ADP Automatic Data Processing, Inc. - Fundamental Analysis

ADP trades at a premium valuation with solid profitability and consistent earnings execution, but faces headwinds from near-term price underperformance and bearish insider activity. The stock has declined 19.9% over the past six months despite stable 7.1% YoY revenue growth and a strong ROE of 70.57%, which significantly exceeds the sector average of 24.83%. While its P/E of 25x is reasonable relative to its quality, it appears rich compared to high-growth peers like Snowflake and Marvell, especially given modest single-digit earnings growth. Analysts concur with a hold rating and a $293.23 target implying 15.9% upside, though insider selling worth $43.61M over the last six months raises caution about near-term sentiment.