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Automatic Data Processing NasdaqGS:ADP Stock Report

Last Price

US$296.18

Market Cap

US$121.1b

7D

0.7%

1Y

27.1%

Updated

27 Dec, 2024

Data

Company Financials +

Automatic Data Processing, Inc.

NasdaqGS:ADP Stock Report

Market Cap: US$121.1b

ADP Stock Overview

Engages in the provision of cloud-based human capital management (HCM) solutions worldwide. More details

ADP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends5/6

Rewards

Trading at 15.9% below our estimate of its fair value

Earnings are forecast to grow 6.45% per year

Earnings grew by 10.2% over the past year

Pays a reliable dividend of 1.89%

Risk Analysis

Has a high level of debt


My Notes

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Community Narratives

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Narratives bring a range of perspectives from our community.

WA
Analyst Price Target
Consensus Narrative from 16 Analysts

Generative AI And WorkForce Software Acquisition Will Expand Workforce Management Solutions

Key Takeaways Strategic acquisitions and AI-driven innovations are set to drive growth in workforce management solutions and operational efficiency. Strong demand in Employer Services and PEO segments supports sustained revenue and earnings growth despite varying market conditions.
View narrative
US$296.88
FV
0.2% undervalued intrinsic discount
5.37%
Revenue growth p.a.
0users have liked this narrative
0users have commented on this narrative
9users have followed this narrative
2 days ago author updated this narrative
WA
WallStreetWontons
Community Contributor

Despite growing competition and AI-integrated competitors, ADP still hold reign on HCM.

Catalysts Robust Financial Performance : In the third quarter of fiscal year 2024, ADP reported impressive results: Revenue : Reached $5.3 billion, a 7% increase year-over-year, surpassing estimates. Net Income : Grew 14% to $1.2 billion, exceeding estimated figures.
View narrative
US$259.70
FV
14.0% overvalued intrinsic discount
5.39%
Revenue growth p.a.
0users have liked this narrative
0users have commented on this narrative
2users have followed this narrative
3 months ago author updated this narrative

Automatic Data Processing, Inc. Competitors

Paychex

NasdaqGS:PAYX

US$51.4b

Paycom Software

NYSE:PAYC

US$11.7b

Paylocity Holding

NasdaqGS:PCTY

US$11.2b

Robert Half

NYSE:RHI

US$7.3b

Price History & Performance

Summary of share price highs, lows and changes for Automatic Data Processing
Historical stock prices
Current Share PriceUS$296.18
52 Week HighUS$309.63
52 Week LowUS$231.27
Beta0.80
1 Month Change-3.50%
3 Month Change8.54%
1 Year Change27.13%
3 Year Change20.12%
5 Year Change74.26%
Change since IPO86,389.04%

Recent News & Updates

Getting In Cheap On Automatic Data Processing, Inc. (NASDAQ:ADP) Is Unlikely

Nov 24
Getting In Cheap On Automatic Data Processing, Inc. (NASDAQ:ADP) Is Unlikely

Automatic Data Processing: A Powerful New Dividend King Is Born

Nov 15

Automatic Data Processing (NASDAQ:ADP) Is Paying Out A Larger Dividend Than Last Year

Nov 09
Automatic Data Processing (NASDAQ:ADP) Is Paying Out A Larger Dividend Than Last Year

Recent updates

Getting In Cheap On Automatic Data Processing, Inc. (NASDAQ:ADP) Is Unlikely

Nov 24
Getting In Cheap On Automatic Data Processing, Inc. (NASDAQ:ADP) Is Unlikely

Automatic Data Processing: A Powerful New Dividend King Is Born

Nov 15

Automatic Data Processing (NASDAQ:ADP) Is Paying Out A Larger Dividend Than Last Year

Nov 09
Automatic Data Processing (NASDAQ:ADP) Is Paying Out A Larger Dividend Than Last Year

Automatic Data Processing, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Nov 05
Automatic Data Processing, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

We Take A Look At Why Automatic Data Processing, Inc.'s (NASDAQ:ADP) CEO Compensation Is Well Earned

Oct 30
We Take A Look At Why Automatic Data Processing, Inc.'s (NASDAQ:ADP) CEO Compensation Is Well Earned

Here's Why We Think Automatic Data Processing (NASDAQ:ADP) Is Well Worth Watching

Oct 23
Here's Why We Think Automatic Data Processing (NASDAQ:ADP) Is Well Worth Watching

Is Automatic Data Processing, Inc. (NASDAQ:ADP) Potentially Undervalued?

Oct 07
Is Automatic Data Processing, Inc. (NASDAQ:ADP) Potentially Undervalued?

Automatic Data Processing: Don't Underestimate The Threat Of AI

Sep 14

Automatic Data Processing: Dividend Growth With Operational Leverage

Sep 05

Automatic Data Processing, Inc.'s (NASDAQ:ADP) Intrinsic Value Is Potentially 51% Above Its Share Price

Aug 22
Automatic Data Processing, Inc.'s (NASDAQ:ADP) Intrinsic Value Is Potentially 51% Above Its Share Price

Automatic Data Processing, Inc. (NASDAQ:ADP) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Aug 04
Automatic Data Processing, Inc. (NASDAQ:ADP) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Automatic Data Processing: One Of My Favorite Dividend Growth Stocks

Aug 01

Automatic Data Processing, Inc.'s (NASDAQ:ADP) Share Price Could Signal Some Risk

Jul 26
Automatic Data Processing, Inc.'s (NASDAQ:ADP) Share Price Could Signal Some Risk

Does Automatic Data Processing (NASDAQ:ADP) Deserve A Spot On Your Watchlist?

Jul 11
Does Automatic Data Processing (NASDAQ:ADP) Deserve A Spot On Your Watchlist?

Automatic Data Processing: Slowing 2025 Earnings Growth Makes Shares Unattractive

Jun 14

49 Years And Counting: A Closer Look At Dividend Powerhouse ADP

Jun 02

Here's What Analysts Are Forecasting For Automatic Data Processing, Inc. (NASDAQ:ADP) After Its Third-Quarter Results

May 03
Here's What Analysts Are Forecasting For Automatic Data Processing, Inc. (NASDAQ:ADP) After Its Third-Quarter Results

Automatic Data Processing Q3: Double Digit Dividend Growth Likely To Continue

May 02

Automatic Data Processing (NASDAQ:ADP) Seems To Use Debt Quite Sensibly

Apr 20
Automatic Data Processing (NASDAQ:ADP) Seems To Use Debt Quite Sensibly

Automatic Data Processing: AI Technology And A Strong U.S. Labor Market

Apr 15

Is Automatic Data Processing, Inc. (NASDAQ:ADP) Trading At A 37% Discount?

Apr 02
Is Automatic Data Processing, Inc. (NASDAQ:ADP) Trading At A 37% Discount?

Automatic Data Processing: A Great DGI Stock

Mar 24

What Does Automatic Data Processing, Inc.'s (NASDAQ:ADP) Share Price Indicate?

Feb 26
What Does Automatic Data Processing, Inc.'s (NASDAQ:ADP) Share Price Indicate?

Automatic Data Processing, Inc.'s (NASDAQ:ADP) Popularity With Investors Is Under Threat From Overpricing

Feb 10
Automatic Data Processing, Inc.'s (NASDAQ:ADP) Popularity With Investors Is Under Threat From Overpricing

Automatic Data Processing: Buying More Of This Amazing Dividend Aristocrat

Feb 04

Automatic Data Processing (NASDAQ:ADP) Ticks All The Boxes When It Comes To Earnings Growth

Jan 26
Automatic Data Processing (NASDAQ:ADP) Ticks All The Boxes When It Comes To Earnings Growth

Shareholder Returns

ADPUS Professional ServicesUS Market
7D0.7%2.0%2.8%
1Y27.1%12.0%24.6%

Return vs Industry: ADP exceeded the US Professional Services industry which returned 12% over the past year.

Return vs Market: ADP exceeded the US Market which returned 24.6% over the past year.

Price Volatility

Is ADP's price volatile compared to industry and market?
ADP volatility
ADP Average Weekly Movement2.4%
Professional Services Industry Average Movement5.7%
Market Average Movement6.3%
10% most volatile stocks in US Market17.4%
10% least volatile stocks in US Market3.1%

Stable Share Price: ADP has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: ADP's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194964,000Maria Blackwww.adp.com

Automatic Data Processing, Inc. engages in the provision of cloud-based human capital management (HCM) 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.

Automatic Data Processing, Inc. Fundamentals Summary

How do Automatic Data Processing's earnings and revenue compare to its market cap?
ADP fundamental statistics
Market capUS$121.11b
Earnings (TTM)US$3.85b
Revenue (TTM)US$19.52b

31.4x

P/E Ratio

6.2x

P/S Ratio

Is ADP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
ADP income statement (TTM)
RevenueUS$19.52b
Cost of RevenueUS$10.13b
Gross ProfitUS$9.39b
Other ExpensesUS$5.54b
EarningsUS$3.85b

Last Reported Earnings

Sep 30, 2024

Next Earnings Date

Jan 29, 2025

Earnings per share (EPS)9.45
Gross Margin48.11%
Net Profit Margin19.71%
Debt/Equity Ratio168.9%

How did ADP perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

60%

Payout Ratio

Does ADP pay a reliable dividends?

See ADP dividend history and benchmarks
When do you need to buy ADP by to receive an upcoming dividend?
Automatic Data Processing dividend dates
Ex Dividend DateDec 13 2024
Dividend Pay DateJan 01 2025
Days until Ex dividend15 days
Days until Dividend pay date4 days

Does ADP pay a reliable dividends?

See ADP dividend history and benchmarks

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/27 22:44
End of Day Share Price 2024/12/27 00:00
Earnings2024/09/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Automatic Data Processing, Inc. is covered by 49 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Mark MarconBaird
Ishan MajumdarBaptista Research