Automatic Data Processing (ADP) Stock Analysis

July 23, 2026

This is a peer-relative look at Automatic Data Processing (ADP): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Commercial & Professional Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Automatic Data Processing (ADP)
Profile Item	ADP
Name	Automatic Data Processing Inc.
Country/Region	United States
GICS Sector	Industrials
GICS Industry Group	Commercial & Professional Services
GICS Industry	Professional Services
GICS Sub-Industry	Human Resource & Employment Services
Market Capitalization	98.42 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	March 17, 1980
Security Type	Common Stock

Price Performance

Cumulative Growth

ADP

GSPC

Automatic Data Processing (ADP) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Automatic Data Processing (ADP) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Automatic Data Processing (ADP) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Automatic Data Processing (ADP) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: ADP	Industry group median
Total Return (1Y)	-15.90%	-4.47%
Total Return (3Y, Annualized)	3.59%	4.12%
Total Return (5Y, Annualized)	6.09%	2.70%

Risk Profile

Drawdown History

ADP

GSPC

Automatic Data Processing (ADP) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Automatic Data Processing (ADP) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Automatic Data Processing (ADP) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: ADP	Industry group median
Volatility (1Y, Annualized)	26.02%	39.55%
Beta (5Y)	0.82	0.83
Max Drawdown (5Y)	-40.78%	-56.72%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. ADP is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Automatic Data Processing (ADP) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: ADP	Industry group median
Sharpe Ratio (1Y)	-0.77	-0.21
Sortino Ratio (1Y)	-1.10	-0.31

Profitability

ROE (TTM)

Automatic Data Processing (ADP) posts ROE of 71.21%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

ADP

Commercial & Professional Services industry group

71.21%

Group distribution

ADP: 71.21%
Max: 53.04%
Q3: 25.65%
Median: 13.99%
Q1: 2.99%
Min: -28.46%

Largest peers

ADP: 71.21%
RELX: 70.51%
CTAS: 40.71%
WM: 29.94%
RSG: 18.35%
WCN: 13.12%
PAYX: --

Where Automatic Data Processing (ADP) stands on ROE within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Automatic Data Processing (ADP) keeps 20.12% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

ADP

Commercial & Professional Services industry group

20.12%

Group distribution

Max: 26.63%
ADP: 20.12%
Q3: 11.56%
Median: 6.26%
Q1: 1.30%
Min: -13.15%

Largest peers

PAYX: 26.63%
RELX: 21.53%
ADP: 20.12%
CTAS: 17.75%
RSG: 12.99%
WM: 10.99%
WCN: 10.97%

Where Automatic Data Processing (ADP) stands on net margin within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Automatic Data Processing (ADP) turns 30.18% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

ADP

Commercial & Professional Services industry group

30.18%

Group distribution

Max: 38.33%
ADP: 30.18%
Q3: 17.67%
Median: 9.37%
Q1: 3.13%
Min: -4.52%

Largest peers

PAYX: 38.33%
RELX: 31.41%
ADP: 30.18%
CTAS: 23.65%
RSG: 20.20%
WCN: 18.75%
WM: 17.52%

Where Automatic Data Processing (ADP) stands on operating margin within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Automatic Data Processing (ADP) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: ADP	Industry group median
ROE (TTM)	71.21%	13.99%
ROA (TTM)	5.95%	5.17%
Net Margin (TTM)	20.12%	6.26%
Operating Margin (TTM)	30.18%	9.37%
Gross Margin (TTM)	48.50%	36.49%

Growth

Revenue Growth

Automatic Data Processing (ADP) grew revenue 7.07%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Automatic Data Processing (ADP): Revenue Growth across different time periods, set against Commercial & Professional Services industry-group medians.

EPS Growth

Automatic Data Processing (ADP) grew earnings per share 9.67%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Automatic Data Processing (ADP): EPS Growth across different time periods, set against Commercial & Professional Services industry-group medians.

Growth Metrics

Automatic Data Processing (ADP) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: ADP	Industry group median
Revenue Growth (YoY)	7.07%	6.05%
Revenue Growth (3Y CAGR)	7.61%	6.27%
EPS Growth (YoY)	9.67%	6.77%
EPS Growth (3Y CAGR)	12.55%	9.88%

Financial Strength

Current Ratio (MRQ)

Automatic Data Processing (ADP) has current ratio of 1.04, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

ADP

Commercial & Professional Services industry group

1.04

Group distribution

Max: 3.17
Q3: 2.01
Median: 1.48
Q1: 1.13
ADP: 1.04
Min: 0.45

Largest peers

CTAS: 1.43
PAYX: 1.15
ADP: 1.04
WM: 0.93
WCN: 0.69
RSG: 0.67
RELX: 0.49

Where Automatic Data Processing (ADP) stands on current ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Automatic Data Processing (ADP) has debt-to-equity ratio of 0.69, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

ADP

Commercial & Professional Services industry group

0.69

Group distribution

Max: 2.61
Q3: 1.39
Median: 0.94
ADP: 0.69
Q1: 0.40
Min: 0.01

Largest peers

RELX: 3.04
WM: 2.28
PAYX: 1.24
RSG: 1.18
WCN: 1.17
ADP: 0.69
CTAS: 0.53

Where Automatic Data Processing (ADP) stands on debt-to-equity ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Automatic Data Processing (ADP) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: ADP	Industry group median
Current Ratio (MRQ)	1.04	1.48
Debt / Equity (MRQ)	0.69	0.94
Net Debt / EBITDA	0.18	2.67

Dividends

Dividend Yield (TTM)

Automatic Data Processing (ADP) has dividend yield of 2.54%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

ADP

Commercial & Professional Services industry group

2.54%

Group distribution

Max: 3.77%
ADP: 2.54%
Q3: 1.82%
Median: 0.44%
Q1: 0.00%
Min: 0.00%

Largest peers

ADP: 2.54%
RELX: 1.98%
WM: 1.43%
RSG: 1.11%
CTAS: 0.89%
WCN: 0.78%
PAYX: 0.00%

Where Automatic Data Processing (ADP) stands on dividend yield within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Automatic Data Processing (ADP) has payout ratio of 60.45%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

ADP

Commercial & Professional Services industry group

60.45%

Group distribution

Max: 90.59%
ADP: 60.45%
Q3: 36.56%
Median: 16.11%
Q1: 0.00%
Min: 0.00%

Largest peers

PAYX: 90.59%
ADP: 60.45%
RELX: 57.42%
WM: 49.49%
CTAS: 36.66%
RSG: 35.22%
WCN: 32.44%

Where Automatic Data Processing (ADP) stands on payout ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Automatic Data Processing (ADP) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: ADP	Industry group median
Dividend Yield (TTM)	2.54%	0.44%
Dividend Payout Ratio (TTM)	60.45%	16.11%

Valuation

P/E Ratio (TTM)

Automatic Data Processing (ADP) trades at P/E ratio of 23.81, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

ADP

Commercial & Professional Services industry group

23.81

Group distribution

Max: 67.06
Q3: 38.84
ADP: 23.81
Median: 23.07
Q1: 16.03
Min: 4.96

Largest peers

WCN: 41.69
CTAS: 41.15
WM: 34.60
RSG: 30.79
ADP: 23.81
PAYX: 23.57
RELX: 23.05

Where Automatic Data Processing (ADP) stands on P/E ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Automatic Data Processing (ADP) trades at 4.56 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

ADP

Commercial & Professional Services industry group

4.56

Group distribution

Max: 7.33
ADP: 4.56
Q3: 3.42
Median: 1.37
Q1: 0.74
Min: 0.13

Largest peers

PAYX: 10.04
CTAS: 7.12
RELX: 5.96
ADP: 4.56
WCN: 4.45
RSG: 3.96
WM: 3.68

Where Automatic Data Processing (ADP) stands on P/S ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Automatic Data Processing (ADP) trades at 15.53 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

ADP

Commercial & Professional Services industry group

15.53

Group distribution

ADP: 15.53
Max: 10.74
Q3: 5.92
Median: 3.25
Q1: 1.95
Min: -2.86

Largest peers

RELX: 75.12
CTAS: 15.60
ADP: 15.53
PAYX: 10.66
WM: 9.36
RSG: 5.52
WCN: 5.22

Where Automatic Data Processing (ADP) stands on P/B ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Automatic Data Processing (ADP) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: ADP	Industry group median
P/E Ratio (TTM)	23.81	23.07
P/S Ratio (TTM)	4.56	1.37
P/B Ratio (MRQ)	15.53	3.25
Free Cash Flow Yield (TTM)	4.83%	5.04%