Skip to main content
GoodMoatv1.1
Sign in
ADP logo

ADP

CompareEarnings: May 31, 2026

Automatic Data Processing Inc

Exchange: NASDAQSector: IndustrialsIndustry: Staffing & Employment Services

Automatic Data Processing, Inc. (ADP) is a provider of business outsourcing solutions. ADP offers a wide range of human resource, payroll, tax and benefits administration solutions from a single source. ADP is also a provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world. The Company's operating segments include: Employer Services, professional employer organization (PEO) Services, and Dealer Services. In October 2011, the Company acquired WALLACE - The Training Tax Credit Company. In January 2012, the Company acquired Indian payroll business of Randstad Holding NV. In April 2012, it acquired the human resource solutions subsidiary of SHPS, Inc. In June 2013, Automatic Data Processing, Inc. announced that it has acquired Payroll S.A.

Did you know?

Trading 34% below its estimated fair value of $273.50.

Current Price

$204.01

+1.36%

GoodMoat Value

$273.50

34.1% undervalued
Profile
Valuation (TTM)
Market Cap$82.51B
P/E19.48
EV$86.72B
P/B13.33
Shares Out404.45M
P/Sales3.89
Revenue$21.21B
EV/EBITDA12.91

Automatic Data Processing Inc (ADP) Financial Statements

GoodMoat Analysis

Based on data as of March 26, 2026

ADP demonstrates exceptionally high profitability and strong cash generation, with an ROE of 68.4% and a 5.4% FCF yield, indicating a high-quality, shareholder-friendly operation. However, its revenue growth is modest at 6.2% YoY, and its debt-to-equity ratio of 1.47 warrants attention, suggesting a less conservative balance sheet structure.

Read full analysis
From a quality perspective, ADP exhibits several strong indicators. Its profitability metrics are outstanding, with a 20% profit margin and a 26.3% operating margin. Most notably, its Return on Equity of 68.4% far exceeds the framework's high-quality threshold of 15-20%, indicating superb capital efficiency. Free cash flow generation is robust, with a 5.4% FCF yield, which is a favourable sign for shareholder returns and reinvestment. The company is also GAAP profitable. However, the balance sheet shows a debt-to-equity ratio of 1.47, which is above the framework's preference for low or zero debt (Debt/EBITDA < 1.0x), indicating a reliance on leverage. Revenue growth of 6.2% YoY is consistent but modest, falling short of the double-digit, sustainable growth often associated with high-quality compounders. This places it in a 'Neutral' rating for revenue growth within the framework. The growth trajectory is stable but not accelerating, suggesting a mature, cash-generative business rather than a high-growth one. Overall, the financial health is characterized by elite profitability and cash conversion, balanced by moderate growth and a leveraged balance sheet. Analysis based on data as of 2024-05-15.

ADP Financial Data

EBITDA$6.54B
Revenue (TTM)$21.21B
Gross Profit (TTM)$9.77B
Gross Margin—
Operating Margin26.32%
ROE68.44%
ROA7.94%
Debt/Equity1.47
Current Ratio1.05
FCF$4.40B
FCF Yield5.34%
Piotroski F-Score—
Rev/Share (TTM)$52.45
50-Day MA$219.06
200-Day MA$263.61
Shares Outstanding0.40B

ADP Computed Insights

FCF$4.40B
FCF Growth Rate12.87%
EPS Growth (CAGR)12.87%
WACC10.00%

Income Statement

Balance Sheet

Cash Flow Statement

ADP Financial Statements & Data

Automatic Data Processing Inc (ADP) financial data including income statement, balance sheet, and cash flow statement. This page provides a comprehensive view of Automatic Data Processing Inc's financial performance and position as a Industrials company.

Trailing twelve-month (TTM) revenue is $21.21B. Gross profit (TTM) is $9.77B. EBITDA is $6.54B. Earnings per share (EPS) is $9.98. The P/E ratio is 19.48. Market capitalization is $82.51B.

Free cash flow (FCF) is $4.40B. FCF growth rate is 12.87%. EPS growth CAGR is 12.87%. Weighted average cost of capital (WACC) is 10.00%.

Historical revenue data covers 7 years from FY19 to FY25. Net income history spans 7 years. Free cash flow and capital expenditure data spans 7 years. GoodMoat displays interactive charts for revenue, net income, FCF vs CAPEX, and cash-to-debt ratios to help investors identify financial trends.

Use Automatic Data Processing Inc's financial data to assess the company's earnings quality, balance sheet health, and cash generation. Compare key metrics across periods to identify trends before making investment decisions with GoodMoat's valuation tools.