ADP (ADP.PA) Fundamental Analysis & Valuation

EPA:ADP • FR0010340141

Current stock price

114.5 EUR
+4.1 (+3.71%)
Last:

This ADP.PA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. ADP.PA Profitability Analysis

1.1 Basic Checks

  • In the past year ADP was profitable.
  • ADP had a positive operating cash flow in the past year.
  • Of the past 5 years ADP 4 years were profitable.
  • In the past 5 years ADP always reported a positive cash flow from operatings.
ADP.PA Yearly Net Income VS EBIT VS OCF VS FCFADP.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B -1B 1.5B

1.2 Ratios

  • ADP has a Return On Assets (1.88%) which is in line with its industry peers.
  • Looking at the Return On Equity, with a value of 8.79%, ADP is in line with its industry, outperforming 54.55% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 4.62%, ADP is in line with its industry, outperforming 45.45% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for ADP is below the industry average of 7.31%.
  • The 3 year average ROIC (4.45%) for ADP is below the current ROIC(4.62%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 1.88%
ROE 8.79%
ROIC 4.62%
ROA(3y)2.26%
ROA(5y)1.64%
ROE(3y)10.33%
ROE(5y)7.35%
ROIC(3y)4.45%
ROIC(5y)3.41%
ADP.PA Yearly ROA, ROE, ROICADP.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20 -30

1.3 Margins

  • ADP's Profit Margin of 5.70% is in line compared to the rest of the industry. ADP outperforms 45.45% of its industry peers.
  • In the last couple of years the Profit Margin of ADP has declined.
  • Looking at the Operating Margin, with a value of 19.67%, ADP is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
  • ADP's Operating Margin has declined in the last couple of years.
  • With a decent Gross Margin value of 85.78%, ADP is doing good in the industry, outperforming 63.64% 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 RankSector Rank
OM 19.67%
PM (TTM) 5.7%
GM 85.78%
OM growth 3Y-1.8%
OM growth 5YN/A
PM growth 3Y-19.7%
PM growth 5YN/A
GM growth 3Y0.75%
GM growth 5Y-0.44%
ADP.PA Yearly Profit, Operating, Gross MarginsADP.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50

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1

2. ADP.PA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADP is destroying value.
  • ADP has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ADP remains at a similar level compared to 5 years ago.
  • ADP has a better debt/assets ratio than last year.
ADP.PA Yearly Shares OutstandingADP.PA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
ADP.PA Yearly Total Debt VS Total AssetsADP.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • Based on the Altman-Z score of 1.20, we must say that ADP is in the distress zone and has some risk of bankruptcy.
  • ADP has a worse Altman-Z score (1.20) than 72.73% of its industry peers.
  • The Debt to FCF ratio of ADP is 26.26, which is on the high side as it means it would take ADP, 26.26 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 26.26, ADP is in line with its industry, outperforming 45.45% of the companies in the same industry.
  • A Debt/Equity ratio of 1.98 is on the high side and indicates that ADP has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.98, ADP is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.98
Debt/FCF 26.26
Altman-Z 1.2
ROIC/WACC0.91
WACC5.08%
ADP.PA Yearly LT Debt VS Equity VS FCFADP.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 0.89 indicates that ADP may have some problems paying its short term obligations.
  • ADP has a worse Current ratio (0.89) than 81.82% of its industry peers.
  • ADP has a Quick Ratio of 0.89. This is a bad value and indicates that ADP is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.86, ADP is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.89
Quick Ratio 0.86
ADP.PA Yearly Current Assets VS Current LiabilitesADP.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. ADP.PA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 60.00% over the past year.
  • Measured over the past 5 years, ADP shows a small growth in Earnings Per Share. The EPS has been growing by 1.88% on average per year.
  • ADP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.87%.
  • The Revenue has been growing by 25.69% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)60%
EPS 3Y1.88%
EPS 5YN/A
EPS Q2Q%5000%
Revenue 1Y (TTM)8.87%
Revenue growth 3Y12.66%
Revenue growth 5Y25.69%
Sales Q2Q%8.25%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.80% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 4.70% on average over the next years.
EPS Next Y18.07%
EPS Next 2Y16.68%
EPS Next 3Y14.8%
EPS Next 5Y10.8%
Revenue Next Year3.99%
Revenue Next 2Y4.37%
Revenue Next 3Y4.37%
Revenue Next 5Y4.7%

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.
ADP.PA Yearly Revenue VS EstimatesADP.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
ADP.PA Yearly EPS VS EstimatesADP.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 -5 -10

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3

4. ADP.PA Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 20.74, ADP is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Earnings ratio of ADP is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 27.87. ADP is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 17.57 indicates a rather expensive valuation of ADP.
  • Based on the Price/Forward Earnings ratio, ADP is valued cheaper than 81.82% of the companies in the same industry.
  • ADP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.51.
Industry RankSector Rank
PE 20.74
Fwd PE 17.57
ADP.PA Price Earnings VS Forward Price EarningsADP.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ADP is valued a bit more expensive than 63.64% of the companies in the same industry.
  • 63.64% of the companies in the same industry are cheaper than ADP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 30.38
EV/EBITDA 8.69
ADP.PA Per share dataADP.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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 14.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)N/A
EPS Next 2Y16.68%
EPS Next 3Y14.8%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. ADP.PA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.72%, ADP has a reasonable but not impressive dividend return.
  • ADP's Dividend Yield is comparable with the industry average which is at 3.54.
  • ADP's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.72%

5.2 History

  • The dividend of ADP has a limited annual growth rate of 2.57%.
Dividend Growth(5Y)2.57%
Div Incr Years0
Div Non Decr Years1
ADP.PA Yearly Dividends per shareADP.PA Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 77.49% 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.
DP77.49%
EPS Next 2Y16.68%
EPS Next 3Y14.8%
ADP.PA Yearly Income VS Free CF VS DividendADP.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M -1B
ADP.PA Dividend Payout.ADP.PA Dividend Payout, showing the Payout Ratio.ADP.PA Dividend Payout.PayoutRetained Earnings

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ADP.PA Fundamentals: All Metrics, Ratios and Statistics

ADP

EPA:ADP (4/17/2026, 7:00:00 PM)

114.5

+4.1 (+3.71%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)02-18
Earnings (Next)04-28
Inst Owners30.24%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap11.33B
Revenue(TTM)6.70B
Net Income(TTM)382.00M
Analysts69.52
Price Target125.39 (9.51%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.72%
Yearly Dividend2.99
Dividend Growth(5Y)2.57%
DP77.49%
Div Incr Years0
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)0.43%
PT rev (3m)-1.42%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-3.41%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.34%
Valuation
Industry RankSector Rank
PE 20.74
Fwd PE 17.57
P/S 1.69
P/FCF 30.38
P/OCF 6.92
P/B 2.61
P/tB 13.27
EV/EBITDA 8.69
EPS(TTM)5.52
EY4.82%
EPS(NY)6.52
Fwd EY5.69%
FCF(TTM)3.77
FCFY3.29%
OCF(TTM)16.55
OCFY14.46%
SpS67.74
BVpS43.93
TBVpS8.63
PEG (NY)1.15
PEG (5Y)N/A
Graham Number73.8628 (-35.49%)
Profitability
Industry RankSector Rank
ROA 1.88%
ROE 8.79%
ROCE 8.19%
ROIC 4.62%
ROICexc 4.79%
ROICexgc 6.18%
OM 19.67%
PM (TTM) 5.7%
GM 85.78%
FCFM 5.56%
ROA(3y)2.26%
ROA(5y)1.64%
ROE(3y)10.33%
ROE(5y)7.35%
ROIC(3y)4.45%
ROIC(5y)3.41%
ROICexc(3y)5.12%
ROICexc(5y)3.96%
ROICexgc(3y)6.65%
ROICexgc(5y)5.16%
ROCE(3y)7.88%
ROCE(5y)6.04%
ROICexgc growth 3Y7.41%
ROICexgc growth 5YN/A
ROICexc growth 3Y6.88%
ROICexc growth 5YN/A
OM growth 3Y-1.8%
OM growth 5YN/A
PM growth 3Y-19.7%
PM growth 5YN/A
GM growth 3Y0.75%
GM growth 5Y-0.44%
F-Score8
Asset Turnover0.33
Health
Industry RankSector Rank
Debt/Equity 1.98
Debt/FCF 26.26
Debt/EBITDA 3.75
Cap/Depr 128.82%
Cap/Sales 18.87%
Interest Coverage 4.47
Cash Conversion 71.19%
Profit Quality 97.64%
Current Ratio 0.89
Quick Ratio 0.86
Altman-Z 1.2
F-Score8
WACC5.08%
ROIC/WACC0.91
Cap/Depr(3y)134.08%
Cap/Depr(5y)118.46%
Cap/Sales(3y)18.31%
Cap/Sales(5y)17.74%
Profit Quality(3y)105.48%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)60%
EPS 3Y1.88%
EPS 5YN/A
EPS Q2Q%5000%
EPS Next Y18.07%
EPS Next 2Y16.68%
EPS Next 3Y14.8%
EPS Next 5Y10.8%
Revenue 1Y (TTM)8.87%
Revenue growth 3Y12.66%
Revenue growth 5Y25.69%
Sales Q2Q%8.25%
Revenue Next Year3.99%
Revenue Next 2Y4.37%
Revenue Next 3Y4.37%
Revenue Next 5Y4.7%
EBIT growth 1Y2.81%
EBIT growth 3Y10.64%
EBIT growth 5YN/A
EBIT Next Year93.51%
EBIT Next 3Y29.44%
EBIT Next 5Y19.09%
FCF growth 1Y-14.25%
FCF growth 3Y-24.25%
FCF growth 5YN/A
OCF growth 1Y7.48%
OCF growth 3Y1.79%
OCF growth 5Y40.8%

ADP / ADP.PA Fundamental Analysis 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 3 / 10 to ADP (ADP.PA). This can be considered as Overvalued.


How profitable is ADP (ADP.PA) stock?

ADP (ADP.PA) has a profitability rating of 5 / 10.


What are the PE and PB ratios of ADP (ADP.PA) stock?

The Price/Earnings (PE) ratio for ADP (ADP.PA) is 20.74 and the Price/Book (PB) ratio is 2.61.


How sustainable is the dividend of ADP (ADP.PA) stock?

The dividend rating of ADP (ADP.PA) is 4 / 10 and the dividend payout ratio is 77.49%.