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.
CountryUS
ExchangeNASDAQ
IndustryStaffing & Employment Services
SectorIndustrials
Market Cap$117.65B
CEOMs. 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
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HR ManagementComprehensive HR solutions
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Payroll ServicesAutomated payroll processing
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Talent ManagementOptimize workforce talent
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Compliance ServicesEnsure legal compliance
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Workforce ManagementTrack employee productivity
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Benefits AdministrationManage employee benefits
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Recruitment Process OutsourcingStreamline hiring process
Business Type
Business to Business
Competitive Advantages
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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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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Income Statement Flow
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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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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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