ADP Intrinsic Stock Value – Investors Seek Entry Point Into High-Quality Company with Automatic Data Processing
December 30, 2023
🌥️Trending News
Investors who are seeking an entry point into the high-quality company of Automatic Data Processing ($NASDAQ:ADP) (ADP) are in luck. ADP is one of the world’s leading providers of business outsourcing solutions, offering comprehensive human resources, payroll, tax and benefits administration services to organizations of all sizes from small businesses to multinational corporations. ADP’s services enable companies to reduce costs and improve efficiency while allowing them to focus more on their core business. This company offers an attractive opportunity for those looking to invest in a strong, reliable, and well-managed business. Its stock has delivered consistently strong returns over the past several years, and its large customer base and strong balance sheet makes it a very secure investment.
Additionally, ADP has been recognized by business analysts for its ability to manage risk and innovate in its services and products. For those interested in entering the stock market, ADP offers a great opportunity for a quality investment. With its long track record of success and reliable management team, ADP is an ideal stock for investors seeking a secure company with attractive returns.
Market Price
On Thursday, stock in Automatic Data Processing (ADP) opened at $232.1 and closed at $232.5, an increase of 0.4% from its previous closing price of $231.6. This jump in the stock’s price has attracted attention from investors who are seeking an entry point into a high-quality company that is recognized for its reliability and accuracy. This uptick in the stock’s value is a result of ADP’s consistent record of delivering reliable data processing solutions to its clients. The company is a leader in the industry, offering a range of products and services designed to streamline and automate various data processing processes. This commitment to reliable data processing and accuracy makes the company an attractive option for investors looking for a long-term stock prospect.
In addition, ADP’s stock price is bolstered by the company’s strong financial performance over the past few years. The company has reported steady revenue growth and has an impressive portfolio of investments that has grown steadily over time. This financial stability has helped to drive the stock’s value up, making it an attractive option for investors looking to diversify their portfolios with a high-quality company. Overall, Automatic Data Processing is an attractive option for investors looking to invest in a high-quality company with a long-term track record of success. The recent uptick in the stock’s value has provided an ideal entry point for investors seeking exposure to this reliable and accurate data processing provider. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ADP. More…
| Total Revenues | Net Income | Net Margin |
| 17.43k | 3.49k | 20.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ADP. More…
| Operations | Investing | Financing |
| 3.82k | -1.16k | -1.28k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ADP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 49.32k | 45.85k | 8.43 |
Key Ratios Snapshot
Some of the financial key ratios for ADP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.5% | 12.0% | 27.6% |
| FCF Margin | ROE | ROA |
| 18.6% | 86.2% | 6.1% |
Analysis – ADP Intrinsic Stock Value
At GoodWhale, we have conducted an analysis of AUTOMATIC DATA PROCESSING’s wellbeing. Our proprietary Valuation Line indicates that the intrinsic value of AUTOMATIC DATA PROCESSING share is around $241.8. However, right now it is being traded at a price of $232.5, which is fair but slightly undervalued by 3.8%. This presents a great opportunity for investors looking to make a worthwhile return on their investment. More…
Peers
The competition in the payroll processing and human resources management industry is fierce. Automatic Data Processing Inc (ADP) is the largest player in the industry, with a market share of over 26%. Its closest competitors are Paychex Inc, Insperity Inc, and Trucept Inc, which have market shares of around 10%, 7%, and 6%, respectively. While all four companies offer similar services, ADP has a clear advantage in terms of size and scale.
– Paychex Inc ($NASDAQ:PAYX)
Paychex Inc is a human resource consulting and payroll processing company headquartered in Rochester, New York. As of May 2019, Paychex serves over 650,000 small and medium sized businesses. The company has a market cap of $40.17B as of 2022 and a Return on Equity of 38.35%. Paychex was founded in 1971 by B. Thomas Golisano and Robert C.risk.
– Insperity Inc ($NYSE:NSP)
Inspriety Inc is a business services provider located in the United States. The company offers a suite of human resources and business solutions designed to help businesses improve their productivity and bottom line. Inspriety’s services include payroll processing, benefits administration, and talent management. The company serves over 100,000 businesses of all sizes across the United States.
– Trucept Inc ($OTCPK:TREP)
Trucept Inc is a publicly traded company with a market capitalization of 221.15 thousand as of 2022. The company has a return on equity of 42.12%. Trucept Inc is a provider of cloud-based software solutions for small and medium-sized businesses. The company’s software solutions include accounting, human resources, customer relationship management, and e-commerce.
Summary
Automatic Data Processing (ADP) is a well-established company that offers a variety of services for businesses, including payroll processing, human resources management, and tax services. For potential investors, it is important to consider the company’s financial performance, its competitive position within the industry, and the risks associated with investing in the company. Financial analysis of ADP should include an examination of the company’s current financial statements, such as income statements and balance sheets.
Additionally, investors should analyze the company’s competitive position, such as its market share, cost structure, and pricing strategy. Finally, investors should assess the risks associated with investing in ADP, such as its exposure to litigation or changes in the regulatory landscape. By carefully analyzing these areas, investors can determine whether ADP is a good investment opportunity.
