AUTOMATIC DATA PROCESSING (ADP.DE) Fundamental Analysis & Valuation

FRA:ADP • US0530151036

Current stock price

169.56 EUR
-0.24 (-0.14%)
Last:

This ADP.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ADP.DE Profitability Analysis

1.1 Basic Checks

  • In the past year ADP was profitable.
  • ADP had a positive operating cash flow in the past year.
  • Each year in the past 5 years ADP has been profitable.
  • In the past 5 years ADP always reported a positive cash flow from operatings.
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

  • The Return On Assets of ADP (5.00%) is better than 63.33% of its industry peers.
  • ADP has a Return On Equity of 66.25%. This is amongst the best in the industry. ADP outperforms 86.67% of its industry peers.
  • ADP's Return On Invested Capital of 34.42% is amongst the best of the industry. ADP outperforms 100.00% of its industry peers.
  • ADP had an Average Return On Invested Capital over the past 3 years of 36.13%. This is significantly above the industry average of 11.13%.
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

  • The Profit Margin of ADP (19.96%) is better than 83.33% of its industry peers.
  • In the last couple of years the Profit Margin of ADP has grown nicely.
  • Looking at the Operating Margin, with a value of 26.37%, ADP belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ADP has grown nicely.
  • ADP's Gross Margin of 46.16% is on the low side compared to the rest of the industry. ADP is outperformed by 66.67% of its industry peers.
  • ADP's Gross Margin has improved in the last couple of years.
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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6

2. ADP.DE Health Analysis

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
  • Compared to 5 years ago, ADP has less shares outstanding
  • The debt/assets ratio for ADP is higher compared to a year ago.
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 1.55. This is a bad value and indicates that ADP is not financially healthy and even has some risk of bankruptcy.
  • ADP has a Altman-Z score of 1.55. This is in the lower half of the industry: ADP underperforms 73.33% 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.
  • The Debt to FCF ratio of ADP (0.95) is better than 100.00% of its industry peers.
  • ADP has a Debt/Equity ratio of 0.62. This is a neutral value indicating ADP is somewhat dependend on debt financing.
  • ADP's Debt to Equity ratio of 0.62 is in line compared to the rest of the industry. ADP outperforms 56.67% of its industry peers.
  • Even though the debt/equity ratio score it not favorable for ADP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 0.95
Altman-Z 1.55
ROIC/WACC3.98
WACC8.64%
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

  • A Current Ratio of 1.03 indicates that ADP should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.03, ADP perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
  • A Quick Ratio of 1.03 indicates that ADP should not have too much problems paying its short term obligations.
  • ADP has a Quick ratio (1.03) which 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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4

3. ADP.DE Growth Analysis

3.1 Past

  • ADP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.08%, which is quite good.
  • Measured over the past years, ADP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.05% on average per year.
  • The Revenue has been growing slightly by 6.59% in the past year.
  • ADP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.10% yearly.
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

  • The Earnings Per Share is expected to grow by 7.57% on average over the next years.
  • Based on estimates for the next years, ADP will show a small growth in Revenue. The Revenue will grow by 5.64% on average per year.
EPS Next Y10.77%
EPS Next 2Y9.93%
EPS Next 3Y9.38%
EPS Next 5Y7.57%
Revenue Next Year6.44%
Revenue Next 2Y6.06%
Revenue Next 3Y5.96%
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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4

4. ADP.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 19.18, which indicates a rather expensive current valuation of ADP.
  • Based on the Price/Earnings ratio, ADP is valued a bit cheaper than 70.00% of the companies in the same industry.
  • ADP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.95, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 16.55, ADP is valued correctly.
  • ADP's Price/Forward Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 38.68, ADP is valued rather cheaply.
Industry RankSector Rank
PE 19.18
Fwd PE 16.55
ADP.DE Price Earnings VS Forward Price EarningsADP.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ADP is valued a bit more expensive than the industry average as 63.33% of the companies are valued more cheaply.
  • Based on the Price/Free Cash Flow ratio, ADP is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 19.25
EV/EBITDA 13.27
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

  • ADP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of ADP may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)1.74
EPS Next 2Y9.93%
EPS Next 3Y9.38%

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6

5. ADP.DE Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.39%, ADP has a reasonable but not impressive dividend return.
  • The stock price of ADP dropped by -24.20% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • Compared to an average industry Dividend Yield of 2.05, ADP pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.81, ADP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.39%

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 Years0
Div Non Decr Years1
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

  • ADP pays out 59.26% of its income as dividend. 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 2Y9.93%
EPS Next 3Y9.38%
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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ADP.DE Fundamentals: All Metrics, Ratios and Statistics

AUTOMATIC DATA PROCESSING

FRA:ADP (4/17/2026, 7:00:00 PM)

169.56

-0.24 (-0.14%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)01-28
Earnings (Next)04-29
Inst Owners86.43%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap68.27B
Revenue(TTM)21.21B
Net Income(TTM)4.24B
Analysts66.09
Price Target228.93 (35.01%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.39%
Yearly Dividend5
Dividend Growth(5Y)11.62%
DP59.26%
Div Incr Years0
Div Non Decr Years1
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)-4.99%
PT rev (3m)-11.89%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)0.69%
EPS NY rev (1m)0%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.19%
Valuation
Industry RankSector Rank
PE 19.18
Fwd PE 16.55
P/S 3.8
P/FCF 19.25
P/OCF 16.99
P/B 12.6
P/tB 54.56
EV/EBITDA 13.27
EPS(TTM)8.84
EY5.21%
EPS(NY)10.24
Fwd EY6.04%
FCF(TTM)8.81
FCFY5.2%
OCF(TTM)9.98
OCFY5.89%
SpS44.66
BVpS13.46
TBVpS3.11
PEG (NY)1.78
PEG (5Y)1.74
Graham Number51.7399 (-69.49%)
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 1.55
F-Score6
WACC8.64%
ROIC/WACC3.98
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 Y10.77%
EPS Next 2Y9.93%
EPS Next 3Y9.38%
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 2Y6.06%
Revenue Next 3Y5.96%
Revenue Next 5Y5.64%
EBIT growth 1Y6.33%
EBIT growth 3Y12.61%
EBIT growth 5Y11.57%
EBIT Next Year19.16%
EBIT Next 3Y11.09%
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 Fundamental Analysis 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 4 / 10 to AUTOMATIC DATA PROCESSING (ADP.DE). This can be considered as Fairly Valued.


How profitable is AUTOMATIC DATA PROCESSING (ADP.DE) stock?

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


What are the PE and PB ratios of AUTOMATIC DATA PROCESSING (ADP.DE) stock?

The Price/Earnings (PE) ratio for AUTOMATIC DATA PROCESSING (ADP.DE) is 19.18 and the Price/Book (PB) ratio is 12.6.


How sustainable is the dividend of AUTOMATIC DATA PROCESSING (ADP.DE) stock?

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