Automatic Data Processing Stock Analysis
| ADP Stock | USD 209.11 0.59 0.28% |
200 Day MA 275.1969 | 50 Day MA 235.3354 | Beta 0.854 |
Macro event markers
Automatic Data Processing appears fairly valued based on a Real Value estimate of $215.46 and a Target Price of $272.0. This stock analysis focuses on estimating intrinsic value. The estimate provides a valuation baseline beyond day-to-day price moves. Coverage is split between fundamental metrics and technical price analysis. This pairing links intrinsic-value inputs with observed market behavior.
Automatic Data Processing holds a debt-to-equity ratio of 1.395. At present, Interest-Bearing Debt Per Share is showing a falling trajectory relative to prior years. Last year’s filings placed Interest-Bearing Debt Per Share at 21.05. As of 03/17/2026, Debt To Assets is forecasted to advance to 0.21 this year, whereas Long Term Debt Total is moving lower toward slightly above 2.1 B. Higher debt levels can expand Automatic Data's financial risk exposure. Interest payments can affect earnings and coverage ratios over time. Asset vs Debt
Equity vs Debt
Price Book 13.133 | Enterprise Value Ebitda 13.1287 | Price Sales 3.9867 | Shares Float 401.8 M | Dividend Share 6.32 |
Automatic Data Processing (ADP) recorded an increase of $211.1 million in Net Income, $4.1 billion in Net Income, and $4.1 billion in Net Income Applicable To Common Shares.
For additional insight, see Gross Profit and Total Revenue.
Automatic | Build portfolio with Automatic Stock |
Stock Analysis Notes
About 87.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.69. Automatic Data Processing recorded earnings per share (EPS) of 10.41. The company had its last dividend issued on the 13th of March 2026. The firm completed a 1139:1000 stock split on 1st of October 2014. Automatic Data Processing (ADP) recorded $53.4 billion in Total Assets, a Return On Assets of 8.1%, and a Return On Tangible Assets of 9.7%.Pretax Profit Margin | 0.26 |
Investor Insights and Alerts
| Automatic Data generated a negative expected return over the last 90 days | |
| Automatic Data Processing has $9.07 B in debt with debt to equity (D/E) ratio of 1.4, which is consistent with its industry peers. Automatic Data Processing has a current ratio of 0.95, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Nevertheless, prudent borrowing could serve as an effective mechanism for Automatic to finance growth opportunities yielding strong returns. | |
| Over 87.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from thelincolnianonline.com: Brevan Howard Capital Management LP Increases Position in Automatic Data Processing, Inc. ADP |
Largest EPS Surprises
On Automatic Data, EPS surprise size and direction can reshape short-term return distribution. Consensus estimates aggregate analyst revisions and guidance updates. For this stock, read EPS surprises with profitability quality and forward revisions.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2003-10-17 | 2003-09-30 | 0.29 | 0.32 | 0.03 | 10 | ||
2009-11-04 | 2009-09-30 | 0.5 | 0.56 | 0.06 | 12 | ||
2018-01-31 | 2017-12-31 | 0.9 | 0.99 | 0.09 | 10 |
Environmental, Social, and Governance (ESG) Scores
Reviewing Automatic Data's ESG trend can help investors understand whether governance quality and stakeholder risk are improving, deteriorating, or staying broadly unchanged. These scores become more relevant when they are compared against peers facing similar regulatory, labor, and supply-chain pressures.
Thematic Classifications
Thematic classifications around Automatic Data Processing help investors move from one security idea to a broader portfolio idea with a clearer economic narrative. This creates a better bridge between security selection, portfolio construction, and risk-adjusted return targeting.
 | Data StorageData Storage |
Top Institutional Investors Holding Automatic Stock
Automatic Data Processing has 86.53% institutional ownership and a 0.15% insider stake. Annual revenue is about 20.56 Billion. That ownership mix shapes how the stock trades around earnings and sector rotation. The business currently sits in the Industrials sector and the Commercial & Professional Services industry. At that level of institutional ownership, fund flows and rebalancing cycles drive most of the float.
| Shares | Bank Of America Corp | 2025-09-30 | 5.8 M | Jpmorgan Chase & Co | 2025-09-30 | 5.8 M | Amvescap Plc. | 2025-09-30 | 4.8 M | Ameriprise Financial Inc | 2025-09-30 | 4.3 M | Fundsmith Llp | 2025-12-31 | 4.2 M | The Goldman Sachs Group Inc | 2025-09-30 | 4.1 M | State Farm Mutual Automobile Ins Co | 2025-12-31 | 3.7 M | Cardano | 2025-12-31 | 3.6 M | Ubs Asset Mgmt Americas Inc | 2025-09-30 | 3.3 M | Vanguard Group Inc | 2025-12-31 | 41.6 M | Blackrock Inc | 2025-09-30 | 36.2 M |
Market Capitalization
Automatic Data Processing carries a large-cap market capitalization of 84.57 B when compared with human resource & employment services. Other size-related inputs worth noting are about 402.64 M shares outstanding, enterprise value near 85.81 B, and a workforce of about 67,000 people.Profitability
Profitability metrics help investors test whether Automatic Data Processing is merely reporting accounting profits or actually building a business model that can sustain margins and cash generation over time. Annual revenue is about 20.56 Billion. Investors should compare gross, operating, and net margins rather than relying on one headline figure.
The company has Net Profit Margin of 20.0 %, which may reflect a scalable business model with improving unit economics. This is above the expected range for the sector. In the same way, it shows Net Operating Margin of 26.0 %, which means that operating costs leave $26.0 on every $100 of revenue. | Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.10 | 0.10 | |
| Return On Capital Employed | 0.40 | 0.42 | |
| Return On Assets | 0.09 | 0.08 | |
| Return On Equity | 0.59 | 0.62 |
Management Efficiency
The company has Return on Asset of 4.71 % which means that on every $100 spent on assets, it made $4.71 of profit. This is representative of the industry norm. In the same way, it shows a return on shareholders' equity (ROE) of 73.84 %, which means that for every $100 of equity, $73.84 was returned as profit.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 13.68 | 14.36 | |
| Tangible Book Value Per Share | 2.90 | 2.73 | |
| Enterprise Value Over EBITDA | 18.93 | 9.84 | |
| Price Book Value Ratio | 18.26 | 19.17 | |
| Enterprise Value Multiple | 18.93 | 9.84 | |
| Price Fair Value | 18.26 | 19.17 | |
| Enterprise Value | 118.1 B | 124 B |
A leadership review of Automatic Data Processing should test whether management is creating repeatable operating progress instead of relying on one-time gains or favorable cycle conditions. The strongest reading comes from linking leadership decisions to return metrics, balance-sheet quality, and the durability of the business model.
Operating Margin | Long Term Debt Total | Three Month Return -20.24 | Short Long Term Debt Total | Ten Year Return 138.54666 |
Technical Drivers
As of the 17th of March 2026, the last recorded price for Automatic Data is 209.11 per share. Primary technical drivers reflect Mean Deviation of 1.29, risk adjusted performance of -0.13, and Standard Deviation of 1.65. Quantitative analysis incorporates volatility metrics and price behavior to assess directional bias. Metrics are compared to industry averages to assess relative positioning.Automatic Data Processing Price Movement Analysis
This analysis covers twenty-eight data points across the selected time horizon. The Bollinger Bands is very popular indicator that was developed by John Bollinger. It consist of three lines. Automatic Data middle band is a simple moving average of its typical price. The upper and lower bands are (N) standard deviations above and below the middle band. The bands widen and narrow when the volatility of the price is higher or lower, respectively. The upper and lower bands can also be interpreted as price targets for Automatic Data Processing. When the price bounces off of the lower band and crosses the middle band, then the upper band becomes the price target.
Insider Trading Activities
Insider activity around Automatic Data Processing deserves attention because officers, directors, and large shareholders usually see shifts in operating momentum before the market fully prices them. The goal is to separate routine compensation-related sales from conviction-driven buying or defensive trimming while the broader market is still processing new information.
Outstanding Bonds
Automatic Data Processing may use bonds as part of its capital structure to fund operations, refinance liabilities, or support acquisitions and other long-duration investments. Maturity profile, refinancing windows, and coupon burden can all affect how resilient the capital structure looks in a weaker market.
| AUTOMATIC DATA PROCESSING Corp BondUS053015AF05 | View | |
| AUTOMATIC DATA PROCESSING Corp BondUS053015AG87 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View |
Predictive Daily Indicators
Short-horizon indicators in Automatic Data Processing are useful because they translate fast-changing price behavior into clearer risk and execution cues. For most traders, the advantage is faster feedback on market participation and momentum, which can sharpen both entries and exits.
Corporate Filings
F4 | 18th of February 2026 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F4 | 9th of February 2026 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F4 | 3rd of February 2026 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 29th of January 2026 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 28th of January 2026 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 14th of January 2026 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F4 | 8th of January 2026 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F4 | 6th of January 2026 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
Forecast Models
Forecast models applied to Automatic Data Processing are designed to learn from historical price structure, volatility clustering, and trend persistence rather than from management commentary alone. These models are descriptive, not prophetic, so the real discipline comes from checking whether the market regime has changed enough to make the old pattern less reliable.Financial Strength and Earnings Quality Indicators
Automatic Data Processing financial ratings play a critical role in determining how much Automatic Data have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Automatic Data's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | -2.36 | Unlikely Manipulator | View |
Debt to Cash Allocation
Automatic Data Processing has $9.07 B in debt with debt to equity (D/E) ratio of 1.4, which is consistent with its industry peers. Automatic Data Processing has a current ratio of 0.95, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Nevertheless, prudent borrowing could serve as an effective mechanism for Automatic to finance growth opportunities yielding strong returns.Total Assets Over Time
Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Automatic Data uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.Automatic Data Debt Ratio | 21.0 |
Corporate Bonds Issued
Automatic Short Long Term Debt Total
Short Long Term Debt Total | 10.95 Billion |
Stock Analysis Methodology
The diagnostic framework for Automatic Data evaluates financial stability, profitability trends, and market-derived risk indicators. Automatic Data trades at P/E of 35.6, P/B of 13.13, P/S of 3.99. Profitability metrics show ROE of 73.84%, net margin of 19.96%, operating margin of 26.28%. Balance sheet indicators include debt-to-equity of 1.4 and current ratio of 0.97. Financial distress probability is estimated at 3%, indicating low near-term solvency risk. Beta of 0.7081 suggests moderate market correlation. A negative Sharpe ratio of -0.2191 indicates returns below the risk-free rate over the measurement period.
For Automatic Data Processing, this section uses periodic company reporting and market reference feeds with Macroaxis normalization rules applied to keep cross-asset comparisons consistent. Professional analyst research is incorporated when coverage is available. Intraday timing differences may exist.
This content is curated and reviewed by:
Ellen Johnson - Member of Macroaxis Editorial BoardCurrent Automatic Analyst Rating Consensus
| Target Price | Consensus | # of Analysts | |
| 272.0 | Buy | 18 | Odds |
Automatic Data Processing current and past analyst recommendations are summarized from multiple research sources. Consensus averages are included alongside the recommendation view. Analyst ratings for Automatic Data Processing aggregate the views of institutional research teams who conduct deep fundamental analysis, build financial models, and speak directly with Automatic's management. Consensus upgrades or downgrades often have meaningful short-term impact on the stock price.
Automatic Stock Analysis Indicators
Diagnostics snapshot includes 19 indicators such as Begin Period Cash Flow, Long Term Debt, Common Stock Shares Outstanding.
| Begin Period Cash Flow | 10.1 B | |
| Long Term Debt | 4 B | |
| Common Stock Shares Outstanding | 408.7 M | |
| Total Stockholder Equity | 6.2 B | |
| Total Cashflows From Investing Activities | -3 B | |
| Tax Provision | 1.2 B | |
| Quarterly Earnings Growth Y O Y | 0.115 | |
| Property Plant And Equipment Net | 1 B | |
| Cash And Short Term Investments | 7.8 B | |
| Cash | 3.3 B | |
| Accounts Payable | 169.1 M | |
| Net Debt | 5.7 B | |
| 50 Day M A | 235.3354 | |
| Total Current Liabilities | 41.3 B | |
| Other Operating Expenses | 15.1 B | |
| Non Current Assets Total | 10.1 B | |
| Forward Price Earnings | 17.5747 | |
| Non Currrent Assets Other | 4.2 B | |
| Stock Based Compensation | 266.1 M |
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