PCTY FCF Yield Analysis
Updated 83h ago·SEC filings & market data
Key Takeaway
The current FCF Yield of 5.1% means that for every $100 invested in PCTY, the company generates $5.10 in free cash flow (the cash left after operating expenses and capital expenditures).
Sector Performance
63th percentilePCTY
5.3%
Sector Median
4.2%
Sector Avg
9.3%
Prior Period
5.1%(Jul 2026)
Deep Analysis
The current FCF Yield of 5.1% means that for every $100 invested in PCTY, the company generates $5.10 in free cash flow (the cash left after operating expenses and capital expenditures).
This yield sits above the sector median of 4.2%, placing PCTY in the 59th percentile among its peers. However, the metric has been decreasing over the last eight quarters, with a year-over-year decline of -8.9% and a quarter-over-quarter decline of -3.8%. The combination of a yield that still exceeds the sector median but follows a downward trend suggests that PCTY’s cash generation is weakening relative to its stock price, introducing some risk of further compression. This pattern neither strongly supports nor contradicts the overall NEUTRAL verdict, as the level is favorable but the negative trajectory tempers the outlook.
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.
Who are PCTY's closest peers by FCF Yield?
The closest peers by FCF Yield include: RARE (-18.7%), CG (-19.3%), RXRX (-20.3%), PLUG (-22.0%), NTLA (-22.5%).
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 PCTY's Valuation
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5.3%
Sector Median
4.2%
Sector Avg
9.3%
How PCTY's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.