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Automatic Data Processing, Inc. provides cloud-based human capital management (HCM) 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. This segment’s offerings include RUN Powered by ADP, a software platform for small business payroll, HR, and compliance; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Lyric HCM, a solution for HR management, payroll, workforce management, talent, and data analytics. The PEO Services segment provides HR and employment administration outsourcing solutions under ADP TotalSource name to businesses through a co-employment model. The segment also provides guidance, user-friendly technology, comprehensive employee benefits, and a risk management, safety, and workers’ compensation program. The company was founded in 1949 and is headquartered in Roseland, New Jersey.
Future Trajectory | Analyst price targets range from $267 to $350, reflecting varied perspectives on ADP's growth potential amid macroeconomic uncertainties and strategic investments |
Market Dynamics | Explore ADP's competitive positioning, client retention strategies, and potential vulnerabilities in a shifting economic landscape and evolving HR technology market |
Strategic Expansion | Delve into ADP's acquisition of WorkForce Software, enhancing its global HCM offerings while navigating short-term financial impacts and integration challenges |
Financial Prowess | ADP's robust financial performance, with revenue growth of 6.82% and impressive 48.34% gross profit margins, showcases its market dominance in human capital management |
Metrics to compare | ADP | Sector Sector - Average of metrics from a broad group of related Technology sector companies | Relationship RelationshipADPPeersSector | |
|---|---|---|---|---|
P/E Ratio | 25.4x | 48.0x | 12.1x | |
PEG Ratio | 3.11 | 2.92 | 0.03 | |
Price / Book | 16.5x | 14.4x | 1.4x | |
Price / LTM Sales | 5.0x | 6.7x | 1.2x | |
Upside (Analyst Target) | 12.8% | 0.0% | 20.7% | |
Fair Value Upside | Unlock | −3.0% | 6.5% | Unlock |