Paylocity HoldingPCTY +1.61%75 Return-on-Tangible-Asset is 7.88% as of Mar. 2026, which is 136% above its 10-year median of 3.34. GuruFocus rates PCTY with a GF Score™ of 75/100 and a GF Value™ of $226.45 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,886 Software companies, Paylocity Holding ranks better than 62.86% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Paylocity Holding's annualizedNet Income for the quarter that ended in Mar. 2026 was $445 Mil. Paylocity Holding's average total tangible assets for the quarter that ended in Mar. 2026 was $5,648 Mil. Therefore, Paylocity Holding's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 7.88%.
The historical rank and industry rank for Paylocity Holding's Return-on-Tangible-Asset or its related term are showing as below:
PCTY'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -0.37 Med: 3.34 Max: 5.81
Current: 5.52
During the past 13 years, Paylocity Holding's highest Return-on-Tangible-Asset was 5.81%. The lowest was -0.37%. And the median was 3.34%.
PCTY's Return-on-Tangible-Asset is ranked better than 62.86% of 2886
companies
in the Software industry
Industry Median: 2.035
vs PCTY: 5.52
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Paylocity Holding Return-on-Tangible-Asset Related Terms
Paylocity Holding Return-on-Tangible-Asset Historical Data
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The historical data trend for Paylocity Holding's Return-on-Tangible-Asset 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.
PCTY vs DUOL, NAVN, CVLT: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, Paylocity Holding's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Paylocity Holding's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Paylocity Holding's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 7.88% mean?
Paylocity Holding (PCTY) has a Return-on-Tangible-Asset of 7.88% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Paylocity Holding and its competitors. This is 136% above median its historical median of 3.34. According to the industry distribution chart, Paylocity Holding ranks #1072 out of 2886 companies in the Software industry, placing it in the top 37.1%.
Is Paylocity Holding's Return-on-Tangible-Asset too high?
Paylocity Holding's current Return-on-Tangible-Asset of 7.88% is 136% above median its 10-year median of 3.34. The Software industry median Return-on-Tangible-Asset is 2.04. Paylocity Holding's value of 7.88% is 287.2% above this industry median. Based on the distribution chart, Paylocity Holding ranks #1072 out of 2886 companies in the Software industry, which is above the industry midpoint. Overall, Paylocity Holding has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Paylocity Holding's Return-on-Tangible-Asset compare to DUOL and NAVN?
According to the Software industry distribution chart, Paylocity Holding ranks #1072 out of 2886 companies for Return-on-Tangible-Asset. This puts Paylocity Holding in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.04. Paylocity Holding's value of 7.88% is 287.2% above this benchmark. While the company's 10-year median is 3.34 vs. the industry median of 2.04, 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 Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.04, based on 2,886 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paylocity Holding's current Return-on-Tangible-Asset of 7.88% is 287.2% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Paylocity Holding and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paylocity Holding's current Return-on-Tangible-Asset is 7.88%, which is 136% above median its own 10-year median of 3.34. 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 $226.45, compared to a current price of $118.52 — trading 47.7% below its estimated fair value. The current Return-on-Tangible-Asset is 7.88%, which is 136% above median its 10-year median of 3.34 and 287.2% above the Software industry median of 2.04. Paylocity Holding's overall GF Score™ is 75/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Paylocity Holding (PCTY), the current Return-on-Tangible-Asset is 7.88% 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 $118.52 is trading 47.7% below its estimated GF Value™ of $226.45.
GuruFocus considers Paylocity Holding to be Possible Value Trap.
Key valuation signals for PCTY:
Return-on-Tangible-Asset: 7.88% (136% above median its 10-year median of 3.34)
GF Value™: $226.45 vs. price of $118.52 (47.7% below fair value)
Industry Position: 287.2% above the Software median (#1072 of 2886)
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.
75GF Score
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