Automatic Data Processing Inc

STU : ADP
USA·Technology·Software·Ordinary Shares
€256.80
−2.10 (−0.89%)Oct 16 close
Market Cap
€103.40B
Enterprise Value
€104.30B
P/E (TTM)
27.15
P/B
19.59
Net Cash / (Debt)
−€903M
52-Week Range
€161 — €257
5-Year Range
€161 — €304
Avg Volume (3M)
238

Automatic Data Processing (ADP) runs payroll and HR administration software for businesses of all sizes — from small businesses to large enterprises — across 140 countries. Employers pay ADP to handle payroll processing, tax compliance, benefits administration, talent management, and retirement services. ADP also offers a Professional Employer Organization (PEO) service, where it co-employs client workers and takes on HR, benefits, and compliance responsibilities directly. Revenue comes from software subscription fees and per-employee-per-month service fees, plus ADP earns float income on client funds held temporarily before payroll is disbursed. With 1.1 million clients and payroll processed for over 42 million workers, scale is central to the business model.

Employees67,000IPOJan 31, 1968SIC7372HQOne ADP Boulevard, Roseland, NJ, USA, 07068
to

Financials (EUR)

Profitability

Metric
Current
Margins
Gross Margin
46.4%
Operating Margin
26.3%
EBITDA Margin
30.9%
Net Margin
20.1%
OCF Margin
24.9%
FCF Margin
21.8%
Returns on Capital
ROE
70.4%
ROA
6.9%
ROIC
7.8%
ROCE
49.4%
ROC (Greenblatt)
600.8%
3Y ROIIC
12.6%
Consistency
Years Profitable / 10Y
10

Valuation

Metric
Current
Earnings Multiples
P/E (TTM)
27.15
Forward P/E
24.16
P/E ex-NRI
26.71
Shiller P/E (CAPE)
36.38
Cash Flow Multiples
P/FCF
25.03
P/OCF
21.98
P/Owner Earnings
33.78
FCF Yield
4.04%
Enterprise Value Multiples
EV / EBIT
19.45
EV / Forward EBIT
19.06
EV / EBITDA
17.77
EV / Forward EBITDA
17.59
EV / Revenue
5.48
EV / Forward Revenue
5.16
Asset / Sales
P/S
5.46
P/B
19.59
P/Tangible Book
107.90
Growth-Adjusted
PEG
2.04

Capital Returns

Metric
Current
Dividends
Dividend Yield (TTM)
2.23%
Forward Dividend Yield
2.29%
3Y Dividend Growth
11.5%
Payout Ratio
0.60
5Y Yield on Cost
4.48%
Buybacks & Dilution
3Y Buyback Ratio
1.20%
Combined
Shareholder Yield
4.60%

Balance Sheet

Metric
Current
Leverage
Debt / Equity
0.87
Gross Debt / EBITDA
0.78
Cash / Debt
0.80
Equity / Assets
0.10
Coverage
Interest Coverage
12.58
Short-Term Liquidity
Current Ratio
1.05
Quick Ratio
1.05
Cash Ratio
0.08
Composite Scores
Piotroski F-Score
8
Altman Z-Score
2.44

5-Step DuPont Analysis

ROE %
71.62%
Net Margin %
20.11%
Operating Margin %
26.33%
Operating Income
€4.97B
÷
Revenue
€18.88B
×
Tax Burden
0.7703
Net Income
€3.80B
÷
Pretax Income
€4.93B
×
Interest Burden
0.9915
Pretax Income
€4.93B
÷
Operating Income
€4.97B
×
Asset Turnover
0.37
Revenue
€18.88B
÷
Average Total Assets
€50.56B
Begin Total Assets
€46.27B
End Total Assets
€54.85B
×
Equity Multiplier
9.54
Avg Total Assets
€50.56B
÷
Avg Stockholders Equity
€5.30B
Begin Equity
€5.37B
End Equity
€5.24B