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
The quick ratio rose by 15% QoQ and by 7% YoY
The price to earnings (P/E) is 8% lower than the 5-year quarterly average of 28.1 and 5% lower than the last 4 quarters average of 27.2
Automatic Data Processing's EPS has increased by 9% YoY but it has decreased by 2.4% from the previous quarter
Automatic Data Processing's net income has increased by 8% YoY but it has decreased by 2.5% from the previous quarter
ADP's debt is up by 4.3% year-on-year
The company's gross profit fell by 2.7% QoQ
Key stats
What are the main financial stats of ADP
Market
Shares outstanding
429.97M
Market cap
$63.4B
Enterprise value
$63.86B
Valuations
Price to earnings (P/E)
25.73
Price to book (P/B)
11.02
Price to sales (P/S)
4.35
EV/EBIT
19.41
EV/EBITDA
16.94
EV/Sales
4.38
Earnings
Revenue
$14.59B
EBIT
$3.29B
EBITDA
$3.77B
Free cash flow
$2.44B
Per share
EPS
$5.73
Free cash flow per share
$5.66
Book value per share
$13.38
Revenue per share
$33.87
TBVPS
$82.73
Balance sheet
Total assets
$39.17B
Total liabilities
$33.41B
Debt
$2.36B
Equity
$5.75B
Working capital
$1.44B
Liquidity
Debt to equity
0.41
Current ratio
1.05
Quick ratio
0.15
Net debt/EBITDA
0.12
Margins
EBITDA margin
25.8%
Gross margin
42.1%
Net margin
16.9%
Operating margin
21.5%
Efficiency
Return on assets
5.8%
Return on equity
44.9%
Return on invested capital
47%
Return on capital employed
36.4%
Return on sales
22.5%
Dividend
Dividend yield
2.47%
DPS
$3.64
Payout ratio
63.5%
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
$14.59B
Gross profit
$6.14B
Operating income
$3.14B
Net income
$2.47B
Gross margin
42.1%
Net margin
16.9%
Automatic Data Processing's net income has increased by 8% YoY but it has decreased by 2.5% from the previous quarter
ADP's net margin is up by 4.3% year-on-year
Automatic Data Processing's operating income has increased by 3.9% YoY but it has decreased by 2.5% QoQ
Automatic Data Processing's revenue has increased by 3.4% YoY
Growth
What is Automatic Data Processing's growth rate over time
Valuation
What is Automatic Data Processing stock price valuation
P/E
25.73
P/B
11.02
P/S
4.35
EV/EBIT
19.41
EV/EBITDA
16.94
EV/Sales
4.38
Automatic Data Processing's EPS has increased by 9% YoY but it has decreased by 2.4% from the previous quarter
The price to earnings (P/E) is 8% lower than the 5-year quarterly average of 28.1 and 5% lower than the last 4 quarters average of 27.2
The P/B is 10% below the last 4 quarters average of 12.2 and 7% below the 5-year quarterly average of 11.8
The equity has grown by 7% YoY and by 4.8% from the previous quarter
ADP's price to sales (P/S) is 5% lower than its last 4 quarters average of 4.6 but 3.6% higher than its 5-year quarterly average of 4.2
Automatic Data Processing's revenue has increased by 3.4% YoY
Efficiency
How efficient is Automatic Data Processing business performance
The company's return on invested capital fell by 11% YoY and by 2.9% QoQ
The ROA has grown by 5% YoY
The return on equity has declined by 4.1% since the previous quarter
Automatic Data Processing's ROS has decreased by 3% from the previous quarter
Dividends
What is ADP's dividend history
DPS
$3.64
Dividend yield
2.47%
Payout ratio
63.5%
Recent dividends
Financial health
How did Automatic Data Processing financials performed over time
Automatic Data Processing's total assets is 17% higher than its total liabilities
The quick ratio rose by 15% QoQ and by 7% YoY
ADP's total liabilities is down by 12% since the previous quarter and by 8% year-on-year
ADP's debt is 59% smaller than its equity
The equity has grown by 7% YoY and by 4.8% from the previous quarter
The debt to equity has declined by 4.7% since the previous quarter and by 2.4% year-on-year
All financial data is based on trailing twelve months (TTM) periods - updated
quarterly, unless otherwise specified.