# Automatic Data Processing Inc. (ADP) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Industrials / Professional Services. Price $296.01, market value $116.9 billion.

## Valuation
- **P/E (trailing): 26.2×** (5-yr avg 25.6×, 3-yr avg 25.2×). Automatic Data Processing Inc. trades at 26.2× trailing earnings, close to its own five-year average of 25.6×. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 21.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 2.27**. A PEG of 2.27 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 5.2×**. Each dollar of revenue is priced at 5.2×.
- **Price / book: 23.0×**. The shares trade at 23.0× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Earnings yield: 3.8%**. The inverse of the P/E: 3.8% of the price is earned each year.

## Profitability
- **Net margin: 20.1%**. 20.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 73.2%**. A 73.2% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on assets: 7.2%**. Each dollar of assets produces 7.2% of profit.

## Growth
- **Revenue growth (1 yr): 6.7%** (3-yr 6.8%/yr, 5-yr 7.9%/yr). Revenue grew 6.7% over the last year, against 7.9% a year compounded over five years.
- **EPS growth (1 yr): 9.6%** (3-yr 10.0%/yr, 5-yr 12.5%/yr). Earnings per share rose 9.6%, roughly in step with revenue.

## Financial health
- **Debt to equity: 0.82**. Debt is 0.82 times equity, moderate leverage.
- **Current ratio: 1.05** (quick 1.05). Current assets cover the next year's liabilities 1.05 times.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.30%** ($6.80 per share, trailing). Automatic Data Processing Inc. yields 2.30%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 60%**. 60% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 23**. 23 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 11.5%/yr** (1-yr 10.1%). The dividend has compounded at 11.5% a year over five years, doubling roughly every 6 years at that pace.
- **Shareholder yield: 4.4%**. Dividends plus net buybacks return 4.4% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (15 analysts). 15 analysts cover Automatic Data Processing Inc.; the consensus is hold, with an average price target of $296.20 (+0% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 17.7%** (YTD 16.9%, 3-mo 9.4%). The shares are up 17.7% over twelve months including dividends.
- **From 52-week high: -4.3%** (57.3% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 60**. An RSI of 60 is neutral.
- **Beta (1 yr): -0.11** (volatility 28%). Beta of -0.11 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ADP · Page: https://foliofundamentals.com/stocks/adp

Not investment advice.