Automatic Data Processing Inc.

Automatic Data Processing Inc.

ADP

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Market Cap$88.68B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Automatic Data Processing Inc.Automatic Data Processing Inc.20.52.92%68%4.30.7

Earnings Call Q3 2026

April 29, 2026 - AI Summary

Strong Financial Performance: - ADP reported a 7% revenue growth for Q3 Fiscal 2026, surpassing expectations. Adjusted EBIT margins expanded by 80 basis points, and adjusted EPS grew by 10%. The company has revised its full-year revenue growth guidance to 6%-7% and adjusted EPS growth guidance to 10%-11%.
Business Bookings and Retention: - New business bookings showed solid growth, particularly in international and compliance solutions, with Employer Services (ES) retention rates reaching record highs. ADP maintains a balanced approach, with around 50% of bookings from new logos and the other 50% from upselling existing clients.
AI Integration and Productivity Gains: - The company is heavily investing in AI, demonstrating early success with the ADP Assist agents that improve operational efficiency, as seen by a 30-minute reduction in payroll processing time. Ongoing deployment of AI tools is expected to drive further productivity improvements in client servicing.

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$238.29

Target Price by Analysts

4.6% upsideAutomatic Data Processing Target Price DetailsTarget Price
$359.64

Current Fair Value

57.9% upside

Undervalued by 57.9% based on the discounted cash flow analysis.

Share Statistics

Market cap$88.68 Billion
Enterprise Value$90.07 Billion
Dividend Yield$6.80 (2.92%)
Earnings per Share$10.02
Beta0.84
Outstanding Shares401,100,000

Return

Return on Equity68.43%ROE
Return on Assets6.74%
Return on Invested Capital48.37%

Valuation & Multiples

P/E Ratio20.48P/E Ratio
PEG231.96PEG
Price to Sales4.3Price to Sales
Price to Book Ratio15.18Price to Book Ratio
Enterprise Value to Revenue4.17
Enterprise Value to EBIT14.94
Enterprise Value to Net Income20
Total Debt to Enterprise0.05
Debt to Equity0.73Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 6, 2026
EPS Estimate
$3.29
Average shareholder expectation
Revenue Estimate
$5.85 B
Average shareholder expectation

Next Earnings Call

Expected Date
July 29, 2026
EPS Estimate
$2.59
Average shareholder expectation
Revenue Estimate
$5.44 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio1.1807 61.60%
Total Calls1,662,415 13.95%
Total Puts1,962,846 138.26%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %84.10% 1.44%
Total Invested$69.30B 18.48%
Investors Holding2,308 142.00%

ESG Score

No data

About Automatic Data Processing Inc.

58,000 employees
CEO: Carlos Rodriguez

ADP is a comprehensive global provider of cloud-based human capital management (HCM) solutions that unite HR, payroll, talent, time, tax and benefits administration, and a leader in business outsourcing services, analytics and compliance...

Relevant Senate Committees

Joint Committee on Taxation

This committee provides critical analysis and revenue estimates for tax legislation. Its technical expertise directly influences the structure of tax laws, which ADP must incorporate into its payroll and tax compliance solutions, making its insights highly valuable.

Finance

As the primary committee controlling taxation and entitlement spending, it directly impacts corporate valuations through tax policy and influences payroll deductions and benefits administration, which are core components of ADP's services.

Health, Education, Labor, and Pensions

This committee directly influences labor laws, minimum wage, and union regulations. These are fundamental to ADP's core services of HR, payroll, benefits administration, and compliance for its clients.

Small Business and Entrepreneurship

ADP serves a significant number of small and medium-sized businesses. This committee's influence on capital flow, loan programs, and regulatory burdens for small businesses directly impacts ADP's client base and growth opportunities.

Commerce, Science, and Transportation

With vast jurisdiction over interstate commerce, the FTC, and privacy laws, this committee directly impacts data processing companies like ADP, especially regarding data privacy, cybersecurity standards, and compliance for cloud-based services.