September 10, 2025 a 07:43 am
ADP: Fundamental Ratio Analysis - Automatic Data Processing, Inc.
ADP showcases a robust business model by providing critical HR and outsourcing solutions worldwide. Its strong fundamentals reflect a steady financial profile, buoyed by strategic cloud-based platforms. Investors may find potential growth through its solid offerings in HR management and compliance services.
Fundamental Rating
The fundamental data indicates a solid financial structure with a B+ rating, driven by strong returns on equity and assets.
| Rating Category | Score | Visualization |
|---|---|---|
| Overall Score | 3 | |
| Discounted Cash Flow | 4 | |
| Return on Equity | 5 | |
| Return on Assets | 5 | |
| Debt to Equity | 1 | |
| Price to Earnings | 2 | |
| Price to Book | 1 |
Historical Rating
A comparative analysis of recent and past scores highlights stable financial performance over time.
| Date | Overall | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-09-09 | 3 | 4 | 5 | 5 | 1 | 2 | 1 |
| Previous | 0 | 4 | 5 | 5 | 1 | 2 | 1 |
Analyst Price Targets
The consensus among analysts suggests stability with a consistent target price.
| High | Low | Median | Consensus |
|---|---|---|---|
| $315 | $315 | $315 | $315 |
Analyst Sentiment
The sentiment reflects a majority of Hold ratings, suggesting a cautious but stable outlook.
| Recommendation | Count | Visualization |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 8 | |
| Hold | 22 | |
| Sell | 4 | |
| Strong Sell | 0 |
Conclusion
ADP offers a reliable investment opportunity, with its stable fundamentals reflecting a balanced financial health. The consistency in analyst price targets, coupled with its core strengths in HR and compliance, emphasizes its industry-leader position. Despite a Hold sentiment, the potential for long-term growth remains viable. Investors should be aware of the company's dependency on economic cycles which could influence short-term volatility. Overall, ADP stands as a sound addition to a diversified investment portfolio.