0.90%
3.51%
3.58%
17.66%
27.11%
47.09%
73.28%
AI Spotlight on ADP
Company Description
Automatic Data Processing, Inc.provides cloud-based human capital management solutions worldwide.It operates in two segments, Employer Services and Professional Employer Organization (PEO).
The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.Its offerings include payroll, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions.The PEO Services segment provides HR outsourcing solutions to small and mid-sized businesses through a co-employment model.
This segment offers benefits package, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services.The company was founded in 1949 and is headquartered in Roseland, New Jersey.
Market Data
| Last Price | 303.26 |
| Change Percentage | 0.90% |
| Open | 301.67 |
| Previous Close | 300.57 |
| Market Cap ( Millions) | 123565 |
| Volume | 1357526 |
| Year High | 311.67 |
| Year Low | 231.27 |
| M A 50 | 297.42 |
| M A 200 | 270.98 |
Financial Ratios
| FCF Yield | 3.54% |
| Dividend Yield | 1.89% |
| ROE | 80.28% |
| Debt / Equity | 84.34% |
| Net Debt / EBIDTA | 33.81% |
| Price To Book | 24.36 |
| Price Earnings Ratio | 31.45 |
| Price To FCF | 28.27 |
| Price To sales | 6.21 |
| EV / EBITDA | 20.55 |
News
- Jan -30 - 3 Stocks to Watch After Pleasant EPS Surprises: ADP, FLEX, VFC
- Jan -29 - Why Automatic Data Processing Stock Is Jumping Today
- Jan -29 - Automatic Data Processing Q2 Earnings & Revenues Beat Estimates
- Jan -29 - ADP (ADP) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
- Jan -29 - Automatic Data Processing, Inc. (ADP) Q2 2025 Earnings Call Transcript
- Jan -29 - ADP Q2 Earnings: Revenue And EPS Beat, Record Client Satisfaction and Strong HCM Demand, Reaffirms FY25 Outlook
- Jan -29 - ADP Named One of Fortune's Most Admired Companies™ for 19th Straight Year
- Jan -29 - ADP Tops Earnings Estimates in 2025's Q2
- Jan -29 - Automatic Data Processing (ADP) Q2 Earnings and Revenues Beat Estimates
- Jan -29 - ADP beats second quarter revenue estimates on strong demand for payroll services
- Jan -29 - ADP Reports Second Quarter Fiscal 2025 Results
- Jan -28 - Buy These 5 Stocks Set to Win Big After Earnings Results This Week
- Jan -27 - The Most Underrated Mistake Destroying Your Retirement - December Dividend Income Report
- Jan -25 - Best 5 dividend aristocrat stocks to buy and hold
- Jan -24 - Automatic Data Processing to Report Q2 Earnings: What's in Store?
- Jan -24 - What Can The Dividend Kings Deliver In 2025?
- Jan -21 - Are You Looking for a High-Growth Dividend Stock?
- Jan -16 - Is Automatic Data Processing (ADP) Among the Best NASDAQ Dividend Stocks to Buy?
- Jan -15 - ADP Declares Regular Quarterly Dividend
- Jan -15 - ADP Declares Regular Quarterly Dividend
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Employer Services
Expected Growth : 5.5 %
What the company do ?
Employer Services from Automatic Data Processing, Inc. provides human capital management solutions, including payroll processing, benefits administration, and compliance services to businesses.
Why we expect these perspectives ?
ADP's Employer Services segment growth is driven by increasing demand for human capital management solutions, expansion into new markets, and strategic acquisitions. The 5.5% growth rate is also fueled by the rise of cloud-based services, growing need for compliance and regulatory support, and the company's ability to upsell and cross-sell its services to existing clients.
Segment n°2 -> Professional Employer Organization Services
Expected Growth : 6.5 %
What the company do ?
ADP's Professional Employer Organization (PEO) services provide HR outsourcing solutions, including payroll, benefits, and compliance management, to small and medium-sized businesses.
Why we expect these perspectives ?
ADP's Professional Employer Organization (PEO) Services growth is driven by increasing demand for HR outsourcing, rising need for compliance with complex labor laws, and growing adoption of cloud-based HR solutions. Additionally, the shift towards co-employment models and the requirement for specialized HR expertise are contributing to the 6.5% growth rate.
Segment n°3 -> Other
Expected Growth : 5.0 %
What the company do ?
Other from Automatic Data Processing, Inc. refers to miscellaneous revenue streams, including interest income and fees from various services.
Why we expect these perspectives ?
ADP's 5.0% growth is driven by increasing adoption of cloud-based HR solutions, expansion into new markets, and strategic acquisitions. The company's investments in artificial intelligence and machine learning are also enhancing its payroll processing and human capital management offerings, leading to higher revenue growth.
Automatic Data Processing, Inc. Products
| Product Range | What is it ? |
|---|---|
| Payroll Processing | ADP's payroll processing service provides accurate and timely payment of employee salaries and benefits, including tax compliance and reporting. |
| Human Capital Management (HCM) | ADP's HCM solution provides a comprehensive platform for managing employee data, time tracking, benefits administration, and performance management. |
| Workforce Management | ADP's workforce management solution provides tools for scheduling, time tracking, and labor forecasting, helping businesses optimize their workforce and reduce labor costs. |
| Benefits Administration | ADP's benefits administration service provides a platform for managing employee benefits, including health insurance, retirement plans, and other benefits. |
| Compliance and Governance | ADP's compliance and governance solutions provide tools and services to help businesses comply with labor laws, regulations, and industry standards. |
| Talent Management | ADP's talent management solution provides tools for recruiting, performance management, and succession planning, helping businesses attract, retain, and develop top talent. |
| Analytics and Benchmarking | ADP's analytics and benchmarking solutions provide insights and data to help businesses make informed decisions about their workforce and operations. |
Automatic Data Processing, Inc.'s Porter Forces
Threat Of Substitutes
Automatic Data Processing, Inc. faces moderate threat from substitutes due to the presence of alternative payroll processing and human capital management solutions.
Bargaining Power Of Customers
Automatic Data Processing, Inc. has a large customer base, which reduces the bargaining power of individual customers, making it a low threat.
Bargaining Power Of Suppliers
Automatic Data Processing, Inc. has a diversified supplier base, reducing the bargaining power of individual suppliers, making it a low threat.
Threat Of New Entrants
The payroll processing and human capital management industry has high barriers to entry, making it difficult for new entrants to compete with Automatic Data Processing, Inc.
Intensity Of Rivalry
The payroll processing and human capital management industry is highly competitive, with several established players, making the intensity of rivalry high for Automatic Data Processing, Inc.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 67.16% |
| Debt Cost | 7.87% |
| Equity Weight | 32.84% |
| Equity Cost | 7.87% |
| WACC | 7.87% |
| Leverage | 204.53% |
Automatic Data Processing, Inc. : Quality Control
Automatic Data Processing, Inc. passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| PCAR | PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, … |
| PAYX | Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. It … |
| KFY | Korn Ferry, together with its subsidiaries, provides organizational consulting services worldwide. It operates through four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing (RPO) & Professional Search. The company … |
| BBSI | Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies in the United States. The company develops a management platform that integrates a knowledge-based approach from the … |
| TDG | TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Barrett Business Services
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1-Year Total Return ->
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Korn Ferry
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Paychex
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TransDigm Group
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5
PACCAR
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1-Year Total Return ->
6
