# Automatic Data Processing (ADP) — Stock CV

Automatic Data Processing 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.

> 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.

## Identity

- **Ticker**: ADP
- **Sector**: Technology
- **Industry**: Services-Computer Processing & Data Preparation
- **Headquarters**: ROSELAND, NJ
- **Employees**: 67 000
- **Website**: https://www.adp.com
- **Market cap**: $107B
- **Last price**: $270.88
- **Financial profile**: Strong

## Vitals (TTM)

- **Revenue**: $21.9B
- **Net income**: $4.41B
- **Free cash flow**: $5.24B
- **P/E**: 24.3
- **Revenue growth (YoY)**: 6.7%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 69 |
| Growth | 64 |
| Profitability | 75 |
| Health | 55 |
| Quality | 92 |
| Moat | 95 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +6.7% YoY
- [x] Profitable — $4.41B TTM
- [x] Profit growing — +10.1% YoY
- [x] Generates cash — $5.24B TTM
- [ ] Debt under control — current ratio 1.05
- [x] Established company — $107B market cap
- [x] Not printing shares — -5.8% shares over ~5y
- [x] Proven track record — 11/11 profitable years
- [x] Financially stable — Altman Z 2.4 — grey
- [x] Pays a dividend — yield 2.45%
- [x] Valuation not extreme — P/E 24.3

## Experience (career milestones)

- **FY2026** — Best year on record: $4.41B net income
- **FY2016** — Profitable every year on record: 11 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $11.7B in first reported year
- **FY2016** — Positive free cash flow every year since: 11-year streak

## 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

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $16.5B | $2.95B | $2.93B |
| FY2023 | $18.0B | $3.41B | $4.00B |
| FY2024 | $19.2B | $3.75B | $3.95B |
| FY2025 | $20.6B | $4.08B | $4.77B |
| FY2026 | $21.9B | $4.41B | $5.24B |

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Source: https://stockcv.com/ADP — derived from company filings; may be delayed or incomplete. Information, not investment advice.