Automatic Data Processing, Inc. (adp)
ADP — Company Overview
Automatic Data Processing, Inc. (ADP) trades on NMS as part of the Technology peer group (Software - Application).
| Ticker | ADP |
| Sector | Technology |
| Industry | Software - Application |
| Exchange | NMS |
| Market cap | $104.75B |
| Last price | $263.68 |
| Size category | Large Cap |
ADP — Business Description
ADP represents a Software - Application business in the Technology segment. 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. This segment's offerings include RUN Powered by ADP, a software platform for small business payroll, HR, and compliance; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Lyric HCM, a solution for HR management, payroll, workforce management, talent, and data analytics. Its PEO Services segment provides HR outsourcing solutions under ADP TotalS…
Official website: https://www.adp.com.
ADP — Investment Thesis
At a high level, ADP offers exposure to Technology with metrics outlined below from public market data.
- Revenue is expanding at roughly 6.8% year-over-year (public data).
- Trailing P/E of 24.08× sits in a moderate band relative to high-growth peers.
- Forward P/E (19.68×) is below trailing P/E — earnings may be expected to improve.
- Dividend yield near 2.5% adds an income component to total return.
- Equity market capitalization is approximately $104.75B.
See the free estimates and earnings pages for public targets and growth metrics. Ownership, live news, and deeper models remain in Vest Terminal.
ADP — Financial Health
Key financial health indicators for Automatic Data Processing, Inc. are derived exclusively from public data — no proprietary estimates.
Profit margin of 20.1% indicates solid bottom-line conversion. Positive free cash flow of $5.24B supports balance-sheet flexibility.
| Trailing P/E | 24.08× |
| Forward P/E | 19.68× |
| Price / Sales | 4.77× |
| Price / Book | 17.39× |
| Gross margin | 48.7% |
| Operating margin | 23.5% |
| Profit margin | 20.1% |
| Return on equity | 72.2% |
| Debt / Equity | 91.44 |
| Free cash flow | $5.24B |
ADP — Growth Outlook
Growth outlook for Automatic Data Processing, Inc. (ADP) depends on demand trends in Software - Application and the company's ability to convert revenue into sustainable earnings.
- Revenue growth of 6.8% suggests steady but measured expansion.
- Earnings growth of 9.8% year-over-year supports improving profitability.
- Price is 10.4% below the 52-week high.
ADP — Competitive Position
Automatic Data Processing, Inc. (ADP) is evaluated against peers on scale, margin structure, and capital efficiency within Technology.
- Competes within Technology, specifically in Software - Application.
- Market capitalization of $104.75B places ADP among large-cap peers.
- Gross margin near 48.7% may reflect pricing power or favorable mix.
ADP — Strengths
Strengths for Automatic Data Processing, Inc. (ADP) inferred from public financial metrics:
- Revenue growth of 6.8% year-over-year.
- Earnings growth of 9.8% year-over-year.
- Return on equity near 72.2% — efficient use of shareholder capital.
- Gross margin of 48.7% supports competitive unit economics.
- Positive free cash flow ($5.24B).
- Dividend yield of 2.5% for income-oriented holders.
ADP — Weaknesses
Weaknesses and pressure points for Automatic Data Processing, Inc. (ADP) based on available data:
Insufficient public data to assess this factor.
ADP — Opportunities
- Dividend yield of 2.5% appeals to total-return investors.
- Positive free cash flow enables reinvestment, debt reduction, or shareholder returns.
- Forward earnings multiple below trailing P/E — potential earnings acceleration ahead.
ADP — Risks
- Standard market, regulatory, competitive, and execution risks apply to all public equities.
ADP — Summary
Automatic Data Processing, Inc. (ADP) is a large-cap Technology company focused on Software - Application, listed on NMS. Last price $263.68 with market cap $104.75B. Trailing P/E 24.08×. Revenue grew 6.8% year-over-year per public data. Notable strengths include revenue growth of 6.8% year-over-year. Premium Terminal tools for Automatic Data Processing, Inc. add ownership analytics, news, and richer estimate history beyond this public summary.
Start Free — open ADP in Vest Terminal
Access live data, filings, ownership, and analysis for Automatic Data Processing, Inc..
Automatic Data Processing, Inc. FAQ
What does Automatic Data Processing, Inc. (ADP) 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…
What is ADP's P/E ratio?
Automatic Data Processing, Inc. has a trailing P/E of 24.08× based on publicly available market data.
Does ADP pay a dividend?
Indicated dividend yield: 2.5%. Confirm ex-dates and payout history in Vest Terminal.
What sector is ADP in?
Automatic Data Processing, Inc. is classified in Technology (Software - Application) on NMS.
What is ADP's market capitalization?
Approximate market cap: $104.75B.
What are the main risks for ADP?
Standard market, competitive, and execution risks apply; see the Risks section.
What are the strengths of ADP?
Potential positives include revenue growth of 6.8% year-over-year, earnings growth of 9.8% year-over-year.
Where can I get analyst estimates for ADP?
Public analyst price targets and consensus for Automatic Data Processing, Inc. are on the free /stocks/adp/estimates page. Deeper estimate history and models are available in Vest Terminal.