ADP:NSD-Automatic Data Processing, Inc (USD)

COMMON STOCK | Other | NSD

Last Closing Price

USD 131.38

Change

-5.68 (-4.14)%

Market Cap

USD 52.93B

Volume

3.00M

Average Target Price

USD 176.29 (+34.18%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. 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 through a co-employment model. This segment offers protection and compliance, talent engagement, comprehensive outsourcing, and recruitment process outsourcing services. The company was founded in 1949 and is headquartered in Roseland, New Jersey.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-03-27 )

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ETFs Containing ADP

Symbol Name Weight Mer Price(Change) Market Cap
HECO Strategy Shares EcoLogica.. 2.87 % 1.07 %

-0.95 (-2.57%)

USD0.04B
HUSV First Trust Horizon Manag.. 1.16 % 0.70 %

-0.51 (-2.34%)

USD0.26B
HTA Healthcare Trust of Ameri.. 0.00 % 0.00 %

+0.59 (+2.40%)

USD5.32B
FLLV Franklin Liberty U.S. Low.. 0.00 % 0.29 %

-0.92 (-2.92%)

USD0.08B

Market Performance

  Market Performance vs.
Industry/Classification (Other)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -22.94% 55% F 60% D-
Dividend Return 0.53% 26% F 38% F
Total Return -22.41% 55% F 60% D-
Trailing 12 Months  
Capital Gain -17.04% 61% D- 63% D
Dividend Return 1.57% 27% F 38% F
Total Return -15.47% 60% D- 62% D-
Trailing 5 Years  
Capital Gain 55.24% 82% B- 82% B-
Dividend Return 14.29% 56% F 62% D-
Total Return 69.53% 83% B 84% B
Average Annual (5 Year Horizon)  
Capital Gain 18.92% 73% C 78% C+
Dividend Return 2.36% 89% B+ 63% D
Total Return 21.28% 80% B- 79% C+
Risk Return Profile  
Volatility (Standard Deviation) 10.54% 100% A+ 85% B
Risk Adjusted Return 201.89% 100% A+ 100% A+
Market Capitalization 52.93B 99% A+ 99% A+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Other)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 21.66 49% F 38% F
Price/Book Ratio 9.87 12% F 9% F
Price / Cash Flow Ratio 19.69 9% F 12% F
EV/EBITDA 14.53 16% F 19% F
Management Effectiveness  
Return on Equity 48.64% 97% A+ 97% A+
Return on Invested Capital 29.33% 93% A 93% A
Return on Assets 4.57% 85% B 80% B-
Debt to Equity Ratio 37.08% 50% F 50% F
Technical Ratios  
Short Ratio 2.32 59% F 58% F
Short Percent 1.59% 69% D+ 68% D+
Beta 0.89 51% F 57% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What to not like:
Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.