ADP (ADP.PA) Fundamental Analysis & Valuation
EPA:ADP • FR0010340141
Current stock price
110.9 EUR
+1.7 (+1.56%)
Last:
This ADP.PA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ADP.PA Profitability Analysis
1.1 Basic Checks
- In the past year ADP was profitable.
- In the past year ADP had a positive cash flow from operations.
- Of the past 5 years ADP 4 years were profitable.
- ADP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.88%, ADP is in line with its industry, outperforming 41.67% of the companies in the same industry.
- The Return On Equity of ADP (8.79%) is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 4.64%, ADP is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 8.79% | ||
| ROIC | 4.64% |
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
- With a Profit Margin value of 5.70%, ADP perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of ADP has declined.
- Looking at the Operating Margin, with a value of 19.76%, ADP is in line with its industry, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of ADP has declined.
- Looking at the Gross Margin, with a value of 85.78%, ADP is in line with its industry, outperforming 58.33% of the companies in the same industry.
- ADP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.76% | ||
| PM (TTM) | 5.7% | ||
| GM | 85.78% |
OM growth 3Y-1.65%
OM growth 5YN/A
PM growth 3Y-19.7%
PM growth 5YN/A
GM growth 3Y0.75%
GM growth 5Y-0.44%
2. ADP.PA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADP is destroying value.
- ADP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- ADP has an Altman-Z score of 1.20. 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 1.20 is on the low side compared to the rest of the industry. ADP is outperformed by 75.00% of its industry peers.
- The Debt to FCF ratio of ADP is 28.38, which is on the high side as it means it would take ADP, 28.38 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ADP (28.38) is comparable to the rest of the industry.
- A Debt/Equity ratio of 2.01 is on the high side and indicates that ADP has dependencies on debt financing.
- With a Debt to Equity ratio value of 2.01, ADP is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | 28.38 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.71
WACC6.57%
2.3 Liquidity
- ADP has a Current Ratio of 0.89. This is a bad value and indicates that ADP is not financially healthy enough and could expect problems in meeting its short term obligations.
- ADP has a Current ratio of 0.89. This is in the lower half of the industry: ADP underperforms 75.00% of its industry peers.
- ADP has a Quick Ratio of 0.89. This is a bad value and indicates that ADP is not financially healthy enough and could expect problems in meeting its short term obligations.
- ADP's Quick ratio of 0.86 is on the low side compared to the rest of the industry. ADP is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 |
3. ADP.PA Growth Analysis
3.1 Past
- ADP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.00%, which is quite impressive.
- ADP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.88% yearly.
- Looking at the last year, ADP shows a quite strong growth in Revenue. The Revenue has grown by 8.87% in the last year.
- Measured over the past years, ADP shows a very strong growth in Revenue. The Revenue has been growing by 25.69% on average per year.
EPS 1Y (TTM)60%
EPS 3Y1.88%
EPS 5YN/A
EPS Q2Q%5000%
Revenue 1Y (TTM)8.87%
Revenue growth 3Y12.66%
Revenue growth 5Y25.69%
Sales Q2Q%8.25%
3.2 Future
- The Earnings Per Share is expected to grow by 10.80% on average over the next years. This is quite good.
- ADP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.70% yearly.
EPS Next Y19.7%
EPS Next 2Y17.49%
EPS Next 3Y14.73%
EPS Next 5Y10.8%
Revenue Next Year3.99%
Revenue Next 2Y4.37%
Revenue Next 3Y4.37%
Revenue Next 5Y4.7%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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. ADP.PA Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 20.09 indicates a rather expensive valuation of ADP.
- ADP's Price/Earnings ratio is in line with the industry average.
- ADP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.60.
- ADP is valuated correctly with a Price/Forward Earnings ratio of 16.78.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ADP indicates a somewhat cheap valuation: ADP is cheaper than 75.00% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of ADP to the average of the S&P500 Index (22.84), we can say ADP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.09 | ||
| Fwd PE | 16.78 |
4.2 Price Multiples
- ADP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.42 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- ADP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ADP's earnings are expected to grow with 14.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)N/A
EPS Next 2Y17.49%
EPS Next 3Y14.73%
5. ADP.PA Dividend Analysis
5.1 Amount
- ADP has a Yearly Dividend Yield of 2.91%. Purely for dividend investing, there may be better candidates out there.
- ADP's Dividend Yield is comparable with the industry average which is at 3.51.
- ADP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
5.2 History
- On average, the dividend of ADP grows each year by 7.94%, which is quite nice.
Dividend Growth(5Y)7.94%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- ADP pays out 77.49% of its income as dividend. This is not a sustainable payout ratio.
- ADP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP77.49%
EPS Next 2Y17.49%
EPS Next 3Y14.73%
ADP.PA Fundamentals: All Metrics, Ratios and Statistics
EPA:ADP (4/2/2026, 7:00:00 PM)
110.9
+1.7 (+1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)02-18 2026-02-18/amc
Earnings (Next)04-28 2026-04-28
Inst Owners29.88%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap10.97B
Revenue(TTM)6.70B
Net Income(TTM)382.00M
Analysts69.52
Price Target125.68 (13.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend3.82
Dividend Growth(5Y)7.94%
DP77.49%
Div Incr Years0
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)0.43%
PT rev (3m)-1.42%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.08%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.09 | ||
| Fwd PE | 16.78 | ||
| P/S | 1.64 | ||
| P/FCF | 29.42 | ||
| P/OCF | 6.7 | ||
| P/B | 2.52 | ||
| P/tB | 12.85 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.52
EY4.98%
EPS(NY)6.61
Fwd EY5.96%
FCF(TTM)3.77
FCFY3.4%
OCF(TTM)16.55
OCFY14.93%
SpS67.74
BVpS43.93
TBVpS8.63
PEG (NY)1.02
PEG (5Y)N/A
Graham Number73.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 8.79% | ||
| ROCE | 8.22% | ||
| ROIC | 4.64% | ||
| ROICexc | 5.32% | ||
| ROICexgc | 7.08% | ||
| OM | 19.76% | ||
| PM (TTM) | 5.7% | ||
| GM | 85.78% | ||
| FCFM | 5.56% |
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-1.65%
OM growth 5YN/A
PM growth 3Y-19.7%
PM growth 5YN/A
GM growth 3Y0.75%
GM growth 5Y-0.44%
F-Score8
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | 28.38 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 18.87% | ||
| Interest Coverage | 4.49 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 97.64% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.2 |
F-Score8
WACC6.57%
ROIC/WACC0.71
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)18.31%
Cap/Sales(5y)17.74%
Profit Quality(3y)105.48%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)60%
EPS 3Y1.88%
EPS 5YN/A
EPS Q2Q%5000%
EPS Next Y19.7%
EPS Next 2Y17.49%
EPS Next 3Y14.73%
EPS Next 5Y10.8%
Revenue 1Y (TTM)8.87%
Revenue growth 3Y12.66%
Revenue growth 5Y25.69%
Sales Q2Q%8.25%
Revenue Next Year3.99%
Revenue Next 2Y4.37%
Revenue Next 3Y4.37%
Revenue Next 5Y4.7%
EBIT growth 1Y3.03%
EBIT growth 3Y10.8%
EBIT growth 5YN/A
EBIT Next Year93.26%
EBIT Next 3Y29.55%
EBIT Next 5Y19.09%
FCF growth 1Y-14.25%
FCF growth 3Y-24.25%
FCF growth 5YN/A
OCF growth 1Y7.48%
OCF growth 3Y1.79%
OCF growth 5Y40.8%
ADP / ADP.PA Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for ADP?
ChartMill assigns a fundamental rating of 3 / 10 to ADP.PA.
What is the valuation status for ADP stock?
ChartMill assigns a valuation rating of 4 / 10 to ADP (ADP.PA). This can be considered as Fairly Valued.
How profitable is ADP (ADP.PA) stock?
ADP (ADP.PA) has a profitability rating of 3 / 10.
What are the PE and PB ratios of ADP (ADP.PA) stock?
The Price/Earnings (PE) ratio for ADP (ADP.PA) is 20.09 and the Price/Book (PB) ratio is 2.52.
How sustainable is the dividend of ADP (ADP.PA) stock?
The dividend rating of ADP (ADP.PA) is 6 / 10 and the dividend payout ratio is 77.49%.