Automatic Data Processing Inc (ADP)
Industrials · Human Resource & Employment Services · US stock · S&P 500 component
$288.90
▲ +3.25 (1.14%)
Fair valueFair
$400 +38.5% to fair value
$200fair band $280–$520$600
Day's range
$285.69 – $290.12
52-week range
$185.56 – $290.12
About Automatic Data Processing Inc
Automatic Data Processing provides cloud-based human capital management software and outsourcing services, covering payroll, tax filing, benefits administration, time tracking and talent management. It serves businesses of all sizes around the world. Revenue comes from recurring fees for these services and from interest earned on client funds held before payroll and tax payments are made, which links results to interest rates.
Revenue at Automatic Data Processing Inc was $21.9 billion across the last twelve months. Across three years, sales expanded by 6.8% a year. Operating profit was 28.2% of revenue. It earned a return on invested capital of 66%. Debt after cash comes to 0.2 times EBITDA. Shareholders receive a dividend yielding 2.4%. On the site's X-Ray Score, it rates 66 out of 100.
Written with AI from public information and the filing figures on this page, then checked automatically for unsupported numbers. It can contain mistakes: read the company's own filings below before relying on it.
Price chart
52-wk range $185.56 – $290.12Volume 2,332,400Daily, split-adjusted
Vitals
Market cap$116.5B
52-week range$185.56 – $290.12
Volume (last day)2,332,400
P/E (TTM)26.5
EBIT / EV yield5.3%
Free-cash-flow yield–
Dividend yield2.4%
Revenue (TTM)$21.9B
Net income (TTM)$4.4B
Operating margin28.2%
Return on capital66.4%
Debt incl. leases$5.4B
Cash & securities$4.2B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies like Apple). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$400model spread $352 – $431
Fair
+38.5% to fair value
Equal blend of three models: peer multiples, a fundamentals-adjusted multiple (growth, ROIC and margin) and a 10-year DCF scaled to the market's average. Earnings-power value (no growth) is a floor and not part of the blend. Model uncertainty is Medium, so the safety margin is 30%.
Price $289
Undervalued < $280Fair $280 – $520Overvalued > $520
10-year DCF (market-scaled)
$576
Peer multiples
$318
Earnings power floor (not blended)
$129
Fundamentals-adjusted multiple
$306
Growth the price implies
11.8%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.09%, equity risk premium 4.23% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Valuation
Strong
72/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield5.3%
Fair value vs price1.4×
Growth
Fair
67/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)6.8%
EPS growth (3y)10.0%
Growth consistency100%
Profitability
Fair
58/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital66.4%
Operating margin28.2%
Gross profitability16.1%
Financial health
Fair
56/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA0.2×
Interest cover13.5×
Dividends
Strong
76/100
Dividend is high and well covered by cash flow.
See the numbers →
Dividend yield2.4%
Dividend growth11.3%
Quarterly results: last 6 quarters
+5.7%
Mar '25
+7.5%
Jun '25
+7.1%
Sep '25
+6.2%
Dec '25
+7.0%
Mar '26
+6.8%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $5.5B.
Compare with peers
PAYX Paychex Inc67Other Human Resource & Employment Services companies by X-Ray Score.
Fundamentals checklist
● 7 Good · ● 3 Average · ● 4 BadCash quality
Earnings backed by cashBad
Risk models
Altman Z''Bad
Piotroski F-ScoreGood
Growth
EPS growth (3y)Average
Revenue growth (3y)Average
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDAGood
Interest coverAverage
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityBad
Each check is graded against the company's sector, not a fixed number. Checklist score 57/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $16.5B | $18.0B | $19.2B | $20.6B | $21.9B |
| Operating income | $3.9B | $4.7B | $5.2B | $5.8B | $6.2B |
| Net income | $2.9B | $3.4B | $3.8B | $4.1B | $4.4B |
| Operating cash flow | $3.1B | $4.2B | $4.2B | $4.9B | $5.4B |
| Operating margin | 23.6% | 26.0% | 27.3% | 28.0% | 28.2% |
| Free cash flow | – | – | – | – | – |
| Diluted EPS | $7.00 | $8.21 | $9.10 | $9.98 | $10.94 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
12 bullish · 0 neutral · 4 bearish
Weekly
Strongly bullish
11 bullish · 1 neutral · 0 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 273.3 | Bullish |
| EMA 10 | 276.3 | Bullish |
| SMA 20 | 268.3 | Bullish |
| EMA 20 | 272.4 | Bullish |
| SMA 50 | 272.0 | Bullish |
| EMA 50 | 267.4 | Bullish |
| SMA 100 | 254.8 | Bullish |
| EMA 100 | 257.5 | Bullish |
| SMA 200 | 236.0 | Bullish |
| EMA 200 | 250.8 | Bullish |
Oscillators (daily)
| RSI (14) | 71.50 | Bearish |
| MACD (12, 26) | 3.55 | Bullish |
| Momentum (12) | 11.95 | Bullish |
| Stochastic %K (14) | 96.43 | Bearish |
| Williams %R (14) | -3.57 | Bearish |
| CCI (20) | 195.1 | Bearish |
Pivot points (classic, last session)
S3 281.9 | S2 283.8 | S1 286.4 | Pivot 288.2 | R1 290.8 | R2 292.7 | R3 295.2 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
6.80 USD
Yield on today's price
2.35%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 11 Sep 2026 | 1.7000 |
| 12 Jun 2026 | 1.7000 |
| 13 Mar 2026 | 1.7000 |
| 12 Dec 2025 | 1.7000 |
| 12 Sep 2025 | 1.5400 |
| 13 Jun 2025 | 1.5400 |
| 14 Mar 2025 | 1.5400 |
| 13 Dec 2024 | 1.5400 |
| 13 Sep 2024 | 1.4000 |
| 14 Jun 2024 | 1.4000 |
| 7 Mar 2024 | 1.4000 |
| 7 Dec 2023 | 1.4000 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ADP SEC filings
24 Sep 2026
DEF 14ASEC EDGAR
Proxy statement
5 Aug 2026
10-KSEC EDGAR
Annual report
29 Jul 2026
8-KSEC EDGAR
Results of operations
26 Jun 2026
8-KSEC EDGAR
Entered a material agreement
7 May 2026
8-KSEC EDGAR
Entered a material agreement; Other events
30 Apr 2026
10-QSEC EDGAR
Quarterly report
29 Apr 2026
8-KSEC EDGAR
Results of operations
29 Jan 2026
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.