ADP (ADP.PA) Stock Fundamental Analysis
EPA:ADP - Euronext Paris - Matif - FR0010340141 - Common Stock - Currency: EUR
Taking everything into account, ADP scores 3 out of 10 in our fundamental rating. ADP was compared to 10 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 is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years ADP had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.70%, ADP is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
With a Return On Equity value of 7.77%, ADP perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
ADP has a Return On Invested Capital (5.50%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ADP is in line with the industry average of 6.13%.
The 3 year average ROIC (5.03%) for ADP is below the current ROIC(5.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 7.77% | ||
| ROIC | 5.5% |
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's Profit Margin of 5.57% is in line compared to the rest of the industry. ADP outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of ADP has declined.
ADP has a Operating Margin of 20.88%. This is in the better half of the industry: ADP outperforms 70.00% of its industry peers.
ADP's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 85.06%, ADP is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ADP is creating some value.
ADP has about the same amout of shares outstanding than it did 1 year ago.
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 1.17. 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 1.17 is on the low side compared to the rest of the industry. ADP is outperformed by 70.00% of its industry peers.
ADP has a debt to FCF ratio of 22.90. This is a negative value and a sign of low solvency as ADP would need 22.90 years to pay back of all of its debts.
ADP has a Debt to FCF ratio of 22.90. This is comparable to the rest of the industry: ADP outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 2.00 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 2.00, ADP is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 22.9 | ||
| Altman-Z | 1.17 |
ROIC/WACC1.08
WACC5.11%
2.3 Liquidity
A Current Ratio of 0.95 indicates that ADP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.95, ADP is doing worse than 70.00% of the companies in the same industry.
A Quick Ratio of 0.91 indicates that ADP may have some problems paying its short term obligations.
ADP has a worse Quick ratio (0.91) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
ADP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.01%.
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.
The Revenue has grown by 12.07% in the past year. This is quite good.
The Revenue has been growing slightly by 5.55% on average over the past years.
EPS 1Y (TTM)-46.01%
EPS 3YN/A
EPS 5Y-10.33%
EPS Q2Q%-101.65%
Revenue 1Y (TTM)12.07%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%10.88%
3.2 Future
Based on estimates for the next years, ADP will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.09% on average per year.
ADP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.33% yearly.
EPS Next Y79.09%
EPS Next 2Y46.15%
EPS Next 3Y32.9%
EPS Next 5Y10.09%
Revenue Next Year9.51%
Revenue Next 2Y7.02%
Revenue Next 3Y5.98%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.88, the valuation of ADP can be described as expensive.
80.00% of the companies in the same industry are cheaper than ADP, based on the Price/Earnings ratio.
ADP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.24 indicates a rather expensive valuation of ADP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADP is on the same level as its industry peers.
ADP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 17.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADP indicates a slightly more expensive valuation: ADP is more expensive than 70.00% of the companies listed in the same industry.
ADP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.24 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
ADP's 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 32.90% in the coming years.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y46.15%
EPS Next 3Y32.9%
5. Dividend
5.1 Amount
ADP has a Yearly Dividend Yield of 2.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.29, ADP is paying slightly less dividend.
ADP's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
On average, the dividend of ADP grows each year by 7.95%, which is quite nice.
Dividend Growth(5Y)7.95%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ADP pays out 109.91% 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.
DP109.91%
EPS Next 2Y46.15%
EPS Next 3Y32.9%
EPA:ADP (7/14/2025, 5:29:19 PM)
106.55
+0.05 (+0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)
Earnings (Next)
Inst Owners26.29%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap10.54B
Analysts73.33
Price Target127.32 (19.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Yearly Dividend3.82
Dividend Growth(5Y)7.95%
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)1.05%
PT rev (3m)1.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.16%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 17.24 | ||
| P/S | 1.71 | ||
| P/FCF | 24.24 | ||
| P/OCF | 6.92 | ||
| P/B | 2.39 | ||
| P/tB | 8.78 | ||
| EV/EBITDA | 9.82 |
EPS(TTM)3.45
EY3.24%
EPS(NY)6.18
Fwd EY5.8%
FCF(TTM)4.4
FCFY4.13%
OCF(TTM)15.4
OCFY14.45%
SpS62.23
BVpS44.61
TBVpS12.14
PEG (NY)0.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 7.77% | ||
| ROCE | 7.95% | ||
| ROIC | 5.5% | ||
| ROICexc | 5.7% | ||
| ROICexgc | 7.17% | ||
| OM | 20.88% | ||
| PM (TTM) | 5.57% | ||
| GM | 85.06% | ||
| FCFM | 7.06% |
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
ROICexcg growth 3Y203.71%
ROICexcg 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-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 22.9 | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 146.17% | ||
| Cap/Sales | 17.68% | ||
| Interest Coverage | 4.32 | ||
| Cash Conversion | 75.04% | ||
| Profit Quality | 126.82% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.17 |
F-Score5
WACC5.11%
ROIC/WACC1.08
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)-46.01%
EPS 3YN/A
EPS 5Y-10.33%
EPS Q2Q%-101.65%
EPS Next Y79.09%
EPS Next 2Y46.15%
EPS Next 3Y32.9%
EPS Next 5Y10.09%
Revenue 1Y (TTM)12.07%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%10.88%
Revenue Next Year9.51%
Revenue Next 2Y7.02%
Revenue Next 3Y5.98%
Revenue Next 5Y-2.33%
EBIT growth 1Y10.1%
EBIT growth 3Y215.37%
EBIT growth 5Y5.35%
EBIT Next Year96.85%
EBIT Next 3Y29.46%
EBIT Next 5Y21.82%
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%