(ADP) Automatic Data Processing - Ratings and Ratios
Payroll, HR Software, Benefits, Outsourcing, Compliance
ADP EPS (Earnings per Share)
ADP Revenue
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 | 105,395m |
| Sub-Industry | Human Resource & Employment Services |
| IPO / Inception | 1983-04-06 |
ADP Stock Ratings
| Growth Rating | 23.9% |
| Fundamental | 84.2% |
| Dividend Rating | 69.8% |
| Return 12m vs S&P 500 | -23.9% |
| Analyst Rating | 3.28 of 5 |
ADP Dividends
| Dividend Yield 12m | 2.38% |
| Yield on Cost 5y | 4.11% |
| Annual Growth 5y | 11.91% |
| Payout Consistency | 100.0% |
| Payout Ratio | 60.6% |
ADP Growth Ratios
| Growth Correlation 3m | -93.8% |
| Growth Correlation 12m | -1% |
| Growth Correlation 5y | 92.2% |
| CAGR 5y | 4.15% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.19 |
| CAGR/Mean DD 3y (Pain Ratio) | 0.53 |
| Sharpe Ratio 12m | 0.00 |
| Alpha | -25.90 |
| Beta | 0.825 |
| Volatility | 27.06% |
| Current Volume | 2554.8k |
| Average Volume 20d | 1568.3k |
| Stop Loss | 251.4 (-3%) |
| Signal | 0.59 |
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 (7.05b) to EBITDA (6.37b) ratio: 1.11 <= 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) 84.23
| 1. Piotroski 5.50pt = 0.50 |
| 2. FCF Yield 4.30% = 2.15 |
| 3. FCF Margin 22.01% = 5.50 |
| 4. Debt/Equity 1.49 = 1.48 |
| 5. Debt/Ebitda 1.11 = 1.61 |
| 6. ROIC - WACC (= 31.63)% = 12.50 |
| 7. RoE 70.42% = 2.50 |
| 8. Rev. Trend 74.53% = 5.59 |
| 9. EPS Trend 48.01% = 2.40 |
What is the price of ADP shares?
Over the past week, the price has changed by -7.30%, over one month by -10.78%, over three months by -13.79% and over the past year by -8.70%.
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 228.31 USD . This means that ADP is currently overvalued and has a potential downside of -11.92%.
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 | 293.2 | 13.1% |
| Analysts Target Price | 293.2 | 13.1% |
| ValueRay Target Price | 254.3 | -1.9% |
ADP Fundamental Data Overview November 01, 2025
P/E Trailing = 25.7213
P/E Forward = 26.5252
P/S = 5.042
P/B = 18.976
P/EG = 3.4474
Beta = 0.825
Revenue TTM = 20.90b USD
EBIT TTM = 5.83b USD
EBITDA TTM = 6.37b USD
Long Term Debt = 3.97b USD (from longTermDebt, last fiscal year)
Short Term Debt = 5.21b USD (from shortTermDebt, last quarter)
Debt = 9.53b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 7.05b USD (from netDebt column, last quarter)
Enterprise Value = 106.98b USD (105.40b + Debt 9.53b - CCE 7.94b)
Interest Coverage Ratio = 12.93 (Ebit TTM 5.83b / Interest Expense TTM 450.7m)
FCF Yield = 4.30% (FCF TTM 4.60b / Enterprise Value 106.98b)
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 = 1.97 (Enterprise Value 106.98b / Total Assets 54.32b)
Interest Expense / Debt = 1.42% (Interest Expense 135.4m / Debt 9.53b)
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 = 1.49 (Debt 9.53b / totalStockholderEquity, last quarter 6.37b)
Debt / EBITDA = 1.11 (Net Debt 7.05b / EBITDA 6.37b)
Debt / FCF = 1.53 (Net Debt 7.05b / 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 3.97b))
RoIC = 40.03% (NOPAT 4.51b / Invested Capital 11.28b)
WACC = 8.40% (E(105.40b)/V(114.92b) * Re(9.06%) + D(9.53b)/V(114.92b) * Rd(1.42%) * (1-Tc(0.23)))
Discount Rate = 9.06% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -0.69%
[DCF Debug] Terminal Value 77.84% ; FCFE base≈4.42b ; Y1≈5.33b ; Y5≈8.61b
Fair Price DCF = 300.8 (DCF Value 121.78b / Shares Outstanding 404.9m; 5y FCF grow 21.84% → 3.0% )
EPS Correlation: 48.01 | EPS CAGR: 9.09% | SUE: 1.16 | # QB: 11
Revenue Correlation: 74.53 | Revenue CAGR: 6.16% | SUE: 1.20 | # QB: 5
Additional Sources for ADP Stock
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