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Automatic Data Processing is a staffing & employment services business based in the US. Automatic Data Processing stocks (ADP.US) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was $232.74 – an increase of 3.08% over the previous week. Automatic Data Processing employs 56,000 staff and has a trailing 12-month revenue of around $16.1 billion.
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| Latest market close | $214.96 |
|---|---|
| 52-week range | $183.83 - $247.73 |
| 50-day moving average | $221.05 |
| 200-day moving average | $218.15 |
| Wall St. target price | $233.38 |
| PE ratio | 30.8223 |
| Dividend yield | $3.94 (1.99%) |
| Earnings per share (TTM) | $6.77 |
Note: The dollar amounts in the table below are in Canadian dollars.
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.
Historical closes compared with the close of $214.96 from 2022-05-17
| 1 week (2022-05-12) | 3.61% |
|---|---|
| 1 month (2022-04-18) | -5.39% |
| 3 months (2022-02-18) | 7.24% |
| 6 months (2021-11-19) | -9.65% |
| 1 year (2021-05-19) | 12.64% |
|---|---|
| 2 years (2020-05-18) | 57.60% |
| 3 years (2019-05-17) | 32.92% |
| 5 years (2017-05-18) | 118.57% |
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 current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 31x. In other words, Automatic Data Processing shares trade at around 31x 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 "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.4982. 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 (earnings before interest, taxes, depreciation and amortisation) is $4.2 billion.
The EBITDA is a measure of a Automatic Data Processing's overall financial performance and is widely used to measure a its profitability.
| Revenue TTM | $16.1 billion |
|---|---|
| Operating margin TTM | 23.03% |
| Gross profit TTM | $6.8 billion |
| Return on assets TTM | 3.67% |
| Return on equity TTM | 58.01% |
| Profit margin | 17.76% |
| Book value | $10.03 |
| Market capitalisation | $87.2 billion |
TTM: trailing 12 months
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.
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 01/01/2019) 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.).
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.
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.
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.
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.
Dividend payout ratio: 60.36% of net profits
Recently Automatic Data Processing has paid out, on average, around 60.36% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.99% 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 1.99% return on their shares, in the form of dividend payments. In Automatic Data Processing's case, that would currently equate to about $3.94 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 1 July 2022. The latest dividend was paid out to all shareholders who bought their shares by 9 June 2022 (the "ex-dividend date").
Automatic Data Processing's shares were split on a 1139:1000 basis on 1 October 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.
Over the last 12 months, Automatic Data Processing's shares have ranged in value from as little as $183.8262 up to $247.7253. 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 0.848. This would suggest that Automatic Data Processing's shares are less volatile than average (for this exchange).
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.
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