Automatic Data Processing Inc Stock Research

Market Summary

USD214.13+0.51

Market Closed

0.24%

ADP Alerts

1 major insider sales recently.

ADP Stock Price

ADP RSI Chart

ADP Valuation

Market Cap

88.7B

Price/Earnings (Trailing)

28.2

Price/Sales (Trailing)

5.14

EV/EBITDA

18.96

Price/Free Cashflow

25.34

ADP Price/Sales (Trailing)

ADP Profitability

EBT Margin

23.55%

Return on Equity

105.34%

Return on Assets

5.78%

Free Cashflow Yield

3.95%

ADP Fundamentals

ADP Revenue

Revenue (TTM)

17.2B

Revenue Y/Y

9.08%

Revenue Q/Q

4.16%

ADP Earnings

Earnings (TTM)

3.1B

Earnings Y/Y

17.09%

Earnings Q/Q

4.38%

Price Action

52 Week Range

193.72273.37

(Low)(High)

Last 7 days

-0.8%

Last 30 days

-3.9%

Last 90 days

-11.1%

Trailing 12 Months

-0.8%

ADP Financial Health

Current Ratio

0.99

Debt/Equity

0.87

Debt/Cashflow

1.35

ADP Investor Care

Dividend Yield

1.65%

Dividend/Share (TTM)

4.05

Buy Backs (1Y)

1.29%

Diluted EPS (TTM)

7.52

Peers (Alternatives to Automatic Data Processing)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
ADP	88.7B	17.2B	-3.95%	-0.83%	28.2	5.14	9.88%	14.66%
FISV	72.0B	17.7B	-0.51%	14.00%	28.45	4.06	9.31%	89.66%
SQ	36.0B	17.5B	-16.81%	-55.07%	-66.51	2.05	-0.73%	-425.19%
CTSH	29.9B	19.4B	-8.99%	-34.89%	13.04	1.54	4.98%	7.16%
VRSN	21.3B	1.4B	-0.56%	-6.15%	31.55	14.92	7.33%	-14.14%
MID-CAP
CACI	6.8B	6.5B	-4.16%	-5.86%	18.54	1.04	6.38%	-16.32%
SAIC	5.7B	7.5B	-3.66%	14.73%	21.13	0.76	2.58%	-9.12%
DXC	5.4B	14.8B	-16.75%	-28.72%	7.49	0.36	-10.79%	217.70%
PRFT	2.3B	905.1M	-6.80%	-36.95%	22.17	2.56	18.93%	100.40%
SMALL-CAP
FSLY	2.0B	432.7M	7.80%	-8.92%	-10.45	4.61	22.12%	14.33%
CSGS	1.6B	1.1B	-11.65%	-15.25%	36.85	1.49	4.13%	-39.09%
TCX	268.2M	321.1M	-3.32%	-64.51%	-9.73	0.84	5.52%	-919.59%
UIS	233.2M	2.0B	-35.82%	-84.29%	-2.2	0.12	-3.63%	76.37%
INOD	203.6M	79.0M	13.44%	-0.93%	-17.06	2.58	13.25%	-613.39%
BCOV	181.3K	211.0M	-33.64%	-43.90%	-0.02	9e-4	-0.04%	-267.04%

Financials for Automatic Data Processing

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	2.2%	17,247	16,882	16,498	16,108	15,697
Operating Expenses	1.1%	8,490	8,396	8,253	8,095	7,882
S&GA Expenses	2.2%	3,388	3,314	3,233	3,160	3,105
Costs and Expenses	1.7%	13,283	13,062	12,777	12,514	12,220
EBITDA	4.3%	4,746	4,549	4,401	4,281	-
EBITDA Margin	2.1%	0.28*	0.27*	0.27*	0.27*	-
Earnings Before Taxes	3.8%	4,061	3,913	3,804	3,698	3,574
EBT Margin	1.6%	0.24*	0.23*	0.23*	0.23*	-
Interest Expenses	33.7%	153	115	82.00	73.00	68.00
Net Income	3.9%	3,146	3,027	2,949	2,862	2,744
Net Income Margin	1.7%	0.18*	0.18*	0.18*	0.18*	-
Free Cahsflow	-5.2%	3,502	3,696	3,100	2,839	-

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	17.4%	54,453	46,365	63,068	72,068	59,103
Current Assets	21.5%	46,144	37,969	54,805	63,904	51,107
Cash Equivalents	11.4%	1,345	1,208	1,436	1,634	1,745
Net PPE	1.6%	655	645	653	651	645
Goodwill	1.8%	2,315	2,273	2,301	2,324	2,331
Liabilities	17.5%	51,466	43,788	59,843	67,875	54,053
Current Liabilities	19.5%	46,814	39,166	55,159	63,107	49,084
Long Term Debt	-4.6%	2,595	2,721	2,819	3,012	-
LT Debt, Non Current	0.0%	2,988	2,988	2,987	2,987	2,986
Shareholder's Equity	15.9%	2,987	2,577	3,225	4,193	5,050
Retained Earnings	1.4%	21,333	21,039	20,696	20,505	20,012
Additional Paid-In Capital	3.2%	1,954	1,893	1,794	1,737	1,665
Shares Outstanding	-0.2%	414	415	416	418	420
Float	-	103,549	-	-	-	-

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	-5.2%	3,502	3,696	3,100	2,839	3,121
Share Based Compensation	1.3%	213	210	202	195	192
Cashflow From Investing	31.8%	-5,015	-7,355	-7,014	-7,112	-6,033
Cashflow From Financing	59.3%	-5,635	-13,834	13,653	15,893	7,351
Dividend Payments	2.3%	1,738	1,699	1,659	1,621	1,581
Buy Backs	-13.7%	1,532	1,775	1,969	1,952	1,888

Risks for ADP

What is the probability of a big loss on ADP?

20.8%

Probability that Automatic Data Processing stock will be more than 20% underwater in next one year

18.5%

Probability that Automatic Data Processing stock will be more than 30% underwater in next one year.

Probability that Automatic Data Processing stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does ADP drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Automatic Data Processing was unfortunately bought at previous high price.

Drawdowns

Returns for ADP

Cumulative Returns on ADP

16.5%

10-Year Cumulative Returns

15.6%

7-Year Cumulative Returns

16.5%

5-Year Cumulative Returns

22.9%

3-Year Cumulative Returns

What are the long-term rolling returns for ADP?

FIve years rolling returns for Automatic Data Processing.

Annualized Returns

Which funds bought or sold ADP recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-15	B. Riley Wealth Advisors, Inc.	added	2.88	592,986	7,073,990	0.20%
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	reduced	-2.14	3,163,780	97,853,800	0.11%
2023-03-10	MATHER GROUP, LLC.	reduced	-6.83	-220,049	13,474,000	0.26%
2023-03-08	Capital Asset Advisory Services LLC	reduced	-0.1	25,079	470,079	0.04%
2023-03-07	Investure, LLC	unchanged	-	493,395	9,301,690	1.82%
2023-03-07	Great Lakes Retirement, Inc.	new	-	1,428,320	1,428,320	0.36%
2023-03-06	NORTH STAR ASSET MANAGEMENT INC	reduced	-15.25	-163,730	1,393,270	0.09%
2023-03-06	OLD MISSION CAPITAL LLC	sold off	-100	-249,000	-	-%
2023-03-06	Rockefeller Capital Management L.P.	reduced	-0.16	3,560,000	69,103,000	0.35%
2023-03-03	TIAA, FSB	added	7.45	1,246,660	10,497,700	0.04%

Latest Funds Activity

Are funds buying ADP calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own ADP

No. of Funds

ADP Alerts

1 major insider sales recently.

Automatic Data Processing News

Schedule 13G FIlings of Automatic Data Processing

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 09, 2023	vanguard group inc	9.69%	40,184,122	SC 13G/A
Feb 07, 2023	blackrock inc.	8.5%	35,207,814	SC 13G/A
Feb 09, 2022	vanguard group inc	9.14%	38,508,651	SC 13G/A
Feb 01, 2022	blackrock inc.	7.6%	31,994,622	SC 13G/A
Feb 10, 2021	vanguard group inc	8.81%	37,786,861	SC 13G/A
Jan 29, 2021	blackrock inc.	7.1%	30,500,465	SC 13G/A
Feb 12, 2020	vanguard group inc	8.83%	38,226,328	SC 13G/A
Feb 05, 2020	blackrock inc.	7.3%	31,452,387	SC 13G/A

ADP Fair Value

Automatic Data Processing fair value in different scenarios

The table shows the Fair Value estimates for Automatic Data Processing for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	91.57 -57.24%	116.29 -45.69%	152.30 -28.87%	194.97 -8.95%	227.91 6.44%
Current Inflation	82.95 -61.26%	103.89 -51.48%	133.67 -37.58%	169.09 -21.03%	196.30 -8.33%
Very High Inflation	72.38 -66.20%	88.98 -58.45%	111.82 -47.78%	139.19 -35.00%	160.11 -25.23%

Historical Automatic Data Processing Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of Automatic Data Processing

View All Filings

Date Filed	Form Type	Document
Mar 02, 2023	4	Insider Trading
Mar 01, 2023	144/A	144/A
Mar 01, 2023	144	Notice of Insider Sale Intent
Feb 09, 2023	SC 13G/A	Major Ownership Report
Feb 07, 2023	SC 13G/A	Major Ownership Report
Feb 02, 2023	10-Q	Quarterly Report
Jan 25, 2023	8-K	Current Report
Jan 13, 2023	4	Insider Trading
Jan 13, 2023	4	Insider Trading
Jan 11, 2023	4	Insider Trading

Latest Insider Trading transactions for ADP

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-01	Albinson Brock	sold	-330,000	220	-1,500	corp. vp
2023-01-11	Weinstein Donald	acquired	744,756	146	5,075	corporate vp
2023-01-11	KUTAM SREENIVASA	acquired	-	-	816	corp vp
2023-01-11	Weinstein Donald	sold	-1,243,380	245	-5,075	corporate vp
2023-01-09	Rodriguez Carlos A	acquired	5,516,920	146	37,594	executive chair
2023-01-09	Rodriguez Carlos A	sold	-9,071,170	241	-37,594	executive chair
2023-01-05	Rodriguez Carlos A	sold	-12,235,000	234	-52,254	executive chair
2023-01-05	Rodriguez Carlos A	acquired	8,874,820	169	52,254	executive chair
2023-01-04	Rodriguez Carlos A	acquired	8,154,430	138	58,864	executive chair
2023-01-04	Rodriguez Carlos A	sold	-14,071,800	239	-58,864	executive chair

About Automatic Data Processing

Carlos A. Rodriguez

www.adp.com

56000

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. The company was founded in 1949 and is headquartered in Roseland, New Jersey.

ADP Income Statement

2022-12-31

Statements of Consolidated Earnings - USD ($)
shares in Millions, $ in Millions

3 Months Ended

6 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2022

Dec. 31, 2021

REVENUES:

Revenues

$ 4,391.0

$ 4,025.4

$ 8,606.6

$ 7,857.7

Costs of revenues:

Operating expenses

2,134.5

2,040.7

4,209.0

3,971.5

Systems development and programming costs

204.2

199.7

413.9

388.5

Depreciation and amortization

112.0

100.8

221.4

203.8

TOTAL COSTS OF REVENUES

2,450.7

2,341.2

4,844.3

4,563.8

Selling, general, and administrative expenses

855.7

782.3

1,656.1

1,501.5

Interest expense

57.0

18.4

108.1

36.9

TOTAL EXPENSES

3,363.4

3,141.9

6,608.5

6,102.2

Other (income)/expense, net

(30.5)

(26.6)

(70.0)

(55.4)

EARNINGS BEFORE INCOME TAXES

1,058.1

910.1

2,068.1

1,810.9

Provision for income taxes

245.0

215.7

475.9

416.0

NET EARNINGS

$ 813.1

$ 694.4

$ 1,592.2

$ 1,394.9

BASIC EARNINGS PER SHARE (in US$ per share)

$ 1.96

$ 1.65

$ 3.84

$ 3.32

DILUTED EARNINGS PER SHARE (in US$ per share)

$ 1.95

$ 1.65

$ 3.82

$ 3.30

Basic weighted average shares outstanding (shares)

414.3

419.8

414.4

420.6

Diluted weighted average shares outstanding (shares)

416.2

422.0

416.6

422.9

Revenues, other than interest on funds held for clients and PEO revenues

REVENUES:

Revenues

$ 2,702.2

$ 2,561.8

$ 5,348.6

$ 5,029.6

Interest on funds held for clients

REVENUES:

Revenues

187.2

106.0

328.3

207.1

PEO Revenues

REVENUES:

Revenues

^[1]

$ 1,501.6

$ 1,357.6

$ 2,929.7

$ 2,621.0

[1]

Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $17,852.4 million and $16,774.0 million for the three months ended December 31, 2022 and 2021, respectively, and $33,386.6 million and $30,037.2 million for the six months ended December 31, 2022 and 2021, respectively.

ADP Balance Sheet

2022-12-31

Consolidated Balance Sheets - USD ($)

Dec. 31, 2022

Jun. 30, 2022

Current assets:

Cash and cash equivalents

$ 1,345,000,000

$ 1,436,300,000

Accounts receivable, net of allowance for doubtful accounts of $50.0 and $56.8, respectively

3,162,300,000

3,170,600,000

Other current assets

875,800,000

628,800,000

Total current assets before funds held for clients

5,383,100,000

5,235,700,000

Funds held for clients

40,760,500,000

49,569,200,000

Total current assets

46,143,600,000

54,804,900,000

Long-term receivables, net of allowance for doubtful accounts of $0.2 and $0.1, respectively

7,700,000

9,100,000

Property, plant and equipment, net

655,100,000

652,600,000

Operating lease right-of-use asset

400,300,000

450,900,000

Deferred contract costs

2,574,800,000

2,579,700,000

Other assets

990,900,000

937,400,000

Goodwill

2,315,000,000

2,300,500,000

Intangible assets, net

1,365,600,000

1,333,100,000

Total assets

54,453,000,000

63,068,200,000

Current liabilities:

Accounts payable

85,300,000

110,200,000

Accrued expenses and other current liabilities

2,373,300,000

2,107,800,000

Accrued payroll and payroll-related expenses

590,800,000

862,600,000

Dividends payable

514,600,000

429,600,000

Short-term deferred revenues

176,800,000

188,200,000

Obligations under reverse repurchase agreements

^[1]

136,400,000

Income taxes payable

11,100,000

38,400,000

Total current liabilities before client funds obligations

3,751,900,000

3,873,200,000

Client funds obligations

43,061,800,000

51,285,500,000

Total current liabilities

46,813,700,000

55,158,700,000

Long-term debt

2,988,100,000

2,987,100,000

Operating lease liabilities

334,100,000

370,900,000

Other liabilities

931,600,000

924,200,000

Deferred income taxes

66,800,000

67,000,000.0

Long-term deferred revenues

332,000,000.0

335,000,000.0

Total liabilities

51,466,300,000

59,842,900,000

Commitments and contingencies (Note 13)

Stockholders' equity:

Preferred stock, $1.00 par value: authorized, 0.3 shares; issued, none

Common stock, $0.10 par value: authorized, 1,000.0 shares; issued, 638.7 shares at December 31, 2022 and June 30, 2022; outstanding, 414.4 and 416.1 shares at December 31, 2022 and June 30, 2022, respectively

63,900,000

Capital in excess of par value

1,954,200,000

1,794,200,000

Retained earnings

21,333,000,000

20,696,300,000

Treasury stock - at cost: 224.4 and 222.7 shares at December 31, 2022 and June 30, 2022, respectively

(17,913,500,000)

(17,335,400,000)

Accumulated other comprehensive (loss)/ income

(2,450,900,000)

(1,993,700,000)

Total stockholders’ equity

2,986,700,000

3,225,300,000

Total liabilities and stockholders’ equity

$ 54,453,000,000

$ 63,068,200,000

[1]	As of June 30, 2022, $14.3 million of short-term marketable securities and $122.1 million of long-term marketable securities have been pledged as collateral under the Company's reverse repurchase agreements (see Note 9)