Automatic Data Processing, Inc. (ADP) is a Staffing & Employment Services company in the Industrials sector, currently trading at $195.08. It has a SharesGrow Score of 72/100, indicating a above average investment profile with 4 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of ADP = $280.34 (+43.7% from the current price, the stock appears undervalued). Analyst consensus target is ADP = $271 (+38.7% upside).
Valuation: ADP trades at a trailing Price-to-Earnings (P/E) of 18.8 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 2.
Financials: revenue is $20.6B, +7.6%/yr average growth. Net income is $4.1B, growing at +11.5%/yr. Net profit margin is 19.8% (healthy). Gross margin is 50.8% (+8.2 pp trend).
Balance sheet: total debt is $9.1B against $6.2B equity (Debt-to-Equity (D/E) ratio 1.46, moderate). Current ratio is 1.05 (adequate). Debt-to-assets is 17%. Total assets: $53.4B.
Analyst outlook: 7 / 35 analysts rate ADP as buy (20%) — mixed sentiment.
SharesGrow 7-Criteria breakdown: Value 59/100 (Partial), Growth 73/100 (Pass), Past 100/100 (Pass), Health 67/100 (Partial), Moat 84/100 (Pass), Future 52/100 (Partial), Income 70/100 (Pass).
