ADP (ADP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ADP - FR0010340141 - Common Stock
110.2 EUR
-4.4 (-3.84%)
Taking everything into account, ADP scores 4 out of 10 in our fundamental rating. ADP was compared to 13 industry peers in the Transportation Infrastructure industry. ADP has a medium profitability rating, but doesn't score so well on its financial health evaluation. ADP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- ADP had positive earnings in the past year.
- ADP had a positive operating cash flow in the past year.
- In multiple years ADP reported negative net income over the last 5 years.
- ADP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ADP (0.46%) is worse than 61.54% of its industry peers.
- ADP has a worse Return On Equity (2.29%) than 61.54% of its industry peers.
- With a Return On Invested Capital value of 4.78%, ADP perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
- ADP had an Average Return On Invested Capital over the past 3 years of 5.03%. This is below the industry average of 8.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 2.29% | ||
| ROIC | 4.78% |
ROA(3y)2.55%
ROA(5y)0%
ROE(3y)11.68%
ROE(5y)-0.81%
ROIC(3y)5.03%
ROIC(5y)N/A
1.3 Margins
- ADP has a Profit Margin (1.45%) which is in line with its industry peers.
- ADP's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 17.92%, ADP is doing good in the industry, outperforming 61.54% of the companies in the same industry.
- In the last couple of years the Operating Margin of ADP has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 85.41%, ADP is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
- ADP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.92% | ||
| PM (TTM) | 1.45% | ||
| GM | 85.41% |
OM growth 3Y141.84%
OM growth 5Y-0.19%
PM growth 3YN/A
PM growth 5Y-14.99%
GM growth 3Y-0.45%
GM growth 5Y-0.89%
2. Health
2.1 Basic Checks
- ADP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ADP has about the same amount of shares outstanding.
- The number of shares outstanding for ADP has been reduced compared to 5 years ago.
- ADP has a worse debt/assets ratio than last year.
2.2 Solvency
- ADP has an Altman-Z score of 1.20. This is a bad value and indicates that ADP is not financially healthy and even has some risk of bankruptcy.
- ADP has a worse Altman-Z score (1.20) than 61.54% of its industry peers.
- The Debt to FCF ratio of ADP is 17.81, which is on the high side as it means it would take ADP, 17.81 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ADP (17.81) is comparable to the rest of the industry.
- A Debt/Equity ratio of 2.32 is on the high side and indicates that ADP has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.32, ADP is doing worse than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 17.81 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.91
WACC5.25%
2.3 Liquidity
- ADP has a Current Ratio of 1.12. This is a normal value and indicates that ADP is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of ADP (1.12) is comparable to the rest of the industry.
- A Quick Ratio of 1.08 indicates that ADP should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.08, ADP is in line with its industry, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
- ADP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -74.00%.
- ADP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.33% yearly.
- The Revenue has grown by 10.23% in the past year. This is quite good.
- Measured over the past years, ADP shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
EPS 1Y (TTM)-74%
EPS 3YN/A
EPS 5Y-10.33%
EPS Q2Q%-40.63%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%9.56%
3.2 Future
- Based on estimates for the next years, ADP will show a very strong growth in Earnings Per Share. The EPS will grow by 20.25% on average per year.
- ADP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.74% yearly.
EPS Next Y44.7%
EPS Next 2Y39.85%
EPS Next 3Y32.11%
EPS Next 5Y20.25%
Revenue Next Year10.58%
Revenue Next 2Y7.55%
Revenue Next 3Y6.38%
Revenue Next 5Y5.74%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 54.55 indicates a quite expensive valuation of ADP.
- Based on the Price/Earnings ratio, ADP is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, ADP is valued quite expensively.
- A Price/Forward Earnings ratio of 16.33 indicates a correct valuation of ADP.
- ADP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADP is cheaper than 76.92% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ADP to the average of the S&P500 Index (24.04), we can say ADP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.55 | ||
| Fwd PE | 16.33 |
4.2 Price Multiples
- ADP's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ADP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.65 | ||
| EV/EBITDA | 8.96 |
4.3 Compensation for Growth
- ADP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as ADP's earnings are expected to grow with 32.11% in the coming years.
PEG (NY)1.22
PEG (5Y)N/A
EPS Next 2Y39.85%
EPS Next 3Y32.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.55%, ADP has a reasonable but not impressive dividend return.
- ADP's Dividend Yield is slightly below the industry average, which is at 5.17.
- Compared to an average S&P500 Dividend Yield of 1.92, ADP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
5.2 History
- The dividend of ADP is nicely growing with an annual growth rate of 7.94%!
Dividend Growth(5Y)7.94%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 318.28% of the earnings are spent on dividend by ADP. This is not a sustainable payout ratio.
- ADP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP318.28%
EPS Next 2Y39.85%
EPS Next 3Y32.11%
EPA:ADP (1/13/2026, 7:00:00 PM)
110.2
-4.4 (-3.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)10-23 2025-10-23
Earnings (Next)02-18 2026-02-18/amc
Inst Owners29.85%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap10.91B
Revenue(TTM)6.43B
Net Income(TTM)93.00M
Analysts66
Price Target127.48 (15.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend3.82
Dividend Growth(5Y)7.94%
DP318.28%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.91%
PT rev (3m)1.52%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.31%
EPS NY rev (3m)-3.02%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.55 | ||
| Fwd PE | 16.33 | ||
| P/S | 1.69 | ||
| P/FCF | 19.65 | ||
| P/OCF | 6.61 | ||
| P/B | 2.68 | ||
| P/tB | 20.89 | ||
| EV/EBITDA | 8.96 |
EPS(TTM)2.02
EY1.83%
EPS(NY)6.75
Fwd EY6.12%
FCF(TTM)5.61
FCFY5.09%
OCF(TTM)16.68
OCFY15.14%
SpS65.02
BVpS41.11
TBVpS5.27
PEG (NY)1.22
PEG (5Y)N/A
Graham Number43.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 2.29% | ||
| ROCE | 6.9% | ||
| ROIC | 4.78% | ||
| ROICexc | 5.33% | ||
| ROICexgc | 6.99% | ||
| OM | 17.92% | ||
| PM (TTM) | 1.45% | ||
| GM | 85.41% | ||
| FCFM | 8.63% |
ROA(3y)2.55%
ROA(5y)0%
ROE(3y)11.68%
ROE(5y)-0.81%
ROIC(3y)5.03%
ROIC(5y)N/A
ROICexc(3y)5.9%
ROICexc(5y)N/A
ROICexgc(3y)7.62%
ROICexgc(5y)N/A
ROCE(3y)7.27%
ROCE(5y)N/A
ROICexgc growth 3Y203.71%
ROICexgc growth 5Y0.09%
ROICexc growth 3Y204.79%
ROICexc growth 5Y1.53%
OM growth 3Y141.84%
OM growth 5Y-0.19%
PM growth 3YN/A
PM growth 5Y-14.99%
GM growth 3Y-0.45%
GM growth 5Y-0.89%
F-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 17.81 | ||
| Debt/EBITDA | 4.45 | ||
| Cap/Depr | 112.64% | ||
| Cap/Sales | 17.03% | ||
| Interest Coverage | 3.91 | ||
| Cash Conversion | 77.66% | ||
| Profit Quality | 596.77% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.2 |
F-Score6
WACC5.25%
ROIC/WACC0.91
Cap/Depr(3y)128.5%
Cap/Depr(5y)105.29%
Cap/Sales(3y)16.96%
Cap/Sales(5y)21.91%
Profit Quality(3y)128.36%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-74%
EPS 3YN/A
EPS 5Y-10.33%
EPS Q2Q%-40.63%
EPS Next Y44.7%
EPS Next 2Y39.85%
EPS Next 3Y32.11%
EPS Next 5Y20.25%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%9.56%
Revenue Next Year10.58%
Revenue Next 2Y7.55%
Revenue Next 3Y6.38%
Revenue Next 5Y5.74%
EBIT growth 1Y-17.23%
EBIT growth 3Y215.37%
EBIT growth 5Y5.35%
EBIT Next Year97.02%
EBIT Next 3Y30.02%
EBIT Next 5Y19.22%
FCF growth 1Y-33.53%
FCF growth 3Y23.67%
FCF growth 5Y4.44%
OCF growth 1Y2.36%
OCF growth 3Y26.27%
OCF growth 5Y-0.38%
ADP / ADP.PA FAQ
Can you provide the ChartMill fundamental rating for ADP?
ChartMill assigns a fundamental rating of 4 / 10 to ADP.PA.
What is the valuation status for ADP stock?
ChartMill assigns a valuation rating of 4 / 10 to ADP (ADP.PA). This can be considered as Fairly Valued.
What is the profitability of ADP stock?
ADP (ADP.PA) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for ADP stock?
The Earnings per Share (EPS) of ADP (ADP.PA) is expected to grow by 44.7% in the next year.
Is the dividend of ADP sustainable?
The dividend rating of ADP (ADP.PA) is 4 / 10 and the dividend payout ratio is 318.28%.