ADP (ADP.PA) Stock Fundamental Analysis
Europe - EPA:ADP - FR0010340141 - Common Stock
116.8 EUR
-1 (-0.85%)
Overall ADP gets a fundamental rating of 4 out of 10. We evaluated ADP against 14 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 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's Return On Assets of 0.46% is on the low side compared to the rest of the industry. ADP is outperformed by 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 2.29%, ADP is doing worse than 78.57% of the companies in the same industry.
ADP has a Return On Invested Capital of 4.78%. This is comparable to the rest of the industry: ADP outperforms 42.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADP is below the industry average of 8.27%.
| 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
With a Profit Margin value of 1.45%, ADP perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Profit Margin of ADP has declined.
Looking at the Operating Margin, with a value of 17.92%, ADP is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
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 of 85.41%. This is in the better half of the industry: ADP outperforms 64.29% of its industry peers.
ADP's Gross Margin has been stable in the last couple of years.
| 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
ADP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ADP has about the same amount of shares outstanding.
Compared to 5 years ago, ADP has less shares outstanding
ADP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.23, we must say that ADP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.23, ADP is doing worse than 71.43% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 17.81, ADP is in line with its industry, outperforming 42.86% of the companies in the same industry.
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: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 17.81 | ||
| Altman-Z | 1.23 |
ROIC/WACC0.89
WACC5.34%
2.3 Liquidity
A Current Ratio of 1.12 indicates that ADP should not have too much problems paying its short term obligations.
ADP has a Current ratio (1.12) which is comparable to the rest of the industry.
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 (1.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
ADP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -74.00%.
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 10.23% in the past year. This is quite good.
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
Based on estimates for the next years, ADP will show a very strong growth in Earnings Per Share. The EPS will grow by 22.47% on average per year.
ADP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.68% yearly.
EPS Next Y49.21%
EPS Next 2Y44.46%
EPS Next 3Y33.65%
EPS Next 5Y22.47%
Revenue Next Year10.1%
Revenue Next 2Y7.41%
Revenue Next 3Y6.16%
Revenue Next 5Y4.68%
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
A Price/Earnings ratio of 57.82 indicates a quite expensive valuation of ADP.
Based on the Price/Earnings ratio, ADP is valued a bit more expensive than 71.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of ADP to the average of the S&P500 Index (27.29), we can say ADP is valued expensively.
The Price/Forward Earnings ratio is 16.22, which indicates a correct valuation of ADP.
ADP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADP is cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADP to the average of the S&P500 Index (22.85), we can say ADP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.82 | ||
| Fwd PE | 16.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADP is valued a bit more expensive than 64.29% of the companies 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 | 20.83 | ||
| EV/EBITDA | 9.31 |
4.3 Compensation for Growth
ADP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ADP's earnings are expected to grow with 33.65% in the coming years.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y44.46%
EPS Next 3Y33.65%
5. Dividend
5.1 Amount
ADP has a Yearly Dividend Yield of 2.62%.
Compared to an average industry Dividend Yield of 6.20, ADP has a dividend in line with its industry peers.
ADP's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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.
ADP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP318.28%
EPS Next 2Y44.46%
EPS Next 3Y33.65%
EPA:ADP (10/17/2025, 10:57:27 AM)
116.8
-1 (-0.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)
Earnings (Next)
Inst Owners29.41%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap11.56B
Analysts73
Price Target125.57 (7.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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)-0.51%
PT rev (3m)-1.37%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-16.68%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.82 | ||
| Fwd PE | 16.22 | ||
| P/S | 1.8 | ||
| P/FCF | 20.83 | ||
| P/OCF | 7 | ||
| P/B | 2.84 | ||
| P/tB | 22.14 | ||
| EV/EBITDA | 9.31 |
EPS(TTM)2.02
EY1.73%
EPS(NY)7.2
Fwd EY6.16%
FCF(TTM)5.61
FCFY4.8%
OCF(TTM)16.68
OCFY14.28%
SpS65.02
BVpS41.11
TBVpS5.27
PEG (NY)1.17
PEG (5Y)N/A
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
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-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 | 1.23 |
F-Score6
WACC5.34%
ROIC/WACC0.89
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 Y49.21%
EPS Next 2Y44.46%
EPS Next 3Y33.65%
EPS Next 5Y22.47%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y30.4%
Revenue growth 5Y5.55%
Sales Q2Q%9.56%
Revenue Next Year10.1%
Revenue Next 2Y7.41%
Revenue Next 3Y6.16%
Revenue Next 5Y4.68%
EBIT growth 1Y-17.23%
EBIT growth 3Y215.37%
EBIT growth 5Y5.35%
EBIT Next Year96.67%
EBIT Next 3Y29.81%
EBIT Next 5Y18.73%
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%