Paycom SoftwareLTS:0KGH +2.88%82 OCF Margin % is 37.39% as of Mar. 2026, which is 24% above its 10-year median of 30.04. GuruFocus rates LTS:0KGH with a GF Score™ of 82/100 and a GF Value™ of $252.97 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,816 Software companies, Paycom Software ranks better than 91.9% on this metric.
The historical rank and industry rank for Paycom Software's OCF Margin % or its related term are showing as below:
LTS:0KGH'
s OCF Margin % Range Over the Past 10 Years
Min: 26.55 Med: 30.04 Max: 33.09
Current: 33.93
During the past 13 years, the highest OCF Margin % of Paycom Software was 33.09%. The lowest was 26.55%. And the median was 30.04%.
LTS:0KGH's OCF Margin % is ranked better than 91.9% of 2816
companies
in the Software industry
Industry Median: 6.77
vs LTS:0KGH: 33.93
Paycom Software OCF Margin % Related Terms
Paycom Software OCF Margin % Historical Data
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The historical data trend for Paycom Software's OCF 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.
LTS:0KGH vs IDCC, ESTC, PCTY: OCF Margin % Comparison
For the Software - Application subindustry, Paycom Software's OCF Margin %, along with its competitors' market caps and OCF 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 OCF Margin % vs Software Industry
For the Software industry and Technology sector, Paycom Software's OCF Margin % distribution charts can be found below:
* The bar in red indicates where Paycom Software's OCF 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 (LTS:0KGH) has a OCF Margin % of 37.39% as of Mar. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Paycom Software and its competitors. This is 24% above median its historical median of 30.04. Over the past decade, Paycom Software's OCF Margin % has ranged from 26.55 to 33.09. According to the industry distribution chart, Paycom Software ranks #228 out of 2816 companies in the Software industry, placing it in the top 8.1%.
Is Paycom Software's OCF Margin % too high?
Paycom Software's current OCF Margin % of 37.39% is 24% above median its 10-year median of 30.04. Over the past 10 years, this metric has ranged from a low of 26.55 to a high of 33.09. The Software industry median OCF Margin % is 6.77. Paycom Software's value of 37.39% is 452.3% above this industry median. Based on the distribution chart, Paycom Software ranks #228 out of 2816 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 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paycom Software's OCF Margin % compare to IDCC and ESTC?
According to the Software industry distribution chart, Paycom Software ranks #228 out of 2816 companies for OCF Margin %. This places Paycom Software in the top 8% of its industry — outperforming the majority of peers. The industry median OCF Margin % is 6.77. Paycom Software's value of 37.39% is 452.3% above this benchmark. Historically, Paycom Software's own OCF Margin % has ranged from 26.55 to 33.09 over the past decade. While the company's 10-year median is 30.04 vs. the industry median of 6.77, 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 OCF Margin % for a Software company?
The median OCF Margin % among Software companies is 6.77, based on 2,816 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paycom Software's current OCF Margin % of 37.39% is 452.3% 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 OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Paycom Software and its competitors. For the Software industry, the median OCF Margin % is 6.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paycom Software's current OCF Margin % is 37.39%, which is 24% above median its own 10-year median of 30.04. 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 (LTS:0KGH) is currently considered Significantly Undervalued. The stock's GF Value™ is $252.97, compared to a current price of $128.82 — trading 49.1% below its estimated fair value. The current OCF Margin % is 37.39%, which is 24% above median its 10-year median of 30.04 and 452.3% above the Software industry median of 6.77. Paycom Software's overall GF Score™ is 82/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For Paycom Software (LTS:0KGH), the current OCF Margin % is 37.39% 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 (LTS:0KGH) Overvalued in 2026?
Based on GuruFocus' analysis, Paycom Software stock appears to be undervalued.
The current stock price of $128.82 is trading 49.1% below its estimated GF Value™ of $252.97.
GuruFocus considers Paycom Software to be Significantly Undervalued.
Key valuation signals for LTS:0KGH:
OCF Margin %: 37.39% (24% above median its 10-year median of 30.04)
GF Value™: $252.97 vs. price of $128.82 (49.1% below fair value)
Industry Position: 452.3% above the Software median (#228 of 2816)
No single metric tells the full story. See the LTS:0KGH 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.
82GF Score
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