ADP (ADP.PA) Stock Fundamental Analysis
EPA:ADP • FR0010340141
119.15 EUR
+0.15 (+0.13%)
Last: Feb 27, 2026, 01:42 PM
ADP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 11 industry peers in the Transportation Infrastructure industry. ADP has a medium profitability rating, but doesn't score so well on its financial health evaluation. ADP is valied quite expensively at the moment, while it does show a decent growth rate.
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.
- ADP had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years ADP had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.88%, ADP is in line with its industry, outperforming 45.45% of the companies in the same industry.
- ADP has a Return On Equity of 8.79%. This is comparable to the rest of the industry: ADP outperforms 45.45% of its industry peers.
- ADP has a Return On Invested Capital (4.64%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 8.79% | ||
| ROIC | 4.64% |
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 has a Profit Margin (5.70%) which is comparable to the rest of the industry.
- ADP's Profit Margin has declined in the last couple of years.
- ADP has a better Operating Margin (19.76%) than 63.64% of its industry peers.
- In the last couple of years the Operating Margin of ADP has declined.
- Looking at the Gross Margin, with a value of 85.78%, ADP is in the better half of the industry, outperforming 72.73% 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 | 19.76% | ||
| PM (TTM) | 5.7% | ||
| GM | 85.78% |
OM growth 3Y-1.65%
OM growth 5YN/A
PM growth 3Y-19.7%
PM growth 5YN/A
GM growth 3Y0.75%
GM growth 5Y-0.44%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADP 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
- ADP has an Altman-Z score of 1.23. 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 1.23 is on the low side compared to the rest of the industry. ADP is outperformed by 63.64% of its industry peers.
- The Debt to FCF ratio of ADP is 28.38, which is on the high side as it means it would take ADP, 28.38 years of fcf income to pay off all of its debts.
- ADP's Debt to FCF ratio of 28.38 is in line compared to the rest of the industry. ADP outperforms 45.45% of its industry peers.
- ADP has a Debt/Equity ratio of 2.01. This is a high value indicating a heavy dependency on external financing.
- ADP's Debt to Equity ratio of 2.01 is in line compared to the rest of the industry. ADP outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | 28.38 | ||
| Altman-Z | 1.23 |
ROIC/WACC0.69
WACC6.74%
2.3 Liquidity
- A Current Ratio of 0.89 indicates that ADP may have some problems paying its short term obligations.
- With a Current ratio value of 0.89, ADP is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
- 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.
- Looking at the Quick ratio, with a value of 0.86, ADP is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- ADP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.48%, which is quite good.
- ADP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.63% yearly.
- The Revenue has grown by 8.87% in the past year. This is quite good.
- Measured over the past years, ADP shows a very strong growth in Revenue. The Revenue has been growing by 25.69% on average per year.
EPS 1Y (TTM)11.48%
EPS 3Y-9.63%
EPS 5YN/A
EPS Q2Q%7211.85%
Revenue 1Y (TTM)8.87%
Revenue growth 3Y12.66%
Revenue growth 5Y25.69%
Sales Q2Q%8.25%
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 12.41% on average per year.
- ADP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.63% yearly.
EPS Next Y35.69%
EPS Next 2Y26.15%
EPS Next 3Y22.2%
EPS Next 5Y12.41%
Revenue Next Year4.42%
Revenue Next 2Y4.61%
Revenue Next 3Y3.67%
Revenue Next 5Y4.63%
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
- ADP is valuated quite expensively with a Price/Earnings ratio of 30.87.
- Based on the Price/Earnings ratio, ADP is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.11, ADP is valued at the same level.
- The Price/Forward Earnings ratio is 17.72, which indicates a rather expensive current valuation of ADP.
- 72.73% of the companies in the same industry are more expensive than ADP, based on the Price/Forward Earnings ratio.
- ADP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.87 | ||
| Fwd PE | 17.72 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.61 | ||
| 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 22.20% in the coming years.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y26.15%
EPS Next 3Y22.2%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.49%, ADP has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.63, ADP is paying slightly less dividend.
- ADP's Dividend Yield is a higher than the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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
- ADP pays out 77.49% of its income as dividend. 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 2Y26.15%
EPS Next 3Y22.2%
EPA:ADP (2/27/2026, 1:42:20 PM)
119.15
+0.15 (+0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)02-18 2026-02-18/amc
Earnings (Next)04-28 2026-04-28
Inst Owners29.85%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap11.79B
Revenue(TTM)6.70B
Net Income(TTM)382.00M
Analysts64
Price Target125.05 (4.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
Yearly Dividend3.82
Dividend Growth(5Y)7.94%
DP77.49%
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)-1.27%
PT rev (3m)-1.02%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.96%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.87 | ||
| Fwd PE | 17.72 | ||
| P/S | 1.76 | ||
| P/FCF | 31.61 | ||
| P/OCF | 7.2 | ||
| P/B | 2.71 | ||
| P/tB | 13.81 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.86
EY3.24%
EPS(NY)6.73
Fwd EY5.64%
FCF(TTM)3.77
FCFY3.16%
OCF(TTM)16.55
OCFY13.89%
SpS67.74
BVpS43.93
TBVpS8.63
PEG (NY)0.86
PEG (5Y)N/A
Graham Number61.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 8.79% | ||
| ROCE | 8.22% | ||
| ROIC | 4.64% | ||
| ROICexc | 5.32% | ||
| ROICexgc | 7.08% | ||
| OM | 19.76% | ||
| PM (TTM) | 5.7% | ||
| GM | 85.78% | ||
| FCFM | 5.56% |
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-1.65%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | 28.38 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 18.87% | ||
| Interest Coverage | 4.49 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 97.64% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.23 |
F-Score8
WACC6.74%
ROIC/WACC0.69
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
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)11.48%
EPS 3Y-9.63%
EPS 5YN/A
EPS Q2Q%7211.85%
EPS Next Y35.69%
EPS Next 2Y26.15%
EPS Next 3Y22.2%
EPS Next 5Y12.41%
Revenue 1Y (TTM)8.87%
Revenue growth 3Y12.66%
Revenue growth 5Y25.69%
Sales Q2Q%8.25%
Revenue Next Year4.42%
Revenue Next 2Y4.61%
Revenue Next 3Y3.67%
Revenue Next 5Y4.63%
EBIT growth 1Y3.03%
EBIT growth 3Y10.8%
EBIT growth 5YN/A
EBIT Next Year91.48%
EBIT Next 3Y27.74%
EBIT Next 5Y19.29%
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 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 for ADP 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 4 / 10.
Can you provide the expected EPS growth for ADP stock?
The Earnings per Share (EPS) of ADP (ADP.PA) is expected to grow by 35.69% in the next year.
Is the dividend of ADP sustainable?
The dividend rating of ADP (ADP.PA) is 4 / 10 and the dividend payout ratio is 77.49%.