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Upturn AI SWOT - About
ADP 
Automatic Data Processing Inc (ADP)
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Upturn Advisory Summary
09/16/2025: 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 $320.25
1 Year Target Price $320.25
| 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 09/16/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 116.93B USD | Price to earnings Ratio 28.93 | 1Y Target Price 320.25 |
Price to earnings Ratio 28.93 | 1Y Target Price 320.25 | ||
Volume (30-day avg) 18 | Beta 0.83 | 52 Weeks Range 266.62 - 326.59 | Updated Date 09/16/2025 |
52 Weeks Range 266.62 - 326.59 | Updated Date 09/16/2025 | ||
Dividends yield (FY) 2.07% | Basic EPS (TTM) 9.98 |
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 28.93 | Forward PE 26.6 | Enterprise Value 119033698713 | Price to Sales(TTM) 5.69 |
Enterprise Value 119033698713 | Price to Sales(TTM) 5.69 | ||
Enterprise Value to Revenue 5.79 | Enterprise Value to EBITDA 18.75 | Shares Outstanding 405043008 | Shares Floating 404082752 |
Shares Outstanding 405043008 | Shares Floating 404082752 | ||
Percent Insiders 0.14 | Percent Institutions 85.31 |
Upturn AI SWOT
Automatic Data Processing Inc
Company Overview
History and Background
Automatic Data Processing Inc (ADP) was founded in 1949 as Automatic Payrolls, Inc. providing payroll services. It evolved from processing payroll to offering comprehensive human capital management (HCM) solutions. ADP became a public company in 1961.
Core Business Areas
- Employer Services: Provides comprehensive payroll solutions, tax compliance, HR management, benefits administration, and time and attendance tracking for businesses of all sizes.
- Professional Employer Organization (PEO) Services: Offers comprehensive outsourcing solutions, including HR, benefits, payroll, risk management, and compliance services, allowing clients to focus on their core business.
Leadership and Structure
ADP is led by Maria Black, as the CEO. It has a board of directors overseeing the company's strategic direction. The organizational structure is designed to support its two main business segments.
Top Products and Market Share
Key Offerings
- ADP Payroll: Offers payroll processing, tax filing, and reporting services for businesses of all sizes. ADP holds a significant market share in payroll processing. Competitors include Paychex, Ceridian, and Workday. Revenue derived from this product is substantial as it is a core offering.
- ADP Workforce Now: A cloud-based HR platform offering HR management, payroll, talent management, and time and attendance tracking. It caters to mid-sized businesses. Competitors include Workday, Oracle, and SAP. Number of users is in the millions.
- ADP TotalSource: A comprehensive PEO solution offering HR, benefits, payroll, risk management, and compliance services. Competitors include Insperity and TriNet. Market share data is confidential.
Market Dynamics
Industry Overview
The HCM industry is characterized by increasing demand for integrated solutions, automation, and data analytics. There is a shift towards cloud-based services and a focus on enhancing employee experience. Regulatory compliance and cybersecurity are crucial factors.
Positioning
ADP is a leading provider of HCM solutions with a strong brand reputation and extensive client base. It has a competitive advantage through its scale, comprehensive product offerings, and industry expertise. Its position benefits from a large client base and trusted reputation.
Total Addressable Market (TAM)
The HCM market is estimated to be worth hundreds of billions of dollars globally. ADP is well-positioned to capture a significant portion of this TAM through its diversified product portfolio and global reach.
Upturn SWOT Analysis
Strengths
- Large and diversified client base
- Comprehensive product offerings
- Strong brand reputation
- Extensive industry expertise
- Global presence
Weaknesses
- Complex organizational structure
- Potential for technological disruption
- High operating costs in certain areas
- Client dependency on legacy systems
Opportunities
- Expanding into new markets
- Developing innovative cloud-based solutions
- Acquiring complementary businesses
- Leveraging data analytics for improved insights
- Offering more tailored services
Threats
- Intense competition
- Economic downturns
- Cybersecurity risks
- Regulatory changes
- Emerging technologies
Competitors and Market Share
Key Competitors
- Paychex (PAYX)
- Ceridian HCM Holding Inc (CDAY)
- Workday (WDAY)
Competitive Landscape
ADP benefits from its experience and its large client base; however, Workday is quickly gaining ground with advanced technologies. Paychex remains a formidable competitor in small and medium business segments.
Major Acquisitions
WorkMarket
- Year: 2018
- Acquisition Price (USD millions): 123
- Strategic Rationale: To expand ADP's reach into the freelance management system (FMS) market.
Growth Trajectory and Initiatives
Historical Growth: ADP has demonstrated steady revenue and earnings growth over the past several years.
Future Projections: Analyst estimates project continued revenue and earnings growth for ADP, driven by demand for HCM solutions and strategic initiatives.
Recent Initiatives: Recent initiatives include expanding cloud-based offerings, acquiring HR technology companies, and investing in data analytics.
Summary
ADP is a strong player in the HCM market with a large client base and comprehensive solutions. Its growth trajectory is healthy, driven by demand for payroll and HR services, including cloud-based offerings. ADP faces competition and technological disruption but benefits from a long history of dividend payments and a strong brand reputation. It needs to adapt to changes or new players in the industry in order to grow its client base further.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Market share data is based on available estimates and may not be precise. Financial data is unavailable due to limitations.
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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