ADP (ADP.PA) Fundamental Analysis & Valuation

EPA:ADP • FR0010340141

Current stock price

108.8 EUR
-0.2 (-0.18%)
Last:

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

4

1. ADP.PA Profitability Analysis

1.1 Basic Checks

  • ADP had positive earnings in the past year.
  • ADP had a positive operating cash flow in the past year.
  • Of the past 5 years ADP 4 years were profitable.
  • Each year in the past 5 years ADP had a positive operating cash flow.
ADP.PA Yearly Net Income VS EBIT VS OCF VS FCFADP.PA 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 0 500M -500M 1B -1B 1.5B

1.2 Ratios

  • The Return On Assets of ADP (1.88%) is worse than 61.54% of its industry peers.
  • ADP has a Return On Equity (8.79%) which is comparable to the rest of the industry.
  • ADP has a Return On Invested Capital (4.62%) which is in line with its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ADP is below the industry average of 7.19%.
  • The 3 year average ROIC (4.45%) for ADP is below the current ROIC(4.62%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 1.88%
ROE 8.79%
ROIC 4.62%
ROA(3y)2.26%
ROA(5y)1.64%
ROE(3y)10.33%
ROE(5y)7.35%
ROIC(3y)4.45%
ROIC(5y)3.41%
ADP.PA Yearly ROA, ROE, ROICADP.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20 -30

1.3 Margins

  • Looking at the Profit Margin, with a value of 5.70%, ADP is doing worse than 61.54% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ADP has declined.
  • The Operating Margin of ADP (19.67%) is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of ADP has declined.
  • With a decent Gross Margin value of 85.78%, ADP is doing good in the industry, outperforming 61.54% 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 RankSector Rank
OM 19.67%
PM (TTM) 5.7%
GM 85.78%
OM growth 3Y-1.8%
OM growth 5YN/A
PM growth 3Y-19.7%
PM growth 5YN/A
GM growth 3Y0.75%
GM growth 5Y-0.44%
ADP.PA Yearly Profit, Operating, Gross MarginsADP.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50

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1

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.
  • Compared to 1 year ago, ADP has about the same amount of shares outstanding.
  • The number of shares outstanding for ADP remains at a similar level compared to 5 years ago.
  • Compared to 1 year ago, ADP has an improved debt to assets ratio.
ADP.PA Yearly Shares OutstandingADP.PA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
ADP.PA Yearly Total Debt VS Total AssetsADP.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • Based on the Altman-Z score of 1.19, we must say that ADP is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of 1.19, ADP is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
  • ADP has a debt to FCF ratio of 26.26. This is a negative value and a sign of low solvency as ADP would need 26.26 years to pay back of all of its debts.
  • ADP has a Debt to FCF ratio (26.26) which is comparable to the rest of the industry.
  • ADP has a Debt/Equity ratio of 1.98. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of ADP (1.98) is worse than 69.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.98
Debt/FCF 26.26
Altman-Z 1.19
ROIC/WACC0.92
WACC5%
ADP.PA Yearly LT Debt VS Equity VS FCFADP.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 0.89 indicates that ADP may have some problems paying its short term obligations.
  • The Current ratio of ADP (0.89) is worse than 76.92% 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.
  • Looking at the Quick ratio, with a value of 0.86, ADP is doing worse than 76.92% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.89
Quick Ratio 0.86
ADP.PA Yearly Current Assets VS Current LiabilitesADP.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

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.
  • ADP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.87%.
  • 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

  • Based on estimates for the next years, ADP will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.80% on average per year.
  • ADP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.70% yearly.
EPS Next Y18.07%
EPS Next 2Y16.68%
EPS Next 3Y14.8%
EPS Next 5Y10.8%
Revenue Next Year3.75%
Revenue Next 2Y4.28%
Revenue Next 3Y4.24%
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.
ADP.PA Yearly Revenue VS EstimatesADP.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
ADP.PA Yearly EPS VS EstimatesADP.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 -5 -10

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4

4. ADP.PA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 19.71 indicates a rather expensive valuation of ADP.
  • ADP's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of ADP to the average of the S&P500 Index (27.47), we can say ADP is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 16.69 indicates a correct valuation of ADP.
  • ADP's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADP is cheaper than 92.31% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ADP to the average of the S&P500 Index (22.62), we can say ADP is valued slightly cheaper.
Industry RankSector Rank
PE 19.71
Fwd PE 16.69
ADP.PA Price Earnings VS Forward Price EarningsADP.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • ADP's Enterprise Value to EBITDA is on the same level as the industry average.
  • ADP's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 28.87
EV/EBITDA 8.63
ADP.PA Per share dataADP.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • A more expensive valuation may be justified as ADP's earnings are expected to grow with 14.80% in the coming years.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y16.68%
EPS Next 3Y14.8%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. ADP.PA Dividend Analysis

5.1 Amount

  • ADP has a Yearly Dividend Yield of 2.72%.
  • Compared to an average industry Dividend Yield of 3.30, ADP has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.81, ADP pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.72%

5.2 History

  • The dividend of ADP has a limited annual growth rate of 2.57%.
Dividend Growth(5Y)2.57%
Div Incr Years0
Div Non Decr Years1
ADP.PA Yearly Dividends per shareADP.PA Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 77.49% 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.
DP77.49%
EPS Next 2Y16.68%
EPS Next 3Y14.8%
ADP.PA Yearly Income VS Free CF VS DividendADP.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M -1B
ADP.PA Dividend Payout.ADP.PA Dividend Payout, showing the Payout Ratio.ADP.PA Dividend Payout.PayoutRetained Earnings

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ADP.PA Fundamentals: All Metrics, Ratios and Statistics

ADP

EPA:ADP (4/23/2026, 7:00:00 PM)

108.8

-0.2 (-0.18%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)02-18
Earnings (Next)04-28
Inst Owners30.24%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap10.77B
Revenue(TTM)6.70B
Net Income(TTM)382.00M
Analysts69.52
Price Target125.39 (15.25%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.72%
Yearly Dividend2.99
Dividend Growth(5Y)2.57%
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)0.2%
PT rev (3m)-1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-3.41%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.57%
Valuation
Industry RankSector Rank
PE 19.71
Fwd PE 16.69
P/S 1.61
P/FCF 28.87
P/OCF 6.57
P/B 2.48
P/tB 12.61
EV/EBITDA 8.63
EPS(TTM)5.52
EY5.07%
EPS(NY)6.52
Fwd EY5.99%
FCF(TTM)3.77
FCFY3.46%
OCF(TTM)16.55
OCFY15.21%
SpS67.74
BVpS43.93
TBVpS8.63
PEG (NY)1.09
PEG (5Y)N/A
Graham Number73.8628 (-32.11%)
Profitability
Industry RankSector Rank
ROA 1.88%
ROE 8.79%
ROCE 8.19%
ROIC 4.62%
ROICexc 4.79%
ROICexgc 6.18%
OM 19.67%
PM (TTM) 5.7%
GM 85.78%
FCFM 5.56%
ROA(3y)2.26%
ROA(5y)1.64%
ROE(3y)10.33%
ROE(5y)7.35%
ROIC(3y)4.45%
ROIC(5y)3.41%
ROICexc(3y)5.12%
ROICexc(5y)3.96%
ROICexgc(3y)6.65%
ROICexgc(5y)5.16%
ROCE(3y)7.88%
ROCE(5y)6.04%
ROICexgc growth 3Y7.41%
ROICexgc growth 5YN/A
ROICexc growth 3Y6.88%
ROICexc growth 5YN/A
OM growth 3Y-1.8%
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 RankSector Rank
Debt/Equity 1.98
Debt/FCF 26.26
Debt/EBITDA 3.75
Cap/Depr 128.82%
Cap/Sales 18.87%
Interest Coverage 4.47
Cash Conversion 71.19%
Profit Quality 97.64%
Current Ratio 0.89
Quick Ratio 0.86
Altman-Z 1.19
F-Score8
WACC5%
ROIC/WACC0.92
Cap/Depr(3y)134.08%
Cap/Depr(5y)118.46%
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 Y18.07%
EPS Next 2Y16.68%
EPS Next 3Y14.8%
EPS Next 5Y10.8%
Revenue 1Y (TTM)8.87%
Revenue growth 3Y12.66%
Revenue growth 5Y25.69%
Sales Q2Q%8.25%
Revenue Next Year3.75%
Revenue Next 2Y4.28%
Revenue Next 3Y4.24%
Revenue Next 5Y4.7%
EBIT growth 1Y2.81%
EBIT growth 3Y10.64%
EBIT growth 5YN/A
EBIT Next Year93.51%
EBIT Next 3Y29.44%
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 4 / 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 4 / 10.


What are the PE and PB ratios of ADP (ADP.PA) stock?

The Price/Earnings (PE) ratio for ADP (ADP.PA) is 19.71 and the Price/Book (PB) ratio is 2.48.


How sustainable is the dividend of ADP (ADP.PA) stock?

The dividend rating of ADP (ADP.PA) is 4 / 10 and the dividend payout ratio is 77.49%.