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
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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
Split History
Date
Split
No split history found.
Ex-date
Amount
Pay date
2026-03-13
$1.7
2026-04-01
2025-12-12
$1.7
2026-01-01
2025-09-12
$1.54
2025-10-01
2025-06-13
$1.54
2025-07-01
2025-03-14
$1.54
2025-04-01
2024-12-13
$1.54
2025-01-01
2024-09-13
$1.4
2024-10-01
2024-06-14
$1.4
2024-07-01
2024-03-07
$1.4
2024-04-01
2023-12-07
$1.4
2024-01-01
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View allDate
Transcript
Type
2026-07-29
Q4 2026 Automatic Data Processing Inc Earnings Call Transcript
Earnings Call
2026-05-28
Automatic Data Processing Inc at TD Cowen Technology, Media & Telecom Conference Transcript
Conference Presentations
2026-05-19
Automatic Data Processing Inc at JPMorgan Global Technology, Media and Communications Conference Transcript
Conference Presentations
2026-04-29
Q3 2026 Automatic Data Processing Inc Earnings Call Transcript
Earnings Call
2026-01-28
Q2 2026 Automatic Data Processing Inc Earnings Call Transcript
Earnings Call
2025-12-09
Automatic Data Processing Inc at Nasdaq London Investor Conference Transcript
Conference Presentations
2025-10-29
Q1 2026 Automatic Data Processing Inc Earnings Call Transcript
Earnings Call
2025-07-30
Q4 2025 Automatic Data Processing Inc Earnings Call Transcript
Earnings Call
2025-04-30
Q3 2025 Automatic Data Processing Inc Earnings Call Transcript
Earnings Call
2025-01-29
Q2 2025 Automatic Data Processing Inc Earnings Call Transcript
Earnings Call
10 of 68
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