225.4 USD
-1.22 (-0.54%)
Last: Feb 10, 2026, 09:58 AM
Taking everything into account, ADP scores 6 out of 10 in our fundamental rating. ADP was compared to 89 industry peers in the Professional Services industry. ADP scores excellent on profitability, but there are some minor concerns on its financial health. ADP is not valued too expensively and it also shows a decent growth rate. ADP also has an excellent dividend rating. These ratings could make ADP a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
- In the past year ADP was profitable.
- ADP had a positive operating cash flow in the past year.
- Each year in the past 5 years ADP has been profitable.
- In the past 5 years ADP always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.00%, ADP is in the better half of the industry, outperforming 61.80% of the companies in the same industry.
- ADP has a Return On Equity of 66.25%. This is amongst the best in the industry. ADP outperforms 95.51% of its industry peers.
- ADP has a better Return On Invested Capital (34.42%) than 97.75% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ADP is significantly above the industry average of 12.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5% | ||
| ROE | 66.25% | ||
| ROIC | 34.42% |
ROA(3y)7.08%
ROA(5y)6.25%
ROE(3y)81.89%
ROE(5y)76.59%
ROIC(3y)36.13%
ROIC(5y)33.86%
1.3 Margins
- ADP has a better Profit Margin (19.96%) than 87.64% of its industry peers.
- In the last couple of years the Profit Margin of ADP has grown nicely.
- The Operating Margin of ADP (26.37%) is better than 92.13% of its industry peers.
- ADP's Operating Margin has improved in the last couple of years.
- ADP has a Gross Margin of 46.16%. This is in the better half of the industry: ADP outperforms 64.04% of its industry peers.
- ADP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.37% | ||
| PM (TTM) | 19.96% | ||
| GM | 46.16% |
OM growth 3Y4.64%
OM growth 5Y4.17%
PM growth 3Y3.54%
PM growth 5Y3.25%
GM growth 3Y2.58%
GM growth 5Y1.81%
2. Health
2.1 Basic Checks
- ADP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for ADP has been reduced compared to 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 1.63. This is a bad value and indicates that ADP is not financially healthy and even has some risk of bankruptcy.
- ADP has a worse Altman-Z score (1.63) than 61.80% of its industry peers.
- The Debt to FCF ratio of ADP is 0.95, which is an excellent value as it means it would take ADP, only 0.95 years of fcf income to pay off all of its debts.
- ADP's Debt to FCF ratio of 0.95 is amongst the best of the industry. ADP outperforms 82.02% of its industry peers.
- A Debt/Equity ratio of 0.62 indicates that ADP is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.62, ADP perfoms like the industry average, outperforming 42.70% of the companies in the same industry.
- Even though the debt/equity ratio score it not favorable for ADP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 0.95 | ||
| Altman-Z | 1.63 |
ROIC/WACC3.98
WACC8.66%
2.3 Liquidity
- ADP has a Current Ratio of 1.03. This is a normal value and indicates that ADP is financially healthy and should not expect problems in meeting its short term obligations.
- ADP has a Current ratio of 1.03. This is in the lower half of the industry: ADP underperforms 73.03% of its industry peers.
- ADP has a Quick Ratio of 1.03. This is a normal value and indicates that ADP is financially healthy and should not expect problems in meeting its short term obligations.
- ADP has a Quick ratio of 1.03. This is in the lower half of the industry: ADP underperforms 73.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
- ADP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.08%, which is quite good.
- ADP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.05% yearly.
- Looking at the last year, ADP shows a small growth in Revenue. The Revenue has grown by 6.59% in the last year.
- The Revenue has been growing slightly by 7.10% on average over the past years.
EPS 1Y (TTM)8.08%
EPS 3Y12.57%
EPS 5Y11.05%
EPS Q2Q%11.49%
Revenue 1Y (TTM)6.59%
Revenue growth 3Y7.61%
Revenue growth 5Y7.1%
Sales Q2Q%6.16%
3.2 Future
- ADP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.91% yearly.
- ADP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.68% yearly.
EPS Next Y10.76%
EPS Next 2Y9.92%
EPS Next 3Y9.36%
EPS Next 5Y7.91%
Revenue Next Year6.43%
Revenue Next 2Y6.08%
Revenue Next 3Y5.99%
Revenue Next 5Y5.68%
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 decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 21.61, 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.
- Compared to an average S&P500 Price/Earnings ratio of 28.06, ADP is valued a bit cheaper.
- ADP is valuated rather expensively with a Price/Forward Earnings ratio of 18.65.
- The rest of the industry has a similar Price/Forward Earnings ratio as ADP.
- When comparing the Price/Forward Earnings ratio of ADP to the average of the S&P500 Index (27.86), we can say ADP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.61 | ||
| Fwd PE | 18.65 |
4.2 Price Multiples
- ADP's Enterprise Value to EBITDA ratio is in line with the industry average.
- 64.04% of the companies in the same industry are more expensive than ADP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.78 | ||
| EV/EBITDA | 15.07 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- ADP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.01
PEG (5Y)1.95
EPS Next 2Y9.92%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
- ADP has a Yearly Dividend Yield of 2.91%. Purely for dividend investing, there may be better candidates out there.
- ADP's Dividend Yield is rather good when compared to the industry average which is at 1.42. ADP pays more dividend than 89.89% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, ADP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
5.2 History
- The dividend of ADP is nicely growing with an annual growth rate of 11.62%!
- ADP has been paying a dividend for at least 10 years, so it has a reliable track record.
- ADP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.62%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
- 59.26% of the earnings are spent on dividend by ADP. This is a bit on the high side, but may be sustainable.
- The dividend of ADP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP59.26%
EPS Next 2Y9.92%
EPS Next 3Y9.36%
NASDAQ:ADP (2/10/2026, 9:58:07 AM)
225.4
-1.22 (-0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)01-28 2026-01-28/bmo
Earnings (Next)04-28 2026-04-28/bmo
Inst Owners86.82%
Inst Owner Change0.28%
Ins Owners0.1%
Ins Owner Change-10.79%
Market Cap91.16B
Revenue(TTM)21.21B
Net Income(TTM)4.24B
Analysts55
Price Target286.67 (27.18%)
Short Float %1.83%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend5.9
Dividend Growth(5Y)11.62%
DP59.26%
Div Incr Years26
Div Non Decr Years26
Ex-Date03-13 2026-03-13 (1.7)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.96%
Min EPS beat(2)0.82%
Max EPS beat(2)1.1%
EPS beat(4)4
Avg EPS beat(4)1.03%
Min EPS beat(4)0.35%
Max EPS beat(4)1.85%
EPS beat(8)8
Avg EPS beat(8)1.64%
EPS beat(12)12
Avg EPS beat(12)1.62%
EPS beat(16)16
Avg EPS beat(16)1.82%
Revenue beat(2)0
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)-0.23%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-0.59%
Max Revenue beat(4)0.64%
Revenue beat(8)4
Avg Revenue beat(8)-0.02%
Revenue beat(12)6
Avg Revenue beat(12)-0.08%
Revenue beat(16)9
Avg Revenue beat(16)-0.02%
PT rev (1m)-3.23%
PT rev (3m)-9.2%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)0.48%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.61 | ||
| Fwd PE | 18.65 | ||
| P/S | 4.3 | ||
| P/FCF | 21.78 | ||
| P/OCF | 19.23 | ||
| P/B | 14.26 | ||
| P/tB | 61.75 | ||
| EV/EBITDA | 15.07 |
EPS(TTM)10.43
EY4.63%
EPS(NY)12.08
Fwd EY5.36%
FCF(TTM)10.35
FCFY4.59%
OCF(TTM)11.72
OCFY5.2%
SpS52.45
BVpS15.81
TBVpS3.65
PEG (NY)2.01
PEG (5Y)1.95
Graham Number60.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5% | ||
| ROE | 66.25% | ||
| ROCE | 44.75% | ||
| ROIC | 34.42% | ||
| ROICexc | 42.91% | ||
| ROICexgc | 84.18% | ||
| OM | 26.37% | ||
| PM (TTM) | 19.96% | ||
| GM | 46.16% | ||
| FCFM | 19.73% |
ROA(3y)7.08%
ROA(5y)6.25%
ROE(3y)81.89%
ROE(5y)76.59%
ROIC(3y)36.13%
ROIC(5y)33.86%
ROICexc(3y)55.75%
ROICexc(5y)48.87%
ROICexgc(3y)137.09%
ROICexgc(5y)114.46%
ROCE(3y)51.2%
ROCE(5y)46.57%
ROICexgc growth 3Y-1.22%
ROICexgc growth 5Y8.54%
ROICexc growth 3Y0.6%
ROICexc growth 5Y6.46%
OM growth 3Y4.64%
OM growth 5Y4.17%
PM growth 3Y3.54%
PM growth 5Y3.25%
GM growth 3Y2.58%
GM growth 5Y1.81%
F-Score6
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 0.95 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 94.94% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 12.97 | ||
| Cash Conversion | 76.72% | ||
| Profit Quality | 98.81% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 1.63 |
F-Score6
WACC8.66%
ROIC/WACC3.98
Cap/Depr(3y)99.42%
Cap/Depr(5y)100.95%
Cap/Sales(3y)2.92%
Cap/Sales(5y)3.1%
Profit Quality(3y)103.34%
Profit Quality(5y)99.19%
High Growth Momentum
Growth
EPS 1Y (TTM)8.08%
EPS 3Y12.57%
EPS 5Y11.05%
EPS Q2Q%11.49%
EPS Next Y10.76%
EPS Next 2Y9.92%
EPS Next 3Y9.36%
EPS Next 5Y7.91%
Revenue 1Y (TTM)6.59%
Revenue growth 3Y7.61%
Revenue growth 5Y7.1%
Sales Q2Q%6.16%
Revenue Next Year6.43%
Revenue Next 2Y6.08%
Revenue Next 3Y5.99%
Revenue Next 5Y5.68%
EBIT growth 1Y6.33%
EBIT growth 3Y12.61%
EBIT growth 5Y11.57%
EBIT Next Year18.65%
EBIT Next 3Y11.07%
EBIT Next 5Y10.37%
FCF growth 1Y23.42%
FCF growth 3Y19.94%
FCF growth 5Y12.76%
OCF growth 1Y20.04%
OCF growth 3Y16.81%
OCF growth 5Y10.3%
AUTOMATIC DATA PROCESSING / ADP FAQ
Can you provide the ChartMill fundamental rating for AUTOMATIC DATA PROCESSING?
ChartMill assigns a fundamental rating of 6 / 10 to ADP.
What is the valuation status for ADP stock?
ChartMill assigns a valuation rating of 4 / 10 to AUTOMATIC DATA PROCESSING (ADP). This can be considered as Fairly Valued.
What is the profitability of ADP stock?
AUTOMATIC DATA PROCESSING (ADP) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for ADP stock?
The Earnings per Share (EPS) of AUTOMATIC DATA PROCESSING (ADP) is expected to grow by 10.76% in the next year.
Is the dividend of AUTOMATIC DATA PROCESSING sustainable?
The dividend rating of AUTOMATIC DATA PROCESSING (ADP) is 7 / 10 and the dividend payout ratio is 59.26%.