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Automatic Data Processing Inc ADP Stock Quote

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Last close prices updated as of Jan 27, 2023, 4:00 PM EST | USD | BATS BZX Real-Time Price
  • Last Close 225.43
  • Sector Industrials
  • Industry Staffing & Employment Services
  • Investment Style Large Growth
  • Day Range 220.21  –  225.88
  • Year Range 192.26  –  274.92
  • Market Cap 91.4995 Bil
  • Volume / Avg 4.9 Mil /  1.6 Mil
  • Price / Sales 5.65
  • Price / Book 31.28
  • Forward Div Yield 2.14%
  • Trailing Div Yield 1.98%

Morningstar‘s Stock Analysis ADP

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ADP Reports a Healthy Q2 2023 Result Despite Slowing Employment Growth; Shares Fairly Valued

Emma Williams Equity Analyst

Analyst Note

| Emma Williams |

We maintain our $228 fair value estimate for wide-moat ADP following another sound quarter in an uncertain macroeconomic environment. Second-quarter revenue growth of 9% year over year reflects a slight deceleration from 10% in the first quarter but remained supported by continued, albeit moderating, employment growth, higher interest on client funds, and resilient retention, partly offset by foreign exchange headwinds. Higher employment within ADP’s client base drove improved operating leverage, and greater contribution from ultra-high-margin client funds interest revenue supported a healthy 120-basis-point year-on-year adjusted operating margin expansion to 24.3%. After falling following the results release, shares currently trade in line with our unchanged valuation.

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Key Statistics ADP

Company Profile ADP

Business Description

ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 990,000 clients primarily in the United States. ADP's employer services segment offers payroll, HCM solutions, human resources outsourcing, insurance and retirement services. The smaller but faster-growing professional employer organization segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.

One ADP Boulevard
Roseland, NJ, 07068
Industry Staffing & Employment Services
Employees 60,000

Related Articles ADP

FAQs for Automatic Data Processing Inc Stock

Yes. ADP has a forward dividend yield of 2.14%. See ADP’s full dividends and stock split history on the Dividend tab.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

Learn more about dividend yield.

ADP’s market cap is 91.50 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

Learn more about market capitalization.

ADP’s stock style is Large Growth.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

Learn more about style.

ADP’s price/sales is 5.65.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

ADP’s price/forward earnings is 28.49.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

ADP’s price/book is 31.28.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

See ADP’s valuation ratios compared to the Market Index.

ADP’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare ADP’s historical performance against its industry peers and the overall market.