ADP Stock Analysis: Automatic Data Processing | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 119.750m USD | 12M Return: 24.5% | US0530151036 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 701M
EPS Trend: 99.5%
Qual. Beats: 11
Rev. Trend: 100.0%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 11.9 years of data, until 10/2026
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, ≥40 worth a closer look and ≥60 is strong.
Automatic Data Processing (ADP) is a global provider of cloud-based human capital management (HCM) solutions, operating two business segments: Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment serves businesses of varying sizes with platforms such as RUN Powered by ADP for small businesses, ADP Workforce Now for mid-sized and large employers, and ADP Lyric HCM for HR, payroll, talent, and analytics needs. The PEO Services segment, operating under the ADP TotalSource brand, delivers HR outsourcing through a co-employment arrangement in which ADP assumes certain employer-of-record responsibilities for client workers.
Founded in 1949 and headquartered in Roseland, New Jersey, ADP is classified within the Industrials sector under the Human Resource & Employment Services sub-industry. The PEO co-employment model is a distinctive structural feature of the industry, as it allows client companies to outsource payroll, benefits administration, workers compensation, and regulatory compliance while retaining operational control over their workforce.
- Employer Services bookings accelerate on Workforce Now and Lyric adoption
- PEO TotalSource margins pressured by rising benefits costs
- Interest income on client funds benefits from elevated rate environment
| Net Income: 4.53b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -0.62 > 1.0 |
| NWC/Revenue: 6.56% < 20% (prev 10.86%; Δ -4.31% < -1%) |
| CFO/TA 0.09 > 3% & CFO 5.45b > Net Income 4.53b |
| Net Debt (2.50b) to EBITDA (6.62b): 0.38 < 3 |
| Current Ratio: 1.03 > 1.5 & < 3 |
| Outstanding Shares: last quarter (397.6m) vs 12m ago -2.27% < -2% |
| Gross Margin: 50.05% > 18% (prev 49.33%; Δ 0.72% > 0.5%) |
| Asset Turnover: 37.81% > 50% (prev 38.48%; Δ -0.68% > 0%) |
| Interest Coverage Ratio: 12.76 > 6 (EBIT TTM 6.02b / Interest Expense TTM 471.9m) |
| A: 0.02 (Total Current Assets 52.8b - Total Current Liabilities 51.4b) / Total Assets 63.5b |
| B: 0.43 (Retained Earnings 27.4b / Total Assets 63.5b) |
| C: 0.10 (EBIT TTM 6.02b / Avg Total Assets 58.9b) |
| D: 0.09 (Book Value of Equity 5.09b / Total Liabilities 58.4b) |
| Altman-Z'' = 2.34 = BBB |
| DSRI: 0.96 (Receivables 3.52b/3.46b, Revenue 22.3b/20.9b) |
| GMI: 0.99 (GM 49.33% / 50.05%) |
| AQI: 0.91 (AQ_t 0.15 / AQ_t-1 0.17) |
| SGI: 1.07 (Revenue 22.3b / 20.9b) |
| TATA: -0.01 (NI 4.53b - CFO 5.45b) / TA 63.5b) |
| Beneish M = -3.09 (Cap -4..+1) = AA |
As of November 13, 2026, the stock is trading at USD 307.92 with a total of 1,866,013 shares traded. Over the past week, the price has changed by +0.25%, over one month by +12.46%, over three months by +15.06% and over the past year by +24.48%.
Current recommended Stop Loss: 297.80 (which is 3.3% or 1.4 ATR below the current price).
Automatic Data Processing has received a consensus analysts rating of 3.22. Therefore, it is recommended to hold ADP.
- StrongBuy: 4
- Buy: 0
- Hold: 11
- Sell: 2
- StrongSell: 1
| Analysts Target Price | 297.9 | -3.2% |
P/E Trailing = 26.8927
P/E Forward = 24.8756
P/S = 5.3789
P/B = 23.8107
P/EG = 2.8261
Revenue TTM = 22.3b USD
EBIT TTM = 6.02b USD
EBITDA TTM = 6.62b USD
Long Term Debt = 4.97b USD (from longTermDebt, last quarter)
Short Term Debt = 198.3m USD (from shortTermDebt, last quarter)
Debt = 5.78b USD (from shortLongTermDebtTotal, last quarter) + Leases 308.0m
Net Debt = 2.50b USD (calculated: Debt 5.78b - CCE 3.28b)
Enterprise Value = 122b USD (120b + Debt 5.78b - CCE 3.28b)
Interest Coverage Ratio = 12.76 (Ebit TTM 6.02b / Interest Expense TTM 471.9m)
EV/FCF = 24.54x (Enterprise Value 122b / FCF TTM 4.98b)
FCF Yield = 4.08% (FCF TTM 4.98b / Enterprise Value 122b)
FCF Margin = 22.38% (FCF TTM 4.98b / Revenue TTM 22.3b)
Net Margin = 20.33% (Net Income TTM 4.53b / Revenue TTM 22.3b)
Gross Margin = 50.05% ((Revenue TTM 22.3b - Cost of Revenue TTM 11.1b) / Revenue TTM)
Gross Margin QoQ = 52.92% (prev 52.97%)
Tobins Q-Ratio = 1.93 (Enterprise Value 122b / Total Assets 63.5b)
Interest Expense / Debt = 8.16% (Interest Expense 471.9m / Debt 5.78b)
Taxrate = 23.00% (1.35b / 5.88b)
NOPAT = 4.64b (EBIT 6.02b * (1 - 23.00%))
Current Ratio = 1.03 (Total Current Assets 52.8b / Total Current Liabilities 51.4b)
Debt / Equity = 1.14 (Debt 5.78b / totalStockholderEquity, last quarter 5.09b)
Debt / EBITDA = 0.38 (Net Debt 2.50b / EBITDA 6.62b)
Debt / FCF = 0.50 (Net Debt 2.50b / FCF TTM 4.98b)
Total Stockholder Equity = 5.97b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.69% (Net Income 4.53b / Total Assets 63.5b)
RoE = 75.85% (Net Income TTM 4.53b / Total Stockholder Equity 5.97b)
RoCE = 55.09% (EBIT 6.02b / Capital Employed (Equity 5.97b + L.T.Debt 4.97b))
RoIC = 41.51% (NOPAT 4.64b / Invested Capital 11.2b)
WACC = 5.60% (E(120b)/V(126b) * Re(5.57%) + D(5.78b)/V(126b) * Rd(8.16%) * (1-Tc(0.23)))
Discount Rate = 5.57% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.75 | Cagr: -1.42%
[DCF] Terminal Value 76.47% ; FCFF base≈4.83b ; Y1≈5.18b ; Y5≈6.27b
[DCF] Fair Price = 237.3 (EV 96.2b - Net Debt 2.50b = Equity 93.7b / Shares 394.8m; r=8.35% [WACC [floored]]; 5y FCF grow 8.28% → 2.50% )
EPS Correlation: 99.52 | EPS CAGR: 10.01% | SUE: 1.39 | # QB: 11
Revenue Correlation: 99.98 | Revenue CAGR: 6.84% | SUE: 0.53 | # QB: 0
EPS current Quarter (2026-12-31): EPS=2.91 | Chg30d=-0.08% | Revisions=+21% | Analysts=15
EPS next Quarter (2027-03-31): EPS=3.73 | Chg30d=+0.45% | Revisions=+50% | Analysts=15
EPS current Year (2027-06-30): EPS=12.37 | Chg30d=+0.89% | Revisions=+84% | GrowthEPS=+11.2% | GrowthRev=+6.1%
EPS next Year (2028-06-30): EPS=13.53 | Chg30d=+0.99% | Revisions=+75% | GrowthEPS=+9.4% | GrowthRev=+5.8%
[Analyst] Revisions Ratio: +74% (up=35, down=4)