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Upturn AI SWOT - About
ADP 
Automatic Data Processing Inc (ADP)
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Upturn Advisory Summary
10/20/2025: ADP (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
18 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $314.17
1 Year Target Price $314.17
| 2 | Strong Buy |
| 2 | Buy |
| 13 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 20.26% | Avg. Invested days 52 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 10/20/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 114.65B USD | Price to earnings Ratio 28.16 | 1Y Target Price 314.17 |
Price to earnings Ratio 28.16 | 1Y Target Price 314.17 | ||
Volume (30-day avg) 18 | Beta 0.82 | 52 Weeks Range 269.86 - 326.59 | Updated Date 10/20/2025 |
52 Weeks Range 269.86 - 326.59 | Updated Date 10/20/2025 | ||
Dividends yield (FY) 2.14% | Basic EPS (TTM) 10.05 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 19.84% | Operating Margin (TTM) 23.69% |
Management Effectiveness
Return on Assets (TTM) 6.32% | Return on Equity (TTM) 76% |
Valuation
Trailing PE 28.16 | Forward PE 26.53 | Enterprise Value 118642098002 | Price to Sales(TTM) 5.58 |
Enterprise Value 118642098002 | Price to Sales(TTM) 5.58 | ||
Enterprise Value to Revenue 5.77 | Enterprise Value to EBITDA 18.69 | Shares Outstanding 405089516 | Shares Floating 404232625 |
Shares Outstanding 405089516 | Shares Floating 404232625 | ||
Percent Insiders 0.15 | Percent Institutions 85.6 |
Upturn AI SWOT
Automatic Data Processing Inc
Company Overview
History and Background
Automatic Data Processing, Inc. (ADP) was founded in 1949 by Henry Taub and Joe Taub. Initially focused on providing payroll processing services, ADP has evolved into a comprehensive global provider of cloud-based human capital management (HCM) solutions.
Core Business Areas
- Employer Services: Provides payroll, tax, benefits administration, and human resources solutions to businesses of all sizes.
- Professional Employer Organization (PEO) Services: Offers comprehensive HR outsourcing solutions, including payroll, benefits, HR, and risk management services to small and medium-sized businesses.
Leadership and Structure
ADP is led by Maria Black (President and CEO) and has a board of directors. The company is organized into business units based on its core service offerings.
Top Products and Market Share
Key Offerings
- Run Powered by ADP: A payroll and HR solution designed for small businesses. Competitors include Paychex (PAYX) and Intuit QuickBooks Payroll (INTU). Market share data is integrated in the market share section below. Revenue contributed significantly to Employer Services segment.
- Workforce Now: A cloud-based HCM suite for mid-sized companies, offering payroll, HR, talent management, and time and attendance solutions. Competitors include Workday (WDAY) and Oracle HCM Cloud (ORCL). Market share data is integrated in the market share section below. Revenue contributed significantly to Employer Services segment.
- ADP TotalSource: A comprehensive PEO service for small and medium-sized businesses. Competitors include Insperity (NSP) and TriNet (TNET). Market share data is integrated in the market share section below. Revenue contributed significantly to PEO services segment.
Market Dynamics
Industry Overview
The HCM industry is experiencing growth driven by increasing complexity of labor laws, the need for efficient HR management, and the adoption of cloud-based solutions. Key trends include talent management, analytics, and globalization.
Positioning
ADP is a leading provider of HCM solutions with a strong brand reputation, a large client base, and a comprehensive suite of services. Its competitive advantages include its scale, experience, and technology.
Total Addressable Market (TAM)
The global HCM market is estimated to be worth hundreds of billions of dollars. ADP is positioned to capture a significant share of this market through its broad product portfolio and global reach.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Large client base
- Comprehensive suite of HCM solutions
- Extensive experience in payroll processing
- Global presence
Weaknesses
- Complex legacy systems
- Slower innovation compared to some competitors
- Reliance on traditional payroll processing services
Opportunities
- Expansion into new markets
- Development of new cloud-based solutions
- Acquisition of complementary businesses
- Increased demand for HCM analytics
- Growth in the PEO market
Threats
- Increased competition from cloud-based providers
- Economic downturn
- Changes in labor laws
- Data security breaches
- Technological disruption
Competitors and Market Share
Key Competitors
- PAYX
- WDAY
- ORCL
- NSP
- TNET
Competitive Landscape
ADP benefits from its wide range of services, huge client base, and proven experience. Its size, however, may hinder its responsiveness compared to smaller, more specialized competitors. Competition from cloud-based platforms continues to grow.
Major Acquisitions
Celergo
- Year: 2019
- Acquisition Price (USD millions): 430
- Strategic Rationale: Enhanced ADP's global payroll capabilities, providing a more comprehensive solution for multinational companies.
Growth Trajectory and Initiatives
Historical Growth: ADP has experienced consistent growth in revenue and earnings over the past several years, driven by its strong market position and expanding service offerings.
Future Projections: Analysts project continued growth for ADP, driven by increasing demand for HCM solutions and the company's strategic initiatives.
Recent Initiatives: Recent initiatives include investments in cloud-based platforms, expansion into new markets, and acquisitions of complementary businesses.
Summary
ADP is a leading HCM provider, leveraging its scale and brand to maintain a strong market position. The company benefits from consistent dividend payouts and growth, but faces threats from rapidly evolving cloud competitors. ADP is solidifying position by continuing to invest in new technologies and making strategic acquisitions. The complex legacy systems and reliance on traditional payroll processing need to be improved to stay ahead.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Analyst Reports
- Industry Publications
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market data and analyst estimates are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Automatic Data Processing Inc
Exchange NASDAQ | Headquaters Roseland, NJ, United States | ||
IPO Launch date 1983-04-06 | President, CEO & DIrector Ms. Maria Black | ||
Sector Technology | Industry Software - Application | Full time employees 67000 | Website https://www.adp.com |
Full time employees 67000 | Website https://www.adp.com | ||
Automatic Data Processing, Inc. provides 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, and compliance; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Lyric HCM, a solution for HR management, payroll, workforce management, talent, and data analytics. 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 guidance, user-friendly technology, comprehensive employee benefits, and a risk management, safety, and workers' compensation program. The company was founded in 1949 and is headquartered in Roseland, New Jersey.
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