Automatic Data Processing Inc ADP

Morningstar Rating
$257.90 −6.04 (2.29%)
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Company Report

ADP Is a Dominant HR Solutions Provider

ADP is a leading global payroll and human capital management provider. Payroll providers often focus on either the enterprise or down-market segments; ADP is one of the few with comprehensive solution suites equipped to serve clients of all sizes. Its breadth of solutions, combined with decades of navigating regulatory changes and the high costs of switching payroll providers, has enabled ADP to build a strong enterprise foothold, supporting healthy cash flows even through macroeconomic downturns. The firm operates two segments, employer services and professional employer organization.

Price vs Fair Value

ADP is trading at a LOCK|>Jv?T premium.
Price
$263.96
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

ADP’s rich expertise and depth of offerings lend it enough strength to retain industry trust and grow with its customers as regulatory complexity increases.

Bears

Given its sensitivity to employment levels and macroeconomic health, ADP’s growth faces significant downside risk from declines in labor force participation rates and new business formations.

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Trading Information

Previous Close Price
$263.96
Day Range
$257.71–263.49
52-Week Range
$188.18–293.87
Bid/Ask
$257.86 / $258.03
Shares Outstanding
396.25M
Market Cap
$102.20B
Volume/Avg
723,099 / 2M

Key Statistics

Price/Earnings (Normalized)
23.74
Price/Sales
4.85
Dividend Yield (Trailing)
2.58%
Dividend Yield (Forward)
2.58%
Dividend Payment Schedule
Jan, Apr, Jul, Oct
Total Yield
4.57%

Company Profile

ADP is a global, cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. 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.
Sector
Technology
Industry
Software - Application
Stock Style Box
Large Value
Total Number of Employees
67,000

Competitors

Valuation

Metric
ADP
PAYX
PAYC
Price/Earnings (Normalized)
23.7417.9122.04
Price/Book Value
17.419.6917.63
Price/Sales
4.855.485.55
Price/Cash Flow
16.2613.5513.48
Price/Earnings
ADP
PAYX
PAYC

Financial Strength

Metric
ADP
PAYX
PAYC
Quick Ratio
0.150.520.08
Current Ratio
1.051.281.07
Interest Coverage
12.679.7242.96
Quick Ratio
ADP
PAYX
PAYC

Profitability

Metric
ADP
PAYX
PAYC
Return on Assets (Normalized)
7.01%12.26%10.30%
Return on Equity (Normalized)
71.57%52.40%40.24%
Return on Invested Capital (Normalized)
35.68%25.04%31.58%
Return on Assets
ADP
PAYX
PAYC

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