Paycom SoftwareHAM:0PY +2.57%71 FCF Yield % is 6.83 as of Jul. 09, 2026, which is 406% above its 10-year median of 1.35. GuruFocus rates HAM:0PY with a GF Score™ of 71/100 and a GF Value™ of €217.18 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,862 Software companies, Paycom Software ranks better than 75.09% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Paycom Software FCF Yield % Related Terms
Paycom Software FCF Yield % Historical Data
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The historical data trend for Paycom Software's FCF Yield % 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.
HAM:0PY vs ESTC, CVLT, NAVN: FCF Yield % Comparison
For the Software - Application subindustry, Paycom Software's FCF Yield %, along with its competitors' market caps and FCF Yield % 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.
Paycom Software FCF Yield % vs Software Industry
For the Software industry and Technology sector, Paycom Software's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Paycom Software's FCF Yield % 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.
Paycom Software (HAM:0PY) has a FCF Yield % of 6.83 as of Jul. 09, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Paycom Software and its competitors. This is 406% above median its historical median of 1.35. Over the past decade, Paycom Software's FCF Yield % has ranged from 0.47 to 7.59. According to the industry distribution chart, Paycom Software ranks #713 out of 2862 companies in the Software industry, placing it in the top 24.9%.
Is Paycom Software's FCF Yield % too high?
Paycom Software's current FCF Yield % of 6.83 is 406% above median its 10-year median of 1.35. Over the past 10 years, this metric has ranged from a low of 0.47 to a high of 7.59. The Software industry median FCF Yield % is 0.91. Paycom Software's value of 6.83 is 650.5% above this industry median. Based on the distribution chart, Paycom Software ranks #713 out of 2862 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Paycom Software has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paycom Software's FCF Yield % compare to ESTC and CVLT?
According to the Software industry distribution chart, Paycom Software ranks #713 out of 2862 companies for FCF Yield %. This places Paycom Software in the top 25% of its industry — outperforming the majority of peers. The industry median FCF Yield % is 0.91. Paycom Software's value of 6.83 is 650.5% above this benchmark. Historically, Paycom Software's own FCF Yield % has ranged from 0.47 to 7.59 over the past decade. While the company's 10-year median is 1.35 vs. the industry median of 0.91, Paycom Software 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 Yield % for a Software company?
The median FCF Yield % among Software companies is 0.91, based on 2,862 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paycom Software's current FCF Yield % of 6.83 is 650.5% 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 Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Paycom Software and its competitors. For the Software industry, the median FCF Yield % is 0.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paycom Software's current FCF Yield % is 6.83, which is 406% above median its own 10-year median of 1.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paycom Software stock overvalued right now?
Based on GuruFocus' analysis, Paycom Software (HAM:0PY) is currently considered Significantly Undervalued. The stock's GF Value™ is €217.18, compared to a current price of €125.65 — trading 42.1% below its estimated fair value. The current FCF Yield % is 6.83, which is 406% above median its 10-year median of 1.35 and 650.5% above the Software industry median of 0.91. Paycom Software'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 Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Paycom Software (HAM:0PY), the current FCF Yield % is 6.83 as of Jul. 09, 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 Paycom Software (HAM:0PY) Overvalued in 2026?
Based on GuruFocus' analysis, Paycom Software stock appears to be undervalued.
The current stock price of €125.65 is trading 42.1% below its estimated GF Value™ of €217.18.
GuruFocus considers Paycom Software to be Significantly Undervalued.
Key valuation signals for HAM:0PY:
FCF Yield %: 6.83 (406% above median its 10-year median of 1.35)
GF Value™: €217.18 vs. price of €125.65 (42.1% below fair value)
Industry Position: 650.5% above the Software median (#713 of 2862)
No single metric tells the full story. See the HAM:0PY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1998, Paycom is a human capital management software-as-a-service provider addressing customer requirements surrounding payroll, talent acquisition, talent management, HR management, as well as time and labor. The company services businesses of all sizes within the United States and internationally. The company primarily generates revenue through the sale of subscriptions providing access to its HCM platform. To a lesser extent, the company also generates revenue from implementation services provided to customers as well as interest income generated from customer funds. As of fiscal 2024, the company serviced slightly over 37,500 customers and stored data on over 7 million employees.
71GF Score
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