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Automatic Data Processing, Inc.

NASDAQ: ADP

Stock price

282.78 USD

(+0%) TODAY

Staffing & Employment Services

Financial Performance

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5Y price score: 50

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The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.

A score of 100 indicates that the stock did as well as the S&P 500 Index.

A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.

10Y return: 256.7%

DATE RANGE:

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    188.1

    52-week range

    305.3

    282.78

    Your model inputs

    Required return / cost of capital
    %
    FCFF terminal growth rate
    %

    Your fair value & Margin of safety

    To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

    Forecast:

    Valuation

    Free Cash Flow Yield

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    FCF Yield TTM = Trailing Twelve Months free cash flow per share / current market price per shareLearn more

    4.4 %

    Dividend Yield TTM

    2.3 %

    Market cap $

    $ 113,037

    Price / Earnings TTM

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    P/E TTM = current market price per share / Trailing Twelve Months diluted earnings per shareLearn more

    25.8

    Price / Book TTM

    18.7

    PEG TTM

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    Price/Earnings-to-Growth ratio = P/E TTM divided by most recent annual diluted earnings per share growth rateLearn more

    2.6

    Earnings growth and return

    LTM

    5YR

    10YR

    Total return (price & dividends)

    (4.9) %

    47.4 %

    256.7 %

    Free cash flow per share growth

    (10.4) %

    117.2 %

    309 %

    Earnings per share growth

    9.9 %

    80.4 %

    237 %

    Founded: 1,949

    Employees: 64,000

    Business Summary:Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. Its offerings include payroll, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solutions to small and mid-sized businesses through a co-employment model. This segment offers benefits package, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. The company was founded in 1949 and is headquartered in Roseland, New Jersey.

    Fair Value Reference Estimate

    Latest Earnings Call Takeaways

    2026 Q4 (Jul 29, 2026)

    1) Strategic Priorities and Leadership Insights - ADP reported strong Q4 results with 7% revenue growth, 140 basis points of adjusted EBIT margin expansion, and 17% adjusted EPS growth for fiscal 2026. - The company emphasizes its role in helping clients navigate the evolving workforce, particularly through AI integration and compliance management. - ADP's leadership believes that the ongoing workforce transformation presents significant opportunities for the company, leveraging its extensive data and expertise.

    2) Financial and Segment Results - Total revenue for fiscal 2026 reached $21.9 billion, with Employer Services (ES) and PEO segments both achieving 7% revenue growth. - ES segment revenues grew 7% in Q4, with 6% growth on an organic constant currency basis. - PEO revenues also increased by 7% in Q4, with average worksite employees growing by 2%.

    Metric Q4 FY 2026 FY 2026
    Revenue Growth (ES) 7% 7%
    Revenue Growth (PEO) 7% 7%
    Adjusted EPS Growth 17% 11%
    Adjusted EBIT Margin Expansion 140 bps 80 bps

    3) Operational and Product Developments - ADP's new business bookings reached $2.2 billion, marking a 6% increase YoY, with strong contributions from small business and HR outsourcing. - The rollout of ADP Assist has expanded significantly, with 3.1 million unique active users engaging in 12 million conversations. - The company is seeing strong traction with its Lyric HCM platform, which has grown its client base by 94% YoY.

    4) Guidance and Outlook - For fiscal 2027, ADP expects 5% to 6% revenue growth, with ES new business bookings anticipated to grow by 4% to 7%. - Adjusted EPS growth is forecasted at 9% to 11%, supported by ongoing share repurchase activity. - The company anticipates some headwinds from foreign exchange and a slight decline in ES retention rates, projecting a 10 to 30 basis point decrease from the current 92.1%.

    5) Challenges and Market Dynamics - The earnings call did not provide specific details on potential macroeconomic headwinds or competitive pressures that could impact performance in fiscal 2027. - There was a focus on the importance of maintaining client trust and navigating the complexities of compliance and regulatory changes in the evolving workforce landscape.

    Bottom line: ADP's strong fiscal 2026 performance, driven by strategic investments in AI and client service, positions the company well for continued growth in fiscal 2027, despite anticipated challenges. The focus on operational efficiency and client satisfaction remains critical as ADP navigates a transforming workforce environment.

    Annual Reports, Presentations And IR Contacts

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    Automatic Data Processing, Inc. — Financial Overview, Stock Price, Market Cap

    Automatic Data Processing, Inc. is a company. Founded in 1949. As of August 26, 2026, the company's market capitalization is $113036780520 with a current stock price of $282.78.