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Upturn AI SWOT - About
ADP 
Automatic Data Processing Inc (ADP)
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Upturn Advisory Summary
03/07/2025: ADP (3-star) is a REGULAR-BUY. BUY since 26 days. Profits (1.05%). Updated daily EoD!
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 32.4% | Avg. Invested days 46 | Today’s Advisory Regular Buy |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 03/07/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 118.71B USD | Price to earnings Ratio 30.39 | 1Y Target Price 308.61 |
Price to earnings Ratio 30.39 | 1Y Target Price 308.61 | ||
Volume (30-day avg) 1782134 | Beta 0.75 | 52 Weeks Range 227.71 - 321.13 | Updated Date 04/25/2025 |
52 Weeks Range 227.71 - 321.13 | Updated Date 04/25/2025 | ||
Dividends yield (FY) 2.09% | Basic EPS (TTM) 9.6 |
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 2025-04-29 | When Before Market | Estimate 3.04 | Actual - |
Profitability
Profit Margin 19.76% | Operating Margin (TTM) 25.9% |
Management Effectiveness
Return on Assets (TTM) 5.46% | Return on Equity (TTM) 83.72% |
Valuation
Trailing PE 30.39 | Forward PE 27.03 | Enterprise Value 121910221533 | Price to Sales(TTM) 5.96 |
Enterprise Value 121910221533 | Price to Sales(TTM) 5.96 | ||
Enterprise Value to Revenue 6.49 | Enterprise Value to EBITDA 19.87 | Shares Outstanding 406871008 | Shares Floating 405967640 |
Shares Outstanding 406871008 | Shares Floating 405967640 | ||
Percent Insiders 0.14 | Percent Institutions 84.87 |
Analyst Ratings
Rating 3.28 | Target Price 308.61 | Buy 2 | Strong Buy 2 |
Buy 2 | Strong Buy 2 | ||
Hold 13 | Sell 1 | Strong Sell - | |
Strong Sell - |
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 a manual payroll processing business, it evolved into a technology-driven provider of human capital management (HCM) solutions and business outsourcing services.
Core Business Areas
- Employer Services: Provides payroll, tax, HR, benefits, and compliance solutions to businesses of all sizes.
- Professional Employer Organization (PEO) Services: Offers comprehensive HR outsourcing solutions, including payroll, benefits administration, HR management, and risk management.
Leadership and Structure
ADP is led by Maria Black, President and CEO. The company has a traditional hierarchical structure with various divisions and departments reporting to the executive leadership team.
Top Products and Market Share
Key Offerings
- RUN Powered by ADP: Payroll and HR solution for small businesses. Competitors include Paychex, Gusto, and Intuit QuickBooks Payroll. Market share is estimated around 20% among small businesses.
- Workforce Now: A comprehensive HCM suite for mid-sized businesses. Competitors include Workday, Oracle HCM Cloud, and SAP SuccessFactors. Market share estimated around 15% in mid-market HCM software.
- ADP TotalSource: A PEO solution for businesses seeking comprehensive HR outsourcing. Competitors include Insperity and TriNet. Revenue is significant but not readily available.
Market Dynamics
Industry Overview
The HCM market is growing due to increasing complexity of employment regulations, globalization, and the need for talent management. Cloud-based solutions are becoming increasingly popular.
Positioning
ADP is a leading provider of HCM solutions, known for its reliability, scalability, and breadth of services. It has a strong reputation among large enterprises and is expanding its presence in the SMB market.
Total Addressable Market (TAM)
The global human capital management (HCM) market is projected to reach hundreds of billions USD in value, with ADP capturing a sizable portion due to its comprehensive solutions.
Upturn SWOT Analysis
Strengths
- Established brand reputation
- Large customer base
- Comprehensive suite of services
- Strong financial performance
- Extensive industry experience
Weaknesses
- Complex product offerings
- Can be perceived as expensive
- Integration challenges with other systems
- Potentially slower to innovate than smaller competitors
Opportunities
- Expanding into new markets
- Developing innovative cloud-based solutions
- Acquiring smaller, specialized HCM companies
- Offering more value-added services
Threats
- Increased competition from cloud-based providers
- Economic downturn affecting business spending
- Data security and privacy concerns
- Changing regulatory landscape
Competitors and Market Share
Key Competitors
- PAYX
- WDAY
- INTU
Competitive Landscape
ADP's advantages include its established brand, large customer base, and comprehensive suite of services. However, it faces competition from smaller, more agile cloud-based providers.
Major Acquisitions
Celergo
- Year: 2019
- Acquisition Price (USD millions): 430
- Strategic Rationale: Expanded ADP's global payroll capabilities.
WorkMarket
- Year: 2018
- Acquisition Price (USD millions): 0
- Strategic Rationale: Acquisition price not disclosed but WorkMarket was acquired to bolster ADP's freelance management system (FMS) capabilities
Growth Trajectory and Initiatives
Historical Growth: ADP has demonstrated consistent revenue and earnings growth, driven by organic expansion and strategic acquisitions.
Future Projections: Analysts project continued growth for ADP, driven by demand for HCM solutions and expansion into new markets. Revenue is projected to grow at a rate of 5-7% annually.
Recent Initiatives: ADP has been investing in cloud-based solutions, expanding its service offerings, and acquiring smaller companies to enhance its capabilities.
Summary
ADP is a strong company with a leading position in the HCM market. Its large customer base, comprehensive suite of services, and consistent financial performance contribute to its strength. ADP needs to be careful about the emergence of cloud based competitors and needs to focus on continuous innovation to remain competitive in the dynamic market. Data security and regulatory compliance also remain important focus areas.
Similar Companies
CRM
Salesforce.com Inc
CRM
Salesforce.com Inc
INTU
Intuit Inc
INTU
Intuit Inc
PAYX
Paychex Inc
PAYX
Paychex Inc
WDAY
Workday Inc
WDAY
Workday Inc
Sources and Disclaimers
Data Sources:
- Company Filings
- Market Reports
- Analyst Estimates
- Industry Publications
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual research and consultation with a qualified financial advisor.
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 64000 | Website https://www.adp.com |
Full time employees 64000 | Website https://www.adp.com | ||
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.
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