ADP (ADP.PA) Stock Fundamental Analysis
EPA:ADP - FR0010340141 - Common Stock
111.8 EUR
-1.2 (-1.06%)
Overall ADP gets a fundamental rating of 3 out of 10. We evaluated ADP against 12 industry peers in the Transportation Infrastructure industry. Both the profitability and financial health of ADP have multiple concerns. ADP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ADP was profitable.
In the past year ADP had a positive cash flow from operations.
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 has a Return On Assets of 0.46%. This is amonst the worse of the industry: ADP underperforms 91.67% of its industry peers.
ADP has a worse Return On Equity (2.29%) than 83.33% of its industry peers.
The Return On Invested Capital of ADP (4.78%) is worse than 66.67% 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 7.51%.
| 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 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ADP has declined.
With a decent Operating Margin value of 17.92%, ADP is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of ADP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 85.41%, ADP is in the better half of the industry, outperforming 66.67% 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.
The number of shares outstanding for ADP has been reduced compared to 5 years ago.
Compared to 1 year ago, ADP has a worse debt to assets ratio.
2.2 Solvency
ADP has an Altman-Z score of 1.21. This is a bad value and indicates that ADP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.21, ADP is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of ADP is 17.81, which is on the high side as it means it would take ADP, 17.81 years of fcf income to pay off all of its debts.
ADP has a Debt to FCF ratio of 17.81. This is comparable to the rest of the industry: ADP outperforms 41.67% 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.
Looking at the Debt to Equity ratio, with a value of 2.32, ADP is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 17.81 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.92
WACC5.17%
2.3 Liquidity
A Current Ratio of 1.12 indicates that ADP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.12, ADP is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
ADP has a Quick Ratio of 1.08. This is a normal value and indicates that ADP is financially healthy and should not expect problems in meeting 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for ADP have decreased strongly by -74.00% 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.
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
The Earnings Per Share is expected to grow by 22.58% 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 4.77% yearly.
EPS Next Y49.9%
EPS Next 2Y44.46%
EPS Next 3Y33.65%
EPS Next 5Y22.58%
Revenue Next Year10.19%
Revenue Next 2Y7.41%
Revenue Next 3Y6.16%
Revenue Next 5Y4.77%
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
Based on the Price/Earnings ratio of 55.35, the valuation of ADP can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ADP indicates a rather expensive valuation: ADP more expensive than 83.33% of the companies listed in the same industry.
ADP is valuated expensively when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.53, which indicates a correct valuation of ADP.
Based on the Price/Forward Earnings ratio, ADP is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.69. ADP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.35 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than ADP, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as ADP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.93 | ||
| EV/EBITDA | 9.04 |
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)1.11
PEG (5Y)N/A
EPS Next 2Y44.46%
EPS Next 3Y33.65%
5. Dividend
5.1 Amount
ADP has a Yearly Dividend Yield of 2.65%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.54, ADP has a dividend in line with its industry peers.
ADP's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
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
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 (9/5/2025, 7:00:00 PM)
111.8
-1.2 (-1.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)
Earnings (Next)
Inst Owners26.29%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap11.06B
Analysts73
Price Target126.21 (12.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
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)-1.33%
PT rev (3m)0.17%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-16.3%
EPS NY rev (3m)-16.3%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.35 | ||
| Fwd PE | 15.53 | ||
| P/S | 1.72 | ||
| P/FCF | 19.93 | ||
| P/OCF | 6.7 | ||
| P/B | 2.72 | ||
| P/tB | 21.19 | ||
| EV/EBITDA | 9.04 |
EPS(TTM)2.02
EY1.81%
EPS(NY)7.2
Fwd EY6.44%
FCF(TTM)5.61
FCFY5.02%
OCF(TTM)16.68
OCFY14.92%
SpS65.02
BVpS41.11
TBVpS5.27
PEG (NY)1.11
PEG (5Y)N/A
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
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-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
WACC5.17%
ROIC/WACC0.92
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 Y49.9%
EPS Next 2Y44.46%
EPS Next 3Y33.65%
EPS Next 5Y22.58%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%9.56%
Revenue Next Year10.19%
Revenue Next 2Y7.41%
Revenue Next 3Y6.16%
Revenue Next 5Y4.77%
EBIT growth 1Y-17.23%
EBIT growth 3Y215.37%
EBIT growth 5Y5.35%
EBIT Next Year96.85%
EBIT Next 3Y29.46%
EBIT Next 5Y18.83%
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%