Stock AnalizAutomatic Data Processing Inc. ADP
EDP Services · data as of November 13, 2026
Automatic Data Processing Inc. (ADP) is a technology company listed in the US with a market value of about $122.3B. In the twelve months to September 30, 2026 it had revenue of $22.3B and net income of $4.5B, a net margin of 20.3%.
Its overall Stock Analiz score is 2.6 out of 5 (average). The strongest part is shareholder returns (5/5); the weakest is value (0/5).
Key numbers: a P/E of 27.5, a price to free cash flow of 23.3, 5-year revenue growth of 8% a year, a 5-year average ROIC of 41%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 26% below the current price.
Score: 2.6 / 5
Checks passed
- Profit margin improving
- 5-year EPS growth above 10% a year
- 5-year average ROIC above 12%
- Profitable 5 years in a row
- ROE above 15%
- Positive free cash flow
- Interest covered more than 5 times
- Debt below 3 years of free cash flow
Checks not passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- 3-year free cash flow growth above 10% a year
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $22.3B | $21.9B | $20.6B | $19.2B | $18.0B | $16.5B | $15.0B | $14.6B | $14.1B | $13.3B | $12.4B |
| Net income | $4.5B | $4.4B | $4.1B | $3.8B | $3.4B | $2.9B | $2.6B | $2.5B | $2.3B | $1.9B | $1.8B |
| Free cash flow | $5.2B | $5.2B | $4.8B | $3.9B | $4.0B | $2.9B | $2.9B | $2.9B | $2.5B | $2.3B | $1.9B |
| EPS (diluted) | $11.28 | $10.94 | $9.98 | $9.10 | $8.21 | $7.00 | $6.07 | $5.70 | $5.24 | $4.25 | $3.97 |
| Net margin | 20.3% | 20.1% | 19.8% | 19.5% | 18.9% | 17.9% | 17.3% | 16.9% | 16.2% | 14.2% | 14.4% |
| ROIC | — | 35.8% | 35.9% | 44.3% | 47.0% | 43.1% | 27.7% | 28.7% | 29.8% | 30.0% | 25.9% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 15 analysts is $298.27, 4% below the current price; targets range from $250.00 to $340.00; the consensus rating is “Hold”; expected EPS is $12.37 for the fiscal year ending June 30, 2027.
Frequently asked questions
What is Automatic Data Processing’s P/E ratio?
About 27.5, based on the last twelve months of diluted earnings per share (forward P/E about 23.1).
Is Automatic Data Processing stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 26% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Automatic Data Processing pay a dividend?
Yes. The dividend yield is about 2.48%, and it has paid dividends for 10 years in our data.
Is Automatic Data Processing a good stock to buy?
We do not give buy or sell advice. Automatic Data Processing scores 2.6 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.