ADP (ADP.PA) Stock Fundamental Analysis
Europe - EPA:ADP - FR0010340141 - Common Stock
117.2 EUR
-2.8 (-2.33%)
Taking everything into account, ADP scores 4 out of 10 in our fundamental rating. ADP was compared to 12 industry peers in the Transportation Infrastructure industry. There are concerns on the financial health of ADP while its profitability can be described as average. ADP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ADP had positive earnings in the past year.
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
The Return On Assets of ADP (0.46%) is worse than 75.00% of its industry peers.
The Return On Equity of ADP (2.29%) is worse than 75.00% of its industry peers.
ADP has a Return On Invested Capital of 4.78%. This is comparable to the rest of the industry: ADP outperforms 41.67% of its industry peers.
ADP had an Average Return On Invested Capital over the past 3 years of 5.03%. This is below the industry average of 7.33%.
| 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
The Profit Margin of ADP (1.45%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ADP has declined.
The Operating Margin of ADP (17.92%) is better than 66.67% of its industry peers.
ADP's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 85.41%, ADP is in the better half of the industry, outperforming 75.00% 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 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.
ADP has about the same amout of shares outstanding than it did 1 year ago.
ADP has less shares outstanding than it did 5 years ago.
ADP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that ADP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.24, ADP is doing worse than 66.67% of the companies in the same industry.
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.
ADP has a Debt to FCF ratio (17.81) which is in line with its industry peers.
A Debt/Equity ratio of 2.32 is on the high side and indicates that ADP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.32, ADP is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 17.81 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.89
WACC5.38%
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 comparable to the rest of the industry: ADP outperforms 41.67% 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 has a Quick ratio (1.08) which is comparable to the rest of the 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%.
Measured over the past years, ADP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.33% on average per year.
The Revenue has grown by 10.23% in the past year. This is quite good.
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
ADP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.47% yearly.
Based on estimates for the next years, ADP will show a small growth in Revenue. The Revenue will grow by 4.68% on average per year.
EPS Next Y49.21%
EPS Next 2Y44.46%
EPS Next 3Y33.65%
EPS Next 5Y22.47%
Revenue Next Year10.1%
Revenue Next 2Y7.41%
Revenue Next 3Y6.16%
Revenue Next 5Y4.68%
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
A Price/Earnings ratio of 58.02 indicates a quite expensive valuation of ADP.
ADP's Price/Earnings ratio is rather expensive when compared to the industry. ADP is more expensive than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.76, ADP is valued quite expensively.
With a Price/Forward Earnings ratio of 16.28, ADP is valued correctly.
Based on the Price/Forward Earnings ratio, ADP is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.63. ADP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.02 | ||
| Fwd PE | 16.28 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ADP.
The rest of the industry has a similar Price/Free Cash Flow ratio as ADP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.9 | ||
| EV/EBITDA | 9.42 |
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 33.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y44.46%
EPS Next 3Y33.65%
5. Dividend
5.1 Amount
ADP has a Yearly Dividend Yield of 2.43%.
ADP's Dividend Yield is slightly below the industry average, which is at 6.74.
Compared to an average S&P500 Dividend Yield of 2.31, ADP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
The dividend of ADP is nicely growing with an annual growth rate of 7.94%!
Dividend Growth(5Y)7.94%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
318.28% 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.
DP318.28%
EPS Next 2Y44.46%
EPS Next 3Y33.65%
EPA:ADP (10/29/2025, 5:29:57 PM)
117.2
-2.8 (-2.33%)
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 Cap11.60B
Revenue(TTM)6.43B
Net Income(TTM)93.00M
Analysts73
Price Target125.57 (7.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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)-0.51%
PT rev (3m)-1.82%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-16.68%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.02 | ||
| Fwd PE | 16.28 | ||
| P/S | 1.8 | ||
| P/FCF | 20.9 | ||
| P/OCF | 7.02 | ||
| P/B | 2.85 | ||
| P/tB | 22.22 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)2.02
EY1.72%
EPS(NY)7.2
Fwd EY6.14%
FCF(TTM)5.61
FCFY4.79%
OCF(TTM)16.68
OCFY14.24%
SpS65.02
BVpS41.11
TBVpS5.27
PEG (NY)1.18
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 | 1.24 |
F-Score6
WACC5.38%
ROIC/WACC0.89
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 Y49.21%
EPS Next 2Y44.46%
EPS Next 3Y33.65%
EPS Next 5Y22.47%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%9.56%
Revenue Next Year10.1%
Revenue Next 2Y7.41%
Revenue Next 3Y6.16%
Revenue Next 5Y4.68%
EBIT growth 1Y-17.23%
EBIT growth 3Y215.37%
EBIT growth 5Y5.35%
EBIT Next Year96.67%
EBIT Next 3Y29.81%
EBIT Next 5Y18.73%
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 4 / 10 to ADP.PA.
What is the valuation status of ADP (ADP.PA) stock?
ChartMill assigns a valuation rating of 4 / 10 to ADP (ADP.PA). This can be considered as Fairly Valued.
What is the profitability of ADP stock?
ADP (ADP.PA) has a profitability rating of 4 / 10.
Can you provide the financial health for ADP stock?
The financial health rating of ADP (ADP.PA) is 3 / 10.
Is the dividend of ADP sustainable?
The dividend rating of ADP (ADP.PA) is 3 / 10 and the dividend payout ratio is 318.28%.