Paycom SoftwareHAM:0PY +2.57%71 ROA % is 10.11% as of Mar. 2026, which is 24% above its 10-year median of 8.16. 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 2,876 Software companies, Paycom Software ranks better than 80.08% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Paycom Software's annualizedNet Income for the quarter that ended in Mar. 2026 was €539 Mil.
Paycom Software's average Total Assets over the quarter that ended in Mar. 2026 was €5,330 Mil. Therefore, Paycom Software's annualized ROA % for the quarter that ended in Mar. 2026 was 10.11%.
The historical rank and industry rank for Paycom Software's ROA % or its related term are showing as below:
HAM:0PY'
s ROA % Range Over the Past 10 Years
Min: 5.63 Med: 8.16 Max: 9.98
Current: 9.29
During the past 13 years, Paycom Software's highest ROA % was 9.98%. The lowest was 5.63%. And the median was 8.16%.
HAM:0PY's ROA % is ranked better than 80.08% of 2876
companies
in the Software industry
Industry Median: 1.675
vs HAM:0PY: 9.29
Paycom Software (HAM:0PY) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Paycom Software ROA % Related Terms
Paycom Software ROA % Historical Data
* Premium members only.
The historical data trend for Paycom Software's ROA % 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, Paycom Software's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Software Industry
For the Software industry and Technology sector, Paycom Software's ROA % distribution charts can be found below:
* The bar in red indicates where Paycom Software's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Paycom Software (HAM:0PY) has a ROA % of 10.11% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Paycom Software and its competitors. This is 24% above median its historical median of 8.16. Over the past decade, Paycom Software's ROA % has ranged from 5.63 to 9.98. According to the industry distribution chart, Paycom Software ranks #573 out of 2876 companies in the Software industry, placing it in the top 19.9%.
Is Paycom Software's ROA % too high?
Paycom Software's current ROA % of 10.11% is 24% above median its 10-year median of 8.16. Over the past 10 years, this metric has ranged from a low of 5.63 to a high of 9.98. The Software industry median ROA % is 1.68. Paycom Software's value of 10.11% is 503.6% above this industry median. Based on the distribution chart, Paycom Software ranks #573 out of 2876 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 ROA % compare to ESTC and CVLT?
According to the Software industry distribution chart, Paycom Software ranks #573 out of 2876 companies for ROA %. This places Paycom Software in the top 20% of its industry — outperforming the majority of peers. The industry median ROA % is 1.68. Paycom Software's value of 10.11% is 503.6% above this benchmark. Historically, Paycom Software's own ROA % has ranged from 5.63 to 9.98 over the past decade. While the company's 10-year median is 8.16 vs. the industry median of 1.68, 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 ROA % for a Software company?
The median ROA % among Software companies is 1.68, based on 2,876 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paycom Software's current ROA % of 10.11% is 503.6% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Paycom Software and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paycom Software's current ROA % is 10.11%, which is 24% above median its own 10-year median of 8.16. 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 ROA % is 10.11%, which is 24% above median its 10-year median of 8.16 and 503.6% above the Software industry median of 1.68. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Paycom Software (HAM:0PY), the current ROA % is 10.11% 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:
ROA %: 10.11% (24% above median its 10-year median of 8.16)
GF Value™: €217.18 vs. price of €125.65 (42.1% below fair value)
Industry Position: 503.6% above the Software median (#573 of 2876)
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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