Automatic Data Processing, Inc. ADP NASDAQ

Automatic Data Processing, Inc. (ADP) generated $4.94B in operating cash flow for fiscal year 2025. After capital expenditures of $168.7M, free cash flow was $4.77B.

Free cash flow margin was 23.2% of revenue. Cash conversion ratio was 1.21x, indicating earnings are backed by cash.

The company returned $2.4B in dividends and $1.28B in share buybacks to shareholders during the period.

Criteria supported by this page:

• HEALTH (67/100, Partial) — cash generation is adequate but may not fully cover debt in stressed conditions
• MOAT (84/100, Pass) — $4.77B (23.2% FCF margin) supports a durable competitive advantage
• INCOME (70/100) — Cash conversion ratio was 1.21x confirms earnings are backed by real cash flow

Overall SharesGrow Score: 72/100 with 4/7 criteria passed.