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ADP Overview

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Intellectia

Loading chart...

High
203.385
Open
200.470
VWAP
202.08
Vol
2.06M
Mkt Cap
81.49B
Low
200.460
Amount
416.68M
EV/EBITDA(TTM)
13.37
Total Shares
402.64M
EV
82.22B
EV/OCF(TTM)
17.35
P/S(TTM)
3.84
Automatic Data Processing, Inc. is a provider of cloud-based human capital management (HCM) solutions. Its segments include Employer Services and Professional Employer Organization (PEO). Its Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of technology-based HCM solutions, including its cloud-based platforms, and human resource outsourcing (HRO) (other than PEO) solutions. Its offerings include Payroll Services, Benefits Administration, Talent Management, HR Management, Workforce Management, Compliance Services, Insurance Services and Retirement Services. Its PEO business, called ADP TotalSource, provides clients with guidance, technology, comprehensive employee benefits, risk management, safety, and workers’ compensation program. Its compensation management software supports the compensation planning needs.
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Events Timeline

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News

PRnewswire
8.5
04-16PRnewswire
ADP Honors 2026 HCM Distinction Award Winners
  • Agility at Work Award: Northwood Investors partnered with ADP to unify payroll, benefits, and workforce management, creating a centralized HCM foundation that provides real-time data to support global business growth, enhancing compliance and employee experience.
  • Culture at Work Award: Thrive Restaurant Group successfully integrated nine systems into a unified HCM platform while scaling from 2,000 to 8,000 employees, reducing turnover by 57% and saving $3.5 million annually, thereby reinforcing its people-first culture.
  • Global Solutions at Work Award: Four Seasons implemented standardized global payroll processes with ADP, enabling rapid onboarding of new properties and enhancing employee experience and market consistency, thus strengthening its people-first culture.
  • Innovation at Work Award: LRS unified hiring, onboarding, and payroll management, improving labor planning and compliance, while real-time dashboards and salary benchmarking enhanced cost control, supporting its rapidly growing business needs.
Newsfilter
8.5
04-16Newsfilter
ADP Honors 2026 HCM Distinction Award Winners
  • Agility at Work Award: Northwood Investors partnered with ADP to unify payroll, benefits, and workforce management, creating a centralized HCM foundation that provides real-time data across its U.S. and European portfolio, enhancing compliance and employee experience while driving business growth.
  • Culture at Work Award: Thrive Restaurant Group scaled from 2,000 to 8,000 employees while integrating nine systems, achieving a 57% reduction in turnover and saving $3.5 million annually, thereby reinforcing its people-first culture.
  • Global Solutions at Work Award: Four Seasons implemented standardized global payroll processes with ADP, enabling rapid onboarding of new properties and enhancing employee experience and market consistency, further solidifying its luxury brand image worldwide.
  • Innovation at Work Award: LRS unified hiring, onboarding, and payroll management, improving workforce planning efficiency, reducing turnover, and strengthening compliance, ensuring effective HR management during rapid expansion through over 50 acquisitions.
PRnewswire
4.0
04-14PRnewswire
U.S. Private Sector Employment Continues to Grow
  • Employment Growth Trend: For the four weeks ending March 28, 2026, U.S. private employers added an average of 39,250 jobs per week, indicating a strong employment growth trend and marking the fourth consecutive week of significant increases, reflecting a positive economic recovery momentum.
  • Data Source and Adjustments: These figures are derived from the NER Pulse, which utilizes ADP's high-frequency data and is seasonally adjusted to ensure accurate estimates of real-time employment trends, highlighting the ongoing rise in labor demand in the market.
  • Historical Data Release: The NER Pulse is published every Tuesday at 8:15 a.m. ET, providing 12 weeks of historical data that aids businesses and policymakers in understanding employment market dynamics, thus supporting informed decision-making processes.
  • Future Release Schedule: The next NER Pulse will be released on April 21, 2026, continuing to monitor changes in the employment market and providing stakeholders with the latest employment data and trend analysis.
Yahoo Finance
8.5
04-13Yahoo Finance
ADP Stock Drops 33.5%: Is This a Buying Opportunity?
  • Strong Long-Term Revenue Growth: ADP has achieved an annualized revenue growth rate of 7.8% over the past five years, surpassing the average performance of business services companies, indicating strong customer resonance and laying the groundwork for sustained future growth.
  • Improved Free Cash Flow Margin: With an average free cash flow margin of 20.7% over the last five years, ADP has demonstrated its ability to reinvest effectively, return capital to shareholders, and maintain a competitive edge, reflecting its outstanding performance in the business services sector.
  • Significant Increase in ROIC: ADP's return on invested capital (ROIC) has risen significantly in recent years, suggesting that its competitive advantages or profitable growth opportunities are expanding, which may attract more investor interest in its future growth potential.
  • Reasonable Stock Valuation: Despite the recent drop in ADP's stock price to $188.95, with a forward P/E ratio of 17, this presents a potential entry point for investors, especially given the company's solid fundamentals.
Yahoo Finance
4.0
04-11Yahoo Finance
AI Reshaping the U.S. Labor Market Rapidly
  • Job Transition Trends: According to Wolfe Research's latest 'Roth Report', while approximately 700,000 jobs have been lost due to AI, around 1 million new positions have been created in the past two years, indicating that job creation is currently outpacing job displacement, reflecting a positive shift in the labor market.
  • Economic Risk Warning: Analysts caution that despite the net job gain, losses are heavily concentrated in routine roles within the technology and finance sectors, while new hiring is shifting towards highly specialized positions for managing and auditing AI systems, posing structural risks to the economy.
  • Future Job Projections: The report employs AI modeling to predict that roles such as 'AI Ethicists', 'Algorithm Auditors', and 'Prompt Engineers' will dominate the labor market in the 2030s, highlighting a strong demand for technical talent that was virtually non-existent five years ago.
  • Skills Gap Challenge: As the labor market bifurcates, the ability of companies to bridge the current skills gap will likely become a defining factor in corporate earnings and broader economic stability through 2026 and beyond, with potential short-term wage volatility as firms compete for a limited pool of specialized talent.
PRnewswire
8.0
04-08PRnewswire
ADP Declares Quarterly Dividend of $1.70
  • Quarterly Dividend Announcement: ADP's board has declared a quarterly dividend of $1.70 per share, payable on July 1, 2026, to shareholders of record on June 12, 2026, reflecting the company's commitment to returning value to shareholders and enhancing investor confidence.
  • Company Background: With over 75 years in the HR and payroll solutions sector, ADP stands as a global leader dedicated to providing diverse solutions for clients ranging from small businesses to large enterprises, showcasing its deep industry expertise and innovative capabilities.
  • Extensive Client Base: ADP serves over 1.1 million clients across more than 140 countries, leveraging its exceptional service to support clients and drive business growth, further solidifying its leadership position in the global market.
  • Innovation-Driven: By utilizing AI-driven insights and proven expertise, ADP designs innovative solutions that help clients achieve greater success at work, embodying its philosophy of 'Always Designing for People' and enhancing its competitive edge in the market.
Wall Street analysts forecast ADP stock price to rise
12 Analyst Rating
Wall Street analysts forecast ADP stock price to rise
2 Buy
7 Hold
3 Sell
Hold
Current: 0.000
sliders
Low
230.00
Averages
276.83
High
332.00
Current: 0.000
sliders
Low
230.00
Averages
276.83
High
332.00
UBS
Kevin McVeigh
Neutral
downgrade
$220 -> $210
AI Analysis
2026-04-13
Reason
UBS
Kevin McVeigh
Price Target
$220 -> $210
AI Analysis
2026-04-13
downgrade
Neutral
Reason
UBS analyst Kevin McVeigh lowered the firm's price target on ADP to $210 from $220 and keeps a Neutral rating on the shares.
BMO Capital
Daniel Jester
Market Perform
downgrade
$281 -> $234
2026-04-07
Reason
BMO Capital
Daniel Jester
Price Target
$281 -> $234
2026-04-07
downgrade
Market Perform
Reason
BMO Capital analyst Daniel Jester lowered the firm's price target on ADP to $234 from $281 and keeps a Market Perform rating on the shares as part of a broader research note previewing Q1 in Human Capital Management, or HCM . Shares have been soft into Q3 results due later this month, which reflects a combination of cyclical and structural growth worries that collectively imply ongoing risk to the trajectory of estimates, and based on the firm's reading of intra-quarter data, read-throughs from Paychex, and the recent discussions with industry participants, BMO expects modest upside in ADP results in Q3 but not strong enough to alleviate its near-term caution, the analyst tells investors in a research note.
Unlock Full Analyst Thesis, Get the complete breakdown of rating reason for ADP
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Valuation Metrics

The current forward P/E ratio for Automatic Data Processing Inc (ADP.O) is 16.78, compared to its 5-year average forward P/E of 27.82. For a more detailed relative valuation and DCF analysis to assess Automatic Data Processing Inc's fair value, Click here.

Forward PE

The forward P/E ratio is a valuation metric that divides a company's current stock price by its estimated future earnings per share over the next 12 months.
StronglyUndervaluedUndervaluedFairOvervaluedStronglyOvervalueddotted line Image
5Y Average PE
27.82
Current PE
16.78
Overvalued PE
30.80
Undervalued PE
24.83

Forward EV/EBITDA

The forward EV/EBITDA ratio is a valuation metric that divides a company's enterprise value (EV) by its estimated future earnings before interest, taxes, depreciation, and amortization (EBITDA) over the next 12 months.
StronglyUndervaluedUndervaluedFairOvervaluedStronglyOvervalueddotted line Image
5Y Average EV/EBITDA
19.19
Current EV/EBITDA
12.80
Overvalued EV/EBITDA
21.49
Undervalued EV/EBITDA
16.89

Forward PS

The forward P/S ratio is a valuation metric that divides a company's current stock price by its estimated future sales (or revenue) per share over the next 12 months.
StronglyUndervaluedUndervaluedFairOvervaluedStronglyOvervalueddotted line Image
5Y Average PS
5.27
Current PS
3.55
Overvalued PS
5.79
Undervalued PS
4.74

Financials

AI Analysis
Annual
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Whales Holding ADP

S
Susquehanna Fundamental Investments, LLC
Holding
ADP
+144.40%
3M Return
E
Edgestream Partners, L.P.
Holding
ADP
+101.33%
3M Return
D
Distillate Capital Partners LLC
Holding
ADP
+85.42%
3M Return
F
First Trust Advisors L.P.
Holding
ADP
+80.43%
3M Return
B
Bank J. Safra Sarasin AG
Holding
ADP
+76.66%
3M Return
C
Cardano Asset Management N.V.
Holding
ADP
+42.19%
3M Return

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Frequently Asked Questions

What is Automatic Data Processing Inc (ADP) stock price today?

The current price of ADP is 202.39 USD — it has increased 0.96

What is Automatic Data Processing Inc (ADP)'s business?

Automatic Data Processing, Inc. is a provider of cloud-based human capital management (HCM) solutions. Its segments include Employer Services and Professional Employer Organization (PEO). Its Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of technology-based HCM solutions, including its cloud-based platforms, and human resource outsourcing (HRO) (other than PEO) solutions. Its offerings include Payroll Services, Benefits Administration, Talent Management, HR Management, Workforce Management, Compliance Services, Insurance Services and Retirement Services. Its PEO business, called ADP TotalSource, provides clients with guidance, technology, comprehensive employee benefits, risk management, safety, and workers’ compensation program. Its compensation management software supports the compensation planning needs.

What is the price predicton of ADP Stock?

Wall Street analysts forecast ADP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ADP is276.83 USD with a low forecast of 230.00 USD and a high forecast of 332.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

What is Automatic Data Processing Inc (ADP)'s revenue for the last quarter?

Automatic Data Processing Inc revenue for the last quarter amounts to 5.36B USD, increased 6.16

What is Automatic Data Processing Inc (ADP)'s earnings per share (EPS) for the last quarter?

Automatic Data Processing Inc. EPS for the last quarter amounts to 2.62 USD, increased 11.02

How many employees does Automatic Data Processing Inc (ADP). have?

Automatic Data Processing Inc (ADP) has 67000 emplpoyees as of April 21 2026.

What is Automatic Data Processing Inc (ADP) market cap?

Today ADP has the market capitalization of 81.49B USD.