Reading the tape
NASDAQ: ADP
Automatic Data Processing, Inc.
Industrials · Staffing & Employment Services
Market Cap
$85.14B
52w High
$329.93
52w Low
$188.16
P/E
19.66
Volume
2.79M
Outstanding Shares
399.73M
Price vs Fundamentals
Why The Stock Is Moving
Likely multiple compressionModerate confidence
1Y Price: -30.64%Revenue (TTM): 6.92%FCF (TTM): 13.96%P/FCF: 3rd pct
What changed
The stock fell 30.64% over the last year. Revenue grew 6.92% over the trailing twelve months. Operating margin moved from 26.25% to 19.2%. Free cash flow grew 13.96% over the trailing twelve months.
What the market seems to be pricing
Visible fundamentals weakened far less than the stock price, and the shares now sit around the 3rd percentile of their historical P/FCF range. That looks more like a rerating of the multiple than a collapse in the business.
What would invalidate this read
This read changes if operating margin (currently 19.2%) continues to decline, or if revenue growth turns negative. The bull case requires the business to hold its current trajectory.
Company profile
Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide.
CEOMaria Black
SectorIndustrials
IndustryStaffing & Employment Services
Employees64,000
IPO dateMar 17, 1980
Valuation
Forward P/E—
EV/EBITDA21.03
Enterprise value$131.27B
Stock splits
Oct 1, 2014↑ Forward
Every 1000 shares became 1139
Apr 2, 2007↑ Forward
Every 9033 shares became 10000
Jan 4, 1999↑ Forward
Every 1 shares became 2
Jan 2, 1996↑ Forward
Every 1 shares became 2
May 1, 1991↑ Forward
Every 1 shares became 2
Jun 9, 1986↑ Forward
Every 1 shares became 2
May 22, 1981↑ Forward
Every 1 shares became 2
Jul 2, 1976↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth6.95%
Gross margin47.48%▲1.78%vs FY2024
Operating margin19.2%▲2.25%vs FY2024
ROE65.93%▼20.09%vs FY2024
Analyst consensus
RatingHold
Target price$247.88▲16.38%
8
Buy
22
Hold
6
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 29, 2026
Q3 FY26 · EPS est $2.62 · Revenue est $5.44B
View
Dividends
$6.64/shareQuarterlyDividend Aristocrat · 42yrSafeADP pays a dividend with a 3.12% declared yield, 42 consecutive years of growth, growing at 12.41% annually, covered 2.0× by free cash flow.
Declared Yield
3.12%
Annual Div / Share
$6.64
TTM $6.48
5yr CAGR
+12.41%
Doubles every ~5.9yr
Payout Ratio
59.12%
Safe
Dividend Growth Rate
3yr CAGR
+11.5%
5yr CAGR
+12.41%
10yr CAGR
+12.31%
Dividend Safety
8/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$6.64+10.3%
2025$6.02+10.5%
2024$5.45+13.8%
2023$4.79+18.3%
2022$4.05+9.5%
2021$3.70+5.1%
2020$3.52+15.0%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$31/yr
$3/mo
In 5 yrs
$55/yr+76%
$5/mo
In 10 yrs
$97/yr+211%
$8/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$31/yr $3/mo | $55/yr+76% $5/mo | $97/yr+211% $8/mo |
Long-range projections use a capped 12% annual growth assumption.
Yield-on-cost grows from 3.12% → 9.68% over 10yr
Analysis
Dividend Strengths
Dividend Aristocrat
ADP has raised its dividend for 42 consecutive years — qualifying as a Dividend Aristocrat, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 2.0× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 12.41% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.
Congressional Activity
Congress Trades in ADP
STOCK Act disclosures from senators and representatives.
Jared Moskowitz
FLhouseDemocratSale2026-03-23$1,001 - $15,000+39d to disclose- RM
Richard Dean Dr McCormick
GAhouseRepublicanSale (Partial)2026-03-19$1,001 - $15,000+19d to disclose - RM
Richard Dean Dr McCormick
GAhouseRepublicanPurchase2026-03-19$1,001 - $15,000+19d to disclose