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How to buy Automatic Data Processing stock
Learn how to easily invest in Automatic Data Processing stock.
Automatic Data Processing Inc is a staffing & employment services business based in the US. Automatic Data Processing shares (ADP) are listed on the NASDAQ and all prices are listed in US Dollars. Automatic Data Processing employs 56,000 staff and has a trailing 12-month revenue of around 0.00.
How to buy shares in Automatic Data Processing
- Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
- Open your brokerage account. Complete an application with your details.
- Confirm your payment details. Fund your account.
- Research the stock. Find the stock by name or ticker symbol – ADP – and research it before deciding if it's a good investment for you.
- Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
- Check in on your investment. Optimize your portfolio by tracking your stock.
What's in this guide?
- ADP shares summary
- Compare share dealing platforms
- Is ADP stock a buy or sell?
- Stock performance over time
- Is ADP suitable for ethical investing?
- Are ADP shares over-valued?
- Automatic Data Processing's financials
- How volatile are ADP shares?
- Does Automatic Data Processing pay a dividend?
- Have ADP shares ever split?
- Other common questions
Automatic Data Processing stock price (NASDAQ: ADP)Use our graph to track the performance of ADP stocks over time.
Automatic Data Processing shares at a glance
|Latest market close||$217.13|
|52-week range||$157.83 - $248.96|
|50-day moving average||$235.12|
|200-day moving average||$210.68|
|Wall St. target price||$231.49|
|Dividend yield||$3.72 (1.84%)|
|Earnings per share (TTM)||$6.32|
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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
Is it a good time to buy Automatic Data Processing stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Automatic Data Processing price performance over time
|1 week (2022-01-14)||-5.08%|
|1 month (2021-12-23)||-10.28%|
|3 months (2021-10-22)||-0.28%|
|6 months (2021-07-23)||5.36%|
|1 year (2021-01-22)||34.05%|
|2 years (2020-01-24)||22.53%|
|3 years (2019-01-24)||61.14%|
|5 years (2017-01-24)||110.32%|
Is Automatic Data Processing stock undervalued or overvalued?
Valuing Automatic Data Processing stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Automatic Data Processing's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Automatic Data Processing's P/E ratio
Automatic Data Processing's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 36x. In other words, Automatic Data Processing shares trade at around 36x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Automatic Data Processing's PEG ratio
Automatic Data Processing's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.3366. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Automatic Data Processing's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Automatic Data Processing's EBITDA
Automatic Data Processing's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $4 billion.
The EBITDA is a measure of a Automatic Data Processing's overall financial performance and is widely used to measure a its profitability.
Automatic Data Processing financials
|Revenue TTM||$15.4 billion|
|Operating margin TTM||22.74%|
|Gross profit TTM||$6.8 billion|
|Return on assets TTM||4.27%|
|Return on equity TTM||48.33%|
|Market capitalisation||$94.7 billion|
TTM: trailing 12 months
Automatic Data Processing's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Automatic Data Processing.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Automatic Data Processing's total ESG risk score
Total ESG risk: 19.82
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Automatic Data Processing's overall score of 19.82 (as at 12/31/2018) is excellent – landing it in it in the 10th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Automatic Data Processing is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Automatic Data Processing's environmental score
Environmental score: 4.57/100
Automatic Data Processing's environmental score of 4.57 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Automatic Data Processing is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Automatic Data Processing's social score
Social score: 11.57/100
Automatic Data Processing's social score of 11.57 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Automatic Data Processing is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Automatic Data Processing's governance score
Governance score: 9.68/100
Automatic Data Processing's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Automatic Data Processing is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Automatic Data Processing's controversy score
Controversy score: 1/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Automatic Data Processing scored a 1 out of 5 for controversy – the highest score possible, reflecting that Automatic Data Processing has managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||19.82|
|Total ESG percentile||10.16|
|Environmental score percentile||8|
|Social score percentile||8|
|Governance score percentile||8|
|Level of controversy||1|
Automatic Data Processing share dividends
Dividend payout ratio: 61.18% of net profits
Recently Automatic Data Processing has paid out, on average, around 61.18% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.84% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Automatic Data Processing shareholders could enjoy a 1.84% return on their shares, in the form of dividend payments. In Automatic Data Processing's case, that would currently equate to about $3.72 per share.
Automatic Data Processing's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Automatic Data Processing's most recent dividend payout was on 31 March 2022. The latest dividend was paid out to all shareholders who bought their shares by 9 March 2022 (the "ex-dividend date").
Have Automatic Data Processing's shares ever split?
Automatic Data Processing's shares were split on a 1139:1000 basis on 30 September 2014. So if you had owned 1000 shares the day before before the split, the next day you'd have owned 1139 shares. This wouldn't directly have changed the overall worth of your Automatic Data Processing shares – just the quantity. However, indirectly, the new 12.2% lower share price could have impacted the market appetite for Automatic Data Processing shares which in turn could have impacted Automatic Data Processing's share price.
Automatic Data Processing share price volatility
Over the last 12 months, Automatic Data Processing's shares have ranged in value from as little as $157.8319 up to $248.96. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Automatic Data Processing's is 0.7638. This would suggest that Automatic Data Processing's shares are less volatile than average (for this exchange).
Automatic Data Processing overview
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. 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, comprehensive outsourcing, and recruitment process outsourcing services.
Automatic Data Processing in the news
Earnings playbook: A complete guide to this week's reports, including the first of tech
RSI Alert: Automatic Data Processing Now Oversold
Interesting ADP Put And Call Options For March 18th
Frequently asked questionsWhat percentage of Automatic Data Processing is owned by insiders or institutions?
Currently 0.099% of Automatic Data Processing shares are held by insiders and 80.772% by institutions. How many people work for Automatic Data Processing?
Latest data suggests 56,000 work at Automatic Data Processing. When does the fiscal year end for Automatic Data Processing?
Automatic Data Processing's fiscal year ends in June. Where is Automatic Data Processing based?
Automatic Data Processing's address is: One ADP Boulevard, Roseland, NJ, United States, 07068 What is Automatic Data Processing's ISIN number?
Automatic Data Processing's international securities identification number is: US0530151036 What is Automatic Data Processing's CUSIP number?
Automatic Data Processing's Committee on Uniform Securities Identification Procedures number is: 053015103
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