Stock Analysis
Automatic Data ProcessingADP
P/E 26.41×· 5Y range 17.57–38.97×· bottom 20% of history
Sector: Technology · Industry: Services-Computer Processing & Data Preparation
AnalystsHold23 analystsP/E 26.4× sits at the 20th percentile of its 5.089664613278576-year history.
Cash covers 62% of debt · Q2 2026.
PMP Verdict
Strong business, attractive price
Strengths
- Profitability100
- Quality100
High-quality business at an attractive price.
Bull Case
- ✓Piotroski F-Score 8/9 — high earnings quality
- ✓ROE 68.0% — efficient capital deployment
- ✓Interest coverage 12.7× — debt well covered
- ✓P/E 26.4× at bottom 20% of 5-year history
What's happening with ADP
Profile
Strong profitability, earnings quality and moat.
How is each axis scored?
- Valuation56/100 · Moderate
- P/E vs own history (20th pct)20/25
- FCF yield (4.6%)12/25
- P/S (5.3x)12/25
- EV/EBIT (20.4x)12/25
- Growth72/100 · Moderate
- Revenue CAGR (7.4%)12/25
- Net income CAGR (10.6%)20/25
- EPS CAGR 5Y (11.8%)20/25
- Fwd implied growth (22.1%)20/25
- Profitability100/100 · Strong
- ROIC (56.6%)25/25
- ROE (68.0%)25/25
- Net margin (20.1%)25/25
- Operating margin (26.2%)25/25
- Financial Health67/100 · Moderate
- Altman Z (1.59)10/25
- Current ratio (1.03)12/25
- Interest coverage (12.7x)25/25
- Net cash / debt (D/A 2%)20/25
- Quality100/100 · Strong
- Piotroski F (8/9)25/25
- Beneish M (-5.82)25/25
- FCF conversion (122%)25/25
- Margin stability (σ 2.9%)25/25
- Moat95/100 · Strong
- ROIC >12% years (9/9 yrs)25/25
- Median gross margin (42.8%)20/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 12.2%)25/25
Risk Flags
- ⚠Altman Z 1.6 — distress-zone balance sheet
About Automatic Data Processing
ADP is a global, cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. Show more
The firm also provides human resources outsourcing services, including PEO offerings, enabling clients to reduce HR overhead. Its broad suite serves customers of all sizes across diverse sectors, and the firm holds large shares in its core markets. As of fiscal 2026, ADP counts over 1.1 million clients and manages payroll for more than 42 million workers across 140 countries.
Headquarters: ROSELAND, NJ · Employees: 67,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
56CP/E (TTM)26.3xC
Grade C: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 17.6x–39.0x · 20th pct
P/FCF23.9xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield4.6%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 2.4%–6.9% · 86th pct
P/S (TTM)5.28xC
Grade C: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 3.5x–6.8x · 32nd pct
EV/EBIT20.4xC
Grade C: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 13.6x–30.7x · 20th pct
EV/Sales5.2xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E21.6xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio17.85xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio2.71C
Grade C: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield2.31%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio59.5%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
100A+ROIC56.6%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE68.0%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA6.6%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin20.1%A
Grade A: HighNet Income / Revenue
Operating Margin26.2%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin46.2%C
Grade C: AverageGross Profit / Revenue
FCF Margin24.5%A
Grade A: HighFCF / Revenue
True FCF Margin23.4%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
72B+Revenue CAGR7.4%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR10.6%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)11.8%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth22.1%C
Grade C: MedAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-7.2%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income5.7%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue1.1%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
67BAltman Z-Score1.59D
Grade D: DistressBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.03xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio1.05xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage12.7xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment0.3yA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT0.3xA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.62xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.62xC
Grade C: PartialCash covers how much of total debt. >1 = could repay all debt from cash
Quality
100A+Piotroski F-Score8/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-5.82A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion121.8%A
Grade A: StrongFCF / Net Income
Margin Stability2.9%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue0.7%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.33xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Sugla Vishwas Filed | Sugla Vishwas | Grant / award | +2.1K | |
Sugla Vishwas Filed | Sugla Vishwas | Grant / award | +2.8K | |
DeSilva Joseph Filed | DeSilva Joseph | SellOpen market sale | -631 | |
Foskett David Filed | Foskett David | SellOpen market sale | -1529 | |
D'Ambrosio Christopher Filed | D'Ambrosio Christopher | SellOpen market sale | -1872 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
DeSilva Joseph Filed | DeSilva Joseph | SellOpen market sale | -6512 | |
Black Maria Filed | Black Maria | SellOpen market sale | -10591 | |
Black Maria Filed | Black Maria | SellOpen market sale | -7724 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
95A+ROIC >12% Years9/9 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)42.8%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor12.2%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$10.94
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$10.63
Cash & short-term investments per share (Finnhub)
Book Value / Share$15.16
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$3.98B
Total debt obligations (short + long term)
Cash & Equiv.$2.47B
Cash and short-term investments
Net Debt$1.51B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$6.39B
Shareholders' equity (book value)
Asset / Liability1.08xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$114.11B
Current Market Capitalization
Beta0.83B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Automatic Data Processing (ADP)
ADP is up 1.14% at the last close. Automatic Data Processing meets 8 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 1.59 is below the 1.81 distress threshold — an elevated financial-risk flag. Beneish M-Score of -5.82 suggests a low likelihood of earnings manipulation.
- Automatic Data Processing converts about 25% of revenue into free cash flow — strong cash generation.
- Takes ~0.3 years to repay net debt from free cash flow.
- Return on equity of 68.0% is well above the market average.
- The stock currently yields 2.3% in dividends.
See how ADP ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all ADP moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 8 | Regular | 271.29 | +2.76% | 2.14 |
| Oct 1 | Regular | 264.34 | +2.43% | 2.11 |
| Oct 1 | After-hours | 263.96 | +2.29% | 2.01 |
Frequently Asked Questions about ADP
What is the current Automatic Data Processing (ADP) stock price?
ADP is trading at $288.90 at the last market close, up 1.14% on the session. PreMarketPrice tracks ADP pre-market, intraday and after-hours prices.
Is ADP stock a buy right now?
PreMarketPrice's quantitative model rates Automatic Data Processing's financial health at 67/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is ADP stock overvalued?
Automatic Data Processing trades at a trailing P/E of 26.3 and our valuation score rates it 56/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Automatic Data Processing report earnings?
No confirmed earnings date is currently scheduled for ADP. The Earnings section lists recent reports and updates as dates are announced.
What sector does Automatic Data Processing operate in?
Automatic Data Processing operates in the Technology sector, within the Services-Computer Processing & Data Preparation industry. The Related Stocks section lists sector peers for comparison.
What does Automatic Data Processing do?
ADP is a global, cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services.
About Automatic Data Processing (ADP) Stock
Automatic Data Processing (ADP) is a US-listed stock operating in the Technology sector, specifically the Services-Computer Processing & Data Preparation industry. As of the latest update, Automatic Data Processing is trading at $288.90, up 1.14% on the day with a market capitalization of $114.1 billion. The financial health score for ADP is 67/100, which indicates good financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for ADP stock.
ADP Stock Analysis & Key Metrics
On PreMarketPrice, you can track Automatic Data Processing (ADP) across multiple dimensions:
- Pre-market price & movement: Real-time ADP stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for ADP with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Automatic Data Processing across multiple reporting periods.
- Financial health score: A composite score of 67/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for ADP.
- Sector peers: Compare ADP against 6 other technology stocks on key financial metrics.
Is ADP a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Automatic Data Processing (ADP) as an investment. The financial health score of 67/100 suggests good financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Automatic Data Processing (ADP) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.