ADP

Automatic Data Processing (ADP) In Focus

During the afternoon session, Automatic Data Processing moved -1.5%, compared to 0.76% for the S&P 500.

Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. Based in Roseland, United States the company has 60,000 full time employees and a market cap of $91,988,510,229. Automatic Data Processing currently offers its equity investors a dividend that yields 1.9% per year.

The company is now trading -10.47% away from its average analyst target price of $247.94 per share. The 16 analysts following the stock have set target prices ranging from $213 to $280, and on average give Automatic Data Processing a rating of hold.

Over the last year, ADP shares have gone up 13.1%, which represents a difference of 21.5% when compared to the S&P 500. The stock's 52 week high is $274.92 per share whereas its 52 week low is $192.26. Based on Automatic Data Processing's steady revenue growth and low leverage, its core business is strong and may be of interest to investors with a long term horizon.

2019-06-30 2020-06-30 2021-06-30 2022-06-30
Revenue (MM) $13,613 $14,045 $14,583 $16,046
Revenue Growth n/a 3.17% 3.83% 10.04%
Gross Margins 40.6% 39.9% 40.8% 41.0%
Gross Margins Growth n/a -1.72% 2.26% 0.49%
Operating Margins 18.1% 18.5% 19.9% 20.9%
Operating Margins Growth n/a 2.21% 7.57% 5.03%
Earnings Per Share $5.24 $5.7 $6.07 $7.0
EPS Growth n/a 8.78% 6.49% 15.32%
Free Cash Flow (MM) $2,122 $2,410 $2,587 $2,546
FCF Growth n/a 13.57% 7.37% -1.6%
Capital Expenditures (MM) -$566 -$616 -$506 -$553
Net Debt / EBITDA 0.09 0.03 0.11 0.38
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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