Overview Dividends

(ADP) Automatic Data Processing - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US0530151036

Payroll, Hcm, Outsourcing, Workforce, Benefits

Human Resource & Employment Services
Market Cap in USD: 105,716m

IPO / Inception: 1983-04-06
Return 12m vs S&P 500: -23.6%

EPS (Earnings per Share)

EPS CAGR: 11.60%
EPS Trend: 68.3%

Last SUE: 1.16
Qual. Beats: 11

Revenue

Rev. CAGR: 6.93%
Rev. Trend: 85.8%

Last SUE: 1.20
Qual. Beats: 5

Dividends

Dividend Yield	2.45%
Yield on Cost 5y	3.97%
Yield CAGR 5y	11.91%
Payout Consistency	95.8%
Payout Ratio	62.2%

Risk via 5d forecast
Volatility	17.6%
Value at Risk 5%th	28.0%
Relative Tail Risk	-3.19%

Reward TTM
Sharpe Ratio	-0.66
Alpha	-21.91
CAGR/Max DD	0.20

Character TTM
Hurst Exponent	0.482
Beta	0.533
Beta Downside	0.511

Drawdowns 3y
Max DD	23.01%
Mean DD	6.04%
Median DD	4.97%

Description: ADP Automatic Data Processing December 02, 2025

Automatic Data Processing, Inc. (NASDAQ:ADP) delivers cloud-based human capital management (HCM) solutions through two primary segments: Employer Services, which includes platforms such as RUN, ADP Workforce Now, and ADP Lyric HCM for payroll, HR, compliance and analytics; and Professional Employer Organization (PEO) Services, marketed as ADP TotalSource, which offers co-employment, benefits administration, risk management and workers’-compensation solutions. The firm, founded in 1949 and headquartered in Roseland, New Jersey, serves a spectrum of customers from small businesses to large enterprises.

Key recent metrics (FY 2024) show ADP generated approximately **$17 billion** in revenue, with a **net profit margin near 9%** and **over 800 million payroll transactions** processed annually-both well above the industry median. Growth is being driven by the broader shift toward cloud-based HCM platforms (the sector is expanding at ~10% CAGR) and by macro-economic factors such as a tight labor market that increases demand for compliance and workforce-analytics tools. ADP’s market share in the U.S. payroll processing market remains above 30%, giving it pricing power and cross-selling opportunities across its product suite.

For a deeper, data-rich assessment of ADP’s valuation dynamics, you may find it useful to explore the analytics available on ValueRay.

Piotroski VR‑10 (Strict, 0-10) 5.5

Net Income (4.14b TTM) > 0 and > 6% of Revenue (6% = 1.25b TTM)

FCFTA 0.08 (>2.0%) and ΔFCFTA 0.07pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 11.56% (prev 2.76%; Δ 8.80pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.09 (>3.0%) and CFO 4.76b > Net Income 4.14b (YES >=105%, WARN >=100%)

Net Debt (7.39b) to EBITDA (6.37b) ratio: 1.16 <= 3.0 (WARN <= 3.5)

Current Ratio 1.24 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (406.8m) change vs 12m ago -0.65% (target <= -2.0% for YES)

Gross Margin 49.33% (prev 50.12%; Δ -0.80pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 40.26% (prev 39.43%; Δ 0.83pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 12.93 (EBITDA TTM 6.37b / Interest Expense TTM 450.7m) >= 6 (WARN >= 3)

Altman Z'' 3.13

(A) 0.04 = (Total Current Assets 12.50b - Total Current Liabilities 10.09b) / Total Assets 54.32b

(B) 0.47 = Retained Earnings (Balance) 25.62b / Total Assets 54.32b

(D) 0.52 = Book Value of Equity 24.96b / Total Liabilities 47.95b

Total Rating: 3.13 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 85.93

1. Piotroski 5.50pt

2. FCF Yield 4.27%

3. FCF Margin 22.01%

4. Debt/Equity 1.55

5. Debt/Ebitda 1.16

6. ROIC - WACC (= 29.17)%

7. RoE 70.42%

8. Rev. Trend 85.81%

9. EPS Trend 68.31%

What is the price of ADP shares?

As of December 26, 2025, the stock is trading at USD 258.10 with a total of 622,100 shares traded.
Over the past week, the price has changed by -1.10%, over one month by +1.35%, over three months by -10.08% and over the past year by -11.24%.

Is ADP a buy, sell or hold?

Automatic Data Processing has received a consensus analysts rating of 3.28. Therefor, it is recommend to hold ADP.

Strong Buy: 2
Buy: 2
Hold: 13
Sell: 1
Strong Sell: 0

What are the forecasts/targets for the ADP price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	290.2	12.4%
Analysts Target Price	290.2	12.4%
ValueRay Target Price	254.2	-1.5%

ADP Fundamental Data Overview December 19, 2025

Market Cap USD = 105.72b (105.72b USD * 1.0 USD.USD)
P/E Trailing = 25.7367
P/E Forward = 24.2718
P/S = 5.0574
P/B = 16.8454
P/EG = 3.2127
Beta = 0.86
Revenue TTM = 20.90b USD
EBIT TTM = 5.83b USD
EBITDA TTM = 6.37b USD
Long Term Debt = 3.98b USD (from longTermDebt, last quarter)
Short Term Debt = 5.21b USD (from shortTermDebt, last quarter)
Debt = 9.87b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 7.39b USD (from netDebt column, last quarter)
Enterprise Value = 107.64b USD (105.72b + Debt 9.87b - CCE 7.94b)
Interest Coverage Ratio = 12.93 (Ebit TTM 5.83b / Interest Expense TTM 450.7m)
FCF Yield = 4.27% (FCF TTM 4.60b / Enterprise Value 107.64b)
FCF Margin = 22.01% (FCF TTM 4.60b / Revenue TTM 20.90b)
Net Margin = 19.79% (Net Income TTM 4.14b / Revenue TTM 20.90b)
Gross Margin = 49.33% ((Revenue TTM 20.90b - Cost of Revenue TTM 10.59b) / Revenue TTM)
Gross Margin QoQ = 45.20% (prev 50.31%)
Tobins Q-Ratio = 1.98 (Enterprise Value 107.64b / Total Assets 54.32b)
Interest Expense / Debt = 1.37% (Interest Expense 135.4m / Debt 9.87b)
Taxrate = 22.52% (294.5m / 1.31b)
NOPAT = 4.51b (EBIT 5.83b * (1 - 22.52%))
Current Ratio = 1.24 (Total Current Assets 12.50b / Total Current Liabilities 10.09b)
Debt / Equity = 1.55 (Debt 9.87b / totalStockholderEquity, last quarter 6.37b)
Debt / EBITDA = 1.16 (Net Debt 7.39b / EBITDA 6.37b)
Debt / FCF = 1.61 (Net Debt 7.39b / FCF TTM 4.60b)
Total Stockholder Equity = 5.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.61% (Net Income 4.14b / Total Assets 54.32b)
RoE = 70.42% (Net Income TTM 4.14b / Total Stockholder Equity 5.87b)
RoCE = 59.16% (EBIT 5.83b / Capital Employed (Equity 5.87b + L.T.Debt 3.98b))
RoIC = 36.56% (NOPAT 4.51b / Invested Capital 12.35b)
WACC = 7.39% (E(105.72b)/V(115.58b) * Re(7.98%) + D(9.87b)/V(115.58b) * Rd(1.37%) * (1-Tc(0.23)))
Discount Rate = 7.98% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: -100.0 | Cagr: -0.69%
[DCF Debug] Terminal Value 81.10% ; FCFE base≈4.42b ; Y1≈5.33b ; Y5≈8.61b
Fair Price DCF = 363.3 (DCF Value 146.94b / Shares Outstanding 404.4m; 5y FCF grow 21.84% → 3.0% )
EPS Correlation: 68.31 | EPS CAGR: 11.60% | SUE: 1.16 | # QB: 11
Revenue Correlation: 85.81 | Revenue CAGR: 6.93% | SUE: 1.20 | # QB: 5
EPS next Quarter (2026-03-31): EPS=3.27 | Chg30d=-0.002 | Revisions Net=+0 | Analysts=12
EPS current Year (2026-06-30): EPS=10.91 | Chg30d=-0.006 | Revisions Net=+3 | Growth EPS=+9.0% | Growth Revenue=+5.8%
EPS next Year (2027-06-30): EPS=11.94 | Chg30d=+0.000 | Revisions Net=-3 | Growth EPS=+9.5% | Growth Revenue=+5.8%

Additional Sources for ADP Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle