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ADP

NEUTRAL
$208.52 Live
Automatic Data Processing, Inc. · NASDAQ
Target $272.0 (+30.4%)
$203.26 52W Range $329.93
Overview AI Snowflake Price Valuation Profitability Growth Health Peers Insiders

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Mar 14, 2026
Market cap
$84.34B
P/E
20.03
ROE
73.8%
Profit margin
20.0%
Debt/Equity
0.7
Dividend yield
3.26%

AI Analysis

AI-powered fundamental assessment

Confidence
78%
ADP's Piotroski F-Score of 4/9 indicates a weak financial health profile, signaling potential instability despite strong profitability metrics. The absence of an Altman Z-Score raises concern about default risk, though the company's low debt-to-equity (0.70) and stable cash flow trends offer some mitigation. The stock trades at $208.52, below its intrinsic value of $252.44 and Graham Number of $60.96, suggesting undervaluation on a defensive basis, but the current price is elevated relative to the Graham Number due to growth expectations. Analysts maintain a 'hold' recommendation with a target price of $272.00, reflecting cautious optimism. Insider selling activity over the past six months adds bearish sentiment.

Key Strengths

High ROE of 73.84% indicates exceptional capital efficiency
Strong gross margin (48.35%) and operating margin (26.28%) reflect pricing power and cost control
Consistent earnings beat rate (76% over last 4 quarters) with positive average surprise of 1.37%
Attractive dividend yield of 3.26% with a sustainable 60.71% payout ratio
Intrinsic value ($252.44) exceeds current price, suggesting potential upside

Key Risks

Piotroski F-Score of 4/9 signals weak financial health and potential operational instability
Extremely low quick ratio (0.08) raises concerns about short-term liquidity and working capital management
Negative technical trend (0/100) and prolonged price decline (1Y: -26.6%, 6M: -28.5%) indicate bearish momentum
Insider selling activity (7 transactions, $1.19M value) suggests lack of confidence among executives
No PEG ratio and missing FCF/OCF data limit growth and cash flow analysis
AI Fair Value Estimate
Based on comprehensive analysis
$252.44
+21.1% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
66
Strong
Value
78
Future
58
Past
82
Health
45
Dividend
65
AI Verdict
neutral
Key drivers: Strong profitability and consistent earnings beats, High ROE and margin resilience, Weak liquidity and low Piotroski score, Bearish technicals and insider activity
Confidence
75%
Value
78/100

Ref P/E, PEG, Graham Number

Positives
  • Intrinsic value ($252.44) significantly above current price ($208.52)
  • Graham Number ($60.96) suggests deep undervaluation on defensive basis
  • P/E of 20.03 is below sector average (77.80), indicating relative value
Watchpoints
  • Graham Number is outdated and not reflective of growth-oriented valuation
  • Current price is 21% below intrinsic value, but growth expectations may not justify the gap
Future
58/100

Ref Growth rates

Positives
  • Forward P/E of 17.43 suggests improving earnings visibility
  • Earnings growth of 11.50% YoY and 10.30% Q/Q indicate momentum
Watchpoints
  • Revenue growth of 6.20% is modest compared to sector peers (avg 55.68%)
  • No PEG ratio limits growth-adjusted valuation assessment
Past
82/100

Ref Historical trends

Positives
  • 25 consecutive quarters of earnings beats, with 3 of last 4 exceeding estimates
  • Average earnings surprise of 1.37% over last 4 quarters shows consistency
Watchpoints
  • Historical EPS growth peaked at +18.1% in 2021, now moderating to +11.5%
  • 2020 earnings surprise of +44.4% was outlier, not sustainable
Health
45/100

Ref Altman Z-Score, Piotroski F-Score

Positives
  • Debt/Equity of 0.70 is below sector average (0.76)
  • Profit margin of 19.96% is strong and stable
Watchpoints
  • Piotroski F-Score of 4/9 indicates weak financial health
  • Quick ratio of 0.08 is dangerously low, suggesting liquidity risk
  • No Altman Z-Score available, but absence raises red flags for distress risk
Dividend
65/100

Ref Yield, Payout

Positives
  • Dividend yield of 3.26% is attractive for a tech stock
  • Payout ratio of 60.71% is sustainable and below 70% threshold
Watchpoints
  • Dividend strength score of 50/100 indicates moderate reliability
  • No 5-year average yield data limits long-term dividend stability assessment

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$208.52
Analyst Target
$272.0
Upside/Downside
+30.4%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for ADP and closest competitors.

Updated 2026-03-13
ADP
Automatic Data Processing, Inc.
Primary
5Y
+21.7%
3Y
+3.7%
1Y
-26.6%
6M
-28.5%
1M
-4.2%
1W
-7.8%
CDN
Cadence Design Systems, Inc.
Peer
5Y
+174.2%
3Y
+86.6%
1Y
+3.9%
6M
-2.1%
1M
-2.8%
1W
-3.1%
MRV
Marvell Technology, Inc.
Peer
5Y
+103.8%
3Y
+95.7%
1Y
-4.4%
6M
+35.8%
1M
-2.7%
1W
-4.9%
SNP
Synopsys, Inc.
Peer
5Y
+75.3%
3Y
+16.6%
1Y
-28.9%
6M
-24.2%
1M
-10.6%
1W
-0.9%
NET
Cloudflare, Inc.
Peer
5Y
+187.4%
3Y
+234.6%
1Y
+83.1%
6M
-3.8%
1M
+14.0%
1W
-3.2%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
20.03
Forward P/E
17.43
PEG Ratio
N/A
P/B Ratio
13.14
P/S Ratio
3.98
EV/Revenue
4.05
EV/EBITDA
13.9
Market Cap
$84.34B

Profitability

Profit margins and return metrics

Profit Margin 19.96%
Operating Margin 26.28%
Gross Margin 48.35%
ROE 73.84%
ROA 4.71%

Growth

Revenue and earnings growth rates

Revenue Growth +6.2%
Earnings Growth +11.5%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +10.3%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.7
Moderate
Current Ratio
1.03
Good
Quick Ratio
0.08
Poor
Cash/Share
$6.02

Quarterly Earnings History

EPS performance vs analyst estimates

2026-04-29
$N/A
2026-01-28
$2.62
+2.0% surprise
2025-10-29
$2.49
+1.9% surprise
2025-07-30
$2.23
+0.2% surprise

Technology Sector Comparison

Comparing ADP against 383 companies in the Technology sector (32 bullish, 137 neutral, 214 bearish)
P/E Ratio
20.03
This Stock
vs
97.74
Sector Avg
-79.5% (Discount)
Return on Equity (ROE)
73.84%
This Stock
vs
-35.13%
Sector Avg
-310.2% (Below Avg)
Profit Margin
19.96%
This Stock
vs
-11.73%
Sector Avg
-270.2% (Weaker)
Debt to Equity
0.7
This Stock
vs
0.67
Sector Avg
+4.0% (Higher)
Revenue Growth
6.2%
This Stock
vs
6431.4%
Sector Avg
-99.9% (Slower)
Current Ratio
1.03
This Stock
vs
3.83
Sector Avg
-73.1% (Weaker)

Similar Companies

Peer comparison within the same industry

ADP Automatic Data...
NEUTRAL
Mkt Cap
$84.3B
P/E
20.0
ROE
73.8%
Price
$208.52
CDNS Cadence Design...
BULLISH
Mkt Cap
$86.0B
P/E
81.4
ROE
21.7%
Price
$314.93
 Compare with ADP
MRVL Marvell...
NEUTRAL
Mkt Cap
$75.5B
P/E
-
ROE
-0.7%
Price
$86.45
 Compare with ADP
SNPS Synopsys, Inc.
NEUTRAL
Mkt Cap
$73.2B
P/E
52.6
ROE
6.5%
Price
$389.83
 Compare with ADP
NET Cloudflare, Inc.
BEARISH
Mkt Cap
$72.6B
P/E
-
ROE
-8.2%
Price
$206.34
 Compare with ADP

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

D'AMBROSIO CHRISTOPHER
Officer
Sell
2026-02-17
543 shares · $115,349
MICHAUD BRIAN L.
Officer
Sell
2026-02-06
1,000 shares · $234,180
FOSKETT DAVID
Officer
Sell
2026-02-05
266 shares · $63,042
D'AMBROSIO CHRISTOPHER
Officer
Sell
2026-01-13
543 shares · $142,423
KWON DAVID
Officer
Sell
2026-01-12
806 shares · $213,429
KWON DAVID
Officer
Option Exercise
2026-01-06
1,137 shares · $157,509
KWON DAVID
Officer
Sell
2026-01-06
900 shares · $234,000
BLACK MARIA
Chief Executive Officer
Sell
2026-01-05
715 shares · $183,880
DESILVA JOSEPH
Officer
Gift
2026-01-02
78 shares
LYNCH KAREN S.
Director
Stock Award
2025-11-12
1,453 shares
SWAN ROBERT HOLMES
Director
Stock Award
2025-11-12
1,453 shares
POWERS SCOTT
Director
Stock Award
2025-11-12
1,531 shares
WIJNBERG SANDRA S
Director
Stock Award
2025-11-12
1,551 shares
RODRIGUEZ CARLOS ANTONIO
Director
Stock Award
2025-11-12
1,453 shares
BISSON PETER E
Director
Stock Award
2025-11-12
1,521 shares
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
HOLD
14 analysts
Stifel
2026-02-09
Maintains
Hold Hold
Morgan Stanley
2026-01-29
Maintains
Equal-Weight Equal-Weight
JP Morgan
2026-01-29
Maintains
Underweight Underweight
Citigroup
2026-01-29
Maintains
Neutral Neutral
Stifel
2026-01-29
Maintains
Hold Hold
Wells Fargo
2026-01-29
Maintains
Underweight Underweight
Cantor Fitzgerald
2026-01-27
init
Overweight
Jefferies
2025-12-16
down
Hold Underperform
JP Morgan
2025-10-30
Maintains
Underweight Underweight
Wells Fargo
2025-10-30
Maintains
Underweight Underweight

Past News Coverage

Recent headlines mentioning ADP from our newsroom.

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