About Automatic Data Processing, Inc.
Automatic Data Processing, Inc. (ADP) is a Technology company in the Services-Computer Processing & Data Preparation industry with a market capitalisation of $113B. The stock trades at 25.85x trailing earnings and yields 2.35%.
- Sector
- Technology
- Industry
- Services-Computer Processing & Data Preparation
- Market cap
- $113B
- P/E ratio
- 25.85
- EPS (TTM)
- $10.94
- Revenue (TTM)
- $21.9B
- Profit margin
- 20.1%
- Dividend yield
- 2.35%
- Shares outstanding
- 397.3M
Financial health: Strong7.5/10
4 strengths, 0 concerns. No red flags against these benchmarks.
- Debt to equity: 0.82 (Watch, benchmark < 0.5) — Debt of 0.82x equity is moderate against the 0.5x benchmark. It has been broadly flat over the last 4 years.
- Current ratio: 1.05 (Watch, benchmark > 1.5) — Short-term assets cover 1.05x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 73.2% (Strong, benchmark > 15%) — Earns 73.2% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 46.4% (Strong, benchmark > 40%) — Keeps 46.4% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 20.1% (Strong, benchmark > 10%) — Turns 20.1% of revenue into profit, comfortably past the > 10% mark.
- Revenue growth: 6.7% (Watch, benchmark > 10%) — Revenue changed 6.7% year on year, short of the > 10% mark.
- Earnings growth: 8.2% (Watch, benchmark > 10%) — Earnings changed 8.2% year on year, short of the > 10% mark.
- Payout ratio: 59.5% (Strong, benchmark < 60%) — Pays out 59.5% of earnings as dividends, leaving room to keep paying.