ADP (ADP.PA) Stock Fundamental Analysis
Europe - EPA:ADP - FR0010340141 - Common Stock
121.7 EUR
-0.9 (-0.73%)
Overall ADP gets a fundamental rating of 3 out of 10. We evaluated ADP against 13 industry peers in the Transportation Infrastructure industry. ADP has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, ADP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ADP was profitable.
In the past year ADP had a positive cash flow from operations.
In multiple years ADP reported negative net income over the last 5 years.
Each year in the past 5 years ADP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ADP (0.46%) is worse than 76.92% of its industry peers.
With a Return On Equity value of 2.29%, ADP is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 4.78%, ADP is doing worse than 69.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ADP is below the industry average of 8.43%.
| 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
Looking at the Profit Margin, with a value of 1.45%, ADP is doing worse than 61.54% of the companies in the same industry.
ADP's Profit Margin has declined in the last couple of years.
The Operating Margin of ADP (17.92%) is better than 61.54% of its industry peers.
In the last couple of years the Operating Margin of ADP has remained more or less at the same level.
ADP's Gross Margin of 85.41% is fine compared to the rest of the industry. ADP outperforms 61.54% of its industry peers.
In the last couple of years the Gross Margin of ADP has remained more or less at the same level.
| 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.
Compared to 5 years ago, ADP has less shares outstanding
ADP has a worse debt/assets ratio than last year.
2.2 Solvency
ADP has an Altman-Z score of 1.25. 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 (1.25) than 76.92% 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.
ADP has a worse Debt to FCF ratio (17.81) than 69.23% of its industry peers.
A Debt/Equity ratio of 2.32 is on the high side and indicates that ADP has dependencies on debt financing.
With a Debt to Equity ratio value of 2.32, ADP is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 17.81 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.88
WACC5.44%
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 worse than 61.54% of its industry peers.
A Quick Ratio of 1.08 indicates that ADP should not have too much problems paying its short term obligations.
The Quick ratio of ADP (1.08) is worse than 61.54% of its industry peers.
| 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%.
The earnings per share for ADP have been decreasing by -10.33% on average. This is quite bad
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
ADP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.40% yearly.
The Revenue is expected to grow by 5.85% on average over the next years.
EPS Next Y44.22%
EPS Next 2Y41.74%
EPS Next 3Y32.85%
EPS Next 5Y22.4%
Revenue Next Year10.35%
Revenue Next 2Y7.51%
Revenue Next 3Y6.25%
Revenue Next 5Y5.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 60.25, ADP can be considered very expensive at the moment.
ADP's Price/Earnings ratio is a bit more expensive when compared to the industry. ADP is more expensive than 76.92% of the companies in the same industry.
ADP is valuated expensively when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.56, ADP is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADP indicates a somewhat cheap valuation: ADP is cheaper than 61.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, ADP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.25 | ||
| Fwd PE | 17.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADP is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
ADP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.7 | ||
| EV/EBITDA | 9.54 |
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 32.85% in the coming years.
PEG (NY)1.36
PEG (5Y)N/A
EPS Next 2Y41.74%
EPS Next 3Y32.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.52%, ADP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.40, ADP is paying slightly less dividend.
ADP's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
On average, the dividend of ADP grows each year by 7.94%, which is quite nice.
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 2Y41.74%
EPS Next 3Y32.85%
EPA:ADP (11/14/2025, 7:00:00 PM)
121.7
-0.9 (-0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)
Earnings (Next)
Inst Owners29.41%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap12.04B
Revenue(TTM)6.43B
Net Income(TTM)93.00M
Analysts72
Price Target126.34 (3.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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)0.61%
PT rev (3m)0.15%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.35%
EPS NY rev (3m)-19.47%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.25 | ||
| Fwd PE | 17.56 | ||
| P/S | 1.87 | ||
| P/FCF | 21.7 | ||
| P/OCF | 7.29 | ||
| P/B | 2.96 | ||
| P/tB | 23.07 | ||
| EV/EBITDA | 9.54 |
EPS(TTM)2.02
EY1.66%
EPS(NY)6.93
Fwd EY5.69%
FCF(TTM)5.61
FCFY4.61%
OCF(TTM)16.68
OCFY13.71%
SpS65.02
BVpS41.11
TBVpS5.27
PEG (NY)1.36
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 | 1.25 |
F-Score6
WACC5.44%
ROIC/WACC0.88
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 Y44.22%
EPS Next 2Y41.74%
EPS Next 3Y32.85%
EPS Next 5Y22.4%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%9.56%
Revenue Next Year10.35%
Revenue Next 2Y7.51%
Revenue Next 3Y6.25%
Revenue Next 5Y5.85%
EBIT growth 1Y-17.23%
EBIT growth 3Y215.37%
EBIT growth 5Y5.35%
EBIT Next Year96.67%
EBIT Next 3Y29.81%
EBIT Next 5Y19.48%
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 3 / 10 to ADP.PA.
What is the valuation status of ADP (ADP.PA) stock?
ChartMill assigns a valuation rating of 3 / 10 to ADP (ADP.PA). This can be considered as Overvalued.
What is the profitability of ADP stock?
ADP (ADP.PA) has a profitability rating of 3 / 10.
Can you provide the financial health for ADP stock?
The financial health rating of ADP (ADP.PA) is 2 / 10.
Is the dividend of ADP sustainable?
The dividend rating of ADP (ADP.PA) is 3 / 10 and the dividend payout ratio is 318.28%.