(ADP) Automatic Data Processing - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US0530151036

ADP: Payroll, HR, Benefits, Compliance, Outsourcing, Recruitment

Automatic Data Processing Inc (NASDAQ:ADP) stands as a cornerstone in the realm of cloud-based human capital management (HCM) solutions, serving organizations across the globe. With a legacy spanning over seven decades since its founding in 1949, ADP has carved a niche for itself in streamlining payroll, HR, and tax compliance through innovative solutions.

The companys operational framework is divided into two distinct segments: Employer Services and Professional Employer Organization (PEO). The Employer Services division caters to a diverse clientele, offering robust cloud-based platforms designed for strategic HR outsourcing. This segment is renowned for its array of solutions, including Run Powered by ADP, which simplifies payroll and HR management for small businesses, and ADP Workforce Now, a comprehensive HCM solution tailored for mid-sized to large enterprises. Additionally, ADP Vantage HCM provides an integrated suite for HR management, benefits administration, and talent management, ensuring a seamless experience for its users.

The PEO segment, operating under the ADP TotalSource banner, adopts a co-employment model to deliver HR and employment administration outsourcing solutions. This model not only encompasses employee benefits and compliance but also extends to talent engagement, recruitment process outsourcing, and comprehensive outsourcing services, thereby offering a holistic approach to HR management.

Headquartered in Roseland, New Jersey, ADP is a stalwart in the industry, with a market capitalization exceeding $125 billion. Investors and fund managers will note its current P/E ratio of 32.24, with a forward P/E of 30.96, alongside a P/B ratio of 24.76 and P/S ratio of 6.44, indicating its valuation metrics. For more detailed insights, visit their official website at https://www.adp.com.

Ticker Symbol: ADP Exchange: NASDAQ Type: Common Stock Country: United States GICS Sub Industry: Application Software Market Cap: $125,710.84B P/E Ratio: 32.24 Forward P/E: 30.96 P/B Ratio: 24.76 P/S Ratio: 6.44

Additional Sources for ADP Stock

ADP Stock Overview

Market Cap in USD 126,110m
Sector Technology
Industry Software - Application
GiC Sub-Industry Application Software
IPO / Inception 1983-04-06

ADP Stock Ratings

Growth 5y 77.6%
Fundamental 74.0%
Dividend 69.9%
Rel. Strength Industry 5.38
Analysts 3.26/5
Fair Price Momentum 320.78 USD
Fair Price DCF 153.41 USD

ADP Dividends

Dividend Yield 12m 2.52%
Yield on Cost 5y 4.64%
Annual Growth 5y 9.42%
Payout Consistency 99.7%

ADP Growth Ratios

Growth Correlation 3m 34.6%
Growth Correlation 12m 89.4%
Growth Correlation 5y 92.8%
CAGR 5y 14.61%
CAGR/Max DD 5y 0.39
Sharpe Ratio 12m 1.23
Alpha 13.63
Beta 0.44
Volatility 16.01%
Current Volume 1600.3k
Average Volume 20d 1570.3k
What is the price of ADP stocks?
As of February 22, 2025, the stock is trading at USD 310.76 with a total of 1,600,348 shares traded.
Over the past week, the price has changed by +0.85%, over one month by +4.23%, over three months by +2.56% and over the past year by +25.07%.
Is Automatic Data Processing a good stock to buy?
Yes, based on ValueRay Fundamental Analyses, Automatic Data Processing (NASDAQ:ADP) is currently (February 2025) a good stock to buy. It has a ValueRay Fundamental Rating of 74.01 and therefor a positive outlook according to the companies health.
Based on ValueRays Analyses, Dividends and Discounted-Cash-Flow, the Fair Value of ADP as of February 2025 is 320.78. This means that ADP is currently overvalued and has a potential downside of 3.22%.
Is ADP a buy, sell or hold?
Automatic Data Processing has received a consensus analysts rating of 3.26. Therefor, it is recommend to hold ADP.
  • Strong Buy: 2
  • Buy: 2
  • Hold: 14
  • Sell: 1
  • Strong Sell: 0
What are the forecast for ADP stock price target?
According to ValueRays Forecast Model, ADP Automatic Data Processing will be worth about 365.6 in February 2026. The stock is currently trading at 310.76. This means that the stock has a potential upside of +17.65%.
Issuer Forecast Upside
Wallstreet Target Price 308.8 -0.6%
Analysts Target Price 296.9 -4.5%
ValueRay Target Price 365.6 17.6%