Paycom Software (HAM:0PY) ROCE %: 41.93% (As of Mar. 2026)


HAM:0PY Paycom Software Inc HAM:0PY
71 GF Score
Price €125.65
GF Value €217.18
Valuation Significantly Undervalued
! 3 Warning Signs
View Full Analysis

What is Paycom Software ROCE %?

Paycom Software HAM:0PY +2.57% 71 ROCE % is 41.93% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Paycom Software's annualized ROCE % for the quarter that ended in Mar. 2026 was 41.93%.

Paycom Software  (HAM:0PY) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Paycom Software ROCE % Related Terms

Paycom Software ROCE % Historical Data

* Premium members only.

The historical data trend for Paycom Software's ROCE % 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.

Paycom Software ROCE % Chart

Paycom Software Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.96 29.33 29.34 36.76 28.22

Paycom Software Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.23 21.40 28.06 29.11 41.93
HAM:0PY
71GF Score
Paycom Software Inc HAM:0PY
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Paycom Software ROCE % Calculation

Paycom Software's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=531.871/( ( (5596.205 - 3730.994) + (6489.29 - 4584.614) )/ 2 )
=531.871/( (1865.211+1904.676)/ 2 )
=531.871/1884.9435
=28.22 %

Paycom Software's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=758.776/( ( (6489.29 - 4584.614) + (4170.857 - 2456.167) )/ 2 )
=758.776/( ( 1904.676 + 1714.69 )/ 2 )
=758.776/1809.683
=41.93 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 41.93% mean?
Paycom Software (HAM:0PY) has a ROCE % of 41.93% as of Mar. 2026.
Is Paycom Software's ROCE % too high?
Paycom Software's current ROCE % is 41.93%. The Software industry median ROCE % is 5.19. Paycom Software's value of 41.93% is 707.9% above this industry median. 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 ROCE % compare to ESTC and CVLT?
Paycom Software's ROCE % of 41.93% can be compared against companies in the Software industry. The industry median ROCE % is 5.19. Paycom Software's value of 41.93% is 707.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.19, based on 2,709 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paycom Software's current ROCE % of 41.93% is 707.9% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paycom Software's current ROCE % is 41.93%. 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 ROCE % is 41.93% and 707.9% above the Software industry median of 5.19. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Paycom Software (HAM:0PY), the current ROCE % is 41.93% 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:

  • ROCE %: 41.93%
  • GF Value™: €217.18 vs. price of €125.65 (42.1% below fair value)
  • GF Score™: 71/100 with 3 warning signs
  • Industry Position: 707.9% above the Software median

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.

Paycom Software Business Description

Address 7501 W. Memorial Road, Oklahoma, OK, USA, 73142
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

Get the complete analysis for HAM:0PY

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€125.65
Price
€217.18
GF Value