ADP Automatic Data Processing, Inc. - Fundamental Analysis
NEUTRAL
Sign in to save
Save this symbol to a watchlist or track a position.
ADP Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Software - Application
Current Price
Live
$214.47
Analyst Target
$278.36
+29.8%
Upside
52W High
$329.93
52W Low
$208.62
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
78%
Analysis Accuracy
ADP's Piotroski F-Score of 4/9 indicates a borderline healthy financial position, signaling stability but not strength, with no Altman Z-Score available to assess bankruptcy risk. The stock trades at a premium to its Graham Number ($60.93) and intrinsic value ($252.2), suggesting valuation is driven by growth expectations rather than conservative fundamentals. Despite strong profitability metrics—especially ROE (73.84%) and gross margin (48.35%)—the low quick ratio (0.08) and weak technical trend (0/100) raise liquidity and momentum concerns. Insider selling activity over the past six months adds bearish sentiment, though dividend strength and earnings consistency provide some support.
Key Strengths
Exceptional ROE of 73.84% indicates efficient use of shareholder equity
High gross margin (48.35%) and strong operating margin (26.28%) reflect pricing power and cost control
Consistent earnings beat rate (3/4 in last 4 quarters) with positive average surprise (+1.33%)
Attractive dividend yield of 3.17% with a sustainable payout ratio of 60.71%
Strong historical earnings progression with multiple quarters exceeding estimates by over 5%
Key Risks
Piotroski F-Score of 4/9 suggests marginal financial health, indicating potential weaknesses in operational efficiency or capital structure
Extremely low quick ratio (0.08) raises serious concerns about short-term liquidity and ability to meet immediate obligations
Insider selling activity (7 transactions, $1.19M value) over the last 6 months signals bearish sentiment from within the company
Technical trend is bearish (0/100), with the stock down 29.7% over the past year and 16.6% in the last month
Trading at a significant premium to both Graham Number ($60.93) and intrinsic value ($252.2), implying high growth expectations that may not be sustainable
AI Fair Value Estimate
Based on comprehensive analysis
$252.2
+17.6% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare ADP against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations
Past News Coverage
Recent headlines mentioning ADP from our newsroom.
Newest → oldest
No matching news yet.