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Earnings transcript
Read the complete earnings call transcript.
ADP
Automatic Data Processing, Inc.
$204.01
2.73
(1.36%)
| Exchange: | NASDAQ |
| Market Cap: | 82.512B |
| Shares Outstanding: | 557.895M |
About The Company
| Sector: | Industrials | |||||
| Industry: | Staffing & Employment Services | |||||
| CEO: | Maria Black | |||||
| Full Time Employees: | 64000 | |||||
| Address: |
| |||||
| Website: | https://www.adp.com |
Automatic Data Processing, Inc. provides cloud-based human capital management 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. Its offerings include payroll, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solutions to small and mid-sized businesses through a co-employment model. This segment offers benefits package, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. The company was founded in 1949 and is headquartered in Roseland, New Jersey.
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Revenue Segmentation
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 18,012,200 | 19,202,600 | 20,560,900 |
| Gross Profit | 8,805,500 | 9,590,600 | 10,452,200 |
| EBITDA | 5,244,600 | 5,800,000 | 6,242,000 |
| Operating Income | 4,506,200 | 4,943,000 | 5,411,900 |
| Net Income | 3,412,000 | 3,752,000 | 4,079,700 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 50,971,000 | 54,362,700 | 53,369,300 |
| Total Liabilities | 47,461,900 | 49,815,100 | 47,181,300 |
| Total Stockholders Equity | 3,509,100 | 4,547,600 | 6,188,000 |
| Total Debt | 3,444,300 | 3,705,300 | 9,065,400 |
| Cash and Cash Equivalents | 2,083,500 | 2,913,400 | 3,347,800 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 4,207,600 | 4,157,600 | 4,939,700 |
| Capital Expenditure | -571,600 | -563,400 | -168,700 |
| Free Cash Flow | 3,636,000 | 3,594,200 | 4,771,000 |
| Net Income | 3,412,000 | 3,752,000 | 4,079,700 |
| Net Change in Cash | -14,011,500 | 1,314,500 | -5,031,400 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2028 | Full Access | Full Access | Full Access | Full Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 24,387,456.891 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (High) | 24,449,602.354 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (Avg) | 24,418,529.623 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Low) | 8,747,946.245 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (High) | 8,770,238.245 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Avg) | 8,759,092.245 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Low) | 5,013,089.690 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (High) | 5,436,674.545 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Avg) | 5,114,191.780 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Low) | 4,712,627.365 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (High) | 4,724,636.342 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Avg) | 4,718,631.854 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Avg) | 13.030 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (High) | 13.300 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Low) | 12.270 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated Revenue) | 12 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated EPS) | 10 | Full Access | Full Access | Full Access | Full Access |
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Current Key Metrics
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Login — it's freeSWOT Analysis
Strengths (preview)
- Robust Financial Performance: ADP demonstrates consistent revenue growth as evidenced by historical income statements, with steady increases in revenue and net income over recent years. Strong operating cash flow and free cash flow figures from the cash flow statements indicate a solid financial foundation, supporting operational stability and shareholder returns.
- High Profitability Metrics: Key metrics such as gross profit margin TTM and net profit margin TTM reflect ADP’s ability to maintain profitability above industry averages, showcasing efficient cost management and strong pricing power within the Human Resources and Payroll Software industry.
- Dividend Reliability: With a competitive dividend yield TTM and a history of consistent dividend payments (lastDiv), ADP offers an attractive income stream for investors, underpinned by stable cash flows and a commitment to returning value to shareholders.
- Market Position and Scale: As a leading player in the Professional Services sector with a significant market capitalization (mktCap), ADP benefits from economies of scale and a well-established brand, supported by a large workforce (fullTimeEmployees) and global presence (revenue geo segments).
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MARKETSnap estimates ADP intrinsic value between $128.30 – $253.60 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
Common questions about ADP valuation
Is Automatic Data Processing, Inc. (ADP) overvalued or undervalued right now?
MARKETSnap estimates intrinsic value for Automatic Data Processing, Inc. (ADP) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is ADP a buy, hold, or sell for long-term investors?
MARKETSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether ADP trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is ADP’s P/E ratio?
You can see ADP’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for ADP?
MARKETSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MARKETSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is ADP a good long-term investment?
Whether ADP fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MARKETSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
ADP
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1.36
Trading Metrics:
| Open: | 201.32 | Previous Close: | 201.28 | |
| Day Low: | 199.16 | Day High: | 204.3 | |
| Year Low: | 197.08 | Year High: | 329.93 | |
| Price Avg 50: | 220.34 | Price Avg 200: | 267.23 | |
| Volume: | 2.722M | Average Volume: | 3.676M |
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Login — it's freeADP full analysis
Welcome to MARKETSNAP’s SWOT analysis for Automatic Data Processing, or ADP as it’s commonly known on the ticker. If you’re a long-term investor looking to build wealth, you’ve likely come across this powerhouse in the payroll and human resources solutions space. Today, we’re diving deep into what makes ADP tick, breaking down its strengths, weaknesses, opportunities, and threats, while sprinkling in some recent developments and financial insights to keep things interesting. Let’s unpack this together and see if ADP deserves…
