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Automatic Data Processing, Inc. (ADP) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Automatic Data Processing, Inc.

ADPMarket cap $105BPrice $264.0

Country🇺🇸United States

SectorIndustrials

IndustryProfessional Services

Processes payroll for one in six American workers through cloud-based HR software and services. Handles $2.4 trillion in annual wages, making it the backbone of how millions get paid every two weeks.

In Bastion Portfolios?

52W Return-5%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+7%6

Revenue Forecast

Rev CAGR (1y)+6%5

Rev CAGR (3y)+6%4

Rev CAGR (5y)+5%5

Earnings Forecast

EPS Growth Y+1+12%7

EPS Growth Y+2+8%6

EPS Growth Y+3+7%6

Quality

Margins

EBIT Margin27%8

Net Income Margin20%8

Free Cash Flow Margin24%9

Debt

Net Debt/EBITDA0.29

Efficiency

ROE72%10

ROA8%8

Earnings Stability1010

GEAR+VERY STRONG90

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)214

P/E Ratio (Forward 3y)193

P/BV17.31

EV Multiples

EV/EBITDA Fwd154

EV/EBIT Fwd165

Yield

Free Cash Flow Yield5.0%6

Dividend Yield2.6%6

Momentum

Short term

1 month return-1%7

3 month return+10%8

YTD return+5%6

Mid term

Price vs 52wHigh92%9

1 year return-7%4

Long term

3 year return+15%4

5 year return+43%6

Risk Shield

Price Risk

Beta0.57

Volatility28%8

Free Cash Flow

Free Cash Flow Margin24%9

Free Cash Flow Yield5.0%6

Quality

ROCE46%10

Earnings Stability1010

Net Debt/EBITDA0.29

02Growth

Is it actually growing, and how fast?

ADPAutomatic Data Processing

Revenue FY26$21.9B

GROWTH RATING↗

AVERAGE44 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+7%6

Revenue, next 1Y+6%5

Revenue, next 3Y, CAGR+6%4

Revenue, next 5Y, CAGR+5%5

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+12%7

EPS growth, FY28E+8%6

EPS growth, FY29E+7%6

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow in step with sales (EPS about 8%/yr vs revenue 6%/yr).

WATCH

A mid-pack grower, ahead of 44% of companies worldwide.

Revenue is set to grow 6%/yr over the next 3 years, in line with the market.5/10

Revenue grew 7%/yr over the last 3 years and is set to keep growing around 6%/yr.

Over five years revenue is set to grow 5%/yr, about average versus companies worldwide.5/10

WEAKNESSES

None flagged.

BOTTOM LINE

Steady Grower

A middle-of-the-pack grower. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG67 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-1%7

3-month return+10%8

YTD return+5%6

MID & LONG-TERM▾SCORE

% of 52-week high92%9

1-year return-7%4

3-year return+15%4

5-year return+43%6

MOMENTUM ASSESSMENT

STRENGTHS

It's down 7% over the past year, now 8% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (-1%) and over three months (+10%).

WATCH

Average long-term results. Multi-year returns are middling (+15% over three years and +43% over five), roughly average for the market.

Returns sit at the market level so far this year (+5%).

WEAKNESSES

None flagged.

BOTTOM LINE

Fresh Momentum

Short-term returns are strong but the long track record is thin. Momentum is building — confirmation from longer horizons would strengthen the case.

04Value

Are you paying a fair price for it?

Stop guessing on ADP. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

ADPAutomatic Data Processing

Revenue FY26$21.9B

GROWTH RATING↗

AVERAGE44 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+7%6

Revenue, next 1Y+6%5

Revenue, next 3Y, CAGR+6%4

Revenue, next 5Y, CAGR+5%5

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+12%7

EPS growth, FY28E+8%6

EPS growth, FY29E+7%6

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow in step with sales (EPS about 8%/yr vs revenue 6%/yr).

WATCH

A mid-pack grower, ahead of 44% of companies worldwide.

Revenue is set to grow 6%/yr over the next 3 years, in line with the market.5/10

Revenue grew 7%/yr over the last 3 years and is set to keep growing around 6%/yr.

Over five years revenue is set to grow 5%/yr, about average versus companies worldwide.5/10

WEAKNESSES

None flagged.

BOTTOM LINE

Steady Grower

A middle-of-the-pack grower. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG67 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-1%7

3-month return+10%8

YTD return+5%6

MID & LONG-TERM▾SCORE

% of 52-week high92%9

1-year return-7%4

3-year return+15%4

5-year return+43%6

MOMENTUM ASSESSMENT

STRENGTHS

It's down 7% over the past year, now 8% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (-1%) and over three months (+10%).

WATCH

Average long-term results. Multi-year returns are middling (+15% over three years and +43% over five), roughly average for the market.

Returns sit at the market level so far this year (+5%).

WEAKNESSES

None flagged.

BOTTOM LINE

Fresh Momentum

Short-term returns are strong but the long track record is thin. Momentum is building — confirmation from longer horizons would strengthen the case.

04Value

Are you paying a fair price for it?

Stop guessing on ADP. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community