Automatic Data Processing Inc

  • Earnings Score
  • Moat Score
  • Safety Score
  • Final Score
  • Market Cap $123.13B
  • PE 31
  • Debt $3.98B
  • Cash $8.20B
  • EV $118.91B
  • FCF $4.61B

Earnings

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Sales & Net Margins

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Earnings$4.00B
EBIT$5.21B
ROE68%
ROA9%
FCF$4.61B
Equity$5.86B
Growth Stability100%
PE30.8
PEG2.52
PB21.03
P/FCF26.7
P/S6.09
Price/Cash0.07
Debt/Equity0.68
Debt/FCF0.86
Net Margins21%
Gross Margins46%
Op. Margins26%
Earnings CAGR12%
Sales Growth YoY6%
Sales Growth QoQ10%
Sales CAGR6%
FCF CAGR11%
Equity CAGR-1%
Earnings Stability0.97
Earnings Growth YoY5%
Earnings Growth QoQ30%
Earnings CAGR 5Y12%
Sales CAGR 5Y8%
FCF CAGR 5Y12%
Equity CAGR 5Y-4%
Earnings CAGR 3Y7%
Sales CAGR 3Y7%
FCF CAGR 3Y14%
Equity CAGR 3Y30%
Market Cap$123.13B
Revenue$20.20B
Dividend Yield2%
Payout Ratio59%
Assets$56.45B
Total Debt$3.98B
Cash$8.20B
Shares Outstanding406.3M
EV118.91B
Earnings Score95%
Moat Score94%
Safety Score95%
Final Score95%
Working Capital691.4M
Current Ratio1.02
Gross Profit$9.29B
Shares Growth 3y-1%
Equity Growth QoQ15%
Equity Growth YoY27%

Assets & ROA

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Stockholders Equity & ROE

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ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 920,000 clients primarily in the United States. ADP's employer services segment offers payroll, HCM solutions, HR outsourcing, insurance and retirement services. The smaller but faster-growing PEO segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.

SEC Filings

Direct access to Automatic Data Processing Inc (ADP) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

  • 2025
    • 10-Q Mar 31
  • 2024
    • 10-Q Dec 31
    • 10-Q Sep 30
    • 10-K Jun 30
    • 10-Q Mar 31
  • 2023
    • 10-Q Dec 31
    • 10-Q Sep 30
    • 10-K Jun 30
    • 10-Q Mar 31

Sector Comparison

How does Automatic Data Processing Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Automatic Data Processing Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 12%
Stability 97%
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Automatic Data Processing Inc Discounted Cash Flow

Fully customizable DCF calculator online for Automatic Data Processing Inc.

= $97B
012345678910TV
fcf$4.6B$5.1B$5.7B$6.3B$6.9B$7.7B$8.5B$9.4B$10B$12B$13B$128B
DCF$4.6B$4.7B$4.7B$4.7B$4.8B$4.8B$4.8B$4.9B$4.9B$4.9B$49B
Value$97B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years06/201506/201606/201706/201806/201906/202006/202106/202206/202306/2024TTM
Net Margins13%13%14%12%16%17%17%18%19%20%21%
ROA-5%7%6%7%8%7%6%9%9%9%
ROE-33%35%34%42%43%46%91%97%83%68%

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years06/201506/201606/201706/201806/201906/202006/202106/202206/202306/2024TTM
Debt over FCF-1.191.070.870.790.71.021.020.750.760.86
Debt over Equity00.450.40.420.370.350.530.930.850.660.68
Growth Stability---100%100%100%100%100%100%100%100%

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years06/201506/201606/201706/201806/201906/202006/202106/202206/202306/2024CAGR 5Y
Revenue YoY growth-7%6%8%6%3%3%10%9%7%8%
Earnings YoY growth-3%16%-6%41%8%5%13%16%10%12%
Equity YoY growth--7%11%-5%14%7%-1%-43%9%30%-4%
FCF YoY growth--3%11%22%9%13%2%0%37%-1%12%