ADP (ADP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ADP - FR0010340141 - Common Stock
126.3 EUR
-0.8 (-0.63%)
Overall ADP gets a fundamental rating of 3 out of 10. We evaluated ADP against 14 industry peers in the Transportation Infrastructure industry. ADP has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
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
ADP's Return On Assets of 0.46% is on the low side compared to the rest of the industry. ADP is outperformed by 78.57% of its industry peers.
The Return On Equity of ADP (2.29%) is worse than 78.57% of its industry peers.
ADP has a Return On Invested Capital of 4.78%. This is in the lower half of the industry: ADP underperforms 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADP is below the industry average of 8.58%.
| 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
ADP has a worse Profit Margin (1.45%) than 64.29% of its industry peers.
ADP's Profit Margin has declined in the last couple of years.
ADP has a Operating Margin of 17.92%. This is comparable to the rest of the industry: ADP outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of ADP has remained more or less at the same level.
ADP has a Gross Margin (85.41%) which is in line with 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 | 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
ADP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ADP remains at a similar level compared to 1 year ago.
ADP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ADP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that ADP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ADP (1.26) is worse than 71.43% 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 64.29% of its industry peers.
ADP has a Debt/Equity ratio of 2.32. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.32, ADP is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 17.81 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.87
WACC5.46%
2.3 Liquidity
A Current Ratio of 1.12 indicates that ADP should not have too much problems paying its short term obligations.
ADP has a Current ratio of 1.12. This is in the lower half of the industry: ADP underperforms 64.29% of its industry peers.
A Quick Ratio of 1.08 indicates that ADP should not have too much problems paying its short term obligations.
ADP's Quick ratio of 1.08 is on the low side compared to the rest of the industry. ADP is outperformed by 64.29% of its industry peers.
| 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
The Revenue has grown by 10.23% in the past year. This is quite good.
The Revenue has been growing slightly by 5.55% on average over the past years.
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
Based on estimates for the next years, ADP will show a small growth in Revenue. The Revenue will grow by 5.85% on average per year.
EPS Next Y44.22%
EPS Next 2Y41.74%
EPS Next 3Y32.85%
EPS Next 5Y22.4%
Revenue Next Year10.35%
Revenue Next 2Y7.51%
Revenue Next 3Y6.25%
Revenue Next 5Y5.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 62.52, which means the current valuation is very expensive for ADP.
85.71% of the companies in the same industry are cheaper than ADP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.15, ADP is valued quite expensively.
A Price/Forward Earnings ratio of 18.22 indicates a rather expensive valuation of ADP.
ADP's Price/Forward Earnings is on the same level as the industry average.
ADP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.52 | ||
| Fwd PE | 18.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADP indicates a slightly more expensive valuation: ADP is more expensive than 71.43% of the companies listed in the same industry.
ADP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.52 | ||
| EV/EBITDA | 9.75 |
4.3 Compensation for Growth
The 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)1.41
PEG (5Y)N/A
EPS Next 2Y41.74%
EPS Next 3Y32.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.50%, ADP has a reasonable but not impressive dividend return.
ADP's Dividend Yield is comparable with the industry average which is at 5.86.
ADP's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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 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 2Y41.74%
EPS Next 3Y32.85%
EPA:ADP (11/28/2025, 5:36:15 PM)
126.3
-0.8 (-0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)
Earnings (Next)
Inst Owners29.41%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap12.50B
Revenue(TTM)6.43B
Net Income(TTM)93.00M
Analysts72
Price Target126.34 (0.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend3.82
Dividend Growth(5Y)7.94%
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)0.61%
PT rev (3m)0.1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.35%
EPS NY rev (3m)-3.79%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.52 | ||
| Fwd PE | 18.22 | ||
| P/S | 1.94 | ||
| P/FCF | 22.52 | ||
| P/OCF | 7.57 | ||
| P/B | 3.07 | ||
| P/tB | 23.94 | ||
| EV/EBITDA | 9.75 |
EPS(TTM)2.02
EY1.6%
EPS(NY)6.93
Fwd EY5.49%
FCF(TTM)5.61
FCFY4.44%
OCF(TTM)16.68
OCFY13.21%
SpS65.02
BVpS41.11
TBVpS5.27
PEG (NY)1.41
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 | 1.26 |
F-Score6
WACC5.46%
ROIC/WACC0.87
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 Y44.22%
EPS Next 2Y41.74%
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 2Y7.51%
Revenue Next 3Y6.25%
Revenue Next 5Y5.85%
EBIT growth 1Y-17.23%
EBIT growth 3Y215.37%
EBIT growth 5Y5.35%
EBIT Next Year96.67%
EBIT Next 3Y29.81%
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 2 / 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 2 / 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%.