Automatic Data Processing Inc (ADP)
Industrials · Human Resource & Employment Services · US stock · S&P 500 component
$307.94
▲ +13.44 (4.56%)
Fair valueFair
$315 +2.2% to fair value
$157fair band $268–$381$472
Day's range
$296.86 – $308.63
52-week range
$188.16 – $308.63
About Automatic Data Processing Inc
Automatic Data Processing provides cloud-based human capital management software and outsourcing services, covering payroll, tax filing, benefits administration, time tracking and talent management. It serves businesses of all sizes around the world. Revenue comes from recurring fees for these services and from interest earned on client funds held before payroll and tax payments are made, which links results to interest rates.
Revenue at Automatic Data Processing Inc was $21.9 billion across the last twelve months. Across three years, sales expanded by 6.8% a year. Operating profit was 28.2% of revenue. It earned a return on invested capital of 66%. Debt after cash comes to 0.2 times EBITDA. Shareholders receive a dividend yielding 2.2%. On the site's X-Ray Score, it rates 62 out of 100.
Price chart
52-wk range $188.16 – $308.63Volume 3,270,531Daily, split-adjusted
Vitals
Market cap$124.2B
52-week range$188.16 – $308.63
Volume (last day)3,270,531
P/E (TTM)28.2
EBIT / EV yield4.9%
Free-cash-flow yield–
Dividend yield2.2%
Revenue (TTM)$21.9B
Net income (TTM)$4.4B
Operating margin28.2%
Return on capital66.4%
Debt incl. leases$5.4B
Cash & securities$4.2B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$315middle half of models $310 – $342
Fair
+2.2% to fair value
Average of the 14 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Low, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $308
Undervalued < $268Fair $268 – $381Overvalued > $381
P/E multiple
$310
P/B multiple
$311
P/S multiple
$312
EV/EBITDA multiple
$313
EV/EBIT multiple
$321
EV/revenue multiple
$316
10-year DCF, EBITDA exit
$346
5-year DCF, EBITDA exit
$342
10-year DCF, revenue exit
$345
5-year DCF, revenue exit
$341
10-year DCF, growth exit
$264
5-year DCF, growth exit
$245
Dividend discount, stable
$364
Dividend discount, multi-stage · not used
$771
Earnings power value
$275
Growth the price implies
13.2%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
62/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield4.9%
Fair value vs price1.0×
Growth
Fair
67/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)6.8%
EPS growth (3y)10.0%
Growth consistency100%
Profitability
Fair
58/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital66.4%
Operating margin28.2%
Gross profitability16.1%
Financial health
Fair
56/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA0.2×
Interest cover13.5×
Dividends
Strong
76/100
Dividend is high and well covered by cash flow.
See the numbers →
Dividend yield2.2%
Dividend growth11.3%
Quarterly results: last 6 quarters
+5.7%
Mar '25
+7.5%
Jun '25
+7.1%
Sep '25
+6.2%
Dec '25
+7.0%
Mar '26
+6.8%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $5.5B.
Compare with peers
PAYX Paychex Inc69Other Human Resource & Employment Services companies by X-Ray Score.
SWOT analysis: Automatic Data Processing Inc
Strengthsinside the company
- Return on invested capital is 66.4%, against a median of 14.9% for sector peers.
- Operating margin of 28.2% is well above the 17.5% median of sector peers, a sign of pricing power or lower costs.
- Net debt is only 0.2x EBITDA.
- Operating profit covers interest 13x, so debt costs are a small drag.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare ADP with peers and sector
Medians of 80 Industrials peers and of 80 Industrials stocks in our universe.
Largest peers (X-Ray Score): CAT 43, GE 49, RTX 51, GEV 50, UNP 45, DE 43.
| Metric | ADP | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 62 | 50 | 50 |
| Valuation | 62 | 44 | 44 |
| Growth | 67 | 50 | 50 |
| Profitability | 58 | 50 | 50 |
| Financial health | 56 | 49 | 49 |
| Dividends | 76 | 53 | 53 |
Sector leaders: highest X-Ray Score in Industrials
ADP ranks #11 of 81 in Industrials by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for ADP
Each factor is rated by where ADP stands among the 81 Industrials stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 8 Good · 7 Average · 5 Bad of 20
Growth: 0 · 3 · 0
Profitability: 5 · 0 · 0
Financial strength: 2 · 1 · 1
Valuation: 0 · 2 · 2
Cash flow: 1 · 0 · 2
Efficiency: 0 · 1 · 0
| Factor | ADP | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +6.8% | Average beats 61% | +5.6% | – | – |
| Revenue growth, last year | +6.7% | Average beats 63% | +4.5% | +7.1% | ≈ In line |
| EPS growth, 3 years a year | +10.0% | Average beats 61% | +5.7% | – | – |
| Profitability | |||||
| Gross margin | 46.4% | Good beats 76% | 38.0% | 45.4% | ≈ In line |
| Operating margin | 28.2% | Good beats 91% | 17.5% | 27.3% | ≈ In line |
| Net margin | 20.1% | Good beats 86% | 12.8% | 19.5% | ≈ In line |
| Return on invested capital | 66.4% | Good beats 96% | 14.9% | – | – |
| Return on equity | 73.2% | Good beats 95% | 23.7% | 82.5% | ▼ Worse |
| Financial strength | |||||
| Net debt / EBITDA | 0.2x | Good beats 91% | 1.8x | 0.1x | ≈ In line |
| Interest cover | 13.5x | Average beats 39% | 21.4x | 14.5x | ≈ In line |
| Current ratio | 1.05 | Bad beats 28% | 1.25 | 1.01 | ≈ In line |
| Piotroski F-score | 7 / 9 | Good beats 68% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 28.1x | Average beats 51% | 28.9x | 26.8x | ≈ In line |
| Price / book | 20.6x | Bad beats 6% | 6.2x | 21.6x | ≈ In line |
| Price / sales | 5.7x | Bad beats 23% | 3.5x | 5.1x | ▼ Worse |
| EV / EBITDA | 18.5x | Average beats 50% | 18.5x | 17.6x | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 24.8% | Good beats 89% | 13.8% | 23.4% | ≈ In line |
| Cash from operations / net income | 1.23 | Bad beats 33% | 1.39 | 1.21 | ≈ In line |
| Accruals (lower is better) | −1.6% | Bad beats 22% | −3.2% | – | – |
| Efficiency | |||||
| Days sales outstanding | 59 days | Average beats 47% | 57 days | 64 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 5 Good · ● 5 Average · ● 4 BadCash quality
Earnings backed by cashBad
Risk models
Altman Z''Bad
Piotroski F-ScoreGood
Growth
EPS growth (3y)Average
Revenue growth (3y)Average
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDAGood
Interest coverAverage
Valuation
Fair value vs priceAverage
EBIT / EV yieldAverage
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityBad
Each check is graded against the company's sector, not a fixed number. Checklist score 56/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $16.5B | $18.0B | $19.2B | $20.6B | $21.9B |
| Operating income | $3.9B | $4.7B | $5.2B | $5.8B | $6.2B |
| Net income | $2.9B | $3.4B | $3.8B | $4.1B | $4.4B |
| Operating cash flow | $3.1B | $4.2B | $4.2B | $4.9B | $5.4B |
| Operating margin | 23.6% | 26.0% | 27.3% | 28.0% | 28.2% |
| Free cash flow | – | – | – | – | – |
| Diluted EPS | $7.00 | $8.21 | $9.10 | $9.98 | $10.94 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
12 bullish · 0 neutral · 4 bearish
Weekly
Strongly bullish
11 bullish · 0 neutral · 1 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 285.8 | Bullish |
| EMA 10 | 287.8 | Bullish |
| SMA 20 | 274.1 | Bullish |
| EMA 20 | 280.3 | Bullish |
| SMA 50 | 274.1 | Bullish |
| EMA 50 | 271.6 | Bullish |
| SMA 100 | 257.8 | Bullish |
| EMA 100 | 260.5 | Bullish |
| SMA 200 | 236.8 | Bullish |
| EMA 200 | 252.5 | Bullish |
Oscillators (daily)
| RSI (14) | 80.03 | Bearish |
| MACD (12, 26) | 7.68 | Bullish |
| Momentum (12) | 17.37 | Bullish |
| Stochastic %K (14) | 98.69 | Bearish |
| Williams %R (14) | -1.31 | Bearish |
| CCI (20) | 175.1 | Bearish |
Pivot points (classic, last session)
S3 288.6 | S2 292.7 | S1 300.3 | Pivot 304.5 | R1 312.1 | R2 316.2 | R3 323.9 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
6.80 USD
Yield on today's price
2.21%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 1.7000 | |
| 1.7000 | |
| 1.7000 | |
| 1.7000 | |
| 1.5400 | |
| 1.5400 | |
| 1.5400 | |
| 1.5400 | |
| 1.4000 | |
| 1.4000 | |
| 1.4000 | |
| 1.4000 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold ADP
| ETF | Share of the fund |
|---|---|
| DIVB iShares U.S. Dividend and Buyback | 5.45% |
| FTCS First Trust Capital Strength | 2.25% |
| SCHD Schwab U.S. Dividend Equity | 2.25% |
| RDVI FT Cboe Vest Rising Dividend Achievers... | 1.94% |
| KNG FT Cboe Vest S&P 500 Dividend Aristocr... | 1.74% |
| COWZ Pacer US Cash Cows 100 | 1.66% |
| RDVY First Trust Rising Dividend Achievers | 1.63% |
| NOBL ProShares S&P 500 Dividend Aristocrats | 1.60% |
The eight funds with the largest weight in ADP among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
ADP stock splits
ADP has split its stock 3 times since 1991. The latest was a 2-for-1 split on 4 Jan 1999.
Full ADP stock split history →ADP SEC filings
DEF 14ASEC EDGAR
Proxy statement
10-KSEC EDGAR
Annual report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Entered a material agreement
8-KSEC EDGAR
Entered a material agreement; Other events
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.