Market Cap: 88.677B; Large Cap
P/E Ratio: 20.71; Fwd: 18.25
EPS (TTM): $10.71
Div. Yield: 2.95%

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ADPNASDAQ— Automatic Data Processing Inc Price & Analysis

Automatic Data Processing Inc

TECHNOLOGY — SOFTWARE - APPLICATION

$231.17

+$2.09+0.91%

Market Cap: 88.677B; Large Cap
P/E Ratio: 20.71; Fwd: 18.25
EPS (TTM): $10.71
Div. Yield: 2.95%

Technical Summary

RSI (14)62.07Neutral

SMA (50)$211.04Bullish

SMA (200)$243.55Bearish

MACD5.6443Bullish

Bollinger$207.49 – $237.37Mid

Stochastic70.78Neutral

Theo Outlook

ADP trades at a trailing P/E of 21.23 with a $91.04 billion market cap, supported by $21.60 billion TTM revenue, 10.73 diluted EPS, and 20.1% profit margin. The stock shows solid momentum with 10.5% quarterly earnings growth and 7% revenue growth year-over-year, positioning it as a defensive growth name in the HR software sector.

Key catalysts include continued expansion of its HCM and payroll platforms, strong earnings momentum, and analyst consensus with a $246.33 target price alongside 5 buy/strong-buy ratings. ADP benefits from recurring subscription revenue and market share gains in enterprise HR services.

Risks include regulatory changes in payroll/tax compliance, competition from Workday and UKG, and macro sensitivity to employment levels; these are mitigated by ADP's scale, 90% institutional ownership, low 0.84 beta, and consistent dividend growth at 2.8% yield. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Theo Outlook

ADP trades at a trailing P/E of 21.23 with a $91.04 billion market cap, supported by $21.60 billion TTM revenue, 10.73 diluted EPS, and 20.1% profit margin. The stock shows solid momentum with 10.5% quarterly earnings growth and 7% revenue growth year-over-year, positioning it as a defensive growth name in the HR software sector.

Key catalysts include continued expansion of its HCM and payroll platforms, strong earnings momentum, and analyst consensus with a $246.33 target price alongside 5 buy/strong-buy ratings. ADP benefits from recurring subscription revenue and market share gains in enterprise HR services.

Risks include regulatory changes in payroll/tax compliance, competition from Workday and UKG, and macro sensitivity to employment levels; these are mitigated by ADP's scale, 90% institutional ownership, low 0.84 beta, and consistent dividend growth at 2.8% yield. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Company Overview

Automatic Data Processing, Inc. (ADP) is an American provider of human resources management software and services.

Fundamental Snapshot

Revenue: 21.6004B
EBITDA: 6.3399B
Gross Profit: 10.4755B
Operating Margin: 30.2%
Profit Margin: 20.1%
ROE: 71.2%
Book Value: $15.85
Beta: 0.841
52-Wk High: $321.84
52-Wk Low: $188.16
Avg Volume: 3.9247M
PEG Ratio: 2.073

Frequently Asked Questions

What is ADP's core business model?

ADP provides human capital management software and outsourced payroll/HR services to businesses. It generates recurring revenue primarily through subscription-based HCM platforms and payroll processing fees, serving millions of employees globally.

What are ADP's main revenue sources?

ADP reports $21.60 billion TTM revenue, with the majority from employer services (payroll, tax filing) and professional employer organization (PEO) solutions. Recurring subscriptions and transaction fees drive over 90% of revenue.

What competitive advantages does ADP have?

Trading Data

Open: $226.61
Previous Close: $229.075
Day Range: $225.38 – $231.59
Volume: 2.0889M
Shares Outstanding: 399.734M
Analyst Target: $246.33

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Fundamental Snapshot

Revenue: 21.6004B
EBITDA: 6.3399B
Gross Profit: 10.4755B
Operating Margin: 30.2%
Profit Margin: 20.1%
ROE: 71.2%
Book Value: $15.85
Beta: 0.841
52-Wk High: $321.84
52-Wk Low: $188.16
Avg Volume: 3.9247M
PEG Ratio: 2.073

Frequently Asked Questions

What is ADP's core business model?

ADP provides human capital management software and outsourced payroll/HR services to businesses. It generates recurring revenue primarily through subscription-based HCM platforms and payroll processing fees, serving millions of employees globally.

What are ADP's main revenue sources?

ADP reports $21.60 billion TTM revenue, with the majority from employer services (payroll, tax filing) and professional employer organization (PEO) solutions. Recurring subscriptions and transaction fees drive over 90% of revenue.

What competitive advantages does ADP have?

ADP holds a leading market position with $91.04B market cap, 20.1% profit margins, and 90.4% institutional ownership. Its scale, compliance expertise, and integrated HCM suite create high switching costs for clients.

What are the key risks for ADP investors?

Key risks include regulatory shifts in employment law, competition from cloud HCM providers, and economic slowdowns affecting hiring. ADP mitigates these through diversification, low 0.84 beta, and consistent 10.5% earnings growth.

What is ADP's growth outlook?

ADP shows 7% quarterly revenue growth and 10.5% earnings growth, with analysts targeting $246.33 (vs. current levels near $228). Forward P/E of 19.01 and 2.8% dividend yield support a stable growth trajectory through 2026.

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