Automatic Data Processing, Inc.

$ 218.41 -0.16 %

Automatic Data Processing, Inc. (ADP) is a global provider of cloud-based solutions designed for human capital management (HCM). The company organizes its operations into two primary segments: Employer Services and Professional Employer Organization (PEO). Through its Employer Services division, ADP delivers strategic, cloud-powered platforms and comprehensive human resources (HR) outsourcing. This encompasses a wide array of services such as payroll processing, benefits administration, talent acquisition and management, general HR and workforce management, insurance, retirement planning, and regulatory compliance, often integrated into holistic HCM solutions. Conversely, the Professional Employer Organization (PEO) segment specializes in offering HR outsourcing to small and mid-sized businesses, leveraging a co-employment framework. This segment's offerings span robust benefits packages, regulatory protection and compliance, talent engagement strategies, specialized HR expertise, all-encompassing outsourcing, and even recruitment process outsourcing. Established in 1949, ADP maintains its corporate headquarters in Roseland, New Jersey.

CEO: Maria Black - https://www.adp.com

Price objectif

$243.63 11.55 %

Recommandation

Hold

DCF

$ 353.89

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ADP vs S&P500

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Quick ratio

1.04

suggests a healthy liquidity position, showing that the company can likely meet its short-term obligations.

P/E ratio

20.37

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

10.72

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

68.69 %

is generally considered excellent, indicating that the company is generating strong profits with its equity.

ROIC

25.53 %

generates a return higher than the cost of its capital, thereby creating value for its investors.

WACC

7.82

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

0.68

indicates that the company uses more equity than debt, suggesting prudent management.

Free cash flow per share

12.84

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

59.12 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
6 indicates moderate financial health
Altman score
2.16 indicates an uncertain financial situation
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Cash / Debt

Cash Ratio
0.06 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.07 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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