ADP Automatic Data Processing
$286.02
▲ 0.1%Updated Oct 16, 2:25 PM ET
Report Card
ADP at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Neutral · 56/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▼ Down 28.8% in the year to Jul 6, 2026
Key Metrics
Market Cap
$96.84B
P/E
26.13x
Forward P/E (est.)
23.79x
ROE
68.7%
Revenue Growth
6.9%
EPS Growth
9.8%
Profit Margin
20.1%
FCF Yield
4.4%
Debt / Equity
1.41x
ROIC
—
Interest Coverage
—
Current Ratio
1.05x
Dividend Yield
3.0%
Implied Growth (rev. DCF)
—
Rating Score
56/100
Business Overview
Automatic Data Processing (ADP) is a large-cap company in the Human Resource & Employment Services industry, part of the Industrials sector of the S&P 500, with a market value around $96.84B.
In its latest reported year it generated about $21.95B in revenue and $4.41B in net profit.
Our model rates ADP Neutral (56/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ADP's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ADP trades near $286.02, above its 50-day average ($218.76) and 200-day average ($239.78). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 66 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. ADP's is $6.27 (~2.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, ADP found buyers near $213.80 (support) and sellers near $243.03 (resistance); its 52-week range then was $188.16–$315.98. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.8× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
7.4%
Revenue moved from $12.37B in 2017 to $21.95B in 2026, a 6.6% compound annual growth rate. The most recent year grew a steady 6.9% year over year. Slower, mature growth is common for established businesses.
Profitability
Gross Margin
46.4%
Operating Margin
26.5%
Net Margin
20.1%
ROE
68.7%
Automatic Data Processing keeps about 20.1% of each sales dollar as net profit, with a 46.4% gross margin and 26.5% operating margin. Return on equity is 68.7%. Margins this wide usually signal pricing power or a cost advantage.
Debt Analysis
Total Debt
$35.50M
Net Debt
-$4.19B
Net cash position
Net Debt / EBITDA
—
Debt / Equity
1.41x
Leverage: debt-to-equity is 1.4x, with a current ratio of 1.1x. That is a moderate, manageable debt load for most businesses. It carries roughly $35.50M of total debt against $4.23B of cash.
Cash Flow Analysis
Operating CF
$5.44B
Free Cash Flow
$5.44B
FCF Margin
24.8%
In the latest year Automatic Data Processing produced about $5.44B of operating cash flow and $5.44B of free cash flow after capital spending. That is a free-cash-flow yield of about 4.4% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Dividend Safety
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
What to look for in a dividend stockThe payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
3.0%
Per share (latest FY)
$6.64
Total paid (latest FY)
$2.63B
History on record
10 years
dividend uses 48% of free cash flow
60% of net income paid out
total dividends increased 9 years in a row
no cuts in the last 10 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
Valuation Analysis
P/E
26.13x
P/S
4.29x
P/B
26.02x
EV / EBITDA
—
ADP trades at 26.1x trailing earnings (about 23.8x on estimated forward earnings), 4.3x sales, and 26.0x book value. That is a premium multiple that needs growth to justify it.
Metrics vs. Sector Range
Where ADP sits versus the Industrials companies we cover.
Bands show the middle half (25th–75th percentile) of the 144 Industrials companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How ADP stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
Among the 142 rated Industrials companies we cover, ADP ranks #46 by our overall rating. It trades at roughly in line versus the sector on earnings (26.1x P/E vs. 30.5x median) with a higher return on equity (68.7% vs. 18.1%) and faster revenue growth (6.9% vs. 6.0%).
P/E vs sector
26.1x
median 30.5x
ROE vs sector
68.7%
median 18.1%
Growth vs sector
6.9%
median 6.0%
Sector rank
#46
of 142 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 142 rated companies among the 273 Industrials stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$290.92 – $472.75
vs. $286.02 today · implied CAGR 0% – 11%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $23.48B | $25.13B | $26.89B | $28.77B | $30.78B |
| Net income | $4.70B | $5.03B | $5.38B | $5.75B | $6.16B |
| EPS | $13.87 | $14.84 | $15.88 | $16.99 | $18.18 |
| Share price (low) | $221.94 | $237.48 | $254.10 | $271.89 | $290.92 |
| Share price (high) | $360.66 | $385.90 | $412.92 | $441.82 | $472.75 |
| CAGR (low–high) | -22% / 26% | -9% / 16% | -4% / 13% | -1% / 11% | 0% / 11% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for ADP:
- High net margins (20.1%) point to pricing power or efficiency.
- Strong return on equity (68.7%) shows capital is put to work well.
- Healthy free-cash-flow yield (~4.4%) funds buybacks and dividends.
- Pays a 3.0% dividend on top of any price gains.
Bear Case
The case against ADP:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Balance-sheet risk — debt/equity of 1.4x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the picture is mixed: Automatic Data Processing is a large-cap industrials business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 26.1x earnings, which our model scores Neutral (56/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 23 Wall Street analysts covering ADP recommend (September 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
ADP's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
ADP — frequently asked questions
Is ADP a good stock to buy?
We don't give buy or sell advice. Our model rates Automatic Data Processing Neutral (56/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is ADP's rating on The Stocks School?
Automatic Data Processing currently scores 56/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does ADP's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Automatic Data Processing's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for ADP calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this ADP analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ADP. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.