Automatic Data Processing (ADP) processes payroll and provides HR-related services to businesses of all sizes, from small companies to large enterprises. Customers pay for software and services covering payroll processing, tax compliance, benefits administration, talent management, and retirement plans. ADP also offers a professional employer organization (PEO) model, where it co-employs clients' workers and handles HR functions on their behalf. Revenue comes primarily from service fees and, secondarily, from interest earned on client funds held between collection and remittance. ADP serves over 1.1 million clients and processes payroll for more than 42 million workers across 140 countries.
Employees67,000IPOJan 31, 1968SIC7372HQOne ADP Boulevard, Roseland, NJ, USA, 07068
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Financials
Profitability
Metric
Current
Margins
Gross Margin
46.4%
Operating Margin
26.3%
EBITDA Margin
30.9%
Net Margin
20.1%
OCF Margin
24.8%
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)
25.25
Forward P/E
18.46
P/E ex-NRI
24.85
Shiller P/E (CAPE)
33.83
Cash Flow Multiples
P/FCF
23.29
P/OCF
20.44
P/Owner Earnings
31.41
FCF Yield
4.40%
Enterprise Value Multiples
EV / EBIT
17.69
EV / Forward EBIT
17.53
EV / EBITDA
16.16
EV / Forward EBITDA
16.18
EV / Revenue
4.99
EV / Forward Revenue
4.75
Asset / Sales
P/S
5.08
P/B
18.22
P/Tangible Book
100.54
Growth-Adjusted
PEG
1.90
Capital Returns
Metric
Current
Dividends
Dividend Yield (TTM)
2.94%
Forward Dividend Yield
3.01%
3Y Dividend Growth
11.5%
Payout Ratio
0.60
5Y Yield on Cost
5.39%
Buybacks & Dilution
3Y Buyback Ratio
1.20%
Combined
Shareholder Yield
5.00%
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
2.47
Split History
Date
Split
No split history found.
Ex-date
Amount
Pay date
2026-09-11
$1.7
2026-10-01
2026-06-12
$1.7
2026-07-01
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
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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
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5-Step DuPont Analysis
ROE %
72.23%
×
×
Net Margin %
20.11%
×
×
Operating Margin %
26.33%
Operating Income
$5.78B
÷
Revenue
$21.95B
×
Tax Burden
0.7702
Net Income
$4.41B
÷
Pretax Income
$5.73B
×
Interest Burden
0.9915
Pretax Income
$5.73B
÷
Operating Income
$5.78B
×
Asset Turnover
0.38
÷
Revenue
$21.95B
÷
Average Total Assets
$58.28B
Begin Total Assets
$53.37B
End Total Assets
$63.19B
×
Equity Multiplier
9.54
÷
Avg Total Assets
$58.28B
÷
Avg Stockholders Equity
$6.11B
Begin Equity
$6.19B
End Equity
$6.03B