ADP (ADP.PA) Stock Fundamental Analysis
EPA:ADP - Euronext Paris - Matif - FR0010340141 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to ADP. ADP was compared to 9 industry peers in the Transportation Infrastructure industry. There are concerns on the financial health of ADP while its profitability can be described as average. ADP does not seem to be growing, but still is valued expensively.
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.
The reported net income has been mixed in the past 5 years: ADP reported negative net income in multiple years.
ADP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ADP's Return On Assets of 1.70% is in line compared to the rest of the industry. ADP outperforms 44.44% of its industry peers.
ADP has a Return On Equity of 7.77%. This is comparable to the rest of the industry: ADP outperforms 44.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.50%, ADP is in line with its industry, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 7.77% | ||
| ROIC | 5.5% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ADP's Profit Margin of 5.57% is in line compared to the rest of the industry. ADP outperforms 44.44% of its industry peers.
ADP's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 20.88%, ADP is doing good in the industry, outperforming 66.67% 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.
ADP has a better Gross Margin (85.06%) than 77.78% of its industry peers.
ADP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.88% | ||
| PM (TTM) | 5.57% | ||
| GM | 85.06% |
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.
There is no outstanding debt for ADP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 1.15, we must say that ADP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.15, ADP is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
ADP has a debt to FCF ratio of 24.53. This is a negative value and a sign of low solvency as ADP would need 24.53 years to pay back of all of its debts.
ADP's Debt to FCF ratio of 24.53 is in line compared to the rest of the industry. ADP outperforms 44.44% of its industry peers.
A Debt/Equity ratio of 2.01 is on the high side and indicates that ADP has dependencies on debt financing.
ADP has a Debt to Equity ratio of 2.01. This is comparable to the rest of the industry: ADP outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | 24.53 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.81
WACC6.77%
2.3 Liquidity
A Current Ratio of 0.95 indicates that ADP may have some problems paying its short term obligations.
ADP has a Current ratio of 0.95. This is in the lower half of the industry: ADP underperforms 66.67% of its industry peers.
A Quick Ratio of 0.91 indicates that ADP may have some problems paying its short term obligations.
The Quick ratio of ADP (0.91) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The earnings per share for ADP have decreased strongly by -45.85% in the last year.
ADP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.30% yearly.
Looking at the last year, ADP shows a quite strong growth in Revenue. The Revenue has grown by 12.07% in the last year.
The Revenue has been growing slightly by 5.55% on average over the past years.
EPS 1Y (TTM)-45.85%
EPS 3YN/A
EPS 5Y-10.3%
EPS Q2Q%-100.94%
Revenue 1Y (TTM)12.07%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%10.88%
3.2 Future
ADP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.98% yearly.
The Revenue is expected to decrease by -2.33% on average over the next years.
EPS Next Y43.78%
EPS Next 2Y29.02%
EPS Next 3Y12.82%
EPS Next 5Y3.98%
Revenue Next Year8.01%
Revenue Next 2Y6.23%
Revenue Next 3Y5.1%
Revenue Next 5Y-2.33%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.45, ADP can be considered very expensive at the moment.
77.78% of the companies in the same industry are cheaper than ADP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.35. ADP is around the same levels.
Based on the Price/Forward Earnings ratio of 15.49, the valuation of ADP can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADP is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ADP to the average of the S&P500 Index (22.10), we can say ADP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.45 | ||
| Fwd PE | 15.49 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as ADP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.25 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ADP's earnings are expected to grow with 12.82% in the coming years.
PEG (NY)0.67
PEG (5Y)N/A
EPS Next 2Y29.02%
EPS Next 3Y12.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.89%, ADP has a reasonable but not impressive dividend return.
ADP's Dividend Yield is comparable with the industry average which is at 4.49.
ADP's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
109.91% of the earnings are spent on dividend by ADP. This is not a sustainable payout ratio.
DP109.91%
EPS Next 2Y29.02%
EPS Next 3Y12.82%
EPA:ADP (3/7/2025, 7:00:00 PM)
102.2
-1.5 (-1.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)
Earnings (Next)
Inst Owners28.04%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap10.11B
Analysts70.91
Price Target128.34 (25.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP109.91%
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)-4.3%
PT rev (3m)-6.1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.65%
EPS NY rev (3m)-3.66%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.45 | ||
| Fwd PE | 15.49 | ||
| P/S | 1.64 | ||
| P/FCF | 23.25 | ||
| P/OCF | 6.64 | ||
| P/B | 2.29 | ||
| P/tB | 8.42 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.47
EY3.4%
EPS(NY)6.6
Fwd EY6.46%
FCF(TTM)4.4
FCFY4.3%
OCF(TTM)15.4
OCFY15.07%
SpS62.23
BVpS44.61
TBVpS12.14
PEG (NY)0.67
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 7.77% | ||
| ROCE | 7.95% | ||
| ROIC | 5.5% | ||
| ROICexc | 6.37% | ||
| ROICexgc | 8.26% | ||
| OM | 20.88% | ||
| PM (TTM) | 5.57% | ||
| GM | 85.06% | ||
| FCFM | 7.06% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | 24.53 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 17.68% | ||
| Interest Coverage | 4.32 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 126.82% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.15 |
F-Score5
WACC6.77%
ROIC/WACC0.81
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
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)-45.85%
EPS 3YN/A
EPS 5Y-10.3%
EPS Q2Q%-100.94%
EPS Next Y43.78%
EPS Next 2Y29.02%
EPS Next 3Y12.82%
EPS Next 5Y3.98%
Revenue 1Y (TTM)12.07%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%10.88%
Revenue Next Year8.01%
Revenue Next 2Y6.23%
Revenue Next 3Y5.1%
Revenue Next 5Y-2.33%
EBIT growth 1Y10.1%
EBIT growth 3Y215.37%
EBIT growth 5Y5.35%
EBIT Next Year93.37%
EBIT Next 3Y24.73%
EBIT Next 5Y19.87%
FCF growth 1Y-24.74%
FCF growth 3Y23.67%
FCF growth 5Y4.44%
OCF growth 1Y-3.97%
OCF growth 3Y26.27%
OCF growth 5Y-0.38%