ADP (ADP.PA) Stock Fundamental Analysis
EPA:ADP - Euronext Paris - Matif - FR0010340141 - Common Stock - Currency: EUR
ADP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 10 industry peers in the Transportation Infrastructure industry. ADP has a medium profitability rating, but doesn't score so well on its financial health evaluation. ADP has a expensive valuation and it also scores bad on growth.
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
ADP has a worse Return On Assets (1.70%) than 60.00% of its industry peers.
Looking at the Return On Equity, with a value of 7.77%, ADP is doing worse than 60.00% of the companies in the same industry.
With a Return On Invested Capital value of 5.50%, ADP is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for ADP is below the industry average of 7.04%.
The 3 year average ROIC (5.03%) for ADP is below the current ROIC(5.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 7.77% | ||
| ROIC | 5.5% |
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
ADP has a Profit Margin (5.57%) which 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 of 20.88%. This is in the better half of the industry: ADP outperforms 70.00% of its industry peers.
ADP's Operating Margin has been stable in the last couple of years.
ADP's Gross Margin of 85.06% is fine compared to the rest of the industry. ADP outperforms 70.00% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ADP is still creating some value.
Compared to 1 year ago, ADP has about the same amount of shares outstanding.
The number of shares outstanding for ADP has been reduced compared to 5 years ago.
ADP has a worse debt/assets ratio than last year.
2.2 Solvency
ADP has an Altman-Z score of 1.19. This is a bad value and indicates that ADP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.19, ADP is doing worse than 60.00% of the companies in the same industry.
ADP has a debt to FCF ratio of 22.90. This is a negative value and a sign of low solvency as ADP would need 22.90 years to pay back of all of its debts.
ADP has a worse Debt to FCF ratio (22.90) than 60.00% of its industry peers.
ADP has a Debt/Equity ratio of 2.00. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ADP (2.00) is worse than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 22.9 | ||
| Altman-Z | 1.19 |
ROIC/WACC1.04
WACC5.28%
2.3 Liquidity
A Current Ratio of 0.95 indicates that ADP may have some problems paying its short term obligations.
ADP has a worse Current ratio (0.95) than 60.00% of its industry peers.
A Quick Ratio of 0.91 indicates that ADP may have some problems paying its short term obligations.
ADP's Quick ratio of 0.91 is on the low side compared to the rest of the industry. ADP is outperformed by 60.00% of its industry peers.
| 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.
ADP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.33% yearly.
ADP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.07%.
ADP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
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.
Based on estimates for the next years, ADP will show a decrease in Revenue. The Revenue will decrease by -2.33% on average per year.
EPS Next Y79.09%
EPS Next 2Y46.15%
EPS Next 3Y32.9%
EPS Next 5Y10.09%
Revenue Next Year8.11%
Revenue Next 2Y6.26%
Revenue Next 3Y5.31%
Revenue Next 5Y-2.33%
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. Valuation
4.1 Price/Earnings Ratio
ADP is valuated quite expensively with a Price/Earnings ratio of 32.99.
ADP's Price/Earnings ratio is a bit more expensive when compared to the industry. ADP is more expensive than 70.00% of the companies in the same industry.
ADP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.18.
With a Price/Forward Earnings ratio of 18.42, ADP is valued on the expensive side.
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 at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.99 | ||
| Fwd PE | 18.42 |
4.2 Price Multiples
ADP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ADP is more expensive than 70.00% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.89 | ||
| EV/EBITDA | 10.12 |
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.
ADP's earnings are expected to grow with 32.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y46.15%
EPS Next 3Y32.9%
5. Dividend
5.1 Amount
ADP has a Yearly Dividend Yield of 2.73%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.10, ADP is paying slightly less dividend.
ADP's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
5.2 History
On average, the dividend of ADP grows each year by 7.95%, which is quite nice.
Dividend Growth(5Y)7.95%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
109.91% of the earnings are spent on dividend by ADP. This is not a sustainable payout ratio.
ADP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP109.91%
EPS Next 2Y46.15%
EPS Next 3Y32.9%
EPA:ADP (5/5/2025, 5:35:15 PM)
113.8
+1.1 (+0.98%)
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 Cap11.26B
Analysts71.82
Price Target125.27 (10.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
Yearly Dividend3.82
Dividend Growth(5Y)7.95%
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)-2.39%
PT rev (3m)-6.59%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.16%
EPS NY rev (3m)-6.97%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.99 | ||
| Fwd PE | 18.42 | ||
| P/S | 1.83 | ||
| P/FCF | 25.89 | ||
| P/OCF | 7.39 | ||
| P/B | 2.55 | ||
| P/tB | 9.38 | ||
| EV/EBITDA | 10.12 |
EPS(TTM)3.45
EY3.03%
EPS(NY)6.18
Fwd EY5.43%
FCF(TTM)4.4
FCFY3.86%
OCF(TTM)15.4
OCFY13.53%
SpS62.23
BVpS44.61
TBVpS12.14
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 7.77% | ||
| ROCE | 7.95% | ||
| ROIC | 5.5% | ||
| ROICexc | 5.7% | ||
| ROICexgc | 7.17% | ||
| OM | 20.88% | ||
| PM (TTM) | 5.57% | ||
| GM | 85.06% | ||
| FCFM | 7.06% |
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
ROICexcg growth 3Y203.71%
ROICexcg 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-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 22.9 | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 146.17% | ||
| Cap/Sales | 17.68% | ||
| Interest Coverage | 4.32 | ||
| Cash Conversion | 75.04% | ||
| Profit Quality | 126.82% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.19 |
F-Score5
WACC5.28%
ROIC/WACC1.04
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)-46.01%
EPS 3YN/A
EPS 5Y-10.33%
EPS Q2Q%-101.65%
EPS Next Y79.09%
EPS Next 2Y46.15%
EPS Next 3Y32.9%
EPS Next 5Y10.09%
Revenue 1Y (TTM)12.07%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%10.88%
Revenue Next Year8.11%
Revenue Next 2Y6.26%
Revenue Next 3Y5.31%
Revenue Next 5Y-2.33%
EBIT growth 1Y10.1%
EBIT growth 3Y215.37%
EBIT growth 5Y5.35%
EBIT Next Year97.55%
EBIT Next 3Y29.24%
EBIT Next 5Y18.05%
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%