Automatic Data Processing (ADP) Stock Analysis

June 13, 2026

Here is a fundamental analysis of Automatic Data Processing (ADP), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

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.

Performance at a Glance

Automatic Data Processing (ADP) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: ADP	Industry group median
1-Year Return	-24.57%	-15.17%

Risk

Drawdown

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.

Risk at a Glance

Automatic Data Processing (ADP) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: ADP	Industry group median
1-Year Volatility	24.32%	38.00%
Beta	0.82	0.84

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	90.42 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	March 17, 1980
Security Type	Common Stock

Valuation

Price-to-Earnings Ratio (TTM)

Automatic Data Processing (ADP) trades at P/E ratio of 21.10, 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

21.10

Group distribution

Max: 67.87
Q3: 37.72
Median: 21.61
ADP: 21.10
Q1: 14.71
Min: 4.85

Largest peers

WCN: 37.98
CTAS: 37.19
WM: 31.76
RSG: 30.12
RELX: 22.64
PAYX: 22.21
ADP: 21.10

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.

Price-to-Sales Ratio (TTM)

Automatic Data Processing (ADP) trades at 4.19 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

4.19

Group distribution

Max: 6.40
ADP: 4.19
Q3: 3.14
Median: 1.30
Q1: 0.66
Min: 0.09

Largest peers

PAYX: 9.09
CTAS: 6.40
RELX: 6.19
ADP: 4.19
WCN: 4.13
RSG: 3.87
WM: 3.47

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.

Price-to-Book Ratio (MRQ)

Automatic Data Processing (ADP) trades at 14.27 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

14.27

Group distribution

ADP: 14.27
Max: 8.98
Q3: 5.88
Median: 2.95
Q1: 1.89
Min: -2.68

Largest peers

RELX: 76.95
CTAS: 14.73
ADP: 14.27
PAYX: 8.98
WM: 8.81
RSG: 5.40
WCN: 4.84

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 at a Glance

Automatic Data Processing (ADP) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: ADP	Industry group median
Price-to-Earnings Ratio (TTM)	21.10	21.61
Price-to-Sales Ratio (TTM)	4.19	1.30
Price-to-Book Ratio (MRQ)	14.27	2.95
Free Cash Flow Yield	5.25%	5.32%

Profitability

Return on Equity (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: 2.65%
Min: -26.88%

Largest peers

ADP: 71.21%
RELX: 70.51%
CTAS: 41.30%
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 Profit 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: 1.18%
Min: -13.34%

Largest peers

PAYX: 26.63%
RELX: 21.53%
ADP: 20.12%
CTAS: 17.57%
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 Profit 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: 37.53%
ADP: 30.18%
Q3: 17.67%
Median: 9.37%
Q1: 3.13%
Min: -4.52%

Largest peers

PAYX: 44.38%
RELX: 31.41%
ADP: 30.18%
CTAS: 23.22%
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 at a Glance

Automatic Data Processing (ADP) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: ADP	Industry group median
Return on Equity (TTM)	71.21%	13.99%
Return on Assets (TTM)	5.95%	5.24%
Net Profit Margin (TTM)	20.12%	6.26%
Operating Profit Margin (TTM)	30.18%	9.37%
Gross Profit Margin (TTM)	48.50%	36.48%

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: 1.51
Q1: 1.13
ADP: 1.04
Min: 0.45

Largest peers

CTAS: 1.98
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-to-Equity Ratio (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: 0.45
Min: 0.01

Largest peers

RELX: 3.04
WM: 2.28
PAYX: 1.25
RSG: 1.18
WCN: 1.17
ADP: 0.69
CTAS: 0.61

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 at a Glance

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	1.51
Debt-to-Equity Ratio (MRQ)	0.69	0.94
Net Debt / EBITDA	0.18	2.67

Dividends

Dividend Yield (TTM)

Automatic Data Processing (ADP) has dividend yield of 3.01%, 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

3.01%

Group distribution

Max: 5.49%
ADP: 3.01%
Q3: 2.30%
Median: 0.97%
Q1: 0.00%
Min: 0.00%

Largest peers

PAYX: 4.73%
ADP: 3.01%
RELX: 2.73%
WM: 1.61%
RSG: 1.19%
CTAS: 1.02%
WCN: 0.90%

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: 79.70%
ADP: 60.45%
Q3: 36.60%
Median: 16.11%
Q1: 0.00%
Min: 0.00%

Largest peers

PAYX: 95.36%
ADP: 60.45%
RELX: 57.42%
WM: 49.49%
CTAS: 36.71%
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.

Dividends at a Glance

Automatic Data Processing (ADP) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: ADP	Industry group median
Dividend Yield (TTM)	3.01%	0.97%
Dividend Payout Ratio (TTM)	60.45%	16.11%