Automatic Data Processing, Inc. engages in the provision of business outsourcing solutions specializes in cloud-based human capital management. It operates through the following business segments: Employer Services; and Professional Employer Organization Services; and Other. The Employer Services segment provides clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of human resources outsourcing and technology-based human capital management solutions, including strategic, cloud-based platforms. The Professional Employer Organization Services segment offers small and mid-sized businesses a human resources outsourcing solution through a co-employment mode. The Other segment comprises of non-recurring gains and losses; miscellaneous processing services; the elimination of intercompany transactions; and interest expense. The company was founded by Henry Taub in 1949 and is headquartered in Roseland, NJ.
Highlights
Automatic Data Processing's EPS has increased by 30% YoY and by 3% from the previous quarter
The quick ratio rose by 30% QoQ and by 18% YoY
ADP's debt is up by 18% year-on-year
Key stats
What are the main financial stats of ADP
Market
Shares outstanding
429.77M
Market cap
$58.67B
Enterprise value
$59.33B
Valuations
Price to earnings (P/E)
23.26
Price to book (P/B)
10.74
Price to sales (P/S)
3.99
EV/EBIT
17.4
EV/EBITDA
15.31
EV/Sales
4.03
Earnings
Revenue
$14.71B
EBIT
$3.41B
EBITDA
$3.87B
Free cash flow
$2.49B
Per share
EPS
$5.87
Free cash flow per share
$5.79
Book value per share
$12.72
Revenue per share
$34.21
TBVPS
$92.97
Balance sheet
Total assets
$43.38B
Total liabilities
$37.89B
Debt
$2.37B
Equity
$5.49B
Working capital
$1.04B
Liquidity
Debt to equity
0.43
Current ratio
1.03
Quick ratio
0.13
Net debt/EBITDA
0.17
Margins
EBITDA margin
26.3%
Gross margin
42.9%
Net margin
17.2%
Operating margin
21.9%
Efficiency
Return on assets
5.9%
Return on equity
46.8%
Return on invested capital
48.4%
Return on capital employed
39.1%
Return on sales
23.2%
Dividend
Dividend yield
2.58%
DPS
$3.52
Payout ratio
60%
ADP stock price
How has the Automatic Data Processing stock price performed over time
Financial performance
How have Automatic Data Processing's revenue and profit performed over time
Revenue
$14.71B
Gross profit
$6.31B
Operating income
$3.22B
Net income
$2.53B
Gross margin
42.9%
Net margin
17.2%
Automatic Data Processing's net income has increased by 29% YoY and by 2.7% from the previous quarter
ADP's net margin is up by 23% year-on-year
Automatic Data Processing's operating income has increased by 9% YoY and by 2.1% QoQ
The company's gross profit rose by 6% YoY
Valuation
What is Automatic Data Processing stock price valuation
P/E
23.26
P/B
10.74
P/S
3.99
EV/EBIT
17.4
EV/EBITDA
15.31
EV/Sales
4.03
Automatic Data Processing's EPS has increased by 30% YoY and by 3% from the previous quarter
The price to earnings (P/E) is 18% lower than the last 4 quarters average of 28.5 and 17% lower than the 5-year quarterly average of 28.1
The P/B is 15% below the last 4 quarters average of 12.7 and 7% below the 5-year quarterly average of 11.6
The equity has grown by 4.7% YoY and by 2.4% from the previous quarter
ADP's price to sales (P/S) is 17% lower than its last 4 quarters average of 4.8 and 2.7% lower than its 5-year quarterly average of 4.1
Automatic Data Processing's revenue has increased by 6% YoY
Efficiency
How efficient is Automatic Data Processing business performance
The ROA has grown by 23% YoY and by 5% from the previous quarter
Automatic Data Processing's ROS has increased by 18% YoY
The return on equity has grown by 16% year-on-year
The company's return on invested capital rose by 2.3% QoQ
Dividends
What is ADP's dividend history
DPS
$3.52
Dividend yield
2.58%
Payout ratio
60%
Recent dividends
Financial health
How did Automatic Data Processing financials performed over time
Automatic Data Processing's total assets is 15% higher than its total liabilities
The quick ratio rose by 30% QoQ and by 18% YoY
ADP's total liabilities is down by 13% since the previous quarter and by 12% year-on-year
ADP's debt is 57% smaller than its equity
The debt to equity has grown by 13% year-on-year but it has declined by 2.3% since the previous quarter
The equity has grown by 4.7% YoY and by 2.4% from the previous quarter
All financial data is based on trailing twelve months (TTM) periods - updated
quarterly, unless otherwise specified.