Paycom SoftwareHAM:0PY +2.57%71 Net Margin % is 27.23% as of Mar. 2026, which is 25% above its 10-year median of 21.75. 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 2,817 Software companies, Paycom Software ranks better than 92.15% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Paycom Software's Net Income for the
three
months ended in Mar. 2026 was €135 Mil. Paycom Software's Revenue for the
three
months ended in Mar. 2026 was €495 Mil. Therefore, Paycom Software's net margin for the quarter that ended in Mar. 2026 was 27.23%.
The historical rank and industry rank for Paycom Software's Net Margin % or its related term are showing as below:
HAM:0PY'
s Net Margin % Range Over the Past 10 Years
Min: 17.05 Med: 21.75 Max: 28.52
Current: 22.44
HAM:0PY's Net Margin % is ranked better than 92.15% of 2817
companies
in the Software industry
Industry Median: 2.61
vs HAM:0PY: 22.44
Paycom Software (HAM:0PY) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Paycom Software Net Margin % Related Terms
Paycom Software Net Margin % Historical Data
* Premium members only.
The historical data trend for Paycom Software's Net 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.
HAM:0PY vs ESTC, CVLT, NAVN: Net Margin % Comparison
For the Software - Application subindustry, Paycom Software's Net Margin %, along with its competitors' market caps and Net 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.
Paycom Software Net Margin % vs Software Industry
For the Software industry and Technology sector, Paycom Software's Net Margin % distribution charts can be found below:
* The bar in red indicates where Paycom Software's Net 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.
Paycom Software (HAM:0PY) has a Net Margin % of 27.23% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Paycom Software and its competitors. This is 25% above median its historical median of 21.75. Over the past decade, Paycom Software's Net Margin % has ranged from 17.05 to 28.52. According to the industry distribution chart, Paycom Software ranks #221 out of 2817 companies in the Software industry, placing it in the top 7.8%.
Is Paycom Software's Net Margin % too high?
Paycom Software's current Net Margin % of 27.23% is 25% above median its 10-year median of 21.75. Over the past 10 years, this metric has ranged from a low of 17.05 to a high of 28.52. The Software industry median Net Margin % is 2.61. Paycom Software's value of 27.23% is 943.3% above this industry median. Based on the distribution chart, Paycom Software ranks #221 out of 2817 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 Net Margin % compare to ESTC and CVLT?
According to the Software industry distribution chart, Paycom Software ranks #221 out of 2817 companies for Net Margin %. This places Paycom Software in the top 8% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.61. Paycom Software's value of 27.23% is 943.3% above this benchmark. Historically, Paycom Software's own Net Margin % has ranged from 17.05 to 28.52 over the past decade. While the company's 10-year median is 21.75 vs. the industry median of 2.61, 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 Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.61, based on 2,817 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paycom Software's current Net Margin % of 27.23% is 943.3% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Paycom Software and its competitors. For the Software industry, the median Net Margin % is 2.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paycom Software's current Net Margin % is 27.23%, which is 25% above median its own 10-year median of 21.75. 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 Net Margin % is 27.23%, which is 25% above median its 10-year median of 21.75 and 943.3% above the Software industry median of 2.61. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Paycom Software (HAM:0PY), the current Net Margin % is 27.23% 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 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:
Net Margin %: 27.23% (25% above median its 10-year median of 21.75)
GF Value™: €217.18 vs. price of €125.65 (42.1% below fair value)
Industry Position: 943.3% above the Software median (#221 of 2817)
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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