ADP (ADP.PA) Stock Fundamental Analysis
EPA:ADP - Euronext Paris - Matif - FR0010340141 - Common Stock - Currency: EUR
Taking everything into account, ADP scores 3 out of 10 in our fundamental rating. ADP was compared to 12 industry peers in the Transportation Infrastructure industry. ADP may be in some trouble as it scores bad on both profitability and health. ADP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
ADP had positive earnings in the past year.
ADP had a positive operating cash flow in the past year.
In multiple years ADP reported negative net income over the last 5 years.
Each year in the past 5 years ADP had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.70%, ADP is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Return On Equity of ADP (7.77%) is worse than 66.67% of its industry peers.
The Return On Invested Capital of ADP (5.50%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 7.77% | ||
| ROIC | 5.5% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ADP (5.57%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ADP has declined.
ADP has a Operating Margin (20.88%) which is comparable to the rest of the industry.
ADP's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 85.06%, ADP perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Gross Margin of ADP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.88% | ||
| PM (TTM) | 5.57% | ||
| GM | 85.06% |
OM growth 3Y141.84%
OM growth 5Y-0.19%
PM growth 3YN/A
PM growth 5Y-14.99%
GM growth 3Y-0.45%
GM growth 5Y-0.89%
2. Health
2.1 Basic Checks
ADP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for ADP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
ADP has an Altman-Z score of 1.13. 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 1.13. This is in the lower half of the industry: ADP underperforms 75.00% of its industry peers.
ADP has a debt to FCF ratio of 24.53. This is a negative value and a sign of low solvency as ADP would need 24.53 years to pay back of all of its debts.
ADP has a Debt to FCF ratio (24.53) which is in line with its industry peers.
ADP has a Debt/Equity ratio of 2.01. This is a high value indicating a heavy dependency on external financing.
ADP has a worse Debt to Equity ratio (2.01) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | 24.53 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.83
WACC6.62%
2.3 Liquidity
A Current Ratio of 0.95 indicates that ADP may have some problems paying its short term obligations.
ADP has a Current ratio (0.95) which is comparable to the rest of the industry.
ADP has a Quick Ratio of 0.95. This is a bad value and indicates that ADP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ADP (0.91) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The earnings per share for ADP have decreased strongly by -46.01% in the last year.
The earnings per share for ADP have been decreasing by -10.33% on average. This is quite bad
ADP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.07%.
Measured over the past years, ADP shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
EPS 1Y (TTM)-46.01%
EPS 3YN/A
EPS 5Y-10.33%
EPS Q2Q%-101.65%
Revenue 1Y (TTM)12.07%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%10.88%
3.2 Future
The Earnings Per Share is expected to grow by 10.09% on average over the next years. This is quite good.
The Revenue is expected to decrease by -2.33% on average over the next years.
EPS Next Y91.26%
EPS Next 2Y48.81%
EPS Next 3Y24.08%
EPS Next 5Y10.09%
Revenue Next Year8.01%
Revenue Next 2Y6.23%
Revenue Next 3Y5.1%
Revenue Next 5Y-2.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.25 indicates a quite expensive valuation of ADP.
Compared to the rest of the industry, the Price/Earnings ratio of ADP indicates a slightly more expensive valuation: ADP is more expensive than 75.00% of the companies listed in the same industry.
ADP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.77, which indicates a correct valuation of ADP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADP is on the same level as its industry peers.
ADP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.25 | ||
| Fwd PE | 14.77 |
4.2 Price Multiples
ADP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.17 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ADP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ADP's earnings are expected to grow with 24.08% in the coming years.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y48.81%
EPS Next 3Y24.08%
5. Dividend
5.1 Amount
ADP has a Yearly Dividend Yield of 3.12%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.90, ADP has a dividend in line with its industry peers.
ADP's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ADP pays out 109.91% of its income as dividend. This is not a sustainable payout ratio.
DP109.91%
EPS Next 2Y48.81%
EPS Next 3Y24.08%
EPA:ADP (3/27/2025, 12:06:55 PM)
97.45
-0.05 (-0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)
Earnings (Next)
Inst Owners28.04%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap9.64B
Analysts70.91
Price Target128.34 (31.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP109.91%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-3.95%
PT rev (3m)-6.1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.66%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.25 | ||
| Fwd PE | 14.77 | ||
| P/S | 1.57 | ||
| P/FCF | 22.17 | ||
| P/OCF | 6.33 | ||
| P/B | 2.18 | ||
| P/tB | 8.03 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.45
EY3.54%
EPS(NY)6.6
Fwd EY6.77%
FCF(TTM)4.4
FCFY4.51%
OCF(TTM)15.4
OCFY15.8%
SpS62.23
BVpS44.61
TBVpS12.14
PEG (NY)0.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 7.77% | ||
| ROCE | 7.95% | ||
| ROIC | 5.5% | ||
| ROICexc | 6.37% | ||
| ROICexgc | 8.26% | ||
| OM | 20.88% | ||
| PM (TTM) | 5.57% | ||
| GM | 85.06% | ||
| FCFM | 7.06% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y141.84%
OM growth 5Y-0.19%
PM growth 3YN/A
PM growth 5Y-14.99%
GM growth 3Y-0.45%
GM growth 5Y-0.89%
F-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | 24.53 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 17.68% | ||
| Interest Coverage | 4.32 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 126.82% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.13 |
F-Score5
WACC6.62%
ROIC/WACC0.83
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)16.96%
Cap/Sales(5y)21.91%
Profit Quality(3y)128.36%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-46.01%
EPS 3YN/A
EPS 5Y-10.33%
EPS Q2Q%-101.65%
EPS Next Y91.26%
EPS Next 2Y48.81%
EPS Next 3Y24.08%
EPS Next 5Y10.09%
Revenue 1Y (TTM)12.07%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%10.88%
Revenue Next Year8.01%
Revenue Next 2Y6.23%
Revenue Next 3Y5.1%
Revenue Next 5Y-2.33%
EBIT growth 1Y10.1%
EBIT growth 3Y215.37%
EBIT growth 5Y5.35%
EBIT Next Year93.37%
EBIT Next 3Y24.73%
EBIT Next 5Y18.75%
FCF growth 1Y-24.74%
FCF growth 3Y23.67%
FCF growth 5Y4.44%
OCF growth 1Y-3.97%
OCF growth 3Y26.27%
OCF growth 5Y-0.38%