Paylocity HoldingPCTY +0.31%71 FCF Margin % is 38.19% as of Mar. 2026, which is 157% above its 10-year median of 14.85. GuruFocus rates PCTY with a GF Score™ of 71/100 and a GF Value™ of $225.43 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,814 Software companies, Paylocity Holding ranks better than 90.83% on this metric.
The historical rank and industry rank for Paylocity Holding's FCF Margin % or its related term are showing as below:
PCTY'
s FCF Margin % Range Over the Past 10 Years
Min: 3.69 Med: 14.85 Max: 24.37
Current: 24.37
During the past 13 years, the highest FCF Margin % of Paylocity Holding was 24.37%. The lowest was 3.69%. And the median was 14.85%.
PCTY's FCF Margin % is ranked better than 90.83% of 2814
companies
in the Software industry
Industry Median: 2.41
vs PCTY: 24.37
Paylocity Holding FCF Margin % Related Terms
Paylocity Holding FCF Margin % Historical Data
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The historical data trend for Paylocity Holding's FCF Margin % can be seen below:
* 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.
For the Software - Application subindustry, Paylocity Holding's FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Software Industry
For the Software industry and Technology sector, Paylocity Holding's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Paylocity Holding's FCF Margin % falls into.
* 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 FCF Margin % of 38.19% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Paylocity Holding and its competitors. This is 157% above median its historical median of 14.85. Over the past decade, Paylocity Holding's FCF Margin % has ranged from 3.69 to 24.37. According to the industry distribution chart, Paylocity Holding ranks #258 out of 2814 companies in the Software industry, placing it in the top 9.2%.
Is Paylocity Holding's FCF Margin % too high?
Paylocity Holding's current FCF Margin % of 38.19% is 157% above median its 10-year median of 14.85. Over the past 10 years, this metric has ranged from a low of 3.69 to a high of 24.37. The Software industry median FCF Margin % is 2.41. Paylocity Holding's value of 38.19% is 1484.6% above this industry median. Based on the distribution chart, Paylocity Holding ranks #258 out of 2814 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Paylocity Holding has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Paylocity Holding's FCF Margin % compare to PEGA and PAYC?
According to the Software industry distribution chart, Paylocity Holding ranks #258 out of 2814 companies for FCF Margin %. This places Paylocity Holding in the top 9% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.41. Paylocity Holding's value of 38.19% is 1484.6% above this benchmark. Historically, Paylocity Holding's own FCF Margin % has ranged from 3.69 to 24.37 over the past decade. While the company's 10-year median is 14.85 vs. the industry median of 2.41, Paylocity Holding has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.41, based on 2,814 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paylocity Holding's current FCF Margin % of 38.19% is 1484.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Paylocity Holding and its competitors. For the Software industry, the median FCF Margin % is 2.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paylocity Holding's current FCF Margin % is 38.19%, which is 157% above median its own 10-year median of 14.85. 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 Possible Value Trap. The stock's GF Value™ is $225.43, compared to a current price of $104.11 — trading 53.8% below its estimated fair value. The current FCF Margin % is 38.19%, which is 157% above median its 10-year median of 14.85 and 1484.6% above the Software industry median of 2.41. Paylocity Holding's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Paylocity Holding (PCTY), the current FCF Margin % is 38.19% as of Mar. 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 $104.11 is trading 53.8% below its estimated GF Value™ of $225.43.
GuruFocus considers Paylocity Holding to be Possible Value Trap.
Key valuation signals for PCTY:
FCF Margin %: 38.19% (157% above median its 10-year median of 14.85)
GF Value™: $225.43 vs. price of $104.11 (53.8% below fair value)
Industry Position: 1484.6% above the Software median (#258 of 2814)
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.
71GF Score
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