PCTYNEUTRAL

PCTY Return on Equity (ROE) Analysis

21.6%

Higher than 70% of Technology sector peers

Updated 240h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how effectively a company uses shareholders' money to generate profit — a 21.6% ROE means PCTY earns $0.216 for every dollar of equity.

Sector Performance

70th percentile

PCTY

21.6%

Sector Median

6.8%

Sector Avg

-3.9%

Prior Period

18.4%(May 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how effectively a company uses shareholders' money to generate profit — a 21.6% ROE means PCTY earns $0.216 for every dollar of equity.

This is well above the Technology sector median of 8.7%, placing PCTY in the 68th percentile among peers, indicating above-average profitability. The year-over-year change and eight-quarter trend are not available, but the quarter-over-quarter change shows a +17.4% increase from the prior quarter's 18.4% ROE. The combination of a high ROE level with a positive quarterly improvement suggests an opportunity for sustained earnings efficiency, though the lack of longer trend data limits certainty. This metric supports the overall NEUTRAL verdict because the strong profitability is counterbalanced by insufficient trend history to confirm durability, leaving the stock without a clear bullish or bearish edge.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about PCTY?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does PCTY's Return on Equity (ROE) compare to its sector?

PCTY's Return on Equity (ROE) of 21.6% compares to a Technology sector median of 6.8%, placing it in the 70th percentile.

Who are PCTY's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: AKAM (9.1%), ANSS (9.5%), QRVO (10.1%), ARM (10.9%), ACLS (11.6%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.