the valuation multiples have come down (for high-growth companies in particular).
Now with a low (attractive) 1.8x forward PEG ratio (price/earnings to growth), and 19% FY24 expected revenue growth, the shares continue to be an attractive long-term investment opportunity.
The board just announced a new $500 million share repurchase program (encouraging) for this only $8.4 billion market cap company (an indication that they also believe the shares are undervalued).
Long Paylocity (PCTY).