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Automatic Data Processing, Inc. (ADP) 10-Year Financial Performance & Capital Metrics

ADP • • Industrial / General
IndustrialsStaffing & HRHuman Capital Management & PEO ServicesComprehensive HCM & PEO Providers
AboutAutomatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. Its offerings include payroll, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solutions to small and mid-sized businesses through a co-employment model. This segment offers benefits package, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. The company was founded in 1949 and is headquartered in Roseland, New Jersey.Show more
  • Revenue $20.56B +7.1%
  • EBITDA $5.9B +7.1%
  • Net Income $4.08B +8.7%
  • EPS (Diluted) 9.98 +9.6%
  • Gross Margin 50.84% +1.8%
  • EBITDA Margin 28.68%
  • Operating Margin 26.32% +2.3%
  • Net Margin 19.84% +1.6%
  • ROE 76% -18.4%
  • ROIC 47.07% -35.2%
  • Debt/Equity 1.46 +79.8%
  • Interest Coverage 11.87 -12.2%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Dividend Aristocrat: 37 years of consecutive increases
  • ✓Excellent 3Y average ROE of 90.2%
  • ✓Strong Piotroski F-Score: 8/9
  • ✓FCF machine: 23.2% free cash flow margin
  • ✓High quality earnings: Operating CF exceeds net income
  • ✓Healthy dividend yield of 2.3%

✗Weaknesses

  • ✗Expensive at 17.2x book value

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y6.51%
5Y7.1%
3Y7.61%
TTM7.07%

Profit (Net Income) CAGR

10Y10.88%
5Y10.59%
3Y11.43%
TTM7.47%

EPS CAGR

10Y13.2%
5Y11.85%
3Y12.53%
TTM8.28%

ROCE

10Y Avg40.31%
5Y Avg47.55%
3Y Avg54.37%
Latest50.64%

Peer Comparison

Comprehensive HCM & PEO Providers
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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
ADPAutomatic Data Processing, Inc.105.24B260.2026.077.07%19.79%64.9%4.53%1.46
PAYXPaychex, Inc.39.67B110.5124.135.56%26.45%41.13%4.43%1.22
BBSIBarrett Business Services, Inc.1.01B39.4219.917.03%4.48%22.84%0.10
NSPInsperity, Inc.1.75B46.3219.381.46%0.25%19.54%27.6%4.48
TNETTriNet Group, Inc.3.04B63.2118.432.66%2.61%120.91%6.62%14.81
GLXGGalaxy Payroll Group Limited3.28M1.820.55-4.26%9.7%3.66%100%0.36

Profit & Loss

Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021Jun 2022Jun 2023Jun 2024Jun 2025
Sales/Revenue+11.67B12.38B13.33B14.18B14.59B15.01B16.5B18.01B19.2B20.56B
Revenue Growth %0.07%0.06%0.08%0.06%0.03%0.03%0.1%0.09%0.07%0.07%
Cost of Goods Sold+6.31B6.73B7.28B7.55B7.88B8.03B8.77B9.21B9.61B10.11B
COGS % of Revenue0.54%0.54%0.55%0.53%0.54%0.54%0.53%0.51%0.5%0.49%
Gross Profit+5.35B5.65B6.05B6.62B6.71B6.97B7.73B8.81B9.59B10.45B
Gross Margin %0.46%0.46%0.45%0.47%0.46%0.46%0.47%0.49%0.5%0.51%
Gross Profit Growth %0.06%0.05%0.07%0.09%0.01%0.04%0.11%0.14%0.09%0.09%
Operating Expenses+3.11B3.23B3.47B3.62B3.56B3.65B3.93B4.3B4.65B5.04B
OpEx % of Revenue0.27%0.26%0.26%0.26%0.24%0.24%0.24%0.24%0.24%0.25%
Selling, General & Admin2.5B2.6B2.84B2.98B2.89B2.93B3.13B3.45B3.69B4.05B
SG&A % of Revenue0.21%0.21%0.21%0.21%0.2%0.2%0.19%0.19%0.19%0.2%
Research & Development603.7M627.5M635.4M636.3M674.1M716.6M798.6M844.8M955.7M988.6M
R&D % of Revenue0.05%0.05%0.05%0.04%0.05%0.05%0.05%0.05%0.05%0.05%
Other Operating Expenses0000000000
Operating Income+2.25B2.42B2.58B3B3.14B3.32B3.8B4.51B4.94B5.41B
Operating Margin %0.19%0.2%0.19%0.21%0.22%0.22%0.23%0.25%0.26%0.26%
Operating Income Growth %0.12%0.08%0.07%0.17%0.05%0.06%0.14%0.18%0.1%0.09%
EBITDA+2.54B2.73B2.96B3.41B3.62B3.84B4.32B5.06B5.5B5.9B
EBITDA Margin %0.22%0.22%0.22%0.24%0.25%0.26%0.26%0.28%0.29%0.29%
EBITDA Growth %0.11%0.08%0.08%0.15%0.06%0.06%0.13%0.17%0.09%0.07%
D&A (Non-Cash Add-back)288.6M316.1M377.6M409M480M510.7M515.1M549.3M561.9M486M
EBIT2.29B2.61B2.39B3.14B3.29B3.42B3.89B4.7B5.24B5.76B
Net Interest Income+6.2M-3.3M-19.2M-32.3M-22.6M-23.2M-45.3M-108.2M-124.5M-136.4M
Interest Income62.4M76.7M83.5M97.6M84.5M36.5M41M149.5M241.3M319.5M
Interest Expense56.2M80M102.7M129.9M107.1M59.7M86.3M257.7M365.8M455.9M
Other Income/Expense-13.4M112.8M-295.3M1M40.9M36.6M900K-68.6M-70.7M-101.8M
Pretax Income+2.23B2.53B2.17B3.01B3.18B3.36B3.8B4.44B4.87B5.31B
Pretax Margin %0.19%0.2%0.16%0.21%0.22%0.22%0.23%0.25%0.25%0.26%
Income Tax+741.3M797.7M550.3M712.8M716.1M762.7M855.2M1.03B1.12B1.23B
Effective Tax Rate %0.67%0.68%0.75%0.76%0.77%0.77%0.78%0.77%0.77%0.77%
Net Income+1.49B1.73B1.62B2.29B2.47B2.6B2.95B3.41B3.75B4.08B
Net Margin %0.13%0.14%0.12%0.16%0.17%0.17%0.18%0.19%0.2%0.2%
Net Income Growth %0.03%0.16%-0.06%0.41%0.08%0.05%0.13%0.16%0.1%0.09%
Net Income (Continuing)1.49B1.73B1.88B2.29B2.47B2.6B2.95B3.41B3.75B4.08B
Discontinued Operations0000000000
Minority Interest0000000000
EPS (Diluted)+3.253.854.255.245.706.077.008.219.109.98
EPS Growth %0.13%0.18%0.1%0.23%0.09%0.06%0.15%0.17%0.11%0.1%
EPS (Basic)3.263.874.285.275.736.107.048.259.1410.02
Diluted Shares Outstanding459.1M450.3M443.3M437.6M432.7M428.1M421.1M415.7M412.2M408.7M
Basic Shares Outstanding457M447.8M440.6M435M430.8M426.3M418.8M413.7M410.6M407.1M
Dividend Payout Ratio0.63%0.57%0.66%0.56%0.6%0.61%0.56%0.56%0.58%0.59%

Balance Sheet

Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021Jun 2022Jun 2023Jun 2024Jun 2025
Total Current Assets+39.5B32.66B31.82B34.34B31.56B40.74B54.8B42.17B45.54B43.25B
Cash & Short-Term Investments3.21B2.78B2.17B1.96B1.91B2.58B1.48B2.1B3.3B7.85B
Cash Only3.19B2.78B2.17B1.95B1.91B2.58B1.44B2.08B2.91B3.35B
Short-Term Investments23.5M3.2M010.5M0047M14.7M384M4.5B
Accounts Receivable1.74B1.7B1.98B2.44B2.44B2.73B3.17B3.01B3.43B3.58B
Days Sales Outstanding54.5250.2354.3462.8161.0866.3470.1460.9965.1663.54
Inventory0000000000
Days Inventory Outstanding----------
Other Current Assets34.54B28.17B27.67B29.94B27.21B35.44B50.17B37.06B38.82B31.83B
Total Non-Current Assets+4.17B4.52B5.04B7.55B7.6B8.03B8.26B8.8B8.82B10.12B
Property, Plant & Equipment685M779.9M793.7M764.2M1.2B1.15B1.1B1.08B1.06B1.03B
Fixed Asset Turnover17.03x15.87x16.79x18.55x12.18x13.09x14.95x16.62x18.18x19.97x
Goodwill1.68B1.74B2.24B2.32B2.31B2.34B2.3B2.34B2.35B3.27B
Intangible Assets534.2M620.2M886.4M1.07B1.22B1.21B1.33B1.34B1.34B1.6B
Long-Term Investments7.8M-2.52B-81.8M-659.9M-731.9M-482.9M122.1M104.6M04.4M
Other Non-Current Assets1.01B3.74B1.09B3.39B2.88B3.34B3.34B3.86B4.07B4.21B
Total Assets+43.67B37.18B38.85B41.89B39.17B48.77B63.07B50.97B54.36B53.37B
Asset Turnover0.27x0.33x0.34x0.34x0.37x0.31x0.26x0.35x0.35x0.39x
Asset Growth %0.32%-0.15%0.04%0.08%-0.06%0.25%0.29%-0.19%0.07%-0.02%
Total Current Liabilities+35.85B29.82B30.41B32.63B30.13B38.09B55.16B42.77B45.08B41.28B
Accounts Payable152.3M149.7M135.4M125.5M102M141.1M110.2M96.8M100.6M169.1M
Days Payables Outstanding8.88.126.796.064.726.414.593.843.826.11
Short-Term Debt000262M1B23.5M136.4M105.4M385.4M4.77B
Deferred Revenue (Current)1000K1000K1000K1000K1000K1000K1000K1000K1000K1000K
Other Current Liabilities33.33B28.82B29.34B31.24B28.21B34.4B53.73B41.29B43.33B31.38B
Current Ratio1.10x1.10x1.05x1.05x1.05x1.07x0.99x0.99x1.01x1.05x
Quick Ratio1.10x1.10x1.05x1.05x1.05x1.07x0.99x0.99x1.01x1.05x
Cash Conversion Cycle----------
Total Non-Current Liabilities+3.34B3.39B3.7B3.86B3.29B5.01B4.68B4.69B4.74B5.9B
Long-Term Debt2.01B2B2B2B1B2.98B2.99B2.99B2.99B3.97B
Capital Lease Obligations0000344.4M343.2M370.9M349.9M328.6M321.2M
Deferred Tax Liabilities251.1M163.1M522M659.9M731.9M482.9M67M73.6M64.3M163.6M
Other Non-Current Liabilities701.1M830.2M728M798.7M837M834.1M906.8M933.7M990.8M1.06B
Total Liabilities39.19B33.2B34.11B36.49B33.41B43.1B59.84B47.46B49.82B47.18B
Total Debt+2.01B2B2B2.26B2.35B3.35B3.49B3.44B3.71B9.07B
Net Debt-1.18B-778M-167.6M315M440.5M776.5M2.06B1.36B791.9M5.72B
Debt / Equity0.45x0.50x0.42x0.42x0.41x0.59x1.08x0.98x0.81x1.46x
Debt / EBITDA0.79x0.73x0.68x0.66x0.65x0.87x0.81x0.68x0.67x1.54x
Net Debt / EBITDA-0.47x-0.28x-0.06x0.09x0.12x0.20x0.48x0.27x0.14x0.97x
Interest Coverage40.00x30.23x25.10x23.13x29.33x55.69x44.07x17.49x13.51x11.87x
Total Equity+4.48B3.98B4.74B5.4B5.75B5.67B3.23B3.51B4.55B6.19B
Equity Growth %-0.07%-0.11%0.19%0.14%0.07%-0.01%-0.43%0.09%0.3%0.36%
Book Value per Share9.768.8310.6812.3413.2913.247.668.4411.0315.14
Total Shareholders' Equity4.48B3.98B3.46B5.4B5.75B5.67B3.23B3.51B4.55B6.19B
Common Stock63.9M63.9M63.9M63.9M63.9M63.9M63.9M63.9M63.9M63.9M
Retained Earnings14B14.73B15.27B17.5B18.44B19.45B20.7B22.12B23.62B25.24B
Treasury Stock-10.14B-11.3B-12.21B-13.09B-14.07B-15.39B-17.34B-18.47B-19.74B-21.02B
Accumulated OCI-215.1M-379.2M-680.8M-257.3M-14.8M10.6M-1.99B-2.31B-1.81B-883.4M
Minority Interest0000000000

Cash Flow

Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021Jun 2022Jun 2023Jun 2024Jun 2025
Cash from Operations+1.86B2.13B2.52B2.69B3.03B3.09B3.1B4.21B4.16B4.94B
Operating CF Margin %0.16%0.17%0.19%0.19%0.21%0.21%0.19%0.23%0.22%0.24%
Operating CF Growth %-0.02%0.14%0.18%0.07%0.13%0.02%0%0.36%-0.01%0.19%
Net Income1.49B1.73B1.62B2.29B2.47B2.6B2.95B3.41B3.75B4.08B
Depreciation & Amortization288.6M316.1M377.6M409M480M510.7M515.1M549.3M561.9M486M
Stock-Based Compensation137.6M138.9M175.4M167.3M130.8M175.3M201.7M220.4M243.5M266.1M
Deferred Taxes700K10M500K9.3M26M-251.1M36.6M-80.1M-37.4M37M
Other Non-Cash Items69.4M25.8M433.4M1.02B1.04B997.3M1.04B1.04B1.05B1.22B
Working Capital Changes-128.9M-98.3M-92.5M-1.21B-1.12B-937.4M-1.64B-938.7M-1.42B-1.15B
Change in Receivables-224.6M23.4M-291.8M-473.9M-113.8M-339.8M-486.5M129.2M0-146.6M
Change in Inventory220.5M159M107.7M266M-77.5M00-938.7M00
Change in Payables-15.9M-11.6M-1.9M-10.7M-18.3M36.9M-16.4M-11.8M1.8M60.6M
Cash from Investing+-9.09B5.73B-2.5B-2.2B3.16B-3.52B-7.01B-2.52B-1.39B-3.04B
Capital Expenditures-386M-470.6M-470.8M-566.5M-616.4M-505.9M-553.4M-571.6M-563.4M-168.7M
CapEx % of Revenue0.03%0.04%0.04%0.04%0.04%0.03%0.03%0.03%0.03%0.01%
Acquisitions----------
Investments----------
Other Investing-13.42B3.25B400K7.9M-587M-487.1M34.2M0-29.8M-382.4M
Cash from Financing+8.79B-8.28B-1.66B-207.7M-5.89B6.44B13.65B-15.68B-1.43B-6.97B
Debt Issued (Net)----------
Equity Issued (Net)----------
Dividends Paid-943.6M-995.2M-1.06B-1.29B-1.47B-1.58B-1.66B-1.9B-2.18B-2.4B
Share Repurchases----------
Other Financing8.82B-6.12B404.4M2.03B-3.41B8.41B17.15B-12.75B1.06B-9.17B
Net Change in Cash----------
Free Cash Flow+1.47B1.66B2.04B2.12B2.41B2.59B2.55B3.64B3.59B4.77B
FCF Margin %0.13%0.13%0.15%0.15%0.17%0.17%0.15%0.2%0.19%0.23%
FCF Growth %-0.06%0.12%0.24%0.04%0.14%0.07%-0.02%0.43%-0.01%0.33%
FCF per Share3.213.684.614.855.576.046.058.758.7211.67
FCF Conversion (FCF/Net Income)1.25x1.23x1.55x1.17x1.23x1.19x1.05x1.23x1.11x1.21x
Interest Paid37.5M78.1M100.5M127.5M104.8M53.1M74.8M246.5M353.9M426.8M
Taxes Paid651.6M817.1M529.7M633.8M677.1M973.7M856.8M1.08B1.19B1.2B

Key Ratios

Metric2016201720182019202020212022202320242025
Return on Equity (ROE)32.13%40.99%37.2%45.24%44.23%45.5%66.3%101.33%93.14%76%
Return on Invested Capital (ROIC)52.07%55.83%49.78%43.83%39.58%39.46%48.63%66.57%72.62%47.07%
Gross Margin45.89%45.62%45.39%46.7%45.96%46.48%46.86%48.89%49.94%50.84%
Net Margin12.79%14%12.16%16.17%16.91%17.32%17.87%18.94%19.54%19.84%
Debt / Equity0.45x0.50x0.42x0.42x0.41x0.59x1.08x0.98x0.81x1.46x
Interest Coverage40.00x30.23x25.10x23.13x29.33x55.69x44.07x17.49x13.51x11.87x
FCF Conversion1.25x1.23x1.55x1.17x1.23x1.19x1.05x1.23x1.11x1.21x
Revenue Growth6.67%6.1%7.66%6.36%2.92%2.85%9.95%9.18%6.61%7.07%

Revenue by Segment

2016201720182019202020212022202320242025
HCM---6.44B6.54B6.63B7.17B7.72B8.16B8.67B
HCM Growth----1.54%1.35%8.23%7.54%5.70%6.36%
Professional Employee Organization Services3.07B3.48B3.9B2.71B2.91B3.09B3.51B3.8B3.98B4.29B
Professional Employee Organization Services Growth-13.36%11.86%-30.39%7.20%6.34%13.66%8.15%4.60%7.87%
HRO---2.44B2.54B2.69B3.12B3.39B3.54B3.78B
HRO Growth----4.04%5.96%15.64%8.65%4.67%6.72%
Global---2.01B2.05B2.17B2.24B2.3B2.5B2.63B
Global Growth----1.90%5.57%3.41%2.45%8.99%4.95%
Interest on Funds Held for Clients---561.9M545.2M422.4M451.8M813.4M1.02B-
Interest on Funds Held for Clients Growth-----2.97%-22.52%6.96%80.04%25.98%-
Employer Services9.21B9.54B10.06B-------
Employer Services Growth-3.51%5.48%-------
Others1.9M-10.6M-9.4M-------
Others Growth--657.89%11.32%-------

Revenue by Geography

2016201720182019202020212022202320242025
UNITED STATES9.87B10.54B11.49B12.33B12.74B13.08B14.5B15.95B16.93B18.18B
UNITED STATES Growth-6.76%9.01%7.32%3.35%2.68%10.87%9.98%6.16%7.35%
Europe1.06B1.09B1.25B1.24B1.24B1.31B1.3B1.31B1.45B1.53B
Europe Growth-2.10%14.72%-0.73%-0.04%5.79%-0.28%0.38%10.86%5.66%
CANADA284.1M291.1M322.1M326.6M329.8M337.3M389.3M427.5M473.7M489.3M
CANADA Growth-2.46%10.65%1.40%0.98%2.27%15.42%9.81%10.81%3.29%
Others450M465.3M271.4M284.2M283.6M278.5M301.5M324.6M343.3M358.9M
Others Growth-3.40%-41.67%4.72%-0.21%-1.80%8.26%7.66%5.76%4.54%

Frequently Asked Questions

Valuation & Price

Automatic Data Processing, Inc. (ADP) has a price-to-earnings (P/E) ratio of 26.1x. This suggests investors expect higher future growth.

Growth & Financials

Automatic Data Processing, Inc. (ADP) reported $20.90B in revenue for fiscal year 2025. This represents a 96% increase from $10.67B in 2012.

Automatic Data Processing, Inc. (ADP) grew revenue by 7.1% over the past year. This is steady growth.

Yes, Automatic Data Processing, Inc. (ADP) is profitable, generating $4.14B in net income for fiscal year 2025 (19.8% net margin).

Dividend & Returns

Yes, Automatic Data Processing, Inc. (ADP) pays a dividend with a yield of 2.26%. This makes it attractive for income-focused investors.

Automatic Data Processing, Inc. (ADP) has a return on equity (ROE) of 76.0%. This is excellent, indicating efficient use of shareholder capital.

Automatic Data Processing, Inc. (ADP) generated $4.60B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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