(ADP) Automatic Data Processing - Ratings and Ratios
Exchange: NASDAQ •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US0530151036
Payroll, Hcm, Outsourcing, Workforce, Benefits
Dividends
| Dividend Yield | 3.03% |
| Yield on Cost 5y | 4.99% |
| Yield CAGR 5y | 11.91% |
| Payout Consistency | 95.8% |
| Payout Ratio | 62.2% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 17.1% |
| Value at Risk 5%th | 26.8% |
| Relative Tail Risk | -5.01% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.80 |
| Alpha | -23.55 |
| CAGR/Max DD | 0.08 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.420 |
| Beta | 0.557 |
| Beta Downside | 0.556 |
| Drawdowns 3y | |
|---|---|
| Max DD | 23.01% |
| Mean DD | 7.62% |
| Median DD | 5.90% |
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 |
| (C) 0.11 = EBIT TTM 5.83b / Avg Total Assets 51.92b |
| (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) 85.97
| 1. Piotroski 5.50pt |
| 2. FCF Yield 4.35% |
| 3. FCF Margin 22.01% |
| 4. Debt/Equity 1.55 |
| 5. Debt/Ebitda 1.16 |
| 6. ROIC - WACC (= 29.10)% |
| 7. RoE 70.42% |
| 8. Rev. Trend 85.81% |
| 9. EPS Trend 68.31% |
What is the price of ADP shares?
As of December 05, 2025, the stock is trading at USD 259.40 with a total of 2,594,223 shares traded.
Over the past week, the price has changed by +1.61%, over one month by +0.07%, over three months by -13.43% and over the past year by -12.74%.
Over the past week, the price has changed by +1.61%, over one month by +0.07%, over three months by -13.43% and over the past year by -12.74%.
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 | 293.2 | 13% |
| Analysts Target Price | 293.2 | 13% |
| ValueRay Target Price | 250.7 | -3.4% |
ADP Fundamental Data Overview November 26, 2025
Market Cap USD = 103.83b (103.83b USD * 1.0 USD.USD)
P/E Trailing = 24.6927
P/E Forward = 22.8833
P/S = 4.9671
P/B = 15.8701
P/EG = 3.0267
Beta = 0.858
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 = 105.75b USD (103.83b + Debt 9.87b - CCE 7.94b)
Interest Coverage Ratio = 12.93 (Ebit TTM 5.83b / Interest Expense TTM 450.7m)
FCF Yield = 4.35% (FCF TTM 4.60b / Enterprise Value 105.75b)
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 = 1.95 (Enterprise Value 105.75b / 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 = 7.46% (E(103.83b)/V(113.70b) * Re(8.07%) + D(9.87b)/V(113.70b) * Rd(1.37%) * (1-Tc(0.23)))
Discount Rate = 8.07% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -0.69%
[DCF Debug] Terminal Value 81.04% ; FCFE base≈4.42b ; Y1≈5.33b ; Y5≈8.61b
Fair Price DCF = 361.8 (DCF Value 146.35b / 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=+0.010 | Revisions Net=+0 | Analysts=13
EPS current Year (2026-06-30): EPS=10.91 | Chg30d=-0.005 | Revisions Net=+3 | Growth EPS=+9.0% | Growth Revenue=+5.8%
EPS next Year (2027-06-30): EPS=11.94 | Chg30d=-0.043 | Revisions Net=-3 | Growth EPS=+9.4% | Growth Revenue=+5.8%
P/E Trailing = 24.6927
P/E Forward = 22.8833
P/S = 4.9671
P/B = 15.8701
P/EG = 3.0267
Beta = 0.858
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 = 105.75b USD (103.83b + Debt 9.87b - CCE 7.94b)
Interest Coverage Ratio = 12.93 (Ebit TTM 5.83b / Interest Expense TTM 450.7m)
FCF Yield = 4.35% (FCF TTM 4.60b / Enterprise Value 105.75b)
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 = 1.95 (Enterprise Value 105.75b / 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 = 7.46% (E(103.83b)/V(113.70b) * Re(8.07%) + D(9.87b)/V(113.70b) * Rd(1.37%) * (1-Tc(0.23)))
Discount Rate = 8.07% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -0.69%
[DCF Debug] Terminal Value 81.04% ; FCFE base≈4.42b ; Y1≈5.33b ; Y5≈8.61b
Fair Price DCF = 361.8 (DCF Value 146.35b / 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=+0.010 | Revisions Net=+0 | Analysts=13
EPS current Year (2026-06-30): EPS=10.91 | Chg30d=-0.005 | Revisions Net=+3 | Growth EPS=+9.0% | Growth Revenue=+5.8%
EPS next Year (2027-06-30): EPS=11.94 | Chg30d=-0.043 | Revisions Net=-3 | Growth EPS=+9.4% | Growth Revenue=+5.8%
Additional Sources for ADP Stock
News:
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Benzinga |
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Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle