Automatic Data Processing Inc. (ADP) Stock

Automatic Data Processing Inc. trades at a P/E ratio of 31.57, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 27.93 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 3.21 indicates a premium valuation even accounting for growth.

With a beta of 0.80, Automatic Data Processing Inc. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 21.04 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Automatic Data Processing Inc. achieves a profit margin of 19.80%, meaning it retains $19.80 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 29.50% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 76.30% and ROA at 5.57%, the company generates strong returns on invested capital.

Automatic Data Processing Inc.'s revenue grew by 5.70% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 6.30% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SERVICES-COMPUTER PROCESSING & DATA PREPARATION industry averages for proper context.

Automatic Data Processing Inc. offers a dividend yield of 2.03%, paying $5.88 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 6/13/2025.

The dividend sustainability can be assessed through the payout ratio - Automatic Data Processing Inc. pays $5.88 per share in dividends against earnings of $9.77 per share, resulting in a payout ratio of 60.18%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for 7/1/2025.

Automatic Data Processing Inc. has a market capitalization of $125.19B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 405.92M shares outstanding, the company's ownership is relatively concentrated. As a major player in the SERVICES-COMPUTER PROCESSING & DATA PREPARATION industry, it competes with other firms in this sector.

Automatic Data Processing Inc.'s book value per share is $14.41, while the current stock price is $308.63, resulting in a price-to-book (P/B) ratio of 21.42. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

18 analysts cover ADP with 22% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $314.87 implies 2.0% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:2 Strong Buy, 2 Buy, 13 Hold, 01 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

RSI data is not available for this stock.

MACD and moving average data are not available for this stock.