News Image

Why the quality investor may take a look at AUTOMATIC DATA PROCESSING (NASDAQ:ADP).

By Mill Chart

Last update: Aug 31, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if AUTOMATIC DATA PROCESSING (NASDAQ:ADP) is suited for quality investing. Investors should of couse do their own research, but we spotted AUTOMATIC DATA PROCESSING showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NASDAQ:ADP highlighted

  • AUTOMATIC DATA PROCESSING has shown strong performance in revenue growth over the past 5 years, with a 6.3% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • AUTOMATIC DATA PROCESSING demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 144.0% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • The Debt/Free Cash Flow Ratio of AUTOMATIC DATA PROCESSING stands at 0.82, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • The Profit Quality (5-year) of AUTOMATIC DATA PROCESSING stands at 96.54%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • The 5-year EBIT growth of AUTOMATIC DATA PROCESSING has been remarkable, with 12.01% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • AUTOMATIC DATA PROCESSING demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NASDAQ:ADP?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, ADP scores 6 out of 10 in our fundamental rating. ADP was compared to 77 industry peers in the Professional Services industry. ADP scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, ADP is valued expensive at the moment.

Our latest full fundamental report of ADP contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.


This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



NASDAQ:ADP (11/22/2023, 7:00:00 PM)

After market: 231.15 0 (0%)


-0.06 (-0.03%)

ADP News

News Image3 days ago - InvestorPlace3 Stocks to Buy With Your Holiday Bonus This Year

The new bull market has been set and investors cannot overlook the opportunities that are present with these growth stocks to buy.

News Image8 days ago - InvestorPlace7 Large-Cap Stocks to Buy for the Long Haul

With solid earnings and dividend growth track records, these seven large-cap stocks make for great buy-and-hold positions.

News Image15 days ago - Market News VideoDecember 29th Options Now Available For Automatic Data Processing (ADP)
News Image16 days ago - ADP - IRADP to Present at Upcoming Investor Conferences

/PRNewswire/ -- ADP (Nasdaq: ADP), a leading global technology company providing human capital management (HCM) solutions, today announced that members of its...

News Image16 days ago - Seeking AlphaAutomatic Data Processing raises dividend by 12% to $1.40/share (NASDAQ:ADP)

Automatic Data Processing (ADP) declares $1.40/share quarterly dividend, 12% increase from prior dividend of $1.25. Forward yield 10.08% Payable Jan. 1; for sha

News Image16 days ago - ADP - IRADP Increases Cash Dividend; Marks 49th Consecutive Year of Dividend Increases

/PRNewswire/ -- The board of directors of ADP (Nasdaq: ADP) approved a $0.15 increase in the quarterly cash dividend to an annual rate of $5.60 per share,...

News Image22 days ago - The Motley Fool3 Dividend Stocks That Could Raise Their Payouts in November

Should you add these income-generating stocks to your portfolio?

News Image23 days ago - Market News VideoNoteworthy Wednesday Option Activity: ADP, GRMN, IBM
News Imagea month ago - Market News VideoSee Which Of The Latest 13F Filers Holds Automatic Data Processing
ADP Links
Follow us for more