Automatic Data Processing Inc

Technology
EDP Services
www.adp.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $121.51B
PE 32
Debt $3.98B
Cash $2.79B
EV $122.71B
FCF $4.43B

Earnings

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Sales & Net Margins

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Earnings	$3.85B
EBIT	$5.02B
ROE	72%
ROA	10%
FCF	$4.43B
Equity	$5.35B
Growth Stability	100%
PE	31.57
PEG	2.82
PB	22.72
P/FCF	27.44
P/S	6.22
Price/Cash	0.02
Debt/Equity	0.74
Debt/FCF	0.9
Net Margins	20%
Gross Margins	46%
Op. Margins	26%
Earnings CAGR	12%
Sales Growth YoY	7%
Sales Growth QoQ	1%
Sales CAGR	6%
FCF CAGR	11%
Equity CAGR	-2%
Earnings Stability	0.97
Earnings Growth YoY	11%
Earnings Growth QoQ	15%
Earnings CAGR 5Y	11%

Sales CAGR 5Y	7%
FCF CAGR 5Y	10%
Equity CAGR 5Y	-8%
Earnings CAGR 3Y	8%
Sales CAGR 3Y	8%
FCF CAGR 3Y	16%
Equity CAGR 3Y	10%
Market Cap	$121.51B
Revenue	$19.52B
Dividend Yield	2%
Payout Ratio	58%
Assets	$49.51B
Total Debt	$3.98B
Cash	$2.79B
Shares Outstanding	407.7M
EV	122.71B
Earnings Score	95%
Moat Score	95%
Safety Score	94%
Final Score	95%
Working Capital	538.8M
Current Ratio	1.01
Gross Profit	$8.93B
Shares Growth 3y	-1%
Equity Growth QoQ	18%
Equity Growth YoY	54%

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.

2024
- 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
2022
- 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.

Years

Calculation mode

= $94B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$4.4B	$4.9B	$5.4B	$6B	$6.7B	$7.4B	$8.2B	$9.1B	$10B	$11B	$12B	$125B
DCF		$4.5B	$4.5B	$4.5B	$4.6B	$4.6B	$4.7B	$4.7B	$4.7B	$4.8B	$4.8B	$48B
Value	$94B

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.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Net Margins	13%	13%	14%	12%	16%	17%	17%	18%	19%	20%	20%
ROA	-	5%	7%	6%	7%	8%	7%	6%	9%	9%	10%
ROE	-	33%	35%	34%	42%	43%	46%	91%	97%	83%	72%

Good Net Margins (19.79%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

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.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Debt over FCF	-	1.19	1.07	0.87	0.79	0.7	1.02	1.02	0.75	0.76	0.9
Debt over Equity	0	0.45	0.4	0.42	0.37	0.35	0.53	0.93	0.85	0.66	0.74
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Good Debt/FCF ratio (0.9)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.74)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

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.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	7%	6%	8%	6%	3%	3%	10%	9%	7%	7%
Earnings YoY growth	-	3%	16%	-6%	41%	8%	5%	13%	16%	10%	11%
Equity YoY growth	-	-7%	11%	-5%	14%	7%	-1%	-43%	9%	30%	-8%
FCF YoY growth	-	-3%	11%	22%	9%	13%	2%	0%	37%	-1%	10%