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Company Analysis

Automatic Data Processing, Inc. ADP

A comprehensive view of key metrics, scores, and financial health for Automatic Data Processing, Inc.

Overview of Automatic Data Processing, Inc.

ADP NMS
Technology Software - Application Framework: Software & SaaS Large Cap
Automatic Data Processing, Inc. (ADP), is a Large Cap company, in the Software - Application industry, last closed at $226.21, about 2.1% undervalued vs fair value, -26.5% 1Y return, placing in the top 10% of its sector.
Metrics P/E 30.9× Rev Growth 7.1% ROE 76.0% Gross Margin 46.0% Div Yield 1.92%
USD 226.21
0.19%
(Delayed)
• Vol 90d: 31.1%
52-Week Range
Market Cap
$90.25B
Enterprise Value
$92.15B
Overall Score
View breakdown
Overall
Growth
Fair
Profitability
Excellent
Health
Fair
Efficiency
Weak
Valuation
Good
Growth
Fair
Profitability
Excellent
Health
Fair
Efficiency
Weak
Valuation
Good
Completeness: 82%
Confidence: 90%
Updated: Mar 8
Top Beats

Quick Facts

Website https://www.adp.com
HQ Roseland, NJ
Employees 67,000
Fiscal year Jun 30

Next Events

Dividend Jul 1
Earnings Jul 29 Estimated

Fair Value Snapshot

Bear Base Bull
$212
$231
$253
Current: $226.21 +2% vs base

Engine Room Money Flow™

Large Cap

Software & SaaS - Where revenue goes and how value is created

Flow Steps
Total Revenue
$20.6B
7.1%%
Gross Profit
$9.5B
8.5%%
Operating Income (GAAP)
$5.4B
9.4%%
Operating Cash Flow
$4.9B
18.8%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Software & SaaS

Quality & Reliability Indicators

Gross Margin
46.0%
Fair

Gross Profit / Revenue — pricing power and product moat (SaaS benchmark: >70%)

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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

$3.7B
83.8% of FCF

Where It Leaks

Cash Flow Health some concerns
Moderate efficiency issues detected. Review active leaks below for improvement areas.
3
Active Leaks
1/3
Improving
0
High Impact
0
Critical
Locked Leak
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Locked Leak
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Moat Analysis Software & SaaS Specialized

Competitive Advantage Assessment

Evaluating Automatic Data Processing, Inc.'s durable competitive advantages across 6 defense dimensions

Overall Moat Strength
68
/100
Moderate
Scores based on quantitative metrics and qualitative factors

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Pricing Power

Strong
76
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For informational purposes only. Not investment advice.

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 91% Coverage
Trade-Off Triangle Visualization A ternary plot showing ADP's balance between Growth (27.7%), Profitability (41.4%), and Safety (30.9%). Growth 28% Safety 31% Profitability 41%

Click axes to expand details. Marker shows current allocation.

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Growth

45th percentile vs peers
46
Key Signals
Rev Growth YoY 7.1% 47p Revenue CAGR 3Y 7.6% 42p TSR 1.3% 52p EPS Growth YoY 9.7% 40p
Strengths
  • Interest Coverage Ratio in top 20% of peers (12.65, 80th percentile)
  • Superior capital returns - 2 return metrics above peer median
  • Operating Margin in top 20% of peers (26.3%, 92th percentile)
  • Consistently strong margins across 3 metrics
Risks

No significant risks identified for this axis.

Profitability

68th percentile vs peers
68
Key Signals
Strengths
Risks
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Safety

51th percentile vs peers
51
Key Signals
Strengths
Safety drilldowns are available to premium members.

Two Futures

Scenario-based fair value ranges for Automatic Data Processing, Inc..

Loading valuation model...
Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$230.96
- - -
+2.1% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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