AUTOMATIC DATA PROCESSING (ADP.DE) Stock Fundamental Analysis

FRA:ADP • US0530151036

181.02 EUR
-4.56 (-2.46%)
Last: Feb 27, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

6

ADP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 32 industry peers in the Professional Services industry. ADP scores excellent on profitability, but there are some minor concerns on its financial health. ADP is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year ADP was profitable.
  • ADP had a positive operating cash flow in the past year.
  • In the past 5 years ADP has always been profitable.
  • Each year in the past 5 years ADP had a positive operating cash flow.
ADP.DE Yearly Net Income VS EBIT VS OCF VS FCFADP.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

1.2 Ratios

  • With a decent Return On Assets value of 5.00%, ADP is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • ADP has a Return On Equity of 66.25%. This is amongst the best in the industry. ADP outperforms 87.88% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 34.42%, ADP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for ADP is significantly above the industry average of 12.58%.
Industry RankSector Rank
ROA 5%
ROE 66.25%
ROIC 34.42%
ROA(3y)7.08%
ROA(5y)6.25%
ROE(3y)81.89%
ROE(5y)76.59%
ROIC(3y)36.13%
ROIC(5y)33.86%
ADP.DE Yearly ROA, ROE, ROICADP.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

1.3 Margins

  • ADP has a better Profit Margin (19.96%) than 84.85% of its industry peers.
  • ADP's Profit Margin has improved in the last couple of years.
  • ADP's Operating Margin of 26.37% is amongst the best of the industry. ADP outperforms 90.91% of its industry peers.
  • In the last couple of years the Operating Margin of ADP has grown nicely.
  • ADP has a Gross Margin of 46.16%. This is in the lower half of the industry: ADP underperforms 60.61% of its industry peers.
  • In the last couple of years the Gross Margin of ADP has grown nicely.
Industry RankSector Rank
OM 26.37%
PM (TTM) 19.96%
GM 46.16%
OM growth 3Y4.64%
OM growth 5Y4.17%
PM growth 3Y3.54%
PM growth 5Y3.25%
GM growth 3Y2.58%
GM growth 5Y1.81%
ADP.DE Yearly Profit, Operating, Gross MarginsADP.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ADP is creating value.
  • Compared to 1 year ago, ADP has less shares outstanding
  • ADP has less shares outstanding than it did 5 years ago.
  • ADP has a worse debt/assets ratio than last year.
ADP.DE Yearly Shares OutstandingADP.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
ADP.DE Yearly Total Debt VS Total AssetsADP.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • ADP has an Altman-Z score of 1.59. This is a bad value and indicates that ADP is not financially healthy and even has some risk of bankruptcy.
  • ADP's Altman-Z score of 1.59 is on the low side compared to the rest of the industry. ADP is outperformed by 75.76% of its industry peers.
  • The Debt to FCF ratio of ADP is 0.95, which is an excellent value as it means it would take ADP, only 0.95 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 0.95, ADP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • ADP has a Debt/Equity ratio of 0.62. This is a neutral value indicating ADP is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.62, ADP is in line with its industry, outperforming 57.58% of the companies in the same industry.
  • Although ADP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 0.95
Altman-Z 1.59
ROIC/WACC4.1
WACC8.39%
ADP.DE Yearly LT Debt VS Equity VS FCFADP.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • ADP has a Current Ratio of 1.03. This is a normal value and indicates that ADP is financially healthy and should not expect problems in meeting its short term obligations.
  • ADP has a Current ratio (1.03) which is in line with its industry peers.
  • ADP has a Quick Ratio of 1.03. This is a normal value and indicates that ADP is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of ADP (1.03) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.03
Quick Ratio 1.03
ADP.DE Yearly Current Assets VS Current LiabilitesADP.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 8.08% over the past year.
  • ADP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.05% yearly.
  • The Revenue has been growing slightly by 6.59% in the past year.
  • Measured over the past years, ADP shows a small growth in Revenue. The Revenue has been growing by 7.10% on average per year.
EPS 1Y (TTM)8.08%
EPS 3Y12.57%
EPS 5Y11.05%
EPS Q2Q%11.49%
Revenue 1Y (TTM)6.59%
Revenue growth 3Y7.61%
Revenue growth 5Y7.1%
Sales Q2Q%6.16%

3.2 Future

  • Based on estimates for the next years, ADP will show a small growth in Earnings Per Share. The EPS will grow by 7.57% on average per year.
  • ADP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.64% yearly.
EPS Next Y10.76%
EPS Next 2Y9.92%
EPS Next 3Y9.36%
EPS Next 5Y7.57%
Revenue Next Year6.44%
Revenue Next 2Y6.08%
Revenue Next 3Y6%
Revenue Next 5Y5.64%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ADP.DE Yearly Revenue VS EstimatesADP.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5B 10B 15B 20B 25B
ADP.DE Yearly EPS VS EstimatesADP.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5 10 15

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.48, which indicates a rather expensive current valuation of ADP.
  • 63.64% of the companies in the same industry are more expensive than ADP, based on the Price/Earnings ratio.
  • ADP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.07, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 17.68, ADP is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, ADP is valued a bit more expensive than 63.64% of the companies in the same industry.
  • ADP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.05.
Industry RankSector Rank
PE 20.48
Fwd PE 17.68
ADP.DE Price Earnings VS Forward Price EarningsADP.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADP indicates a slightly more expensive valuation: ADP is more expensive than 60.61% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADP indicates a slightly more expensive valuation: ADP is more expensive than 60.61% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 20.56
EV/EBITDA 14.16
ADP.DE Per share dataADP.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ADP does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of ADP may justify a higher PE ratio.
PEG (NY)1.9
PEG (5Y)1.85
EPS Next 2Y9.92%
EPS Next 3Y9.36%

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6

5. Dividend

5.1 Amount

  • ADP has a Yearly Dividend Yield of 3.11%. Purely for dividend investing, there may be better candidates out there.
  • ADP's Dividend Yield is a higher than the industry average which is at 2.44.
  • Compared to an average S&P500 Dividend Yield of 1.82, ADP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.11%

5.2 History

  • The dividend of ADP is nicely growing with an annual growth rate of 11.62%!
Dividend Growth(5Y)11.62%
Div Incr Years2
Div Non Decr Years2
ADP.DE Yearly Dividends per shareADP.DE Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • 59.26% of the earnings are spent on dividend by ADP. This is a bit on the high side, but may be sustainable.
  • ADP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP59.26%
EPS Next 2Y9.92%
EPS Next 3Y9.36%
ADP.DE Yearly Income VS Free CF VS DividendADP.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
ADP.DE Dividend Payout.ADP.DE Dividend Payout, showing the Payout Ratio.ADP.DE Dividend Payout.PayoutRetained Earnings

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AUTOMATIC DATA PROCESSING

FRA:ADP (2/27/2026, 7:00:00 PM)

181.02

-4.56 (-2.46%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)01-28
Earnings (Next)04-28
Inst Owners86.82%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap72.89B
Revenue(TTM)21.21B
Net Income(TTM)4.24B
Analysts64.55
Price Target240.96 (33.11%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.11%
Yearly Dividend5
Dividend Growth(5Y)11.62%
DP59.26%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.96%
Min EPS beat(2)0.82%
Max EPS beat(2)1.1%
EPS beat(4)4
Avg EPS beat(4)1.03%
Min EPS beat(4)0.35%
Max EPS beat(4)1.85%
EPS beat(8)8
Avg EPS beat(8)1.64%
EPS beat(12)12
Avg EPS beat(12)1.62%
EPS beat(16)16
Avg EPS beat(16)1.82%
Revenue beat(2)0
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)-0.23%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-0.59%
Max Revenue beat(4)0.64%
Revenue beat(8)4
Avg Revenue beat(8)-0.02%
Revenue beat(12)6
Avg Revenue beat(12)-0.08%
Revenue beat(16)9
Avg Revenue beat(16)-0.02%
PT rev (1m)-7.26%
PT rev (3m)-6.39%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)0.76%
EPS NY rev (1m)0.48%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.2%
Valuation
Industry RankSector Rank
PE 20.48
Fwd PE 17.68
P/S 4.06
P/FCF 20.56
P/OCF 18.15
P/B 13.46
P/tB 58.28
EV/EBITDA 14.16
EPS(TTM)8.84
EY4.88%
EPS(NY)10.24
Fwd EY5.65%
FCF(TTM)8.8
FCFY4.86%
OCF(TTM)9.97
OCFY5.51%
SpS44.63
BVpS13.45
TBVpS3.11
PEG (NY)1.9
PEG (5Y)1.85
Graham Number51.72
Profitability
Industry RankSector Rank
ROA 5%
ROE 66.25%
ROCE 44.75%
ROIC 34.42%
ROICexc 42.91%
ROICexgc 84.18%
OM 26.37%
PM (TTM) 19.96%
GM 46.16%
FCFM 19.73%
ROA(3y)7.08%
ROA(5y)6.25%
ROE(3y)81.89%
ROE(5y)76.59%
ROIC(3y)36.13%
ROIC(5y)33.86%
ROICexc(3y)55.75%
ROICexc(5y)48.87%
ROICexgc(3y)137.09%
ROICexgc(5y)114.46%
ROCE(3y)51.2%
ROCE(5y)46.57%
ROICexgc growth 3Y-1.22%
ROICexgc growth 5Y8.54%
ROICexc growth 3Y0.6%
ROICexc growth 5Y6.46%
OM growth 3Y4.64%
OM growth 5Y4.17%
PM growth 3Y3.54%
PM growth 5Y3.25%
GM growth 3Y2.58%
GM growth 5Y1.81%
F-Score6
Asset Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 0.95
Debt/EBITDA 0.64
Cap/Depr 94.94%
Cap/Sales 2.62%
Interest Coverage 12.97
Cash Conversion 76.72%
Profit Quality 98.81%
Current Ratio 1.03
Quick Ratio 1.03
Altman-Z 1.59
F-Score6
WACC8.39%
ROIC/WACC4.1
Cap/Depr(3y)99.42%
Cap/Depr(5y)100.95%
Cap/Sales(3y)2.92%
Cap/Sales(5y)3.1%
Profit Quality(3y)103.34%
Profit Quality(5y)99.19%
High Growth Momentum
Growth
EPS 1Y (TTM)8.08%
EPS 3Y12.57%
EPS 5Y11.05%
EPS Q2Q%11.49%
EPS Next Y10.76%
EPS Next 2Y9.92%
EPS Next 3Y9.36%
EPS Next 5Y7.57%
Revenue 1Y (TTM)6.59%
Revenue growth 3Y7.61%
Revenue growth 5Y7.1%
Sales Q2Q%6.16%
Revenue Next Year6.44%
Revenue Next 2Y6.08%
Revenue Next 3Y6%
Revenue Next 5Y5.64%
EBIT growth 1Y6.33%
EBIT growth 3Y12.61%
EBIT growth 5Y11.57%
EBIT Next Year19.16%
EBIT Next 3Y11.05%
EBIT Next 5Y10.37%
FCF growth 1Y23.42%
FCF growth 3Y19.94%
FCF growth 5Y12.76%
OCF growth 1Y20.04%
OCF growth 3Y16.81%
OCF growth 5Y10.3%

AUTOMATIC DATA PROCESSING / ADP.DE FAQ

Can you provide the ChartMill fundamental rating for AUTOMATIC DATA PROCESSING?

ChartMill assigns a fundamental rating of 6 / 10 to ADP.DE.


What is the valuation status for ADP stock?

ChartMill assigns a valuation rating of 2 / 10 to AUTOMATIC DATA PROCESSING (ADP.DE). This can be considered as Overvalued.


What is the profitability of ADP stock?

AUTOMATIC DATA PROCESSING (ADP.DE) has a profitability rating of 8 / 10.


Can you provide the expected EPS growth for ADP stock?

The Earnings per Share (EPS) of AUTOMATIC DATA PROCESSING (ADP.DE) is expected to grow by 10.76% in the next year.


Is the dividend of AUTOMATIC DATA PROCESSING sustainable?

The dividend rating of AUTOMATIC DATA PROCESSING (ADP.DE) is 6 / 10 and the dividend payout ratio is 59.26%.