3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Paylocity Holding's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was -18.22%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Paylocity Holding's 3-Year ROIIC % or its related term are showing as below:
PCTY's 3-Year ROIIC % is ranked worse than 76.04% of 2621
companies
in the Software industry
Industry Median: 5.25
vs PCTY: -18.22
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Paylocity Holding 3-Year ROIIC % Related Terms
Paylocity Holding 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Paylocity Holding's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Software - Application subindustry, Paylocity Holding's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Paylocity Holding's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Paylocity Holding's 3-Year ROIIC % falls into.
Paylocity Holding's 3-Year ROIIC % for the quarter that ended in Jun. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 223.4272376 (Jun. 2025) - 84.594 (Jun. 2022) )
/
( 3825.272 (Jun. 2025) - 4587.054 (Jun. 2022) )
=
138.8332376
/
-761.782
=
-18.22%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Paylocity Holding (PCTY) has a 3-Year ROIIC % of -18.22 as of Jun. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Paylocity Holding and its competitors. According to the industry distribution chart, Paylocity Holding ranks #1993 out of 2621 companies in the Software industry, placing it in the top 76%.
Is Paylocity Holding's 3-Year ROIIC % too high?
Paylocity Holding's current 3-Year ROIIC % is -18.22. Based on the distribution chart, Paylocity Holding ranks #1993 out of 2621 companies in the Software industry, which is in the bottom quartile relative to peers. 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 3-Year ROIIC % compare to DUOL and NAVN?
According to the Software industry distribution chart, Paylocity Holding ranks #1993 out of 2621 companies for 3-Year ROIIC %. This places Paylocity Holding in the lower half of its industry. The industry median 3-Year ROIIC % is 5.25. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Software company?
The median 3-Year ROIIC % among Software companies is 5.25, based on 2,621 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Paylocity Holding and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paylocity Holding's current 3-Year ROIIC % is -18.22. 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 $226.21, compared to a current price of $113.76 — trading 49.7% below its estimated fair value. The current 3-Year ROIIC % is -18.22. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Paylocity Holding (PCTY), the current 3-Year ROIIC % is -18.22 as of Jun. 2025. 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 $113.76 is trading 49.7% below its estimated GF Value™ of $226.21.
GuruFocus considers Paylocity Holding to be Possible Value Trap.
Key valuation signals for PCTY:
3-Year ROIIC %: -18.22
GF Value™: $226.21 vs. price of $113.76 (49.7% below fair value)
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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