Automatic Data Processing
Automatic Data Processing, Inc. provides business process outsourcing services worldwide. The last earnings update was 52 days ago. More info.
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ADP Share Price and Events
7 Day Returns
1 Year Returns
ADP Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Automatic Data Processing (ADP) | 1.1% | 3.7% | 7.4% | 22.8% | 95.8% | 111.6% |
| US IT | 1.7% | 5.8% | 10.7% | 25.1% | 103.2% | 113% |
| US Market | 2% | 4.1% | 4.2% | 4.3% | 43.9% | 40.8% |
1 Year Return vs Industry and Market
- ADP underperformed the IT industry which returned 25.1% over the past year.
- ADP outperformed the Market in United States of America which returned 4.3% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Automatic Data Processing
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Automatic Data Processing.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 17 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.8% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| IT Unlevered Beta | Simply Wall St/ S&P Global | 1.01 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.014 (1 + (1- 21%) (2.74%)) |
1.024 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.02 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.024 * 5.96%) |
8.83% |
Discounted Cash Flow Calculation for NasdaqGS:ADP using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Automatic Data Processing is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.83%) |
|
|---|---|---|---|
| 2019 | 2,521.22 | Analyst x6 | 2,316.61 |
| 2020 | 2,534.53 | Analyst x6 | 2,139.85 |
| 2021 | 3,117.33 | Analyst x3 | 2,418.30 |
| 2022 | 3,000.00 | Analyst x1 | 2,138.41 |
| 2023 | 3,400.00 | Analyst x1 | 2,226.85 |
| 2024 | 3,623.80 | Est @ 6.58% | 2,180.82 |
| 2025 | 3,820.45 | Est @ 5.43% | 2,112.58 |
| 2026 | 3,996.87 | Est @ 4.62% | 2,030.77 |
| 2027 | 4,158.80 | Est @ 4.05% | 1,941.56 |
| 2028 | 4,310.80 | Est @ 3.65% | 1,849.20 |
| Present value of next 10 years cash flows | $21,354.95 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $4,310.80 × (1 + 2.73%) ÷ (8.83% – 2.73%) |
$72,571.83 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $72,571.83 ÷ (1 + 8.83%)10 |
$31,131.03 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $21,354.95 + $31,131.03 |
$52,485.98 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $52,485.98 / 435.23 |
$120.59 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $120.59 |
| Current discount | Discount to share price of
$167.76
= -1 x ($167.76 - $120.59) / $120.59 |
-39.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Automatic Data Processing is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Automatic Data Processing's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Automatic Data Processing's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $3.88 |
| NasdaqGS:ADP Share Price ** | NasdaqGS (2019-06-24) in USD | $167.76 |
| United States of America IT Industry PE Ratio | Median Figure of 77 Publicly-Listed IT Companies | 35.73x |
| United States of America Market PE Ratio | Median Figure of 3,095 Publicly-Listed Companies | 17.88x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Automatic Data Processing.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:ADP Share Price ÷ EPS (both in USD) = 167.76 ÷ 3.88 |
43.18x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Automatic Data Processing is overvalued based on earnings compared to the US IT industry average.
- Automatic Data Processing is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Automatic Data Processing's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 43.18x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts |
15.8%per year |
| United States of America IT Industry PEG Ratio | Median Figure of 66 Publicly-Listed IT Companies | 2.53x |
| United States of America Market PEG Ratio | Median Figure of 2,134 Publicly-Listed Companies | 1.54x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 43.18x ÷ 15.8% |
2.73x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Automatic Data Processing is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Automatic Data Processing's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $12.05 |
| NasdaqGS:ADP Share Price * | NasdaqGS (2019-06-24) in USD | $167.76 |
| United States of America IT Industry PB Ratio | Median Figure of 128 Publicly-Listed IT Companies | 4.35x |
| United States of America Market PB Ratio | Median Figure of 5,255 Publicly-Listed Companies | 1.8x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:ADP Share Price ÷ Book Value per Share (both in USD) = 167.76 ÷ 12.05 |
13.93x |
* Primary Listing of Automatic Data Processing.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Automatic Data Processing is overvalued based on assets compared to the US IT industry average.
Value checks
We assess Automatic Data Processing's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the IT industry average (and greater than 0)? (1 check) Automatic Data Processing has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Automatic Data Processing's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Automatic Data Processing's earnings growth is expected to exceed the United States of America market average.
- Automatic Data Processing's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:ADP Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts | 15.8% |
| NasdaqGS:ADP Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts | 6.7% |
| United States of America IT Industry Earnings Growth Rate | Market Cap Weighted Average | 16.7% |
| United States of America IT Industry Revenue Growth Rate | Market Cap Weighted Average | 10.2% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.4% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 17 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-06-30 | 18,600 | 1 | ||
| 2022-06-30 | 17,300 | 1 | ||
| 2021-06-30 | 16,301 | 3,709 | 3,023 | 9 |
| 2020-06-30 | 15,110 | 3,195 | 2,609 | 17 |
| 2019-06-30 | 14,173 | 2,772 | 2,313 | 15 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 13,991 | 2,661 | 1,694 |
| 2018-12-31 | 13,839 | 2,772 | 1,601 |
| 2018-09-30 | 13,572 | 2,420 | 1,714 |
| 2018-06-30 | 13,326 | 2,515 | 1,621 |
| 2018-03-31 | 13,076 | 2,267 | 2,010 |
| 2017-12-31 | 12,791 | 1,960 | 1,937 |
| 2017-09-30 | 12,540 | 2,041 | 1,777 |
| 2017-06-30 | 12,380 | 2,126 | 1,733 |
| 2017-03-31 | 12,213 | 2,332 | 1,750 |
| 2016-12-31 | 12,051 | 2,223 | 1,694 |
| 2016-09-30 | 11,871 | 2,118 | 1,525 |
| 2016-06-30 | 11,668 | 1,897 | 1,493 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 17 Analyst Estimates (S&P Global) | See Below |
All data from Automatic Data Processing Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-06-30 | ||||
| 2022-06-30 | ||||
| 2021-06-30 | 7.11 | 7.30 | 6.97 | 5.00 |
| 2020-06-30 | 6.02 | 6.30 | 5.48 | 10.00 |
| 2019-06-30 | 5.28 | 5.45 | 5.18 | 9.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 3.88 |
| 2018-12-31 | 3.66 |
| 2018-09-30 | 3.90 |
| 2018-06-30 | 3.68 |
| 2018-03-31 | 4.54 |
| 2017-12-31 | 4.37 |
| 2017-09-30 | 3.99 |
| 2017-06-30 | 3.87 |
| 2017-03-31 | 3.89 |
| 2016-12-31 | 3.75 |
| 2016-09-30 | 3.35 |
| 2016-06-30 | 3.27 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Automatic Data Processing is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
Future performance checks
We assess Automatic Data Processing's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Automatic Data Processing has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Automatic Data Processing performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Automatic Data Processing's year on year earnings growth rate has been positive over the past 5 years.
- Automatic Data Processing's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Automatic Data Processing's 1-year earnings growth is negative, it can't be compared to the US IT industry average.
Earnings and Revenue History
All data from Automatic Data Processing Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 13,990.80 | 1,694.20 | 3,036.90 | |
| 2018-12-31 | 13,839.40 | 1,601.40 | 2,992.50 | |
| 2018-09-30 | 13,571.80 | 1,713.60 | 2,977.60 | |
| 2018-06-30 | 13,325.80 | 1,620.80 | 2,942.70 | |
| 2018-03-31 | 13,076.40 | 2,009.80 | 2,878.40 | |
| 2017-12-31 | 12,791.10 | 1,936.80 | 2,821.70 | |
| 2017-09-30 | 12,540.10 | 1,777.30 | 2,757.90 | |
| 2017-06-30 | 12,379.80 | 1,733.40 | 2,704.10 | |
| 2017-03-31 | 12,213.20 | 1,749.60 | 2,629.10 | |
| 2016-12-31 | 12,051.00 | 1,694.10 | 2,598.30 | |
| 2016-09-30 | 11,870.70 | 1,524.60 | 2,584.50 | |
| 2016-06-30 | 11,667.80 | 1,493.40 | 2,588.80 | |
| 2016-03-31 | 11,464.00 | 1,468.40 | 2,591.90 | |
| 2015-12-31 | 11,239.90 | 1,426.30 | 2,575.50 | |
| 2015-09-30 | 11,086.40 | 1,417.40 | 2,536.90 | |
| 2015-06-30 | 10,938.50 | 1,376.50 | 2,507.60 | |
| 2015-03-31 | 10,789.60 | 1,349.90 | 2,450.80 | |
| 2014-12-31 | 10,590.30 | 1,292.60 | 2,418.30 | |
| 2014-09-30 | 10,430.50 | 1,274.30 | 2,408.60 | |
| 2014-06-30 | 10,226.40 | 1,242.60 | 2,370.30 | |
| 2014-03-31 | 10,483.60 | 1,236.20 | 2,431.30 | |
| 2013-12-31 | 10,767.80 | 1,284.70 | 2,499.50 | |
| 2013-09-30 | 11,012.10 | 1,320.50 | 2,543.70 | |
| 2013-06-30 | 9,442.00 | 1,122.20 | 2,200.40 | |
| 2013-03-31 | 11,108.40 | 1,390.40 | 2,512.00 | |
| 2012-12-31 | 10,909.90 | 1,359.00 | 2,478.30 | |
| 2012-09-30 | 10,742.60 | 1,381.80 | 2,430.20 | |
| 2012-06-30 | 10,595.40 | 1,375.20 | 2,452.90 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Automatic Data Processing has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Automatic Data Processing used its assets less efficiently than the US IT industry average last year based on Return on Assets.
- Automatic Data Processing has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Automatic Data Processing's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Automatic Data Processing has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Automatic Data Processing's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Automatic Data Processing's finances.
The net worth of a company is the difference between its assets and liabilities.
- Automatic Data Processing is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Automatic Data Processing's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 20.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Automatic Data Processing Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 5,246.20 | 2,002.30 | 1,833.50 |
| 2018-12-31 | 4,763.90 | 3,208.30 | 2,789.00 |
| 2018-09-30 | 4,678.80 | 2,455.40 | 1,617.40 |
| 2018-06-30 | 3,459.60 | 2,002.40 | 2,173.30 |
| 2018-03-31 | 4,029.20 | 2,002.40 | 2,293.60 |
| 2017-12-31 | 3,931.20 | 2,002.40 | 1,776.60 |
| 2017-09-30 | 3,953.40 | 2,131.50 | 2,476.80 |
| 2017-06-30 | 3,977.00 | 2,002.40 | 2,783.60 |
| 2017-03-31 | 4,103.10 | 2,010.30 | 2,998.70 |
| 2016-12-31 | 3,815.10 | 2,002.50 | 2,746.20 |
| 2016-09-30 | 4,250.10 | 2,007.70 | 2,817.60 |
| 2016-06-30 | 4,481.60 | 2,007.70 | 3,214.60 |
| 2016-03-31 | 4,503.20 | 2,007.70 | 2,965.10 |
| 2015-12-31 | 4,206.20 | 1,994.80 | 2,821.80 |
| 2015-09-30 | 4,630.20 | 1,995.20 | 3,211.90 |
| 2015-06-30 | 4,808.50 | 9.20 | 1,665.90 |
| 2015-03-31 | 5,178.10 | 9.70 | 1,835.50 |
| 2014-12-31 | 5,492.20 | 10.30 | 1,952.70 |
| 2014-09-30 | 5,827.30 | 1,947.90 | 2,479.50 |
| 2014-06-30 | 6,670.20 | 2,184.50 | 1,416.60 |
| 2014-03-31 | 6,616.10 | 12.10 | 1,693.90 |
| 2013-12-31 | 6,258.50 | 12.60 | 1,288.90 |
| 2013-09-30 | 6,192.80 | 2,832.10 | 1,179.70 |
| 2013-06-30 | 6,189.90 | 260.60 | 1,726.40 |
| 2013-03-31 | 6,561.10 | 15.30 | 1,680.30 |
| 2012-12-31 | 6,395.30 | 29.30 | 1,421.30 |
| 2012-09-30 | 6,292.70 | 459.00 | 1,149.80 |
| 2012-06-30 | 6,114.00 | 16.80 | 1,578.50 |
- Automatic Data Processing's level of debt (38.2%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has increased over the past 5 years (0.5% vs 38.2% today).
- Debt is well covered by operating cash flow (132.9%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 100.1x coverage).
Financial health checks
We assess Automatic Data Processing's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Automatic Data Processing has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Automatic Data Processing's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Automatic Data Processing
shares you are expected to receive
$38
in your first year as a dividend.
Dividend Amount
- Automatic Data Processing's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
- Automatic Data Processing's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 17 Analyst Estimates (S&P Global) | See Below |
| United States of America IT Industry Average Dividend Yield | Market Cap Weighted Average of 34 Stocks | 1.3% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2012 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-06-30 | ||
| 2022-06-30 | ||
| 2021-06-30 | 3.31 | 10.00 |
| 2020-06-30 | 3.11 | 15.00 |
| 2019-06-30 | 2.93 | 14.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-04-03 | 3.160 | 1.947 |
| 2019-01-15 | 3.160 | 2.134 |
| 2018-11-06 | 3.160 | 2.301 |
| 2018-08-02 | 2.760 | 1.919 |
| 2018-04-11 | 2.760 | 2.123 |
| 2018-01-16 | 2.520 | 2.170 |
| 2017-11-07 | 2.520 | 2.190 |
| 2017-08-01 | 2.280 | 2.068 |
| 2017-04-05 | 2.280 | 2.230 |
| 2017-01-17 | 2.280 | 2.242 |
| 2016-11-08 | 2.280 | 2.317 |
| 2016-08-02 | 2.120 | 2.397 |
| 2016-04-06 | 2.120 | 2.366 |
| 2016-01-19 | 2.120 | 2.497 |
| 2015-11-10 | 2.120 | 2.515 |
| 2015-08-04 | 1.960 | 2.386 |
| 2015-04-08 | 1.960 | 2.334 |
| 2015-01-22 | 1.960 | 2.263 |
| 2014-11-11 | 1.960 | 2.316 |
| 2014-08-05 | 1.920 | 2.398 |
| 2014-04-09 | 1.920 | 2.437 |
| 2014-01-23 | 1.920 | 2.501 |
| 2013-11-12 | 1.920 | 2.420 |
| 2013-08-06 | 1.740 | 2.376 |
| 2013-04-10 | 1.740 | 2.507 |
| 2013-01-25 | 1.740 | 2.789 |
| 2012-11-13 | 1.740 | 3.026 |
| 2012-08-07 | 1.580 | 2.720 |
| 2012-04-25 | 1.580 | 2.897 |
| 2012-01-26 | 1.580 | 2.884 |
| 2011-11-08 | 1.580 | 2.997 |
| 2011-08-09 | 1.440 | 2.922 |
| 2011-04-28 | 1.440 | 2.731 |
| 2011-02-08 | 1.440 | 2.837 |
| 2010-11-09 | 1.440 | 3.060 |
| 2010-08-09 | 1.360 | 3.264 |
| 2010-04-29 | 1.360 | 3.284 |
| 2010-02-09 | 1.360 | 3.132 |
| 2009-11-10 | 1.360 | 3.193 |
| 2009-08-13 | 1.320 | 3.345 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Automatic Data Processing's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.3x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
Income/ dividend checks
We assess Automatic Data Processing's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Automatic Data Processing afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Automatic Data Processing has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $12,489,040 |
| AGE | 54 |
| TENURE AS CEO | 7.6 years |
CEO Bio
Mr. Carlos A. Rodriguez has been the Chief Executive Officer of Automatic Data Processing, Inc. since November 8, 2011 and has been its President since May 2011. Mr. Rodriguez served as the Chief Operating Officer of Automatic Data Processing Inc. from May 2011 to November 8, 2011. Mr. Rodriguez served as the President of Employer Services- National Account Services, ADP Canada, and GlobalView and Employer Services International at Automatic Data Processing, Inc. from March 2010 to May 2011. Mr. Rodriguez served as the President of Employer Services - Small Business Services Division of Automatic Data Processing, Inc. from 1999 to 2010. Having started his career at the company in 1999, Mr. Rodriguez previously served as president of several key businesses, including National Accounts Services, Employer Services International, Small Business Services, and Professional Employer Organization, giving him deep institutional knowledge across the Automatic Data Processing, Inc.’s business. He served as the President of TotalSource, Employer Services of ADP from 2000 to 2007. He joined ADP in 1999 through its acquisition of Vincam, where he served initially as Chief Financial Officer for a short period before becoming President of ADP TotalSource®. He has been a Director of Automatic Data Processing, Inc., since November 8, 2011. He serves as a Director of A-T Children's Project. He served as a Director at Hubbell Inc. since June 2009 until May 03, 2016. He is a Member of World 50, Inc. Mr. Rodriguez holds a BA in Government from Harvard College and an MBA from the Harvard Business School.
CEO Compensation
- Carlos's compensation has been consistent with company performance over the past year, both up more than 20%.
- Carlos's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Automatic Data Processing management team in years:
- The average tenure for the Automatic Data Processing management team is less than 2 years, this suggests a new team.
Management Team
Carlos Rodriguez
CEO, President & Director
$12M
54
7.6 yrs
Michael Bonarti
Director
$3M
53
9 yrs
Dermot O'Brien
Chief Transformation Officer
$3M
52
1.4 yrs
Kathleen Winters
Corporate Vice President & CFO
50
0.2 yrs
Don Weinstein
Corporate Vice President of Global Product & Technology
49
1.4 yrs
Christian Greyenbuhl
Vice President of Investor Relation
3.4 yrs
Doug Politi
President of Compliance Solutions
56
1.4 yrs
Allyce Hackmann
Senior Director of Public Relations
Tom Perrotti
President of Worldwide Sales & Marketing
49
2.4 yrs
Sreeni Kutam
Chief Human Resources Officer
48
1.4 yrs
Board of Directors Tenure
Average tenure and age of the Automatic Data Processing board of directors in years:
- The tenure for the Automatic Data Processing board of directors is about average.
Board of Directors
John Jones
Non-Executive Chairman of the Board
$504K
67
3.6 yrs
Carlos Rodriguez
CEO, President & Director
$12M
54
7.6 yrs
Michael Bonarti
Director
$3M
53
Linda Gooden
Director
$329K
65
10.3 yrs
Dick Clark
Director
$339K
72
7.8 yrs
Mike Gregoire
Director
$314K
52
5.4 yrs
Sandra Wijnberg
Director
$331K
62
3 yrs
Eric Fast
Director
$346K
69
11.8 yrs
Robert Hubbard
Director
$359K
59
15.4 yrs
Peter Bisson
Director
$324K
61
3.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 17. Aug 18 | Buy | Pershing Square Capital Management, L.P. | Company | 25. Jul 18 | 25. Jul 18 | 1 | $137.86 | $138 | ||
Management checks
We assess Automatic Data Processing's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Automatic Data Processing has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
With A -3.6% Earnings Drop, Is Automatic Data Processing, Inc.'s (NASDAQ:ADP) A Concern?
Assessing Automatic Data Processing, Inc.'s (NASDAQ:ADP) past track record of performance is a useful exercise for investors. … Below, I assess ADP's latest performance announced on 30 September 2018 and evaluate these figures to its historical trend and industry movements. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 7.9%, indicating the rate at which ADP is growing has slowed down
Simply Wall St - – Full articleAutomatic Data Processing Inc (NASDAQ:ADP): A Look At Return On Capital
and want to begin learning the link between Automatic Data Processing Inc (NASDAQ:ADP)’s return fundamentals and stock market performance. … Thus, to understand how your money can grow by investing in Automatic Data Processing, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Automatic Data Processing's Return On Capital Employed
Simply Wall St - – Full articleHow Do Analysts See Automatic Data Processing Inc (NASDAQ:ADP) Performing In The Next Couple Of Years?
In June 2018, Automatic Data Processing Inc (NASDAQ:ADP) released its most recent earnings announcement, whicha
Simply Wall St - – Full articleWhat Should You Know About The Future Of Automatic Data Processing Inc's (NASDAQ:ADP)?
Based on Automatic Data Processing Inc's (NASDAQ:ADP) earnings update in June 2018,. … with earnings expected to grow by 38.15% in the upcoming year … the past 5-year average growth rate of 5.01%
Simply Wall St - – Full articleWhy Automatic Data Processing Inc’s (NASDAQ:ADP) Cash Is A Factor You Need To Consider
Automatic Data Processing Inc (NASDAQ:ADP) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … I’ve analysed below, the health and outlook of Automatic Data Processing’s cash flow, which will help you understand the stock from a cash standpoint. … Automatic Data Processing’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure.
Simply Wall St - – Full articleIs It Too Late To Buy Automatic Data Processing Inc (NASDAQ:ADP) At Its July Price?
Automatic Data Processing Inc (NASDAQ:ADP) is considered a high-growth stock, but its last closing price of $137.41 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … View our latest analysis for Automatic Data Processing? … Analysts are predicting good growth prospects for Automatic Data Processing over the next couple of years
Simply Wall St - – Full articleWho Owns Automatic Data Processing Inc (NASDAQ:ADP)?
I am going to take a deep dive into Automatic Data Processing Inc’s (NASDAQ:ADP) most recent ownership structure, not a frequent subject of discussion among individual investors. … Ownership structure has been found to have an impact on shareholder returns in both short- and long-term. … Check out our latest analysis for Automatic Data Processing
Simply Wall St - – Full articleIs It Too Late To Buy Automatic Data Processing Inc (NASDAQ:ADP)?
Let's talk about the popular Automatic Data Processing Inc (NASDAQ:ADP). … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock
Simply Wall St - – Full articleWhere Automatic Data Processing Inc's (NASDAQ:ADP) Earnings Growth Stands Against Its Industry
When Automatic Data Processing Inc (NASDAQ:ADP) released its most recent earnings update (31 March 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Understanding how Automatic Data Processing performed requires a benchmark rather than trying to assess a standalone number at one point in time. … Check out our latest analysis for Automatic Data Processing?
Simply Wall St - – Full articleHow Automatic Data Processing Inc (NASDAQ:ADP) Delivered A Better ROE Than Its Industry
and looking to gauge the potential return on investment in Automatic Data Processing Inc (NASDAQ:ADP). … With an ROE of 44.13%, Automatic Data Processing Inc (NASDAQ:ADP) outpaced its own industry which delivered a less exciting 15.08% over the past year. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden
Simply Wall St - – Full articleCompany Info
Description
Automatic Data Processing, Inc. provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions. Its offerings include payroll, benefits administration, talent management, HR management, time and attendance management, insurance, retirement, and compliance services. This segment provides a range of solutions, which businesses of various types and sizes can use to activate talent, as well as recruit, pay, manage, and retain their workforce. It serves approximately 630,000 clients through its cloud-based strategic software as a service offering. The PEO Services segment provides HR outsourcing solutions through a co-employment model. This segment offers HR administration services, including employee recruitment, payroll and tax administration, time and attendance management, benefits administration, employee training and development, online HR management tools, and employee leave administration. It also provides employee benefits that enable eligible worksite employees with access to a 401(k) retirement savings plan, health savings accounts, flexible spending accounts, group term life and disability coverage, and an employee assistance program, as well as group health, dental, and vision coverage. In addition, this segment offers employer liability management services comprising workers’ compensation program, unemployment claims management, safety compliance guidance and access to safety training, access to employment practices liability insurance, and guidance on compliance with the United States federal, state, and local employment laws and regulations. The company was founded in 1949 and is headquartered in Roseland, New Jersey.
Details
| Name: | Automatic Data Processing, Inc. |
| ADP | |
| Exchange: | NasdaqGS |
| Founded: | 1949 |
| $73,013,889,039 | |
| 435,228,237 | |
| Website: | http://www.adp.com |
| Address: |
Automatic Data Processing, Inc. One ADP Boulevard, Roseland, New Jersey, 07068, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | ADP | Common Stock | Nasdaq Global Select | US | USD | 02. Jan 1968 | |
| DB | ADP | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1968 | |
| LSE | 0HJI | Common Stock | London Stock Exchange | GB | USD | 02. Jan 1968 | |
| WBAG | ADP | Common Stock | Wiener Boerse AG | AT | EUR | 02. Jan 1968 | |
| SNSE | ADP | Common Stock | Santiago Stock Exchange | CL | USD | 02. Jan 1968 | |
| BOVESPA | ADPR34 | BDR EACH REP 0.5 COM USD0.10 | Bolsa de Valores de Sao Paulo | BR | BRL | 17. May 2019 |
Number of employees
Current staff
Industry
| Data Processing and Outsourced Services | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/24 23:33 |
| End of day share price update: | 2019/06/24 00:00 |
| Last estimates confirmation: | 2019/06/14 |
| Last earnings filing: | 2019/05/03 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/06/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
