ADP (ADP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ADP - FR0010340141 - Common Stock
111.7 EUR
-0.3 (-0.27%)
We assign a fundamental rating of 3 out of 10 to ADP. ADP was compared to 11 industry peers in the Transportation Infrastructure industry. Both the profitability and financial health of ADP have multiple concerns. ADP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ADP was profitable.
ADP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ADP reported negative net income in multiple years.
In the past 5 years ADP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ADP (0.46%) is worse than 81.82% of its industry peers.
The Return On Equity of ADP (2.29%) is worse than 81.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.78%, ADP is doing worse than 63.64% of the companies in the same industry.
ADP had an Average Return On Invested Capital over the past 3 years of 5.03%. This is below the industry average of 7.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 2.29% | ||
| ROIC | 4.78% |
ROA(3y)2.55%
ROA(5y)0%
ROE(3y)11.68%
ROE(5y)-0.81%
ROIC(3y)5.03%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 1.45%, ADP is doing worse than 72.73% of the companies in the same industry.
ADP's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 17.92%, ADP perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
ADP's Operating Margin has been stable in the last couple of years.
ADP has a better Gross Margin (85.41%) than 63.64% of its industry peers.
ADP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.92% | ||
| PM (TTM) | 1.45% | ||
| GM | 85.41% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADP is destroying value.
ADP has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADP has about the same amount of shares outstanding.
Compared to 1 year ago, ADP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that ADP is in the distress zone and has some risk of bankruptcy.
ADP's Altman-Z score of 1.21 is on the low side compared to the rest of the industry. ADP is outperformed by 72.73% of its industry peers.
ADP has a debt to FCF ratio of 17.81. This is a negative value and a sign of low solvency as ADP would need 17.81 years to pay back of all of its debts.
The Debt to FCF ratio of ADP (17.81) is worse than 63.64% of its industry peers.
A Debt/Equity ratio of 2.32 is on the high side and indicates that ADP has dependencies on debt financing.
The Debt to Equity ratio of ADP (2.32) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 17.81 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.91
WACC5.27%
2.3 Liquidity
A Current Ratio of 1.12 indicates that ADP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.12, ADP is doing worse than 63.64% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that ADP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.08, ADP is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
ADP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -74.00%.
The earnings per share for ADP have been decreasing by -10.33% on average. This is quite bad
Looking at the last year, ADP shows a quite strong growth in Revenue. The Revenue has grown by 10.23% in the last year.
ADP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
EPS 1Y (TTM)-74%
EPS 3YN/A
EPS 5Y-10.33%
EPS Q2Q%-40.63%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%9.56%
3.2 Future
The Earnings Per Share is expected to grow by 22.40% on average over the next years. This is a very strong growth
ADP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.86% yearly.
EPS Next Y44.26%
EPS Next 2Y41.79%
EPS Next 3Y32.85%
EPS Next 5Y22.4%
Revenue Next Year10.35%
Revenue Next 2Y7.52%
Revenue Next 3Y6.25%
Revenue Next 5Y5.86%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ADP is valuated quite expensively with a Price/Earnings ratio of 55.30.
ADP's Price/Earnings ratio is rather expensive when compared to the industry. ADP is more expensive than 81.82% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, ADP is valued quite expensively.
The Price/Forward Earnings ratio is 16.11, which indicates a correct valuation of ADP.
Based on the Price/Forward Earnings ratio, ADP is valued a bit cheaper than 72.73% of the companies in the same industry.
ADP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.3 | ||
| Fwd PE | 16.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADP is valued a bit more expensive than 63.64% of the companies in the same industry.
ADP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.92 | ||
| EV/EBITDA | 9.03 |
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 32.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)N/A
EPS Next 2Y41.79%
EPS Next 3Y32.85%
5. Dividend
5.1 Amount
ADP has a Yearly Dividend Yield of 2.65%.
Compared to an average industry Dividend Yield of 4.18, ADP is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.88, ADP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
The dividend of ADP is nicely growing with an annual growth rate of 7.91%!
Dividend Growth(5Y)7.91%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ADP pays out 318.28% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ADP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP318.28%
EPS Next 2Y41.79%
EPS Next 3Y32.85%
EPA:ADP (12/24/2025, 7:00:00 PM)
111.7
-0.3 (-0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)
Earnings (Next)
Inst Owners29.71%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap11.05B
Revenue(TTM)6.43B
Net Income(TTM)93.00M
Analysts72
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
Yearly Dividend3.81
Dividend Growth(5Y)7.91%
DP318.28%
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)0%
PT rev (3m)0.1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.03%
EPS NY rev (3m)-3.76%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.3 | ||
| Fwd PE | 16.11 | ||
| P/S | 1.72 | ||
| P/FCF | 19.92 | ||
| P/OCF | 6.7 | ||
| P/B | 2.72 | ||
| P/tB | 21.18 | ||
| EV/EBITDA | 9.03 |
EPS(TTM)2.02
EY1.81%
EPS(NY)6.94
Fwd EY6.21%
FCF(TTM)5.61
FCFY5.02%
OCF(TTM)16.68
OCFY14.94%
SpS65.02
BVpS41.11
TBVpS5.27
PEG (NY)1.25
PEG (5Y)N/A
Graham Number43.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 2.29% | ||
| ROCE | 6.9% | ||
| ROIC | 4.78% | ||
| ROICexc | 5.33% | ||
| ROICexgc | 6.99% | ||
| OM | 17.92% | ||
| PM (TTM) | 1.45% | ||
| GM | 85.41% | ||
| FCFM | 8.63% |
ROA(3y)2.55%
ROA(5y)0%
ROE(3y)11.68%
ROE(5y)-0.81%
ROIC(3y)5.03%
ROIC(5y)N/A
ROICexc(3y)5.9%
ROICexc(5y)N/A
ROICexgc(3y)7.62%
ROICexgc(5y)N/A
ROCE(3y)7.27%
ROCE(5y)N/A
ROICexgc growth 3Y203.71%
ROICexgc growth 5Y0.09%
ROICexc growth 3Y204.79%
ROICexc growth 5Y1.53%
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-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 17.81 | ||
| Debt/EBITDA | 4.45 | ||
| Cap/Depr | 112.64% | ||
| Cap/Sales | 17.03% | ||
| Interest Coverage | 3.91 | ||
| Cash Conversion | 77.66% | ||
| Profit Quality | 596.77% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.21 |
F-Score6
WACC5.27%
ROIC/WACC0.91
Cap/Depr(3y)128.5%
Cap/Depr(5y)105.29%
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)-74%
EPS 3YN/A
EPS 5Y-10.33%
EPS Q2Q%-40.63%
EPS Next Y44.26%
EPS Next 2Y41.79%
EPS Next 3Y32.85%
EPS Next 5Y22.4%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%9.56%
Revenue Next Year10.35%
Revenue Next 2Y7.52%
Revenue Next 3Y6.25%
Revenue Next 5Y5.86%
EBIT growth 1Y-17.23%
EBIT growth 3Y215.37%
EBIT growth 5Y5.35%
EBIT Next Year97.02%
EBIT Next 3Y29.93%
EBIT Next 5Y19.48%
FCF growth 1Y-33.53%
FCF growth 3Y23.67%
FCF growth 5Y4.44%
OCF growth 1Y2.36%
OCF growth 3Y26.27%
OCF growth 5Y-0.38%
ADP / ADP.PA 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 of ADP (ADP.PA) stock?
ChartMill assigns a valuation rating of 3 / 10 to ADP (ADP.PA). This can be considered as Overvalued.
What is the profitability of ADP stock?
ADP (ADP.PA) has a profitability rating of 3 / 10.
Can you provide the financial health for ADP stock?
The financial health rating of ADP (ADP.PA) is 1 / 10.
Is the dividend of ADP sustainable?
The dividend rating of ADP (ADP.PA) is 4 / 10 and the dividend payout ratio is 318.28%.