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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.
Market Dominance | Explore ADP's robust position in human capital management, with strong bookings growth and high client retention rates driving its market leadership |
Strategic Expansion | Delve into ADP's acquisition of WorkForce Software and investments in GenAI, positioning the company for enhanced global enterprise HCM offerings |
Financial Outlook | Analysts project 4.5-5.5% revenue growth and 7-9% EPS growth for FY2025, with price targets ranging from $267 to $315 |
Economic Challenges | Learn how ADP navigates potential headwinds from employment slowdowns and longer sales cycles while maintaining growth and profitability |
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 | 31.9x | −11.1x | 11.8x | |
PEG Ratio | 2.73 | 1.64 | 0.03 | |
Price/Book | 24.7x | 3.1x | 1.4x | |
Price / LTM Sales | 6.3x | 2.4x | 1.2x | |
Upside (Analyst Target) | 0.6% | 62.7% | 23.4% | |
Fair Value Upside | Unlock | 27.4% | 8.7% | Unlock |