ADP ADP
ADP is a provider of human capital management solutions and payroll outsourcing. ADP shows solid financial health with net debt/EBITDA of 0.20, an exceptional competitive moat (ROE 72.24%, ROIC 44.68%) and moderate revenue growth of 6.80%, although its valuation (P/E 24.10) is not particularly attractive.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
ADP is a provider of human capital management solutions and payroll outsourcing. ADP shows solid financial health with net debt/EBITDA of 0.20, an exceptional competitive moat (ROE 72.24%, ROIC 44.68%) and moderate revenue growth of 6.80%, although its valuation (P/E 24.10) is not particularly attractive.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.9 |
| Quality / Moat | 8.9 |
| Valuation | 5.8 |
| Growth | 6.1 |
| Dividend | 7.0 |
| Momentum | 6.1 |
| Risk & Context | 7.2 |
OVERALL SCORE: 7.0/10
Context and risks
ADP is a payroll and HCM software company with low exposure to interest rates (net debt/EBITDA of 0.20) and no direct exposure to commodities or geopolitics. The macro context does not materially affect its business.
News considered in the analysis
- The Zacks Analyst Blog Highlights ExxonMobil, Automatic Data Processing and Cadence Design, BranchOut Food — Menciones genéricas en blogs de analistas sin información nueva sobre ADP.
- Top Analyst Reports for ExxonMobil, Automatic Data Processing & Cadence — Informes de analistas sin recomendación concreta ni cambio de estimaciones.
- 2 Services Stocks to Own for Decades and 1 We Avoid — Opinión de una web de inversión sin datos nuevos.
- Dave Ramsey Says You Need More Than 6% Just to Break Even. Dividend Growth Is One Way to Get There. — Artículo genérico sobre dividendos, sin mención específica a ADP.
- Paychex Shares Are Down Double Digits. Is the Dividend Still Safe? — Noticia sobre un competidor (Paychex) sin impacto directo en ADP.
Verdict: Hold; the quality of the business justifies the premium, but moderate growth and average valuation limit upside potential.
Main risk: The main risk is dependence on demand for payroll and HCM services in an economic slowdown, which could pressure revenue growth and client retention.
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