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ADP
Automatic Data Processing, Inc.
Summary
Business
Earnings Call
Valuation
Profitability
Financial Health
Intel
Yearly Return 10Y annualized return is excellent at 15.0% per year
Earnings Expectations ADP has met or exceeded earnings expectations in all recent quarters (10/10)
Positive Strong Return on Equity
Positive Healthy Net Profit Margin
Negative High Price-to-Earnings Ratio
Negative Moderate Gross Profit Margin

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ADP demonstrates a robust business model with a solid market position, supported by consistent dividend payments and high client satisfaction. However, slight declines in retention and potential revenue growth slowdowns present challenges. Future prospects appear strong with innovative products and strategic partnerships that could enhance growth.

Analysis Date: January 29, 2025
Last Updated: May 29, 2025

+306%
+15.0% per year

Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.

Country US
Exchange NASDAQ
Industry Staffing & Employment Services
Sector Industrials
Market Cap $117.65B
CEO Ms. Maria Black

Automatic Data Processing, Inc. (ADP) helps businesses manage their employees and HR needs using online tools. They provide services like payroll (paying employees), managing benefits (like health insurance), and helping with hiring and training staff. ADP is especially useful for small and medium-sized companies that want to focus on their business while ADP takes care of important HR tasks. Founded in 1949, ADP is based in Roseland, New Jersey.

Core Products

👥
HR Management Comprehensive HR solutions
💵
Payroll Services Automated payroll processing
🌟
Talent Management Optimize workforce talent
Compliance Services Ensure legal compliance
🗂️
Workforce Management Track employee productivity
🛡️
Benefits Administration Manage employee benefits
🔍
Recruitment Process Outsourcing Streamline hiring process

Business Type

B2B Business to Business

Competitive Advantages

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Key Business Risks

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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.

Graham Value Metrics

Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.

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ROE: 76.78111917655643

ROA: None

Gross Profit Margin: 47.092453446586084

Net Profit Margin: 19.791016997812164

Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.

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About Profitability Metrics

Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.

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  • • Return on Assets (ROA) insights
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About Financial Health Metrics

Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.

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Meeting Expectations

10 /10

Higher values indicate better execution and credibility

Recent Results

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EPS

2.97
Estimated
3.06
Actual
+3.03%
Difference

Revenue

$5491238230
Estimated
$5553000000
Actual
+1.12%
Difference
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Insider trading data shows purchase and sale activities by company executives and board members.

Insider Sentiment Analysis

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ADP Stock Analysis: Automatic Data Processing, Inc. Investment Guide

ADP (Automatic Data Processing, Inc.) is a Industrials company listed on NASDAQ Global Select. The stock has generated 15.0% annual returns with an overall investment score of None/100.

ADP demonstrates a robust business model with a solid market position, supported by consistent dividend payments and high client satisfaction. However, slight declines in retention and potential revenue growth slowdowns present challenges. Future prospects appear strong with innovative products and strategic partnerships that could enhance growth.

ADP Key Financial Metrics

ADP financial analysis includes comprehensive valuation ratios, profitability metrics, and financial health indicators. The company has a valuation score of 3.4543069748235684/100 and profitability score of 5.0/100 with financial health rated 6.8500000000000005/100.

About Automatic Data Processing, Inc.

Automatic Data Processing, Inc. (ADP) helps businesses manage their employees and HR needs using online tools. They provide services like payroll (paying employees), managing benefits (like health insurance), and helping with hiring and training staff. ADP is especially useful for small and medium-sized companies that want to focus on their business while ADP takes care of important HR tasks. Founded in 1949, ADP is based in Roseland, New Jersey.

ADP Investment Recommendation

Based on our comprehensive analysis of ADP, investors should consider the company's strong performance track record, earnings consistency (10/10 quarters beat expectations), and current valuation metrics when making investment decisions.

Industrials Sector Analysis

ADP operates in the Staffing & Employment Services industry within the Industrials sector. This analysis compares Automatic Data Processing, Inc. performance against industry and sector benchmarks to provide context for investment decisions.

Frequently Asked Questions about ADP Stock

Is ADP a good investment?

ADP (Automatic Data Processing, Inc.) has generated 15.0% annual returns with an overall score of None/100. ADP demonstrates a robust business model with a solid market position, supported by consistent dividend payments and high client satisfaction. However, slight declines in retention and potential revenue growth slowdowns … Investors should consider their risk tolerance and investment goals when evaluating ADP.

What is ADP P/E ratio and valuation?

ADP valuation metrics including P/E ratio, price-to-book ratio, and price-to-sales ratio are analyzed on this page with comparisons to Staffing & Employment Services industry and Industrials sector benchmarks. The company currently has a valuation score of 3.4543069748235684/100.

Should I buy ADP stock now?

The decision to buy ADP stock should be based on comprehensive analysis of financial metrics, market conditions, and individual investment goals. Our analysis provides profitability score of 5.0/100, financial health score of 6.8500000000000005/100, and detailed performance metrics to help inform your investment decision.

What are ADP financial health indicators?

ADP financial health analysis includes liquidity ratios, debt levels, cash flow metrics, and profitability indicators. The company has a financial health score of 6.8500000000000005/100 based on comprehensive analysis of balance sheet strength and operational efficiency.

How does ADP compare to competitors?

ADP performance is benchmarked against Staffing & Employment Services industry peers and Industrials sector averages. Our analysis includes comparative valuation ratios, profitability metrics, and growth indicators to provide context for Automatic Data Processing, Inc.'s market position.

What are ADP historical returns?

ADP has generated 15.0% annual returns over the 10Y. Historical performance analysis includes price appreciation, dividend yields, and total shareholder returns compared to market benchmarks.

ADP Key Investment Metrics Summary

  • Annual Return: 15.0%
  • Valuation Score: 3.4543069748235684/100
  • Profitability Score: 5.0/100
  • Financial Health Score: 6.8500000000000005/100
  • Growth Score: -31.12696817291646/100
  • Earnings Beat Rate: 10/10 quarters
  • Sector: Industrials
  • Industry: Staffing & Employment Services
  • Exchange: NASDAQ Global Select
  • Market Cap: 117649134180

ADP Investment Thesis

Automatic Data Processing, Inc. (ADP) represents an excellent investment opportunity in the Industrials sector. With an overall score of None/100, the company demonstrates areas for financial improvement.

Investment Strengths

  • Strong Return on Equity
  • Healthy Net Profit Margin
  • Solid Operating Profit Margin
  • Low Debt-to-Equity Ratio
  • Strong Interest Coverage
  • Consistent Dividend Increases
  • Strong Client Satisfaction and Retention
  • Diverse Service Offerings
  • Strategic Partnerships and Acquisitions
  • Innovation with ADP Lyric
  • Positive Market Demand

Investment Risks

  • High Price-to-Earnings Ratio
  • Moderate Gross Profit Margin
  • Low Cash Ratio
  • Slight Decline in Retention
  • Potential Slowdown in Revenue Growth
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