PAYC FCF Yield Analysis
Updated 29h ago·SEC filings & market data
Key Takeaway
The current FCF Yield of 6.2% means that for every $100 invested in the stock, the company generates about $6.20 in free cash flow (cash left after operating and capital expenses).
Sector Performance
71th percentilePAYC
6.2%
Sector Median
4.2%
Sector Avg
7.2%
Prior Period
5.8%(Jul 2026)
Deep Analysis
The current FCF Yield of 6.2% means that for every $100 invested in the stock, the company generates about $6.20 in free cash flow (cash left after operating and capital expenses).
This yield is above the sector median of 4.2%, placing PAYC in the 71st percentile among its peers — meaning it generates more cash yield than roughly 71% of comparable companies. Over the last eight quarters, the metric has been stable; the year-over-year change is not available, but the quarter-over-quarter change is +6.9%, indicating a short-term improvement. Combining a yield well above the sector median with a stable and slightly rising trend suggests a moderate cash-flow advantage, though not enough to signal exceptional investment opportunity. This metric supports the overall NEUTRAL verdict: the solid cash generation offsets some risk but does not, by itself, justify a bullish call, given the lack of a clear upward catalyst.
Frequently Asked Questions
What does the FCF Yield tell investors about PAYC?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are PAYC's closest peers by FCF Yield?
The closest peers by FCF Yield include: BBWI (21.0%), COF (21.2%), CMCSA (21.5%), CHTR (21.6%), STT (21.6%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master PAYC's Valuation
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6.2%
Sector Median
4.2%
Sector Avg
7.2%
How PAYC's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.