Automatic Data Processing, Inc. (ADP) Stock Guide

June 12, 2020
67

Before we start: if you're looking for ADP stock price, you can quickly find it out by visiting Finny and typing "ADP quote". If you're looking for a quick scoop on ADP stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "ADP". You'll get all this info in one place. Or you can just type "ADP news" to get the latest stock news.

Looking to buy or sell Automatic Data Processing, Inc. (ADP)? Interested in getting the full scoop on ADP, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this ADP stock guide, we'll address key questions about ADP, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are ADP earnings?
2. When is ADP earnings date?
3. What is ADP dividend?
4. What is ADP dividend yield?
5. What is ADP stock forecast (i.e., prediction)?
6. ADP buy or sell? What is ADP Finny Score?
7. What are the reasons to buy ADP? Why should I buy ADP stock?
8. What are the reasons to sell ADP? Why should I sell ADP stock?
9. What are ADP key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are ADP earnings?

ADP trailing 12-month earnings per share (EPS) is $5.83.

2. When is ADP earnings date?

ADP earnings date is July 29, 2020.

3. What is ADP dividend?

ADP forward dividend is $3.64.

4. What is ADP dividend yield?

ADP forward dividend yield is 2.7%.

Analyst Predictions

5. What is ADP stock forecast (i.e., prediction)?

Based on ADP analyst price targets, ADP stock forecast is $156.00 (for a year from now). That means the average analyst price target for ADP stock is $156.00. The prediction is based on 18 analyst estimates.

The low price target for ADP is $135.00, while the high price target is $188.00.

ADP analyst rating is Hold.

Analysis

6. ADP buy or sell? What is ADP Finny Score?

Our quantitative analysis shows 4 reasons to buy and 2 reasons to sell ADP, resulting in Finny Score of 67.

7. What are the reasons to buy ADP? Why should I buy ADP stock?

Here are the reasons to buy ADP stock:

  • ADP is a steady dividend payer that has raised its dividend every year for the last 40 years.
  • ADP's business benefits significantly from increased employment. Every time an employer adds an employee to its payroll, ADP increases its revenue with minimal increased costs.
  • Average client retention is estimated to be longer than 10 years.
  • ADP quarterly revenue growth was 5.70%, higher than the industry and sector average revenue growth (1.40% and 1.65%, respectively). See ADP revenue growth chart.
  • ADP profitability is improving. The YoY profit margin change was 4.01 percentage points. See ADP profitability chart.
  • ADP forward dividend yield is 2.70%, higher than the industry (0.39%) and sector (0.50%) forward dividend yields. See ADP forward dividend chart.
  • ADP cash to debt ratio is 0.69, higher than the average industry (0.13) and sector (0.12) cash to debt ratio. See ADP cash to debt chart.

8. What are the reasons to sell ADP? Why should I sell ADP stock?

Let's look at the reasons to sell ADP stock (i.e., the bear case):

  • As technology advances, more small business owners may opt for a do-it-yourself SaaS solution.
  • Much of the benefit from the Affordable Care Act has been realized leaving the company without new revenue opportunities.
  • Interest income from client funds could remain depressed if rates don't increase.
  • ADP Price/Book ratio is 10.56, which is high compared to its industry peers’ P/B ratios. See ADP forward Price/Book ratio chart.
  • ADP short interest (days to cover the shorts) ratio is 1.73. The stock garners more short interest than the average industry, sector or S&P 500 stock. See ADP short interest ratio chart.

Key Stats

9. What are ADP key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for ADP:

Metrics ADP
Price $145.64
Average Price Target / Upside $156.00 / 7.11%
Average Analyst Rating Hold
Forward Dividend Yield 2.70%
Industry Business Services
Sector Industrials
Number of Employees 57,000
Market Cap $58B
Forward P/E Ratio 23.47
Price/Book Ratio 3.93
Revenue (TTM) $14.76B
YoY Quarterly Revenue Growth 5.70%
Profit Margin 17.15%

If you liked this analysis, check out Stock Guides for other stocks.

Follow Us