Automatic Data Processing, Inc. ADP
Technology · Software - Application · United States · S&P 500
Based on the available data, Automatic Data Processing, Inc. gets an algorithmic score of 62/100. It trades at 261.80 $, with a bullish technical trend (RSI 39.1) and 27.4% annual volatility.
Updated: 2026-09-30
Open in the interactive tool →
Strengths
- High ROE (72.2%): generates strong profit on equity.
- High net margin (20.1%): pricing power / competitive advantage.
- Low beta (0.18): defensive profile.
Weaknesses
- —
Fundamentals
| P/E | 23.93 |
| Forward P/E | 19.54 |
| PEG | 2.50 |
| P/B | 17.27 |
| EV/EBITDA | 16.42 |
| P/S | 4.73 |
| ROE % | 72.24 |
| ROA % | 6.25 |
| Gross margin % | 48.65 |
| Operating margin % | 23.46 |
| Net margin % | 20.11 |
| Revenue growth % (y/y) | 6.80 |
| Earnings growth % (y/y) | 9.80 |
| Revenue CAGR % | 6.81 |
| Earnings CAGR % | 8.96 |
| Debt/Equity % | 91.44 |
| Current ratio | 1.05 |
| FCF yield % | 4.60 |
| Dividend yield % | 2.60 |
| Payout % | 60.69 |
Returns
| 1 month | -8.3 % |
| 3 months | +17.6 % |
| 6 months | +29.2 % |
| YTD | +5.8 % |
| 1 year | -7.6 % |
| 3 years | +17.5 % |
| 5 years | +48.5 % |
Risk
| 1-year volatility | 27.4 % |
| Beta | 0.18 |
| 5-year max drawdown | -40.8 % |
| Sharpe 1A | -0.30 |
Macroeconomic context
Highly sensitive to interest rates (valued on future cash flows): rate cuts and falling bond yields help it. It depends on the corporate investment cycle (AI/cloud capex), the semiconductor supply chain (Taiwan/China) and the dollar (foreign revenue). As a US company, its valuation depends on the Fed, 10-year Treasury yields and the US earnings cycle.
How the score is calculated
The score combines profitability (ROE, ROA, net margin), growth (revenue and earnings), valuation (P/E, EV/EBITDA, free cash flow), financial strength (debt and liquidity; not applied to banks and insurers) and momentum (6 and 12-month returns and trend). It is an educational quantitative filter, not a buy or sell recommendation.