FCF Yield
Higher than 75% of Technology sector peers
Updated 142h ago
Sector Performance
75th percentilePCTY
6.3%
Sector Median
3.2%
Sector Avg
3.3%
Deep Analysis
The current FCF Yield of 6.3% means that for every dollar invested in Paylocity's stock, the company generates about 6.3 cents in free cash flow (cash left after expenses and investments) per year.
Compared to the sector median of 3.3%, Paylocity's yield is higher than 75% of its Technology peers, placing it in the 75th percentile. The metric's year-over-year change is not available, but the quarter-over-quarter increase is +85.3%, rising from 3.4% to 6.3%. This sharp jump—combined with a yield well above the sector median—indicates a potential opportunity for cash return, but the lack of a multi-quarter trend makes it unclear if the improvement is sustainable. The NEUTRAL verdict is supported: while the elevated FCF Yield is attractive, the sudden spike without a longer track record justifies a cautious stance rather than a bullish one.
Frequently Asked Questions
What does the FCF Yield tell investors about PCTY?
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.
How does PCTY's FCF Yield compare to its sector?
PCTY's FCF Yield of 6.3% compares to a Technology sector median of 3.2%, placing it in the 75th percentile.
Who are PCTY's closest peers by FCF Yield?
The closest Technology peers by FCF Yield include: DDOG (1.4%), SMTC (1.2%), SHOP (1.0%), MRVL (0.9%), AMD (0.9%).
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 PCTY's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full PCTY research report →PCTY
6.3%
Sector Median
3.2%
Sector Avg
3.3%
How PCTY's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.