Obermatt

Automatic Data Processing

NSQ:ADP · US0530151036
Professional ServicesX-Large

360

67
EV / EBIT29
Price / Owner Earnings42
Owner Earnings Yield59
Dividend Yield86
Price/Sales25
EV / Gross Profit18
Price/Book3
Return on Capital100
Cash Return on Capital100
Return on Equity92
EBIT Margin87
Gross Profitability7
Cash Conversion18
Accruals23
Owner Earnings Margin85
Sales growth60
Profit Growth98
Long-Term EPS Growth14
Owner Earnings Growth43
Reinvestment43
Price momentum44
Debt load58
Refinancing23
Debt Payback79
Liquidity73
Analyst ratings15
Opinion Changes69
Price Target Upside24
Market mood76
Value Creation12/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Automatic Data Processing clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryUSA
IndustryProfessional Services
SizeX-Large
TypePublic Company
ExchangeNASDAQGS
Founded1961
Employees77,317
Websiteadp.com
ISINUS0530151036
Last UpdateApr 2, 2026
Themes
Process AutomationWorkTechHRTechSoftware DevelopmentEmployee BenefitsCloud InfrastructurePredictive AnalyticsArtificial IntelligenceManagement Information Systems

Description

Automatic Data Processing, Inc. (ADP) cloud-based Human Capital Management (‘HCM’) solutions. ADP continuously intends to solve complex business challenges for the company’s clients and their workers. The company’s Human Capital Management (‘HCM’) s…

Analysis

Middle-of-the-road

Automatic Data Processing, Inc. is a middle-of-the-road business: neither the economics nor the price stand out from the peer group. One caution: reported profits have recently run ahead of actual cash, which we track closely.

The price is fair. You pay 18.9× its owner earnings: the cash an owner could take out each year, which is in the historically fair zone.

The trajectory is moderate and the balance sheet is sturdy. The company scores 12/20 on our value-creation score: creating some value. Analyst sentiment is cautious.

What to watch: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
52
2023202420252026

All-time high

81

Jan 2023

All-time low

25

Jan 2024

Average rank

48

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
25
30
18
25
Price/Earnings
29
38
29
20
Price/Book
3
4
3
11
Dividend Yield
86
94
90
91
Value (overall)
33
50
32
31

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →