Paylocity Beneish M Score

PCTY
 Stock
  

USD 261.12  0.32  0.12%   

This module uses fundamental data of Paylocity Holdings to approximate the value of its Beneish M Score. Paylocity Holdings M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Paylocity Holdings Piotroski F Score and Paylocity Holdings Altman Z Score analysis.
  
Paylocity Holdings Total Debt is fairly stable at the moment as compared to the past year. Paylocity Holdings reported Total Debt of 1.41 Million in 2021. Debt Current is likely to rise to about 872.7 K in 2022, whereas Issuance Repayment of Debt Securities is likely to drop (1.4 M) in 2022. Paylocity Holdings EBITDA Margin is fairly stable at the moment as compared to the past year. Paylocity Holdings reported EBITDA Margin of 10.34 in 2021. Earnings per Basic Share is likely to rise to 1.26 in 2022, whereas Calculated Tax Rate is likely to drop (23.33)  in 2022.
At this time, it appears that Paylocity Holdings Corp is an unlikely manipulator. The earnings manipulation may begin if Paylocity Holdings' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Paylocity Holdings executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Paylocity Holdings' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.58
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset Quality1.0Focus
Expense Coverage1.0Focus
Gross Margin Strengs0.93Focus
Accruals Factor1.0Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.0Focus

Paylocity Holdings Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Paylocity Holdings' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues617.2 M572.1 M
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense257.1 M238.3 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations121.2 M112.4 M
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion42.9 M39.7 M
Significantly Up
Increasing
Slightly volatile
Total Assets2.3 B2.2 B
Significantly Up
Increasing
Slightly volatile
Investments36.4 M33.7 M
Significantly Up
Increasing
Slightly volatile
Investments Current36.4 M33.7 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net86.9 M80.6 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables5.4 MM
Significantly Up
Increasing
Slightly volatile
Total Liabilities1.9 B1.7 B
Significantly Up
Increasing
Slightly volatile
Current AssetsB1.8 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current257.8 M238.9 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities1.8 B1.7 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current49.5 M45.9 M
Significantly Up
Increasing
Slightly volatile
Total Debt1.9 M1.4 M
Significantly Up
Decreasing
Slightly volatile
Debt Current872.7 K718.8 K
Fairly Up
Decreasing
Very volatile
Debt Non Current1.2 M844.2 K
Way Up
Decreasing
Slightly volatile
Operating Income56.4 M52.2 M
Significantly Up
Increasing
Slightly volatile
Gross Margin54.7858.95
Significantly Down
Increasing
Slightly volatile

Paylocity Holdings Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Paylocity Holdings' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Paylocity Holdings in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Paylocity Holdings' degree of accounting gimmicks and manipulations.

About Paylocity Holdings Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

42.89 Million

Paylocity Holdings Depreciation Amortization and Accretion is fairly stable at the moment as compared to the past year. Paylocity Holdings reported Depreciation Amortization and Accretion of 39.75 Million in 2021

Paylocity Holdings Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Paylocity Holdings. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues377.53 M467.63 M561.33 M635.63 M572.06 M617.23 M
Total Assets1.51 B1.8 B1.99 B2.41 B2.17 B2.34 B
Current Assets1.38 B1.6 B1.66 B2.03 B1.83 B1.97 B
Assets Non Current55.48 M74.59 M129.36 M207.75 M238.91 M257.78 M
Total Liabilities1.29 B1.5 B1.59 B1.94 B1.74 B1.88 B
Current Liabilities1.27 B1.46 B1.41 B1.87 B1.68 B1.81 B
Operating Income15.95 M56.22 M66.17 M58.04 M52.24 M56.36 M
Gross Margin60.4867.167.5865.558.9554.78

About Paylocity Holdings Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Paylocity Holdings Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Paylocity Holdings using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Paylocity Holdings Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for medium-sized organizations in the United States. The company was founded in 1997 and is headquartered in Schaumburg, Illinois. Paylocity Holdings operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 4150 people.

Paylocity Holdings Investors Sentiment

The influence of Paylocity Holdings' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Paylocity. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Paylocity Holdings' public news can be used to forecast risks associated with investment in Paylocity. The trend in average sentiment can be used to explain how an investor holding Paylocity can time the market purely based on public headlines and social activities around Paylocity Holdings Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Paylocity Holdings' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Paylocity Holdings' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Paylocity Holdings' news discussions. The higher the estimate score, the more favorable is the investor's outlook on Paylocity Holdings.

Paylocity Holdings Implied Volatility

    
  65.32  
Paylocity Holdings' implied volatility exposes the market's sentiment of Paylocity Holdings Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Paylocity Holdings' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Paylocity Holdings stock will not fluctuate a lot when Paylocity Holdings' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Paylocity Holdings in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Paylocity Holdings' short interest history, or implied volatility extrapolated from Paylocity Holdings options trading.

Currently Active Assets on Macroaxis

Please check Paylocity Holdings Piotroski F Score and Paylocity Holdings Altman Z Score analysis. Note that the Paylocity Holdings Corp information on this page should be used as a complementary analysis to other Paylocity Holdings' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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When running Paylocity Holdings Corp price analysis, check to measure Paylocity Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Paylocity Holdings is operating at the current time. Most of Paylocity Holdings' value examination focuses on studying past and present price action to predict the probability of Paylocity Holdings' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Paylocity Holdings' price. Additionally, you may evaluate how the addition of Paylocity Holdings to your portfolios can decrease your overall portfolio volatility.
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Is Paylocity Holdings' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Paylocity Holdings. If investors know Paylocity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Paylocity Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.29
Market Capitalization
14.1 B
Quarterly Revenue Growth YOY
0.37
Return On Assets
0.015
Return On Equity
0.17
The market value of Paylocity Holdings Corp is measured differently than its book value, which is the value of Paylocity that is recorded on the company's balance sheet. Investors also form their own opinion of Paylocity Holdings' value that differs from its market value or its book value, called intrinsic value, which is Paylocity Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Paylocity Holdings' market value can be influenced by many factors that don't directly affect Paylocity Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Paylocity Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine Paylocity Holdings value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Paylocity Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.