ADP
Automatic Data Processing
$214.60
▼ 1.7%Updated Today 7:15 PM ET
▼ Down 28.8% over the last 12 months
Market Cap
$87.31B
P/E
19.95x
Forward P/E (est.)
18.17x
ROE
68.7%
Revenue Growth
6.9%
EPS Growth
9.8%
Profit Margin
20.1%
FCF Yield
4.4%
Debt / Equity
1.41x
ROIC
—
Interest Coverage
—
Current Ratio
1.04x
Dividend Yield
3.0%
Implied Growth (rev. DCF)
—
Rating Score
61/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ADP's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ADP trades near $214.60, around its 50-day average ($213.89) and 200-day average ($243.00). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 46 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. ADP's is $6.24 (~2.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month ADP found buyers near $215.30 (support) and sellers near $237.11 (resistance); its 52-week range is $188.16–$315.98. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 2.4× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Automatic Data Processing (ADP) is a large-cap company in the Human Resource & Employment Services industry, part of the Industrials sector of the S&P 500, with a market value around $87.31B.
In its latest reported year it generated about $20.56B in revenue and $4.08B in net profit.
Our model rates ADP Favorable (61/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
8.2%
Revenue moved from $15.01B in 2021 to $20.56B in 2025, a 8.2% compound annual growth rate. The most recent year grew a steady 6.9% year over year. Slower, mature growth is common for established businesses.
Gross Margin
46.4%
Operating Margin
26.5%
Net Margin
19.8%
ROE
68.7%
Automatic Data Processing keeps about 20.1% of each sales dollar as net profit, with a 46.4% gross margin and 26.5% operating margin. Return on equity is 68.7%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$35.50M
Net Debt
-$3.19B
Net cash position
Net Debt / EBITDA
—
Debt / Equity
1.41x
Leverage: debt-to-equity is 1.4x, with a current ratio of 1.0x. That is a moderate, manageable debt load for most businesses. It carries roughly $35.50M of total debt against $3.23B of cash.
Operating CF
$4.94B
Free Cash Flow
$4.94B
FCF Margin
24.0%
In the latest year Automatic Data Processing produced about $4.94B of operating cash flow and $4.94B of free cash flow after capital spending. That is a free-cash-flow yield of about 4.4% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
19.95x
P/S
4.29x
P/B
19.87x
EV / EBITDA
—
ADP trades at 20.0x trailing earnings (about 18.2x on estimated forward earnings), 4.3x sales, and 19.9x book value. That is a fairly typical valuation for a profitable company.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How ADP stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
In the Industrials sector (80 S&P 500 companies), ADP ranks #16 of 80 by our overall rating. It trades at a discount versus the sector on earnings (20x P/E vs. 30x median) with a higher return on equity (68.7% vs. 24.7%) and faster revenue growth (6.9% vs. 5.0%).
P/E vs sector
20x
median 30x
ROE vs sector
68.7%
median 24.7%
Growth vs sector
6.9%
median 5.0%
Sector rank
#16
of 80 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 80 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$173.14 – $288.57
vs. $214.60 today · expected CAGR -4% – 6%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $22.00B | $23.54B | $25.19B | $26.95B | $28.84B |
| Net income | $4.40B | $4.71B | $5.04B | $5.39B | $5.77B |
| EPS | $11.01 | $11.78 | $12.60 | $13.48 | $14.43 |
| Share price (low) | $132.09 | $141.33 | $151.23 | $161.81 | $173.14 |
| Share price (high) | $220.15 | $235.56 | $252.05 | $269.69 | $288.57 |
| CAGR (low–high) | -38% / 3% | -19% / 5% | -11% / 6% | -7% / 6% | -4% / 6% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for ADP:
- High net margins (20.1%) point to pricing power or efficiency.
- Strong return on equity (68.7%) shows capital is put to work well.
- Healthy free-cash-flow yield (~4.4%) funds buybacks and dividends.
- Pays a 3.0% dividend on top of any price gains.
- Our model's overall read is Favorable (61/100).
The case against ADP:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Balance-sheet risk — debt/equity of 1.4x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Automatic Data Processing is a large-cap industrials business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 20.0x earnings, which our model scores Favorable (61/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.