PAYCNEUTRAL

Gross Margin

84.7%

Updated 294h ago

Sector Performance

97th percentile

PAYC

84.7%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of delivering its service — PAYC's 84.7% means it retains nearly 85 cents of every dollar in sales after those costs.

That figure far exceeds the sector median of 43.9%, placing PAYC in the 97th percentile among its peers, indicating an exceptionally efficient cost structure relative to competitors. Over the most recent eight quarters the metric has been stable, though the year-over-year change is not available; the quarter-over-quarter change of +5.7% moves from 80.1% to 84.7%, suggesting a recent uptick within an otherwise steady range. A very high gross margin combined with a stable trend implies low operational risk from input costs and supports pricing power, but the lack of upward momentum limits the opportunity for margin expansion as a catalyst. This strong margin level is a positive attribute for PAYC, yet it does not contradict the overall NEUTRAL verdict because other factors likely prevent a bullish or bearish tilt.

Frequently Asked Questions

What does the Gross Margin tell investors about PAYC?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are PAYC's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.