(ADP) Automatic Data Processing - Ratings and Ratios
Payroll, HR Management, Benefits Administration, Talent Management, Outsourcing
ADP EPS (Earnings per Share)
ADP Revenue
Description: ADP Automatic Data Processing
Automatic Data Processing Inc (NASDAQ:ADP) is a leading provider of cloud-based human capital management (HCM) solutions, operating in two main segments: Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers a range of cloud-based platforms and HR outsourcing solutions, including RUN Powered by ADP for small businesses, ADP Workforce Now for mid-sized and large businesses, and ADP Vantage HCM for comprehensive HR management.
Key performance indicators (KPIs) for ADP include revenue growth, client retention rates, and the adoption rate of its cloud-based solutions. With a strong track record of innovation and a large client base, ADP has demonstrated its ability to drive growth through its HCM solutions. The companys return on equity (RoE) of 76.78% indicates a high level of profitability, suggesting effective use of shareholder capital.
From a valuation perspective, ADPs price-to-earnings (P/E) ratio of 31.57 and forward P/E of 28.41 suggest that the stock may be slightly overvalued relative to its earnings growth prospects. However, the companys market capitalization of $125.19 billion and its position as a leader in the HCM market provide a level of stability and support for the stock price.
Technical analysis indicates that ADPs stock price is currently trading near its support levels, with key support levels at $294.8, $289.9, and $285.1. Resistance levels are identified at $304.5 and $325.9. The stocks moving averages (SMA20: $306.07, SMA50: $311.46, SMA200: $298.39) suggest a potential reversal or consolidation in the near term.
ADP Stock Overview
| Market Cap in USD | 122,910m |
| Sub-Industry | Human Resource & Employment Services |
| IPO / Inception | 1983-04-06 |
ADP Stock Ratings
| Growth Rating | 83.5% |
| Fundamental | 85.4% |
| Dividend Rating | 74.9% |
| Return 12m vs S&P 500 | -3.27% |
| Analyst Rating | 3.28 of 5 |
ADP Dividends
| Dividend Yield 12m | 2.50% |
| Yield on Cost 5y | 6.03% |
| Annual Growth 5y | 9.42% |
| Payout Consistency | 100.0% |
| Payout Ratio | 61.6% |
ADP Growth Ratios
| Growth Correlation 3m | -55.3% |
| Growth Correlation 12m | 73.1% |
| Growth Correlation 5y | 92.9% |
| CAGR 5y | 19.50% |
| CAGR/Max DD 5y | 0.90 |
| Sharpe Ratio 12m | 1.60 |
| Alpha | 1.75 |
| Beta | 0.551 |
| Volatility | 19.10% |
| Current Volume | 1488.2k |
| Average Volume 20d | 1440.7k |
| Stop Loss | 294.9 (-3%) |
| Signal | 0.19 |
Piotroski VR‑10 (Strict, 0-10) 8.0
| 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 -141.1% (prev 2.41%; Δ -143.5pp) (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 0.30 (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'' -0.76
| (A) -0.54 = (Total Current Assets 12.27b - 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: -0.76 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 85.41
| 1. Piotroski 8.0pt = 3.0 |
| 2. FCF Yield 3.85% = 1.93 |
| 3. FCF Margin 23.20% = 5.80 |
| 4. Debt/Equity 1.41 = 1.58 |
| 5. Debt/Ebitda 1.38 = 1.16 |
| 6. ROIC - WACC 29.11% = 12.50 |
| 7. RoE 72.62% = 2.50 |
| 8. Rev. Trend 79.88% = 3.99 |
| 9. Rev. CAGR 7.38% = 0.92 |
| 10. EPS Trend 54.36% = 1.36 |
| 11. EPS CAGR 6.70% = 0.67 |
What is the price of ADP shares?
Over the past week, the price has changed by -0.28%, over one month by -0.91%, over three months by -5.71% and over the past year by +13.83%.
Is Automatic Data Processing a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ADP is around 313.92 USD . This means that ADP is currently overvalued and has a potential downside of 3.23%.
Is ADP a buy, sell or hold?
- 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 | 320.3 | 5.3% |
| Analysts Target Price | 320.3 | 5.3% |
| ValueRay Target Price | 347.1 | 14.1% |
Last update: 2025-08-27 04:30
ADP Fundamental Data Overview
CCE Cash And Equivalents = 7.85b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 30.4363
P/E Forward = 27.7778
P/S = 5.9779
P/B = 19.8882
P/EG = 3.6036
Beta = 0.82
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 = 8.74b USD (Calculated: Short Term 4.77b + Long Term 3.97b)
Net Debt = 5.72b USD (from netDebt column, last quarter)
Enterprise Value = 123.81b USD (122.91b + Debt 8.74b - CCE 7.85b)
Interest Coverage Ratio = 12.74 (Ebit TTM 5.76b / Interest Expense TTM 452.0m)
FCF Yield = 3.85% (FCF TTM 4.77b / Enterprise Value 123.81b)
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)
Tobins Q-Ratio = 5.07 (Enterprise Value 123.81b / Book Value Of Equity 24.42b)
Interest Expense / Debt = 1.30% (Interest Expense 113.7m / Debt 8.74b)
Taxrate = 23.17% (from yearly Income Tax Expense: 1.23b / 5.31b)
NOPAT = 4.42b (EBIT 5.76b * (1 - 23.17%))
Current Ratio = 0.30 (Total Current Assets 12.27b / Total Current Liabilities 41.28b)
Debt / Equity = 1.41 (Debt 8.74b / last Quarter total Stockholder Equity 6.19b)
Debt / EBITDA = 1.38 (Net Debt 5.72b / EBITDA 6.32b)
Debt / FCF = 1.83 (Debt 8.74b / FCF TTM 4.77b)
Total Stockholder Equity = 5.62b (last 4 quarters mean)
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 / (Equity 5.62b + L.T.Debt 3.97b))
RoIC = 36.69% (NOPAT 4.42b / Invested Capital 12.05b)
WACC = 7.58% (E(122.91b)/V(131.65b) * Re(8.05%)) + (D(8.74b)/V(131.65b) * Rd(1.30%) * (1-Tc(0.23)))
Shares Correlation 5-Years: -100.0 | Cagr: -0.86%
Discount Rate = 8.05% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 81.43% ; FCFE base≈4.30b ; Y1≈5.31b ; Y5≈9.05b
Fair Price DCF = 380.1 (DCF Value 153.95b / Shares Outstanding 405.0m; 5y FCF grow 25.0% → 3.0% )
Revenue Correlation: 79.88 | Revenue CAGR: 7.38%
Rev Growth-of-Growth: 0.24
EPS Correlation: 54.36 | EPS CAGR: 6.70%
EPS Growth-of-Growth: -1.06
Additional Sources for ADP Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle