What is Automatic Data Processing, Inc.'s (ADP) StockRank?

MoatMap's StockRank for Automatic Data Processing, Inc. (ADP) is 79/100, with a Buy signal. This is a composite score combining Quality (68), Value (46), and Momentum (60) factor ranks across MoatMap's universe of 25,000+ stocks.

Does Automatic Data Processing, Inc. have an economic moat?

Automatic Data Processing, Inc. (ADP) has a Quality factor score of 68/100. 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 financial 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 79/100. 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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ADP

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Automatic Data Processing, Inc. · Technology · United States · $114.2B · Avg Vol: $591M/d

StockRank

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P/E (TTM)

25.4x

ROE

72.2%

D/E

0.9x

Dividend %

2.3%

AI CONVICTION THESIS

Automatic Data Processing clears the calibrated bar. All three legs are above the floor (Q70 V53 M57) and a buyback retiring 0.90% of shares provides the required corroboration. Nothing adverse is on file: no negative earnings revision and no insider selling. Quality at Q70 is the strongest part of the case, and payroll and HR processing produces recurring, contracted revenue that is defensive.

COMPANY DESCRIPTION

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.

FINANCIAL SUMMARY (USD)

Year	2022	2023	2024	2025	CAGR	TTM	2027E	2028E	Fwd CAGR
Revenue	16.5B	18.0B	19.2B	20.6B	7.6%	21.9B	21.8B	23.0B	3.8%
EPS	7.04	8.25	9.14	10.02	12.5%	10.94	11.05	12.07	6.4%
Shares	416.1M	412.1M	408.1M	405.3M	-2.6%	397.3M	—	—	—
Debt	3.4B	3.3B	3.3B	9.1B	39.2%	5.5B	—	—	—
Equity	3.2B	3.5B	4.5B	6.2B	24.3%	—	—	—	—
Op CF	3.1B	4.2B	4.2B	4.9B	16.8%	5.4B	—	—	—
Inv CF	-7.0B	-2.5B	-1.4B	-3.0B	—	—	—	—	—
Fin CF	13.7B	-15.7B	-1.4B	-7.0B	—	—	—	—	—

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PRICE (1Y)-3.0%

SMA 50SMA 200

$265.22

RSI (14)

35.2

52W High

$291.13

From 52W High

0.9%

SCORE BREAKDOWN

Quality

ROIC

47.7%98.0

ROE

72.2%98.4

GP/Assets

20.0%49.4

Op. Margin

23.5%87.4

FCF/Assets

8.9%76.4

Piotroski

893.9

Int. Cover

12.6x52.2

D/E Ratio

0.91x13.8

Current Ratio

1.05x11.9

Value

P/E (TTM)

25.4x54.8

EV/EBITDA

17.4x50.7

P/FCF

24.0x58.7

P/B

18.3x4.9

P/S

5.0x33.1

Div Yield

2.3%67.3

Momentum

52W High %

91%92.4

RS 6M

11%70.5

SMA 50/200

1.12x73.0

EPS Rev 4W

-0.0%16.7

EPS Rev 12W

+9.9%82.7

EPS Improve

+22%26.7

Q Growth

8%33.8

FUNDAMENTALS

Market Cap

$114.2B

P/E (Forward)

20.7x

Gross Margin

48.7%

SECTOR PEERS

Closest peers in Technology, ranked by industry match, size, and score similarity. Cross-listings of ADP are excluded.

Ticker	Company	Mkt Cap	StockRank	Signal
ADP	Automatic Data Processing, Inc.(you)	$114.2B	79	Buy
ADBE	Adobe Inc.	$115.9B	84	Strong Buy
SAP.DE	SAP SE	$255.9B	79	Buy
UBER	Uber Technologies, Inc.	$161.0B	67	Buy
CRM	Salesforce, Inc.	$210.7B	86	Strong Buy
INTU	Intuit Inc.	$97.9B	61	Hold
WDAY	Workday, Inc.	$49.3B	84	Strong Buy
DDOG	Datadog, Inc.	$85.1B	61	Hold
S2HO34.SA	Shopify Inc.	$197.5B	65	Hold
CDNS	Cadence Design Systems, Inc.	$93.7B	57	Hold

Peer medians: ROE 7.6% · P/E 28.3x · Gross margin 32.4%

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

Automatic Data Processing, Inc. (ADP) has a MoatMap StockRank of 79/100 based on Quality (68/100), Value (46/100), and Momentum (60/100) factor scores. The current signal is BUY. Automatic Data Processing clears the calibrated bar. All three legs are above the floor (Q70 V53 M57) and a buyback retiring 0.90% of shares provides the required corroboration. Nothing adverse is on file: no negative earnings revision and no insider selling. Quality at Q70 is the strongest part of the case, and payroll and HR processing produces recurring, contracted revenue that is defensive.

Key Financial Metrics

Price	$265.22
Market Cap	$114.2B
P/E (TTM)	25.38
P/E (Forward)	20.72
Price/Book	18.31
Return on Equity	72.2%
Return on Invested Capital	47.7%
Debt/Equity	0.91x
Gross Margin	48.7%
Operating Margin	23.5%
Revenue Growth	6.8%
Dividend Yield	2.3%
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 79/100, with a Buy signal. It is a composite of Quality (68), Value (46), and Momentum (60) factor ranks across MoatMap’s universe of 25,000+ stocks.
Does Automatic Data Processing, Inc. have an economic moat?: Automatic Data Processing, Inc. (ADP) has a Quality factor score of 68/100. 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 79/100. 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).