(ADP) Automatic Data Processing - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US0530151036

Payroll, Hcm, Outsourcing, Workforce, Benefits

Stock: Human Resource & Employment Services
Age 42.8y

MCap 105,502m
Avg Vol 1.89M (486M USD)

Beta 0.546
Volatility 18.03%

EPS (Earnings per Share)

EPS CAGR: -47.47%
EPS Trend: -18.2%

Last SUE: -4.00
Qual. Beats: 0

Revenue

Rev. CAGR: 6.93%
Rev. Trend: 85.8%

Last SUE: 1.20
Qual. Beats: 5

Dividends

Dividend Yield	2.19%
Yield on Cost 5y	4.28%
Yield CAGR 5y	13.34%
Payout Consistency	100.0%
Payout Ratio	62.2%

Risk via 5d forecast
Volatility	18.0%
Value at Risk 5%th	28.8%
Relative Tail Risk	-2.91%

Reward TTM
Sharpe Ratio	-0.67
Alpha	-21.11
CAGR/Max DD	0.34

Character TTM
Hurst Exponent	0.559
Beta	0.546
Beta Downside	0.523

Drawdowns 3y
Max DD	23.01%
Mean DD	5.45%
Median DD	4.27%

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) 6.0

Net Income: 4.14b TTM > 0 and > 6% of Revenue
FCF/TA: 0.08 > 0.02 and ΔFCF/TA 0.07 > 1.0
NWC/Revenue: 10.86% < 20% (prev 2.76%; Δ 8.10% < -1%)
CFO/TA 0.09 > 3% & CFO 4.76b > Net Income 4.14b
Net Debt (7.05b) to EBITDA (6.37b): 1.11 < 3
Current Ratio: 1.05 > 1.5 & < 3
Outstanding Shares: last quarter (406.8m) vs 12m ago -0.65% < -2%
Gross Margin: 49.33% > 18% (prev 0.50%; Δ 4882 % > 0.5%)
Asset Turnover: 40.26% > 50% (prev 39.43%; Δ 0.83% > 0%)
Interest Coverage Ratio: 12.93 > 6 (EBITDA TTM 6.37b / Interest Expense TTM 450.7m)

Altman Z'' 3.11

A: 0.04 (Total Current Assets 44.20b - Total Current Liabilities 41.93b) / Total Assets 54.32b
B: 0.47 (Retained Earnings 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)
Altman-Z'' Score: 3.11 = A

Beneish M -3.01

DSRI: 0.98 (Receivables 3.46b/3.32b, Revenue 20.90b/19.52b)
GMI: 1.02 (GM 49.33% / 50.12%)
AQI: 0.97 (AQ_t 0.17 / AQ_t-1 0.17)
SGI: 1.07 (Revenue 20.90b / 19.52b)
TATA: -0.01 (NI 4.14b - CFO 4.76b) / TA 54.32b)
Beneish M-Score: -3.01 = AA

ValueRay F-Score (Strict, 0-100) 82.26

1. Piotroski: 6.0pt
2. FCF Yield: 4.29%
3. FCF Margin: 22.01%
4. Debt/Equity: 1.49
5. Debt/Ebitda: 1.11
6. ROIC - WACC: 29.20%
7. RoE: 70.42%
8. Revenue Trend: 85.81%
9. EPS Trend: -18.19%

What is the price of ADP shares?

As of January 25, 2026, the stock is trading at USD 257.87 with a total of 2,114,590 shares traded.
Over the past week, the price has changed by -0.99%, over one month by +0.33%, over three months by -7.82% and over the past year by -10.89%.

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	288.5	11.9%
Analysts Target Price	288.5	11.9%
ValueRay Target Price	275.7	6.9%

ADP Fundamental Data Overview January 19, 2026

P/E Trailing = 25.7098
P/E Forward = 23.8095
P/S = 5.0471
P/B = 16.5262
P/EG = 3.1093
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 = 9.53b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 7.05b USD (from netDebt column, last quarter)
Enterprise Value = 107.33b USD (105.50b + Debt 9.53b - CCE 7.70b)
Interest Coverage Ratio = 12.93 (Ebit TTM 5.83b / Interest Expense TTM 450.7m)
EV/FCF = 23.33x (Enterprise Value 107.33b / FCF TTM 4.60b)
FCF Yield = 4.29% (FCF TTM 4.60b / Enterprise Value 107.33b)
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 = 1.98 (Enterprise Value 107.33b / 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 = 1.05 (Total Current Assets 44.20b / Total Current Liabilities 41.93b)
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 = 7.97% (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 = 7.36% (E(105.50b)/V(115.03b) * Re(7.93%) + D(9.53b)/V(115.03b) * Rd(1.42%) * (1-Tc(0.23)))
Discount Rate = 7.93% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: -100.0 | Cagr: -0.69%
[DCF Debug] Terminal Value 83.06% ; FCFF base≈4.42b ; Y1≈5.33b ; Y5≈8.59b
Fair Price DCF = 395.6 (EV 167.06b - Net Debt 7.05b = Equity 160.02b / Shares 404.4m; r=7.36% [WACC]; 5y FCF grow 21.84% → 2.90% )
EPS Correlation: -18.19 | EPS CAGR: -47.47% | SUE: -4.0 | # QB: 0
Revenue Correlation: 85.81 | Revenue CAGR: 6.93% | SUE: 1.20 | # QB: 5
EPS next Quarter (2026-03-31): EPS=3.28 | Chg30d=+0.006 | Revisions Net=+2 | Analysts=13
EPS current Year (2026-06-30): EPS=10.91 | Chg30d=+0.000 | Revisions Net=+2 | Growth EPS=+9.0% | Growth Revenue=+5.8%
EPS next Year (2027-06-30): EPS=11.93 | Chg30d=-0.018 | Revisions Net=+1 | Growth EPS=+9.3% | Growth Revenue=+5.8%

Additional Sources for ADP Stock

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