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AD

Automatic Data Processing, Inc.

ADP

Technology · Software - Application · NASDAQ

$271.09

P/E 23.8×

CEO

Maria Black

Sector

Technology

Industry

Software - Application

Automatic Data Processing, Inc. (ADP) is a global provider of cloud-based solutions designed for human capital management (HCM). The company organizes its operations into two primary segments: Employer Services and Professional Employer Organization (PEO). Through its Employer Services division, ADP delivers strategic, cloud-powered platforms and comprehensive human resources (HR) outsourcing. This encompasses a wide array of services such as payroll processing, benefits administration, talent acquisition and management, general HR and workforce management, insurance, retirement planning, and regulatory compliance, often integrated into holistic HCM solutions. Conversely, the Professional Employer Organization (PEO) segment specializes in offering HR outsourcing to small and mid-sized businesses, leveraging a co-employment framework. This segment's offerings span robust benefits packages, regulatory protection and compliance, talent engagement strategies, specialized HR expertise, all-encompassing outsourcing, and even recruitment process outsourcing. Established in 1949, ADP maintains its corporate headquarters in Roseland, New Jersey.

Investor model analysis

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At $271.09, 2 of 4 frameworks say Avoid

Business Quality60/100

Intrinsic Value (DCF)

Warren Buffett's valuation model · select an investor above to switch

Intrinsic Value

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Margin of Safety

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Scenario analysis

Bear, base & bull

Three growth assumptions, three fair values — and where today's price lands

What's working

Key strengths

Identified by Buffett framework analysis

Return on Equity

ROE Consistency

ROE Quality (Low Leverage)

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Company financials

5-Year Financials

Income statement highlights — annual, USD

Metric20262025202420232022
Revenue$21.9B
$20.6B
$19.2B
$18.0B
$16.5B
Rev. Growth+6.7%+7.1%+6.6%+9.2%
Net Income$4.4B$4.1B$3.8B$3.4B$2.9B
Net Margin20.1%19.8%19.5%18.9%17.9%
EPS (Diluted)$10.97$10.02$9.14$8.25$7.04
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Analysis, scores, valuations, and buy zones are derived from publicly documented investor frameworks (Buffett, Lynch, Benjamin Graham, Phil Town) for learning purposes only. They are not recommendations from licensed financial advisors. Past performance does not guarantee future results. Prices may be delayed up to 15 minutes. Always conduct your own research before making any investment decisions.