Automatic Data Processing, Inc.

ADP: NasdaqGS
37Total

Lowest reading is at 12 out of 100. All scores are out of 100.

About The Company

CEO

Ms. Maria Black

Market Cap

104.48 Billion USD

Sector

Technology

Website

https://www.adp.com

Last Update

26/09/2026, 10:19:50

Description

Automatic Data Processing, Inc.

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Strongest readings

  • ✔Dividend growth averages 12.28% per year
  • ✔Share count has been falling at 1.15% per year
  • ✔Debt is low at 0.82 times equity

Weakest readings

  • ✘Priced well above the cashflow it produces (value score 12 out of 100)
  • ✘The current price sits above estimated fair value (margin of safety -94.23%)
  • ✘Price-to-earnings of 24.1 is above the market average of 19.6

Key Figures

StatusMetricValueReadingMarket avg
✘
Price / earnings (TTM)
24.07x
19.60x
✘
Margin of safety (DCF)
-94.23%
17.95%
✘
Revenue growth (5y average)
7.07%
10.97%
✔
Dividend yield (TTM)
2.51%
1.85%
✔
Share count, per year
-1.15%
0.00%
✘Return on capital employed0.00%
10.00%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

Valuation

12 / 100

Priced above the market on most measures.

StatusMetricValueReadingMarket avg
✘
Price / earnings
24.07x
19.60x
Free cashflow yieldN/A4.70%
✘Price / earnings growth2.54x
1.50x
Price / book17.32x
—
✘
Margin of safety
-94.23%
17.95%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

  • ✘Estimated intrinsic value of 15.22 USD is below the current price of 263.67 USD

Desired Margin Of Safety

0%

▼

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Estimated Fair Value: 156.7 USD ✘

Current Price: 263.7 USD

How Does This Work?

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This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated fair value for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel for the impact this has on longterm investment returns and find a margin of safety you are comfortable with.

Growth

44 / 100

Growing more slowly than the market on most measures.

StatusMetricValueReadingMarket avg
✘
Revenue growth
7.07%
10.97%
✘Earnings growth10.79%
14.48%
Cashflow growthN/A12.35%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

  • ✘Revenue growth has slowed this year (6.74% against a five year average of 7.07%)
  • ✘Earnings growth has slowed this year (9.45% against a five year average of 10.79%)

Health

49 / 100

Balance sheet is stretched on several measures.

Measured on Leverage and capital, Funding and liquidity, Earnings quality.

StatusMetricValueReadingThreshold
Altman-Z scoreN/A3.00
✔Piotroski score6.00
5.00
✘Debt / equity0.82x
0.80x
✔Current ratio1.05x
1.00x
Interest coverageN/A2.50x
✘Free cashflow / debt0.00x
0.15x
✔Debt / capital0.45x
1.00x

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    Dividend

    57 / 100

    Covered, with limited headroom.

    StatusMetricValueReadingMarket avg
    ✔
    Dividend yield
    2.51%
    1.85%
    ✔Dividend growth9.48%
    0.00%
    ✘Payout ratio (earnings)59.51%
    40.00%
    Payout ratio (cashflow)N/A65.00%
    ✔Worst year, last 5 years7.19%
    -2.00%

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    • ✘Dividend growth has been slowing recently

    Management

    43 / 100

    Returns on capital are below the market.

    StatusMetricValueReadingMarket avg
    ✔Return on equity73.18%
    15.00%
    ✘Return on capital employed0.00%
    10.00%
    Return on assets6.98%
    —
    Free cashflow return on capitalN/A—
    Return on capital, 5y changeN/A0.00%
    ✔
    Share count, per year
    -1.15%
    0.00%
    ✔Share count, recent-1.50%
    0.00%
    ✘Realized buyback return-30.14%
    0.00%
    ✔Goodwill erosion / equity0.63%
    2.00%
    Price volatility, 5 year22.89%
    —

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    • ✘Shares were repurchased while the value score was only 12 out of 100
    • ✘Return on equity of 73.18% is driven by debt rather than operations, because return on capital employed is only 0.00%

    Analysts

    not enough data
    StatusMetricValueReadingNeutral
    Analyst opinion scoreN/A50

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    Financial History

    Annual figures across the full reporting history we hold.

    Market Peers

    ADP

    SEC Filings

    Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

    See 35+ Years Annual Reports

    Other Information

    Company Name

    Automatic Data Processing, Inc.

    Currency

    USD

    Beta

    0.83

    Vol Avg

    2322564

    Ceo

    Ms. Maria Black

    Cik

    0000008670

    Cusip

    Exchange

    NasdaqGS

    Full Time Employees

    67000

    Industry

    Software - Application

    Sector

    Technology

    Ipo Date

    Address

    One ADP Boulevard

    City

    Roseland

    State

    NJ

    Country

    United States

    Zip

    07068

    Phone

    973 974 5000

    Analysis Last Updated

    26/09/2026, 10:19:50

    Financial data compiled from SEC EDGAR filings and Yahoo Finance.

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