Automatic Data Processing (ADP)
Industrials · $106B market cap · SEC CIK 0000008670
fundamentals score out of 100
Next reports on Oct 27, 2026, with analysts expecting $2.80 in earnings per share.
The case for ADP
- 20% of revenue drops through to net profit.
- Pays a modest 2.4% dividend.
The case against
- Weakest against its peers: price/sales of 4.8× is higher than 72% of Industrials companies.
- Its weakest area is value (55/100): 24.1× earnings, 4.8× sales.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 55 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 55 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 62 |
| Momentumhow the price has behaved lately | 67 |
| Stabilityhow violently it moves, what it owes and what it pays you | 82 |
- Equity is a sliver of assets, so return on assets stands in for return on equity, and price-to-book and debt-to-equity are left out.
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 24.1× |
|---|---|
| Price / book | n/m (equity a sliver of assets) |
| Price / sales | 4.8× |
| Revenue growth (YoY) | +6.7% |
| EPS growth (YoY) | +9.6% |
| Gross margin | 47% |
| Operating margin | 26% |
| Net margin | 20% |
| Return on assets | 6.6% (ROE not meaningful: equity a sliver of assets) |
| Debt / equity | n/m (equity a sliver of assets) |
| Current ratio | 1.05 |
| Dividend yield | 2.43% |
| Beta | 0.81 |
| 52-week range | $188.16 – $294.46 |
| Position in that range | 77% of the way up |
| 3-month return | +23.6% |
| 1-year return | -7.6% |
Five years of financials, as filed
Pulled from Automatic Data Processing's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $20.6B | $19.2B | $18.0B | $16.5B | $15.0B |
| Net income | $4.1B | $3.8B | $3.4B | $2.9B | $2.6B |
| Operating cash flow | $4.9B | $4.2B | $4.2B | $3.1B | $3.1B |
| Total assets | $84.6B | $64.1B | $57.1B | $54.5B | $59.1B |
| Total liabilities | $78.2B | $59.0B | $52.7B | $51.5B | $54.1B |
| Shareholder equity | $6.4B | $5.1B | $4.3B | $3.0B | $5.0B |
| Cash | $2.4B | $2.2B | $1.6B | $1.3B | $1.7B |
| Long-term debt | $4.0B | $3.0B | $3.0B | $3.0B | $3.0B |
| Net margin | 19.8% | 19.5% | 18.9% | 17.9% | 17.3% |
| Diluted shares | 409M | 412M | 416M | 421M | 428M |
Share count is down 4.5% over 4 years. Buybacks have been shrinking the pie.
What Automatic Data Processing says it does
CORPORATE BACKGROUND General In 1949, our founders established ADP with a simple, innovative idea: help clients focus on their business by solving their payroll challenges. In the 77 years since, we have led the Human Capital Management ("HCM") industry in innovation. We were the first in HCM to deliver automation, move to the cloud, provide a mobile app, and create an online marketplace. Today, we continue that legacy with artificial intelligence ("AI"), building AI into the very core of how we orchestrate, govern and execute HR and pay processes for real-world outcomes. As AI adds new layers of complexity to managing the workforce infrastructure that makes business possible, our clients need a partner they can trust. As the trusted, service-driven, and AI-enabled partner for HCM, we deliver services powered by deep domain expertise, workforce data, and global scale to help organizations manage their most critical workforce functions…
Risk factors ADP lists in its 10-K
- Earnings Before Income Taxes ("EBIT") and Adjusted EBIT
- Adjusted Provision for Income Taxes
- Net Earnings and Diluted EPS, Unadjusted and Adjusted
- Note: Numbers may not foot due to rounding
- Operating, Investing and Financing Cash Flows
- Capital Resources and Client Fund Obligations
- Quantitative and Qualitative Disclosures about Market Risk
- Deferred Costs - Assets Recognized from the Costs to Obtain and Fulfill Contracts
- Opinion on the Financial Statements
- Internal Control - Integrated Framework (2013)
- Goodwill – Employer Services Reportable Segment— Refer to Notes 1 and 8 to the financial statements
- How the Critical Audit Matter Was Addressed in the Audit
- Client Funds Obligations - Refer to Note 5 to the financial statements
- Automatic Data Processing, Inc. and Subsidiaries