Paylocity HoldingPCTY -2.39%71 OCF Margin % is 43.38% as of Mar. 2026, which is 94% above its 10-year median of 22.37. 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 2,815 Software companies, Paylocity Holding ranks better than 88.77% on this metric.
The historical rank and industry rank for Paylocity Holding's OCF Margin % or its related term are showing as below:
PCTY'
s OCF Margin % Range Over the Past 10 Years
Min: 14.3 Med: 22.37 Max: 27.43
Current: 29.41
During the past 13 years, the highest OCF Margin % of Paylocity Holding was 27.43%. The lowest was 14.30%. And the median was 22.37%.
PCTY's OCF Margin % is ranked better than 88.77% of 2815
companies
in the Software industry
Industry Median: 6.78
vs PCTY: 29.41
Paylocity Holding OCF Margin % Related Terms
Paylocity Holding OCF Margin % Historical Data
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The historical data trend for Paylocity Holding'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.
For the Software - Application subindustry, Paylocity Holding'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.
Paylocity Holding OCF Margin % vs Software Industry
For the Software industry and Technology sector, Paylocity Holding's OCF Margin % distribution charts can be found below:
* The bar in red indicates where Paylocity Holding'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.
Paylocity Holding (PCTY) has a OCF Margin % of 43.38% as of Mar. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Paylocity Holding and its competitors. This is 94% above median its historical median of 22.37. Over the past decade, Paylocity Holding's OCF Margin % has ranged from 14.30 to 27.43. According to the industry distribution chart, Paylocity Holding ranks #316 out of 2815 companies in the Software industry, placing it in the top 11.2%.
Is Paylocity Holding's OCF Margin % too high?
Paylocity Holding's current OCF Margin % of 43.38% is 94% above median its 10-year median of 22.37. Over the past 10 years, this metric has ranged from a low of 14.30 to a high of 27.43. The Software industry median OCF Margin % is 6.78. Paylocity Holding's value of 43.38% is 539.8% above this industry median. Based on the distribution chart, Paylocity Holding ranks #316 out of 2815 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 OCF Margin % compare to PEGA and PAYC?
According to the Software industry distribution chart, Paylocity Holding ranks #316 out of 2815 companies for OCF Margin %. This places Paylocity Holding in the top 11% of its industry — outperforming the majority of peers. The industry median OCF Margin % is 6.78. Paylocity Holding's value of 43.38% is 539.8% above this benchmark. Historically, Paylocity Holding's own OCF Margin % has ranged from 14.30 to 27.43 over the past decade. While the company's 10-year median is 22.37 vs. the industry median of 6.78, 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 OCF Margin % for a Software company?
The median OCF Margin % among Software companies is 6.78, based on 2,815 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. Paylocity Holding's current OCF Margin % of 43.38% is 539.8% 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 Paylocity Holding and its competitors. For the Software industry, the median OCF Margin % is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paylocity Holding's current OCF Margin % is 43.38%, which is 94% above median its own 10-year median of 22.37. 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 $101.31 — trading 55.1% below its estimated fair value. The current OCF Margin % is 43.38%, which is 94% above median its 10-year median of 22.37 and 539.8% above the Software industry median of 6.78. 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 OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For Paylocity Holding (PCTY), the current OCF Margin % is 43.38% 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 $101.31 is trading 55.1% below its estimated GF Value™ of $225.43.
GuruFocus considers Paylocity Holding to be Possible Value Trap.
Key valuation signals for PCTY:
OCF Margin %: 43.38% (94% above median its 10-year median of 22.37)
GF Value™: $225.43 vs. price of $101.31 (55.1% below fair value)
Industry Position: 539.8% above the Software median (#316 of 2815)
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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