(ADP) Automatic Data Processing - Ratings and Ratios
Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US0530151036
ADP: Payroll, HR Solutions, HCM, Outsourcing, Benefits
Automatic Data Processing, Inc. (NASDAQ:ADP) is a global leader in cloud-based human capital management (HCM) solutions, serving businesses of all sizes. The company operates through two primary segments: Employer Services and Professional Employer Organization (PEO). The Employer Services segment delivers strategic, cloud-based HR platforms and outsourcing solutions, including RUN Powered by ADP for small businesses, ADP Workforce Now for mid-sized to large enterprises, and ADP Vantage HCM for complex HR needs. These platforms integrate payroll, HR management, benefits administration, time and attendance, and talent management. The PEO Services segment, under the ADP TotalSource brand, provides co-employment solutions, offering HR administration, employee benefits, compliance, talent engagement, and recruitment process outsourcing. ADP, founded in 1949 and headquartered in Roseland, New Jersey, has established itself as a trusted partner in HR and payroll solutions.
From a technical perspective, ADPs stock is currently trading near its 20-day and 50-day moving averages, suggesting potential range-bound activity. With an ATR of 7.53, volatility is moderate, indicating manageable risk for short-term traders. The stocks proximity to its SMAs may signal a period of consolidation before a potential breakout or breakdown.
Fundamentally, ADPs strong return on equity (77.46%) and expanding market cap ($121.874B) underscore its financial health and growth prospects. While the current P/E ratio (31.27) and forward P/E (26.81) reflect a premium valuation, the companys consistent performance and market leadership justify investor confidence. The price-to-sales ratio (6.12) and price-to-book ratio (23.41) highlight ADPs premium positioning in the HR and employment services sector.
Additional Sources for ADP Stock
Tweets: X Stocktwits
Fund Manager Positions: Dataroma Stockcircle
ADP Stock Overview
Market Cap in USD | 121,874m |
Sector | Technology |
Industry | Software - Application |
GiC Sub-Industry | Human Resource & Employment Services |
IPO / Inception | 1983-04-06 |
ADP Stock Ratings
Growth Rating | 89.3 |
Fundamental | 83.9 |
Dividend Rating | 69.8 |
Rel. Strength | 15.4 |
Analysts | 3.26/5 |
Fair Price Momentum | 310.78 USD |
Fair Price DCF | 236.15 USD |
ADP Dividends
Dividend Yield 12m | 2.06% |
Yield on Cost 5y | 4.81% |
Annual Growth 5y | 9.42% |
Payout Consistency | 100.0% |
ADP Growth Ratios
Growth Correlation 3m | -32.4% |
Growth Correlation 12m | 88.8% |
Growth Correlation 5y | 92.9% |
CAGR 5y | 18.41% |
CAGR/Max DD 5y | 0.85 |
Sharpe Ratio 12m | 1.83 |
Alpha | 14.89 |
Beta | 0.551 |
Volatility | 31.10% |
Current Volume | 2315.6k |
Average Volume 20d | 1828.8k |
As of April 23, 2025, the stock is trading at USD 284.85 with a total of 2,315,569 shares traded.
Over the past week, the price has changed by -5.54%, over one month by -3.55%, over three months by -3.95% and over the past year by +18.13%.
Yes, based on ValueRay Fundamental Analyses, Automatic Data Processing (NASDAQ:ADP) is currently (April 2025) a good stock to buy. It has a ValueRay Fundamental Rating of 83.85 and therefor a positive outlook according to the companies health.
Based on ValueRays Analyses, Dividends and Discounted-Cash-Flow, the Fair Value of ADP as of April 2025 is 310.78. This means that ADP is currently overvalued and has a potential downside of 9.1%.
Automatic Data Processing has received a consensus analysts rating of 3.26. Therefor, it is recommend to hold ADP.
- Strong Buy: 2
- Buy: 2
- Hold: 14
- Sell: 1
- Strong Sell: 0
According to ValueRays Forecast Model, ADP Automatic Data Processing will be worth about 339.3 in April 2026. The stock is currently trading at 284.85. This means that the stock has a potential upside of +19.1%.
Issuer | Forecast | Upside |
---|---|---|
Wallstreet Target Price | 308.6 | 8.3% |
Analysts Target Price | 296.9 | 4.2% |
ValueRay Target Price | 339.3 | 19.1% |