Automatic Data Processing
Services-Computer Processing & Data Preparation
ADP is a global, cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides human resources outsourcing services, including PEO offerings, enabling clients to reduce HR overhead.
It is a $107B technology company. Revenue grew 6.7% over the last year, and it keeps 20¢ of every dollar of sales as profit. It trades at 24.3× earnings — in the cheapest third of its own history.
- Website
- adp.com
- Location
- Roseland, NJ
- Employees
- 67 000
- Sector
- Technology
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong profitability, quality and moat.
Valuation69
- P/E vs own history12th pct · 25/25
- FCF yield4.9% · 12/25
- P/S4.9x · 20/25
- EV/EBITDA17.0x · 12/25
Growth64
- Revenue CAGR7.4% · 12/25
- Net income CAGR10.6% · 20/25
- EPS CAGR ~5Y12.5% · 20/25
- Fwd implied growth12.8% · 12/25
Profitability75
- ROICn/a · 0/25
- ROE70.2% · 25/25
- Net margin20.1% · 25/25
- Operating margin26.3% · 25/25
Health55
- Altman Z2.44 · 18/25
- Current ratio1.05 · 12/25
- Interest coverage75.4x · 25/25
- Net cash / debtn/a · 0/25
Quality92
- Piotroski F7/9 · 22/25
- Beneish M-2.27 · 20/25
- FCF conversion122% · 25/25
- Margin stabilityσ 2.9% · 25/25
Moat95
- ROIC >12% years10/10 yrs · 25/25
- Median gross margin42.6% · 20/25
- FCF-positive years11/11 yrs · 25/25
- Worst-year net marginworst 12.2% · 25/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2026FinancialBest year on record$4.41B net income
- FY2016FinancialProfitable every year on record11 consecutive profitable years in our data
- FY2016FinancialRevenue already above $10B$11.7B in first reported year
- FY2016FinancialPositive free cash flow every year since11-year streak
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (46.5%)
- Strongly profitable — 20.1% net margin
- Strong cash conversion — FCF is 23.9% of revenue
- Could repay net debt from ~0.2 years of free cash flow
- Interest covered 75.4× by operating earnings
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+6.7% YoY
- Profitable — makes more than it spends$4.41B TTM
- Profit growing — earnings are higher than last year+10.1% YoY
- Generates cash — cash left after running and investing$5.24B TTM
- Debt under control — could handle its obligationscurrent ratio 1.05
- Established company — not a micro-cap — lower blow-up risk$107B market cap
- Not printing shares — share count not ballooning — you keep your slice-5.8% shares over ~5y
- Proven track record — years of profitability behind it11/11 profitable years
- Financially stable — balance sheet not near distressAltman Z 2.4 — grey
- Pays a dividend — returns cash to shareholdersyield 2.45%
- Valuation not extreme — price not wildly above earningsP/E 24.3
Peer comparisonAutomatic Data Processing vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| ADP this company | $107.3B | 24.3 | +6.7% | 20.1% | Strong |
| NVDA Nvidia Corp | $5.5T | 28.6 | +83.4% | 63.7% | Mixed |
| AAPL Apple Inc. | $4.9T | 38.1 | +14.2% | 27.6% | Strong |
| GOOGL Alphabet Inc. | $4.3T | 17.6 | +20.1% | 54.8% | Mixed |
| MSFT Microsoft Corp | $4.0T | 29.7 | +17.8% | 40.3% | Strong |
| SPCX Space Exploration Technologies Corp. | $2.1T | — | +33.2% | -34.0% | Strained |
| META Meta Platforms, Inc. | $1.8T | 26.9 | +27.7% | 29.8% | Mixed |
Head-to-head: ADP vs NVDA · ADP vs AAPL · ADP vs GOOGL
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2026. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/ADP
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of ADP on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $270.88 · market cap $107B.