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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.
Tech-Driven Growth | Explore ADP's strategic investments in Generative AI, balancing innovation with profitability to maintain a competitive edge in human capital management |
Financial Resilience | ADP surpasses expectations with strong Q4 results and optimistic FY2025 guidance, projecting 4.5-5.5% revenue growth and 7-9% EPS growth |
Market Dynamics | Delve into ADP's navigation of competitive pressures and economic headwinds, including its success in gaining market share in the SMID segment |
Analyst Perspectives | Analysts offer cautiously optimistic outlooks, with price targets ranging from $267 to $282, reflecting ADP's potential for continued growth |
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 | 32.2x | 12.3x | 11.8x | |
PEG Ratio | 2.89 | 0.15 | 0.03 | |
Price/Book | 23.2x | 1.8x | 1.4x | |
Price / LTM Sales | 6.4x | 1.2x | 1.2x | |
Upside (Analyst Target) | −2.5% | 47.1% | 20.2% | |
Fair Value Upside | Unlock | 22.0% | 6.0% | Unlock |