(ADP) Automatic Data Processing - Ratings and Ratios

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

Payroll, HR Software, Benefits, Outsourcing, Compliance

ADP EPS (Earnings per Share)

EPS (Earnings per Share) of ADP over the last years for every Quarter: "2020-09": 1.41, "2020-12": 1.52, "2021-03": 1.89, "2021-06": 1.2, "2021-09": 1.65, "2021-12": 1.65, "2022-03": 2.21, "2022-06": 1.5, "2022-09": 1.86, "2022-12": 1.96, "2023-03": 2.52, "2023-06": 1.89, "2023-09": 2.08, "2023-12": 2.13, "2024-03": 2.88, "2024-06": 2.09, "2024-09": 2.33, "2024-12": 2.35, "2025-03": 3.06, "2025-06": 2.26, "2025-09": 0,

ADP Revenue

Revenue of ADP over the last years for every Quarter: 2020-09: 3470.7, 2020-12: 3695.7, 2021-03: 4102, 2021-06: 3736.9, 2021-09: 3832.3, 2021-12: 4025.4, 2022-03: 4513, 2022-06: 4127.6, 2022-09: 4215.6, 2022-12: 4391, 2023-03: 4927.8, 2023-06: 4477.8, 2023-09: 4512.4, 2023-12: 4668, 2024-03: 5253.8, 2024-06: 4768.5, 2024-09: 4832.7, 2024-12: 5048.4, 2025-03: 5553, 2025-06: 5126.8, 2025-09: null,

Description: ADP Automatic Data Processing September 25, 2025

Automatic Data Processing, Inc. (NASDAQ: ADP) delivers cloud-based human capital management (HCM) solutions worldwide through two primary segments: Employer Services and Professional Employer Organization (PEO). The Employer Services line includes the RUN platform for small-business payroll and compliance, ADP Workforce Now for mid-size and large enterprises, and ADP Lyric HCM, which adds talent, workforce management, and analytics capabilities. The PEO segment, branded ADP TotalSource, offers co-employment arrangements that combine HR outsourcing, benefits administration, risk management, and workers’-compensation services.

Recent financial disclosures (FY 2024 Q3) show ADP generated approximately $17 billion in revenue, with a year-over-year growth rate of 6 % driven largely by higher adoption of its subscription-based HCM SaaS products. The company reported an adjusted EBITDA margin of roughly 28 %, reflecting the high-margin nature of recurring software revenue. As of the latest filing, ADP serves over 900,000 client accounts and processes more than $1 trillion in payroll each year, underscoring its scale advantage in the HR-tech market.

Key economic and sector drivers that influence ADP’s outlook include (1) the tight U.S. labor market, which sustains demand for payroll and compliance solutions; (2) ongoing regulatory changes (e.g., wage-hour rules, benefits mandates) that increase the value of outsourced HR services; and (3) the broader digital-transformation trend in enterprise software, which favors cloud-native platforms like ADP Lyric. Conversely, a prolonged recession or a rapid shift toward in-house HR automation could compress growth, an uncertainty that should be weighted against ADP’s diversified client base.

If you’re interested in a deeper quantitative assessment of ADP’s valuation dynamics, a quick look at ValueRay’s analytical dashboards can help surface the most relevant metrics and scenario analyses.

ADP Stock Overview

Market Cap in USD 115,527m
Sub-Industry Human Resource & Employment Services
IPO / Inception 1983-04-06

ADP Stock Ratings

Growth Rating 33.4%
Fundamental 82.5%
Dividend Rating 70.1%
Return 12m vs S&P 500 -15.8%
Analyst Rating 3.28 of 5

ADP Dividends

Dividend Yield 12m 2.19%
Yield on Cost 5y 4.68%
Annual Growth 5y 11.91%
Payout Consistency 100.0%
Payout Ratio 61.6%

ADP Growth Ratios

Growth Correlation 3m -90.1%
Growth Correlation 12m 14.2%
Growth Correlation 5y 92.4%
CAGR 5y 7.36%
CAGR/Max DD 3y (Calmar Ratio) 0.34
CAGR/Mean DD 3y (Pain Ratio) 0.96
Sharpe Ratio 12m 0.00
Alpha -16.74
Beta 0.825
Volatility 16.92%
Current Volume 1263.3k
Average Volume 20d 1494.4k
Stop Loss 272.5 (-3%)
Signal -0.63

Piotroski VR‑10 (Strict, 0-10) 7.0

Net Income (4.08b TTM) > 0 and > 6% of Revenue (6% = 1.23b TTM)
FCFTA 0.09 (>2.0%) and ΔFCFTA 2.33pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)
NWC/Revenue 9.60% (prev 2.41%; Δ 7.19pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)
CFO/TA 0.09 (>3.0%) and CFO 4.94b > Net Income 4.08b (YES >=105%, WARN >=100%)
Net Debt (5.72b) to EBITDA (6.32b) ratio: 0.91 <= 3.0 (WARN <= 3.5)
Current Ratio 1.05 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)
Outstanding Shares last Quarter (407.7m) change vs 12m ago -0.71% (target <= -2.0% for YES)
Gross Margin 50.48% (prev 49.95%; Δ 0.54pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)
Asset Turnover 38.17% (prev 35.32%; Δ 2.85pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)
Interest Coverage Ratio 12.74 (EBITDA TTM 6.32b / Interest Expense TTM 452.0m) >= 6 (WARN >= 3)

Altman Z'' 3.05

(A) 0.04 = (Total Current Assets 43.25b - Total Current Liabilities 41.28b) / Total Assets 53.37b
(B) 0.47 = Retained Earnings (Balance) 25.24b / Total Assets 53.37b
(C) 0.11 = EBIT TTM 5.76b / Avg Total Assets 53.87b
(D) 0.52 = Book Value of Equity 24.42b / Total Liabilities 47.18b
Total Rating: 3.05 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 82.51

1. Piotroski 7.0pt = 2.0
2. FCF Yield 4.09% = 2.04
3. FCF Margin 23.20% = 5.80
4. Debt/Equity 1.46 = 1.51
5. Debt/Ebitda 0.91 = 1.89
6. ROIC - WACC (= 28.06)% = 12.50
7. RoE 72.62% = 2.50
8. Rev. Trend 79.88% = 5.99
9. EPS Trend -34.60% = -1.73

What is the price of ADP shares?

As of October 25, 2025, the stock is trading at USD 280.94 with a total of 1,263,252 shares traded.
Over the past week, the price has changed by +0.50%, over one month by -2.65%, over three months by -6.97% and over the past year by -0.90%.

Is Automatic Data Processing a good stock to buy?

Yes, based on ValueRay´s Fundamental Analyses, Automatic Data Processing (NASDAQ:ADP) is currently (October 2025) a good stock to buy. It has a ValueRay Fundamental Rating of 82.51 and therefor a positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ADP is around 260.55 USD . This means that ADP is currently overvalued and has a potential downside of -7.26%.

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 316.3 12.6%
Analysts Target Price 316.3 12.6%
ValueRay Target Price 290.4 3.4%

ADP Fundamental Data Overview October 11, 2025

Market Cap USD = 115.53b (115.53b USD * 1.0 USD.USD)
P/E Trailing = 28.5762
P/E Forward = 26.5252
P/S = 5.6188
P/B = 18.976
P/EG = 3.4474
Beta = 0.825
Revenue TTM = 20.56b USD
EBIT TTM = 5.76b USD
EBITDA TTM = 6.32b USD
Long Term Debt = 3.97b USD (from longTermDebt, last quarter)
Short Term Debt = 4.77b USD (from shortTermDebt, last quarter)
Debt = 9.07b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.72b USD (from netDebt column, last quarter)
Enterprise Value = 116.75b USD (115.53b + Debt 9.07b - CCE 7.85b)
Interest Coverage Ratio = 12.74 (Ebit TTM 5.76b / Interest Expense TTM 452.0m)
FCF Yield = 4.09% (FCF TTM 4.77b / Enterprise Value 116.75b)
FCF Margin = 23.20% (FCF TTM 4.77b / Revenue TTM 20.56b)
Net Margin = 19.84% (Net Income TTM 4.08b / Revenue TTM 20.56b)
Gross Margin = 50.48% ((Revenue TTM 20.56b - Cost of Revenue TTM 10.18b) / Revenue TTM)
Gross Margin QoQ = 50.31% (prev 51.71%)
Tobins Q-Ratio = 2.19 (Enterprise Value 116.75b / Total Assets 53.37b)
Interest Expense / Debt = 1.25% (Interest Expense 113.7m / Debt 9.07b)
Taxrate = 23.52% (280.0m / 1.19b)
NOPAT = 4.40b (EBIT 5.76b * (1 - 23.52%))
Current Ratio = 1.05 (Total Current Assets 43.25b / Total Current Liabilities 41.28b)
Debt / Equity = 1.46 (Debt 9.07b / totalStockholderEquity, last quarter 6.19b)
Debt / EBITDA = 0.91 (Net Debt 5.72b / EBITDA 6.32b)
Debt / FCF = 1.20 (Net Debt 5.72b / FCF TTM 4.77b)
Total Stockholder Equity = 5.62b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.64% (Net Income 4.08b / Total Assets 53.37b)
RoE = 72.62% (Net Income TTM 4.08b / Total Stockholder Equity 5.62b)
RoCE = 60.02% (EBIT 5.76b / Capital Employed (Equity 5.62b + L.T.Debt 3.97b))
RoIC = 36.53% (NOPAT 4.40b / Invested Capital 12.05b)
WACC = 8.47% (E(115.53b)/V(124.59b) * Re(9.06%) + D(9.07b)/V(124.59b) * Rd(1.25%) * (1-Tc(0.24)))
Discount Rate = 9.06% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -0.58%
[DCF Debug] Terminal Value 78.21% ; FCFE base≈4.30b ; Y1≈5.31b ; Y5≈9.05b
Fair Price DCF = 314.7 (DCF Value 127.49b / Shares Outstanding 405.1m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: -34.60 | EPS CAGR: -56.60% | SUE: -4.0 | # QB: 0
Revenue Correlation: 79.88 | Revenue CAGR: 7.38% | SUE: 2.26 | # QB: 4

Additional Sources for ADP Stock

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