Automatic Data Processing Inc

LTS : 0HJI
USA·Technology·Software·Ordinary Shares
$286.11
+1.08 (+0.50%)Oct 16 close
Market Cap
$115.20B
Enterprise Value
$117.05B
P/E (TTM)
27.43
P/B
17.98
Net Cash / (Debt)
−$1.85B
52-Week Range
$188 — $288
5-Year Range
$188 — $327
Avg Volume (3M)
2.76K

ADP sells payroll processing and HR software to businesses of all sizes—from small businesses to large enterprises—across 140 countries. Its core products handle payroll, tax compliance, benefits administration, talent management, and retirement services. It also runs a Professional Employer Organization (PEO) business, where it co-employs clients' workers and manages HR functions on their behalf. ADP earns revenue through software subscription fees, per-employee-per-month service fees, and float income on client funds held before disbursement. It serves over 1.1 million clients and processes payroll for more than 42 million workers.

Employees67,000IPOJan 15, 2018SIC7372HQOne ADP Boulevard, Roseland, NJ, USA, 07068
to

Financials

Profitability

Metric
Current
Margins
Gross Margin
46.0%
Operating Margin
26.3%
EBITDA Margin
30.8%
Net Margin
20.0%
OCF Margin
22.3%
FCF Margin
19.7%
Returns on Capital
ROE
70.9%
ROA
6.8%
ROIC
7.6%
ROCE
51.9%
ROC (Greenblatt)
580.2%
3Y ROIIC
−9.1%
Consistency
Years Profitable / 10Y
10

Valuation

Metric
Current
Earnings Multiples
P/E (TTM)
27.43
Forward P/E
23.79
P/E ex-NRI
27.35
Shiller P/E (CAPE)
37.56
Cash Flow Multiples
P/FCF
27.74
P/OCF
24.50
P/Owner Earnings
40.80
FCF Yield
3.65%
Enterprise Value Multiples
EV / EBIT
19.66
EV / Forward EBIT
18.33
EV / EBITDA
17.91
EV / Forward EBITDA
16.64
EV / Revenue
5.52
EV / Forward Revenue
5.11
Asset / Sales
P/S
5.46
P/B
17.98
P/Tangible Book
77.87
Growth-Adjusted
PEG
2.06

Capital Returns

Metric
Current
Dividends
Dividend Yield (TTM)
2.21%
Forward Dividend Yield
2.38%
3Y Dividend Growth
14.1%
Payout Ratio
0.61
5Y Yield on Cost
5.19%
Buybacks & Dilution
3Y Buyback Ratio
0.90%
5Y Share Change
−5.5%
Combined
Shareholder Yield
1.89%

Balance Sheet

Metric
Current
Leverage
Debt / Equity
0.68
Gross Debt / EBITDA
0.66
Cash / Debt
0.57
Equity / Assets
0.08
Coverage
Interest Coverage
12.44
Short-Term Liquidity
Current Ratio
1.03
Quick Ratio
1.03
Cash Ratio
0.03
Composite Scores
Piotroski F-Score
6
Altman Z-Score
1.62

5-Step DuPont Analysis

ROE %
73.84%
Net Margin %
19.96%
Operating Margin %
26.28%
Operating Income
$5.57B
÷
Revenue
$21.21B
×
Tax Burden
0.7696
Net Income
$4.24B
÷
Pretax Income
$5.50B
×
Interest Burden
0.9873
Pretax Income
$5.50B
÷
Operating Income
$5.57B
×
Asset Turnover
0.29
Revenue
$21.21B
÷
Average Total Assets
$74.37B
Begin Total Assets
$64.10B
End Total Assets
$84.64B
×
Equity Multiplier
12.97
Avg Total Assets
$74.37B
÷
Avg Stockholders Equity
$5.74B
Begin Equity
$5.08B
End Equity
$6.39B