Paycom SoftwareHAM:0PY +2.57%71 Pretax Margin % is 37.65% as of Mar. 2026, which is 26% above its 10-year median of 29.85. 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 2,815 Software companies, Paycom Software ranks better than 93.53% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Paycom Software Pretax Margin % Related Terms
Paycom Software Pretax Margin % Historical Data
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The historical data trend for Paycom Software's Pretax 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: Pretax Margin % Comparison
For the Software - Application subindustry, Paycom Software's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Paycom Software's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Paycom Software's Pretax 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 Pretax Margin % of 37.65% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Paycom Software and its competitors. This is 26% above median its historical median of 29.85. Over the past decade, Paycom Software's Pretax Margin % has ranged from 22.10 to 34.46. According to the industry distribution chart, Paycom Software ranks #182 out of 2815 companies in the Software industry, placing it in the top 6.5%.
Is Paycom Software's Pretax Margin % too high?
Paycom Software's current Pretax Margin % of 37.65% is 26% above median its 10-year median of 29.85. Over the past 10 years, this metric has ranged from a low of 22.10 to a high of 34.46. The Software industry median Pretax Margin % is 3.59. Paycom Software's value of 37.65% is 948.7% above this industry median. Based on the distribution chart, Paycom Software ranks #182 out of 2815 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 Pretax Margin % compare to ESTC and CVLT?
According to the Software industry distribution chart, Paycom Software ranks #182 out of 2815 companies for Pretax Margin %. This places Paycom Software in the top 7% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.59. Paycom Software's value of 37.65% is 948.7% above this benchmark. Historically, Paycom Software's own Pretax Margin % has ranged from 22.10 to 34.46 over the past decade. While the company's 10-year median is 29.85 vs. the industry median of 3.59, 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.59, based on 2,815 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paycom Software's current Pretax Margin % of 37.65% is 948.7% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Paycom Software and its competitors. For the Software industry, the median Pretax Margin % is 3.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paycom Software's current Pretax Margin % is 37.65%, which is 26% above median its own 10-year median of 29.85. 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 Pretax Margin % is 37.65%, which is 26% above median its 10-year median of 29.85 and 948.7% above the Software industry median of 3.59. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Paycom Software (HAM:0PY), the current Pretax Margin % is 37.65% 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:
Pretax Margin %: 37.65% (26% above median its 10-year median of 29.85)
GF Value™: €217.18 vs. price of €125.65 (42.1% below fair value)
Industry Position: 948.7% above the Software median (#182 of 2815)
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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