ADP Stock Analysis: Automatic Data Processing | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 102.038m USD | 12M Return: -14.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 576M
EPS Trend: 99.6%
Qual. Beats: 9
Rev. Trend: 100.0%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Automatic Data Processing (ADP) is a global provider of cloud-based human capital management (HCM) solutions, organized into two segments: Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment serves small, mid-sized, and large businesses through platforms such as RUN Powered by ADP (for small business payroll, HR, and compliance), ADP Workforce Now (a mid-market HCM suite), and ADP Lyric HCM (an enterprise platform spanning HR, payroll, talent, and analytics). The PEO Services segment operates under the ADP TotalSource brand, delivering HR outsourcing through a co-employment arrangement, complemented by benefits administration, risk management, safety, and workers compensation support.
ADPs business model is anchored in subscription-based SaaS delivery for HCM software, with the PEO segment adding fee-based outsourcing revenue and shared employer liability for client workforces. Founded in 1949 and headquartered in Roseland, New Jersey, ADP is classified within the GICS Industrials sector under the Human Resource & Employment Services sub-industry, and is considered a large-cap stock that has been listed on the NASDAQ since 1983.
- Interest on client funds revenue falls as Fed cuts rates
- Workforce Now and Lyric HCM bookings drive Employer Services growth
- PEO TotalSource margins pressured by benefits and wage inflation
| Net Income: 4.35b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -0.02 > 1.0 |
| NWC/Revenue: 10.25% < 20% (prev 3.42%; Δ 6.83% < -1%) |
| CFO/TA 0.08 > 3% & CFO 5.45b > Net Income 4.35b |
| Net Debt (1.39b) to EBITDA (6.51b): 0.21 < 3 |
| Current Ratio: 1.04 > 1.5 & < 3 |
| Outstanding Shares: last quarter (402.3m) vs 12m ago -1.52% < -2% |
| Gross Margin: 47.48% > 18% (prev 50.30%; Δ -2.82% > 0.5%) |
| Asset Turnover: 35.72% > 50% (prev 35.79%; Δ -0.07% > 0%) |
| Interest Coverage Ratio: 13.33 > 6 (EBIT TTM 6.02b / Interest Expense TTM 451.9m) |
| A: 0.03 (Total Current Assets 54.2b - Total Current Liabilities 52.0b) / Total Assets 64.5b |
| B: 0.41 (Retained Earnings 26.7b / Total Assets 64.5b) |
| C: 0.10 (EBIT TTM 6.02b / Avg Total Assets 60.5b) |
| D: 0.11 (Book Value of Equity 6.35b / Total Liabilities 58.1b) |
| Altman-Z'' = 2.36 = BBB |
| DSRI: 0.94 (Receivables 3.57b/3.55b, Revenue 21.6b/20.2b) |
| GMI: 1.06 (GM 50.30% / 47.48%) |
| AQI: 0.95 (AQ_t 0.15 / AQ_t-1 0.16) |
| SGI: 1.07 (Revenue 21.6b / 20.2b) |
| TATA: -0.02 (NI 4.35b - CFO 5.45b) / TA 64.5b) |
| Beneish M = -3.00 (Cap -4..+1) = AA |
As of July 28, 2026, the stock is trading at USD 254.98 with a total of 1,692,532 shares traded. Over the past week, the price has changed by -0.10%, over one month by +13.34%, over three months by +30.26% and over the past year by -14.61%.
Current recommended Stop Loss: 246.10 (which is 3.5% or 1.3 ATR below the current price).
Automatic Data Processing has received a consensus analysts rating of 3.28. Therefore, it is recommended to hold ADP.
- StrongBuy: 2
- Buy: 2
- Hold: 13
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 252.8 | -0.9% |
P/E Trailing = 23.812
P/E Forward = 21.0084
P/S = 4.7239
P/B = 16.0688
P/EG = 2.3855
Revenue TTM = 21.6b USD
EBIT TTM = 6.02b USD
EBITDA TTM = 6.51b USD
Long Term Debt = 3.98b USD (from longTermDebt, last quarter)
Short Term Debt = 4.77b USD (from shortTermDebt, last fiscal year)
Debt = 4.61b USD (from shortLongTermDebtTotal, last quarter) + Leases 318.2m
Net Debt = 1.39b USD (calculated: Debt 4.61b - CCE 3.23b)
Enterprise Value = 103b USD (102b + Debt 4.61b - CCE 3.23b)
Interest Coverage Ratio = 13.33 (Ebit TTM 6.02b / Interest Expense TTM 451.9m)
EV/FCF = 20.08x (Enterprise Value 103b / FCF TTM 5.15b)
FCF Yield = 4.98% (FCF TTM 5.15b / Enterprise Value 103b)
FCF Margin = 23.85% (FCF TTM 5.15b / Revenue TTM 21.6b)
Net Margin = 20.12% (Net Income TTM 4.35b / Revenue TTM 21.6b)
Gross Margin = 47.48% ((Revenue TTM 21.6b - Cost of Revenue TTM 11.3b) / Revenue TTM)
Gross Margin QoQ = 48.28% (prev 46.08%)
Tobins Q-Ratio = 1.60 (Enterprise Value 103b / Total Assets 64.5b)
Interest Expense / Debt = 9.79% (Interest Expense 451.9m / Debt 4.61b)
Taxrate = 23.27% (1.32b / 5.66b)
NOPAT = 4.62b (EBIT 6.02b * (1 - 23.27%))
Current Ratio = 1.04 (Total Current Assets 54.2b / Total Current Liabilities 52.0b)
Debt / Equity = 0.73 (Debt 4.61b / totalStockholderEquity, last quarter 6.35b)
Debt / EBITDA = 0.21 (Net Debt 1.39b / EBITDA 6.51b)
Debt / FCF = 0.27 (Net Debt 1.39b / FCF TTM 5.15b)
Total Stockholder Equity = 6.33b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.19% (Net Income 4.35b / Total Assets 64.5b)
RoE = 68.69% (Net Income TTM 4.35b / Total Stockholder Equity 6.33b)
RoCE = 58.46% (EBIT 6.02b / Capital Employed (Equity 6.33b + L.T.Debt 3.98b))
RoIC = 28.61% (NOPAT 4.62b / Invested Capital 16.2b)
WACC = 6.73% (E(102b)/V(107b) * Re(6.69%) + D(4.61b)/V(107b) * Rd(9.79%) * (1-Tc(0.23)))
Discount Rate = 6.69% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -97.28 | Cagr: -1.11%
[DCF] Terminal Value 77.81% ; FCFF base≈4.90b ; Y1≈5.57b ; Y5≈8.01b
[DCF] Fair Price = 298.7 (EV 121b - Net Debt 1.39b = Equity 119b / Shares 399.7m; r=8.35% [WACC [floored]]; 5y FCF grow 13.96% → 2.50% )
EPS Correlation: 99.59 | EPS CAGR: 9.88% | SUE: 2.07 | # QB: 9
Revenue Correlation: 99.99 | Revenue CAGR: 6.85% | SUE: 3.43 | # QB: 1
EPS current Quarter (2026-09-30): EPS=2.75 | Chg30d=+0.07% | Revisions=+31% | Analysts=12
EPS current Year (2026-06-30): EPS=11.07 | Chg30d=+0.01% | Revisions=+84% | GrowthEPS=+10.6% | GrowthRev=+6.2%
EPS next Year (2027-06-30): EPS=12.20 | Chg30d=+0.02% | Revisions=+85% | GrowthEPS=+10.1% | GrowthRev=+5.9%
[Analyst] Revisions Ratio: +78% (up=42, down=4)