ADP Stock Fair Value Calculator – ADP Stock Outperforms Market on Positive Trading Day
November 2, 2023
☀️Trending News
On a positive trading day, Automatic Data Processing ($NASDAQ:ADP), Inc. (ADP) stock proved to be a stand-out among the market. The stock rose to impressive heights and outperformed the rest. ADP is a provider of cloud-based human capital management solutions to employers, offering services such as payroll, compliance, benefits, and human resources management.
They also provide analytics & business process outsourcing services to both large and small businesses. This recent performance has been a great boon for ADP investors, who are now enjoying the fruits of their investment.
Stock Price
On Wednesday, shares of AUTOMATIC DATA PROCESSING (ADP) were down 3.6%, opening at $215.0 and closing at $210.4. This was a drop from its last closing price of 218.2. Despite the overall market trend being positive, ADP stock seemed to have underperformed on the day. Analysts are still in the process of determining what caused the stock to decline despite the market rally. 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 Stock Fair Value Calculator
At GoodWhale, we have analyzed the financials of AUTOMATIC DATA PROCESSING and evaluated its intrinsic value. Using our proprietary Valuation Line, we have calculated the intrinsic value of AUTOMATIC DATA PROCESSING share to be around $238.0. This indicates that the current market price of AUTOMATIC DATA PROCESSING stock at $210.4 is undervalued by 11.6%. Therefore, it is a good opportunity for investors to buy AUTOMATIC DATA PROCESSING stock at the current price level. More…
Peers
The competition in the payroll processing and human resources management industry is fierce. Automatic Data Processing Inc (ADP) is the largest player in the industry, with a market share of over 26%. Its closest competitors are Paychex Inc, Insperity Inc, and Trucept Inc, which have market shares of around 10%, 7%, and 6%, respectively. While all four companies offer similar services, ADP has a clear advantage in terms of size and scale.
– Paychex Inc ($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) recently outperformed the stock market on a strong trading day. Despite this, the stock price still moved down the same day. This suggests that investors may be uncertain about the company’s future prospects. To determine whether investing in ADP is a wise decision, it is important to analyze the company’s fundamentals. This includes examining its financial statement, competitive environment, and management strategy.
Additionally, potential investors should review past performance as well as industry trends to gain insight into the stock’s potential returns. By conducting a thorough investing analysis, investors can make an educated decision when considering investing in ADP.
