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ADP

Automatic Data Processing, Inc.
$292.75
+1.99% Oct 20 close
IndustrialsS&P 500 Compare
-32%-20%-8%+5%+17%Oct 2025Oct 2026Apr 2026
ADPSPY
1W
+6.1%
1M
+7.9%
3M
+19.7%
6M
+46.3%
YTD
+16.4%
1Y
+6.4%

Live chart

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What they do

Automatic Data Processing, Inc. provides cloud-based human capital management (HCM) 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.

Technology · Software - Application

For information only · Important disclosures

Grades vs sector

Momentum
42nd percentile in sector
C
12-1 return: +2.0%
Percentile within its GICS sector across the S&P 1500.
Growth
38th percentile in sector
C-
Revenue growth (YoY): +6.8%
Percentile within its GICS sector across the S&P 1500.
Value
32nd percentile in sector
D+
Forward E/P: 4.6% · EBITDA/EV: 5.5%
Percentile within its GICS sector across the S&P 1500.
Profitability
96th percentile in sector
A+
Profit margin: +20.1% · Return on equity: +72.2%
Percentile within its GICS sector across the S&P 1500.
Revisions
Not enough data yet
–
EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.

Our models

Not held by any of our 5 live models right now.

Quality Growth
Outside this model's universe or screens
Momentum Top 15
ranked 339 of 499 · 12-month momentum -0.3%
Momentum Blend
Not in the current book
New Highs Growth
Outside this model's universe or screens
Coteau Long Book
Not in the current book

News

More news
The All-In Hosts Asked If the AI Trade Is Cracking. Here’s What Income Investors Should Do
24/7 Wall St. · 20h ago

Key stats

Market value$116.7B
P/E (last 12 months)26.9
P/E (next 12 months, estimated)22.0
52-week range$188.16 – $296.14
Revenue growth (latest quarter vs a year ago)+6.8%
Dividend yield2.32%
Analyst consensusHold (15)
Average analyst price target$286.40 (-2%)
Valuation and fundamentals

Valuation & fundamentals

Bottom line
Leans expensive
Model read-out from the numbers below, not advice. Score -1 (DCF counts double).
•DCF (base case)above the price by 2%
▼Forward P/E vs sector22.0x vs median 17.1x
•Piotroski F-score5/9
•Analyst target-2% (15 analysts)

Discounted cash flow

Bear
$183
-38%
growth 2% · disc. 9.5% · term. 2.0%
Base
$299
+2%
growth 7% · disc. 8.5% · term. 2.5%
Bull
$469
+60%
growth 10% · disc. 7.5% · term. 3.0%

A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.

Reverse DCFfor context, not a signal
Today's price assumes free cash flow grows about 5% a year for 10 years.
Implied
+5%/yr
FCF, last 3 yrs
+9%/yr
FCF, last 5 yrs
+12%/yr
Revenue, last 3 yrs
+7%/yr
Revenue, last 5 yrs
+8%/yr
Same inputs as the DCF above: trailing free cash flow 5.4B, 8.5% discount rate, 2.5% growth after year 10, net debt and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2026; "n/a" means too little history or a negative starting year.
Edit assumptions · recalculates instantly
Your value per share–

Free cash flow = operating cash flow − capital spending, trailing 12 months (FY to 2026-06-30). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 0.84 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.

Multiples vs Industrials

P/E (trailing)
sector median 26.4× · 52nd pct
26.9×
pricier
Forward P/E
sector median 17.1× · 70th pct
22.0×
pricier
EV / EBITDA
sector median 14.8×
–
Price / sales
sector median 2.1× · 85th pct
5.3×
pricier
Price / book
sector median 3.5× · 97th pct
19.3×
pricier
FCF yield
sector median 4.5% · 52nd pct
4.7%
cheaper

Forward EPS $13.40 vs trailing $10.94 (+23% expected growth). Forward P/E uses analysts' next-12-month estimate.

Quality & financial health

Gross margin
46.4%
Operating margin
–
FCF margin
24.8%
Net margin
20.1%
Return on equity
73.2%
Return on invested capital
–
Net debt / EBITDA
–
Current ratio
1.1×
Interest cover
–
Cash conversion (OCF/NI)
1.2×
Piotroski F-score 5/9 · last two fiscal years
✓ Positive net income✓ Positive operating cash flow✗ Return on assets improved✓ Cash flow above net income✗ Long-term debt / assets fell✓ Current ratio improved✓ No share dilution✗ Gross margin improved✗ Asset turnover improved

Analysts

Mean target
$286
-2%
Analysts
15
Hold
Range
$225–$322
low – high
● price · ◆ mean target

Annual history

FYRevenueNet incomeFree cash flow
2026$21.9B$4.4B$5.4B
2025$20.6B$4.1B$4.9B
2024$19.2B$3.8B$4.2B
2023$18.0B$3.4B$4.2B
2022$16.5B$2.9B$3.1B
2021$15.0B$2.6B$3.1B

From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +6.8%.

Earnings

Next report: 2026-10-28 · before open · EPS est 2.77
24-1025-0125-0425-0725-1026-0126-0426-070.003.37
EstimateActual (beat)Actual (miss)
ReportEPS estActualSurprise
2026-07-282.602.64+1.6%
2026-04-293.303.37+2.3%
2026-01-282.572.62+2.0%
2025-10-292.442.49+1.9%
2025-07-302.232.26+1.5%
2025-04-302.973.06+2.9%
2025-01-292.302.35+2.4%
2024-10-302.212.33+5.3%

Quarterly revenue

QuarterRevenueYoY
2026-06-30$5.5B+6.8%
2026-03-31$5.9B–
2025-12-31$5.4B–
2025-09-30$5.2B–
2025-06-30$5.1B–
Analyst actions
Cantor Fitzgerald
2026-08-05 · reit
Overweight → Overweight
PT $310
Cantor Fitzgerald
2026-08-03 · main
Overweight → Overweight
PT $310
Citigroup
2026-07-30 · main
Neutral → Neutral
PT $287
Morgan Stanley
2026-07-30 · main
Equal-Weight → Equal-Weight
PT $286
Stifel
2026-07-30 · main
Hold → Hold
PT $285
Wells Fargo
2026-07-30 · main
Equal-Weight → Equal-Weight
PT $283

Recent dividends

2026-09-11: $1.700 · 2026-06-12: $1.700 · 2026-03-13: $1.700 · 2025-12-12: $1.700 · 2025-09-12: $1.540 · 2025-06-13: $1.540 · 2025-03-14: $1.540 · 2024-12-13: $1.540
Insider trades
Desilva Joseph
Executive VP · 2026-09-03
Sell
$178.5K
Black Maria
President & CEO · 2026-09-02
Sell
$3.0M
Black Maria
President & CEO · 2026-09-02
Sell
$2.2M
Black Maria
President & CEO · 2026-09-02
Sell
$810.7K
Black Maria
President & CEO · 2026-09-02
Sell
$416.9K
Black Maria
President & CEO · 2026-09-02
Sell
$335.2K
Black Maria
President & CEO · 2026-09-02
Sell
$285.6K
Black Maria
President & CEO · 2026-09-02
Sell
$286.7K
Black Maria
President & CEO · 2026-09-02
Sell
$220.3K
Black Maria
President & CEO · 2026-09-02
Sell
$214.1K
Black Maria
President & CEO · 2026-09-02
Sell
$195.0K
Black Maria
President & CEO · 2026-09-02
Sell
$171.9K

Stats refreshed 2026-10-21 18:02:15 ET from Yahoo Finance (yfinance). "–" means the data isn't available. Refresh now

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Coteau Systematic Strategies publishes stock research and model portfolios. Results are hypothetical unless marked Live. Data: Yahoo Finance (15-min delayed), SEC EDGAR and the House Clerk.

Beta 0.9 · Oct 21, 2026