Automatic Data Processing (ADP) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Automatic Data Processing

NasdaqGS•Technology•Software - Application

$293.84+7.76(0.03%)Market closed

Market Cap

$117.60B

P/E

26.0x

P/S

5.3x

P/B

23.1x

Automatic Data Processing, Inc. provides cloud-based human capital management (HCM) 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. This segment's offerings include RUN Powered by ADP, a software platform for small business payroll, HR, and compliance; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Lyric HCM, a solution for HR management, payroll, workforce management, talent, and data analytics. Its PEO Services segment provides HR outsourcing solutions under ADP TotalSource name to businesses through a co-employment model. This segment also provides guidance, user-friendly technology, comprehensive employee benefits, and a risk management, safety, and workers' compensation program. The company was founded in 1949 and is headquartered in Roseland, New Jersey.

How this company scores

GoodMetricSide Score: 79/100

Strongest: Profitability (25/25); weakest: Balance Sheet & Red Flags (12/25).

Profitability25/25

Growth19/25

Balance Sheet & Red Flags12/25

Cash & Earnings Quality23/25

Strengths

Strong marginsHigh ROECash-backed earningsConsistent free cash flow

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 26.0x5y range 19.0x – 37.6x

Currently near its 20-quarter median.

P/S · 5.3x5y range 3.8x – 6.6x

Currently near its 20-quarter median.

P/B · 23.1x5y range 13.0x – 36.6x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Leverage Risk

Watch

Debt-to-equity has risen 56.3% recently — increasing financial risk even if the current ratio is manageable.

Price & Volume

Market Cap $117.60B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $22.26B
Q. Revenue: $5.49B
TTM EBITDA: $6.50B
TTM Op. Income: $5.91B
Q. Op. Income: $1.46B
TTM Net Income: $4.53B
Q. Net Income: $1.13B
EPS: $2.84
Shares Out.: $396.50M

$22.26B in TTM revenue grew 6.5% YoY, reaching $5.49B last quarter. TTM EBITDA of $6.50B and TTM operating income of $5.91B show growth is flowing through to the bottom line. TTM net income of $4.53B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 46.0%
EBITDA Margin: 29.5%
Op. Margin: 26.6%
Net Margin: 20.5%

Op. margin of 26.6% is up 0.9% YoY — cost efficiency is improving. Net margin at 20.5% and gross margin of 46.0% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 3% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 26.0x
P/S Ratio: 5.3x
P/B Ratio: 23.1x

At 26.0x P/E, the stock trades within typical market levels. P/S of 5.3x and P/B of 23.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 2 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $63.45B
Cash: $3.28B
Long-Term Debt: $4.97B
Book Value: $5.09B
D/E Ratio: 1.0
Debt/EBITDA: 3.1

With $63.45B in assets and $4.97B in long-term debt, D/E is 1.0and book value is $5.09B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has risen for 3 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $651.00M
TTM Free Cash Flow: $5.25B
FCF Margin: 23.6%
FCF / Net Income: 1.2

TTM FCF of $5.25B on $651.00M in operating cash flow. The FCF / Net Income ratio of 1.2x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 14% — an improving trend.