ADP - Automatic Data Processing Inc Stock Analysis

Automatic Data Processing Inc (ADP) is a publicly traded company listed on the NASD. It operates in the Software - Application industry, part of the broader Technology sector. The company has a market capitalization of 91.09B, generates annual revenue of 21.21B, and reports net income of 4.24B. As of the latest data, the stock is trading at 226.24 USD.

From a valuation and risk perspective, the stock presents the following profile: The stock is moderately valued and aligns with market expectations for established companies. The PEG ratio is above 2, which could imply the stock is overvalued based on its growth outlook. The company maintains a healthy balance between debt and equity, which is typical for stable businesses. The stock offers a moderate dividend yield (2.87%), which may appeal to income-focused investors. The stock has average market volatility, aligning with general market movement.

Analyst recommendation stands at Hold (3.23), indicating current market sentiment. Institutional ownership is reported at 83.56%, reflecting confidence from large investors. Over the last 12 months, the stock has shown a performance of -25.20%, trading within a 52-week range of 203.26 - 329.93.

ADP - Automatic Data Processing Inc

226.24
Analyst Consensus
Hold 3.23
ADP – Analyst Rating Summary
Analyst Pie Chart
  • Strong Buy: 2
  • Buy: 5
  • Hold: 12
  • Sell: 2
  • Strong Sell: 1
  • Total Analysts:  22

Last update: 2026-03-08 04:28:12
Index: NDX, S&P 500 P/E: 21.74 EPS (ttm): 10.41 Insider Own: 0.15% Shs Outstand: 403.00M Perf Week: 5.54%
Market Cap: 91.09B Forward P/E: 18.86 EPS next Y: 12.00 Insider Trans: -10.93% Shs Float: 402.04M Perf Month: -3.59%
Income(ttm): 4.24B PEG: 2.06 EPS next Q: 3.29 Inst Own: 83.56% Short Float: 2.48% Perf Quarter: -13.06%
Revenue(ttm): 21.21B P/S: 4.29 EPS this Y: 9.57% Inst Trans: -0.79% Short Ratio: 3.25 Perf Half Y: -24.88%
Book/sh: 15.86 P/B: 14.26 EPS next Y: 9.40% ROA: 5.69% Short Interest: 9.98M Perf Year: -25.20%
Cash/sh: 6.14 P/C: 36.87 EPS next 5Y: 9.14% ROE: 73.84% 52W Range: 203.26 - 329.93 Perf YTD: -12.05%
Dividend Est.: 6.48 (2.87%) P/FCF: 19.82 EPS past 3/5Y: 12.54% 11.86% ROIC: 39.52% 52W High: 329.93 -31.43% Beta: 0.85
Dividend TTM: 6.32 (2.79%) Quick Ratio: 1.03 Sales past 3/5Y: 7.61% 7.10% Gross Margin: 50.43% 52W Low: 203.26 11.31% Perf 5Y: 26.92%
Dividend Ex-Date: Mar 13, 2026 Current Ratio: 1.03 EPS Y/Y TTM: 8.54% Oper. Margin: 26.27% RSI (14): 51.59 Volatility: 2.48% 2.81%
Employees: 67000 Debt/Eq: 0.70 Sales Y/Y TTM: 6.59% Profit Margin: 19.96% Recom: 2.90 Target Price: 275.15
Option/Short: Yes / Yes LT Debt/Eq: 0.68 EPS Q/Q: 11.43% Payout: 60.31% Rel Volume: 1.24 Prev Close: 222.70
Sales Surprise: 0.42% EPS Surprise: 1.78% Sales Q/Q: 6.16% Earnings: Jan 28 BMO Avg Volume: 3.07M Price: 226.24
SMA20: 4.27% SMA50: -5.66% SMA200: -18.60% Undervalued: 21.62%
Volume: 3,798,659 Change: 1.59%
Graham's revised valuation formula
Discounted cash flow (DCF) model
Margin of safety

About Automatic Data Processing Inc

Automatic Data Processing, Inc. engages in the provision of business outsourcing solutions in cloud-based human capital management. It operates through the following business segments: Employer Services, Professional Employer Organization Services, and Other. The Employer Services segment provides clients from single-employee small businesses to large enterprises offering human resources outsourcing and technology-based human capital management solutions and cloud-based platforms. The Professional Employer Organization Services segment offers small and mid-sized businesses a human resource outsourcing solution through a co-employment mode. The Other segment includes the certain corporate overhead charges and expenses that have not been allocated to the reportable segments. The company was founded by Henry Taub in 1949 and is headquartered in Roseland, NJ.

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