Automatic Data Processing, Inc. (ADP) — Stock Score Summary

Automatic Data Processing, Inc. (ADP) has a MoatMap StockRank of 72/100 based on Quality (67/100), Value (56/100), and Momentum (32/100) factor scores. The current signal is BUY. Automatic Data Processing is a premier quality compounder with massive switching costs and high ROIC. However, it lacks a powerful near-term macro inflection tailwind to drive asymmetric outperformance over the next 18 months, making it a defensive hold rather than an opportunistic buy.

Automatic Data Processing (ADP) is a global leader in human capital management (HCM) solutions, offering a comprehensive suite of services including payroll processing, HR outsourcing, talent management, and benefits administration. The company's formidable competitive moat is derived from its massive scale, deeply embedded software, high client switching costs, and extensive data analytics derived from serving millions of businesses worldwide. ADP provides mission-critical services, ensuring a highly recurring revenue model and robust client retention.

Key Financial Metrics

Price$231.31
Market Cap$87.9B
P/E (TTM)21.60
P/E (Forward)18.97
Price/Book14.59
Return on Equity71.2%
Return on Invested Capital47.7%
Debt/Equity69.26
Gross Margin48.5%
Operating Margin30.2%
Revenue Growth7.0%
Dividend Yield2.9%
Free Cash Flow$4.7B

Automatic Data Processing, Inc. operates in the Software - Application industry, part of the Technology sector (United States).

Frequently Asked Questions

What is Automatic Data Processing, Inc.’s (ADP) StockRank?
MoatMap’s StockRank for Automatic Data Processing, Inc. (ADP) is 72/100, with a Buy signal. It is a composite of Quality (67), Value (56), and Momentum (32) factor ranks across MoatMap’s 19,000+ stock universe.
Does Automatic Data Processing, Inc. have an economic moat?
Automatic Data Processing, Inc. (ADP) has a Quality factor score of 67/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Automatic Data Processing, Inc. a buy, hold, or sell?
MoatMap’s current signal for Automatic Data Processing, Inc. (ADP) is Buy, based on a StockRank of 72/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Automatic Data Processing, Inc. in?
Automatic Data Processing, Inc. (ADP) operates in the Technology sector, specifically the Software - Application industry (United States).
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