ADP$254.61
$253.453
Chart
Performance
Key Stats
AI ADP Summary
Powered by LiveAIAI Scoreboard
Powered by LiveAIOverall Analysis
BuyADP demonstrates solid fundamentals with consistent profitability and a healthy balance sheet. While its valuation is moderate, the company benefits from secular tailwinds in HR outsourcing and a reliable dividend. Technicals show a mixed short-term picture, but the long-term trend remains positive.
Thematic
ADP is well-positioned in the human capital management (HCM) space, benefiting from the ongoing need for businesses to manage payroll, HR, and benefits efficiently, especially with the rise of remote and hybrid workforces.
Fundamental
ADP demonstrates strong financial health with robust profitability, consistent revenue growth, and a solid balance sheet. The company effectively converts revenue into profit and generates substantial free cash flow, supporting its dividend and share repurchases.
Technical
ADP's stock price is trading within its 52-week range, showing moderate performance over various short to medium-term periods. The daily technical indicators suggest a neutral to slightly bearish short-term outlook, with moving averages indicating selling pressure, while some oscillators are neutral.
| Factor | Score |
|---|---|
| Digital Transformation in HR | 85 |
| Gig Economy and Workforce Management | 70 |
| Regulatory Compliance Burden | 75 |
| Data Analytics in HR | 65 |
| Market Competition | 70 |
| Factor | Score |
|---|---|
| Valuation | 65 |
| Profitability | 90 |
| Growth | 60 |
| Balance Sheet Health | 75 |
| Cash Flow | 85 |
| Dividend Yield | 70 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 50 |
| Volume Confirmation | 70 |
| Support & Resistance | 75 |
| Performance Metrics | 80 |
AI Investing Checklist
Powered by LiveAIBullish Points (7)
Consistent EPS Beat Rate
ADP has a strong track record of exceeding earnings per share (EPS) estimates, with a surprise percentage of 1.51% to 5.58% in recent quarters, indicating consistent operational execution.
Reasonable P/E Ratio relative to Growth
The trailing P/E ratio of 31.34 for ADP appears reasonable when considering its EPS, suggesting that the market is valuing its earnings effectively, although it is higher than some industry peers.
Bearish Points (7)
Elevated P/E Ratio in Trailing Twelve Months
The trailing Price-to-Earnings (P/E) ratio of 31.34, while not excessively high, is on the higher end for some industries, suggesting that investors are paying a premium for ADP's earnings.
Slowing Revenue Growth (compared to TTM)
While specific YoY growth figures for revenue are not directly provided in a comparable format, the valuation suggests market expectations for continued growth that might be challenging to meet if underlying business expansion slows.
Calendar
June 2025
13
Ex-Dividend Date
July 2025
1
Next Dividend Date
July 2025
30
Next Earnings Date
H: $2.25
A: $2.23
L: $2.20
H: 5.07B
A: 5.05B
L: 5.02B
Profile
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. This segment's offerings include RUN Powered by ADP, a software platform for small business payroll, HR management, and tax compliance administration; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Vantage HCM, a solution for HR management, benefits administration, payroll services, time and attendance management, and talent management. The PEO Services segment provides HR and employment administration outsourcing solutions under ADP TotalSource name to businesses through a co-employment model. The segment also provides employee benefits, 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.
Seasonals
Price Target
315.37 USD
The 39 analysts offering 1 year price forecasts for ADP have a max estimate of 350.00 and a min estimate of 291.11.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
Related Companies
Powered by LiveAIWeight: 95
Direct competitor providing integrated human capital management (HCM) solutions, including payroll, HR, benefits, and retirement services, primarily for small to mid-sized businesses.
Weight: 92
Major direct competitor offering the Dayforce platform, a cloud-based HCM solution that includes payroll, HR, talent, and workforce management for large enterprises.
Weight: 91
Direct competitor providing a comprehensive, cloud-based human capital management (HCM) software solution for payroll, HR, and talent management.
Weight: 90
Direct competitor specializing in cloud-based payroll and human capital management (HCM) software solutions for the mid-market.