ADP (ADP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ADP - FR0010340141 - Common Stock
131 EUR
-0.8 (-0.61%)
Overall ADP gets a fundamental rating of 3 out of 10. We evaluated ADP against 15 industry peers in the Transportation Infrastructure industry. ADP may be in some trouble as it scores bad on both profitability and health. ADP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ADP was profitable.
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.
In the past 5 years ADP always reported a positive cash flow from operatings.
1.2 Ratios
ADP has a worse Return On Assets (0.46%) than 73.33% of its industry peers.
ADP has a Return On Equity of 2.29%. This is in the lower half of the industry: ADP underperforms 73.33% of its industry peers.
ADP has a worse Return On Invested Capital (4.78%) than 66.67% of its industry peers.
ADP had an Average Return On Invested Capital over the past 3 years of 5.03%. This is below the industry average of 8.84%.
| 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 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ADP has declined.
ADP has a Operating Margin of 17.92%. This is comparable to the rest of the industry: ADP outperforms 53.33% 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 has a Gross Margin (85.41%) which is in line with 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADP is destroying value.
Compared to 1 year ago, ADP has more shares outstanding
The number of shares outstanding for ADP remains at a similar level compared to 5 years ago.
The debt/assets ratio for ADP is higher compared to a year ago.
2.2 Solvency
ADP has an Altman-Z score of 1.28. This is a bad value and indicates that ADP is not financially healthy and even has some risk of bankruptcy.
ADP's Altman-Z score of 1.28 is on the low side compared to the rest of the industry. ADP is outperformed by 66.67% of its industry peers.
ADP has a debt to FCF ratio of 17.81. This is a negative value and a sign of low solvency as ADP would need 17.81 years to pay back of all of its debts.
ADP has a Debt to FCF ratio of 17.81. This is in the lower half of the industry: ADP underperforms 66.67% 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: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 17.81 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.87
WACC5.51%
2.3 Liquidity
A Current Ratio of 1.12 indicates that ADP should not have too much problems paying its short term obligations.
The Current ratio of ADP (1.12) is worse than 60.00% of its industry peers.
A Quick Ratio of 1.08 indicates that ADP should not have too much problems paying its short term obligations.
ADP has a Quick ratio of 1.08. This is in the lower half of the industry: ADP underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for ADP have decreased strongly by -74.00% in the last year.
Measured over the past years, ADP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.33% on average per year.
ADP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.23%.
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.
ADP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.86% yearly.
EPS Next Y44.26%
EPS Next 2Y41.79%
EPS Next 3Y32.85%
EPS Next 5Y22.4%
Revenue Next Year10.35%
Revenue Next 2Y7.52%
Revenue Next 3Y6.25%
Revenue Next 5Y5.86%
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
With a Price/Earnings ratio of 64.85, ADP can be considered very expensive at the moment.
80.00% of the companies in the same industry are cheaper than ADP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.55, ADP is valued quite expensively.
ADP is valuated rather expensively with a Price/Forward Earnings ratio of 18.89.
ADP's Price/Forward Earnings is on the same level as the industry average.
ADP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.85 | ||
| Fwd PE | 18.89 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than ADP, based on the Enterprise Value to EBITDA ratio.
ADP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.36 | ||
| EV/EBITDA | 9.97 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ADP's earnings are expected to grow with 32.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)N/A
EPS Next 2Y41.79%
EPS Next 3Y32.85%
5. Dividend
5.1 Amount
ADP has a Yearly Dividend Yield of 2.30%.
ADP's Dividend Yield is slightly below the industry average, which is at 4.84.
Compared to an average S&P500 Dividend Yield of 1.87, ADP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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
ADP pays out 318.28% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ADP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP318.28%
EPS Next 2Y41.79%
EPS Next 3Y32.85%
EPA:ADP (12/15/2025, 7:00:00 PM)
131
-0.8 (-0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)
Earnings (Next)
Inst Owners29.71%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap12.96B
Revenue(TTM)6.43B
Net Income(TTM)93.00M
Analysts72
Price Target126.34 (-3.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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%
PT rev (3m)0.1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.03%
EPS NY rev (3m)-3.76%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.85 | ||
| Fwd PE | 18.89 | ||
| P/S | 2.01 | ||
| P/FCF | 23.36 | ||
| P/OCF | 7.85 | ||
| P/B | 3.19 | ||
| P/tB | 24.83 | ||
| EV/EBITDA | 9.97 |
EPS(TTM)2.02
EY1.54%
EPS(NY)6.94
Fwd EY5.29%
FCF(TTM)5.61
FCFY4.28%
OCF(TTM)16.68
OCFY12.74%
SpS65.02
BVpS41.11
TBVpS5.27
PEG (NY)1.47
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 | 1.28 |
F-Score6
WACC5.51%
ROIC/WACC0.87
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 Y44.26%
EPS Next 2Y41.79%
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 2Y7.52%
Revenue Next 3Y6.25%
Revenue Next 5Y5.86%
EBIT growth 1Y-17.23%
EBIT growth 3Y215.37%
EBIT growth 5Y5.35%
EBIT Next Year97.02%
EBIT Next 3Y29.93%
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 2 / 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 1 / 10.
Is the dividend of ADP sustainable?
The dividend rating of ADP (ADP.PA) is 4 / 10 and the dividend payout ratio is 318.28%.