Automatic Data Processing, Inc. engages in the provision of 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 management, and tax compliance administration; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Vantage HCM, a solution for HR management, benefits administration, payroll services, time and attendance management, and talent management. 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 employee benefits, 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.
Future Outlook | Analyst price targets range from $267 to $315, reflecting optimism about ADP's growth potential despite macroeconomic uncertainties and integration challenges |
Market Dynamics | Explore ADP's market share gains in the competitive SMID segment, leveraging past investments to capitalize on growing demand for comprehensive HCM solutions |
Strategic Expansion | Delve into ADP's acquisition of WorkForce Software, enhancing global HCM offerings and potentially boosting FY2025 revenue by 50 basis points |
Financial Prowess | ADP's robust Q1 FY2025 results surpass expectations, with strong bookings and retention driving revenue and earnings growth across key business segments |
Metrics to compare | ADP | Sector Sector - Average of metrics from a broad group of related Technology sector companies | Relationship RelationshipADPPeersSector | |
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P/E Ratio | 32.3x | 16.5x | 11.9x | |
PEG Ratio | 2.76 | 0.00 | 0.03 | |
Price / Book | 23.3x | 1.8x | 1.4x | |
Price / LTM Sales | 6.4x | 1.2x | 1.2x | |
Upside (Analyst Target) | 1.3% | 39.3% | 20.4% | |
Fair Value Upside | Unlock | 35.4% | 5.0% | Unlock |