ADP (ADP.PA) Fundamental Analysis & Valuation

EPA:ADP • FR0010340141

Current stock price

103 EUR
-1.6 (-1.53%)
Last:

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

3

1. ADP.PA Profitability Analysis

1.1 Basic Checks

  • ADP had positive earnings in the past year.
  • In the past year ADP had a positive cash flow from operations.
  • Of the past 5 years ADP 4 years were profitable.
  • ADP had a positive operating cash flow in each of the past 5 years.
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 of 1.88%. This is in the lower half of the industry: ADP underperforms 60.00% of its industry peers.
  • ADP has a worse Return On Equity (8.79%) than 60.00% of its industry peers.
  • ADP has a worse Return On Invested Capital (4.64%) than 60.00% of its industry peers.
Industry RankSector 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
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 has a Profit Margin of 5.70%. This is in the lower half of the industry: ADP underperforms 60.00% of its industry peers.
  • In the last couple of years the Profit Margin of ADP has declined.
  • ADP's Operating Margin of 19.76% is in line compared to the rest of the industry. ADP outperforms 60.00% of its industry peers.
  • In the last couple of years the Operating Margin of ADP has declined.
  • ADP has a better Gross Margin (85.78%) than 70.00% of its industry peers.
  • In the last couple of years the Gross Margin of ADP has remained more or less at the same level.
Industry RankSector Rank
OM 19.76%
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%
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADP is destroying value.
  • ADP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ADP.PA Yearly Shares OutstandingADP.PA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 5B 10B 15B 20B

2.2 Solvency

  • Based on the Altman-Z score of 1.18, we must say that ADP is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of ADP (1.18) is worse than 70.00% 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 50.00% 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 has a worse Debt to Equity ratio (2.01) than 60.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.01
Debt/FCF 28.38
Altman-Z 1.18
ROIC/WACC0.71
WACC6.5%
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

  • ADP has a Current 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.
  • ADP has a worse Current ratio (0.89) than 90.00% of its industry peers.
  • A Quick Ratio of 0.86 indicates that ADP may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.86, ADP is not doing good in the industry: 80.00% 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 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

  • ADP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.00%, which is quite impressive.
  • ADP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.88% yearly.
  • 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.
  • Based on estimates for the next years, ADP will show a small growth in Revenue. The Revenue will grow by 4.70% on average per year.
EPS Next Y19.7%
EPS Next 2Y17.49%
EPS Next 3Y14.73%
EPS Next 5Y10.8%
Revenue Next Year4.24%
Revenue Next 2Y4.39%
Revenue Next 3Y4.55%
Revenue Next 5Y4.7%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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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4

4. ADP.PA Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 18.66, ADP is valued on the expensive side.
  • 60.00% of the companies in the same industry are cheaper than ADP, based on the Price/Earnings ratio.
  • ADP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.88.
  • The Price/Forward Earnings ratio is 15.59, which indicates a correct valuation of ADP.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ADP indicates a somewhat cheap valuation: ADP is cheaper than 80.00% of the companies listed in the same industry.
  • ADP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.66
Fwd PE 15.59
ADP.PA Price Earnings VS Forward Price EarningsADP.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • The rest of the industry has a similar Price/Free Cash Flow ratio as ADP.
Industry RankSector Rank
P/FCF 27.33
EV/EBITDA N/A
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ADP's earnings are expected to grow with 14.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y17.49%
EPS Next 3Y14.73%

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

5

5. ADP.PA Dividend Analysis

5.1 Amount

  • ADP has a Yearly Dividend Yield of 2.87%.
  • Compared to an average industry Dividend Yield of 4.14, ADP is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.90, ADP pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.87%

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
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 2Y17.49%
EPS Next 3Y14.73%
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 (3/27/2026, 7:00:00 PM)

103

-1.6 (-1.53%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)02-18
Earnings (Next)04-28
Inst Owners29.88%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap10.19B
Revenue(TTM)6.70B
Net Income(TTM)382.00M
Analysts67.62
Price Target125.68 (22.02%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.87%
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)0.07%
PT rev (3m)-0.95%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.75%
EPS NY rev (3m)-4.73%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.04%
Valuation
Industry RankSector Rank
PE 18.66
Fwd PE 15.59
P/S 1.52
P/FCF 27.33
P/OCF 6.22
P/B 2.34
P/tB 11.94
EV/EBITDA N/A
EPS(TTM)5.52
EY5.36%
EPS(NY)6.61
Fwd EY6.42%
FCF(TTM)3.77
FCFY3.66%
OCF(TTM)16.55
OCFY16.07%
SpS67.74
BVpS43.93
TBVpS8.63
PEG (NY)0.95
PEG (5Y)N/A
Graham Number73.86
Profitability
Industry RankSector 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 RankSector 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 1.18
F-Score8
WACC6.5%
ROIC/WACC0.71
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)60%
EPS 3Y1.88%
EPS 5YN/A
EPS Q2Q%5000%
EPS Next Y19.7%
EPS Next 2Y17.49%
EPS Next 3Y14.73%
EPS Next 5Y10.8%
Revenue 1Y (TTM)8.87%
Revenue growth 3Y12.66%
Revenue growth 5Y25.69%
Sales Q2Q%8.25%
Revenue Next Year4.24%
Revenue Next 2Y4.39%
Revenue Next 3Y4.55%
Revenue Next 5Y4.7%
EBIT growth 1Y3.03%
EBIT growth 3Y10.8%
EBIT growth 5YN/A
EBIT Next Year93.26%
EBIT Next 3Y29.55%
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 3 / 10 to ADP.PA.


What is the valuation status for ADP stock?

ChartMill assigns a valuation rating of 4 / 10 to ADP (ADP.PA). This can be considered as Fairly Valued.


What is the profitability of ADP stock?

ADP (ADP.PA) has a profitability rating of 3 / 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 19.7% in the next year.


Is the dividend of ADP sustainable?

The dividend rating of ADP (ADP.PA) is 5 / 10 and the dividend payout ratio is 77.49%.