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.
Market Dominance | Explore ADP's robust position in human capital management, with strong bookings growth and high client retention rates driving its market leadership. |
Strategic Expansion | Delve into ADP's acquisition of WorkForce Software and investments in GenAI, positioning the company for enhanced global enterprise HCM offerings. |
Financial Resilience | Discover how ADP maintains margin momentum and projects 4.5-5.5% revenue growth for FY2025, despite increased strategic investments. |
Analyst Outlook | Analyst price targets range from $267 to $315, reflecting confidence in ADP's growth potential amid economic uncertainties. |
Metrics to compare | ADP | Sector Sector - Average of metrics from a broad group of related Technology sector companies | Relationship RelationshipADPPeersSector | |
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P/E Ratio | 30.3x | 22.5x | 12.7x | |
PEG Ratio | 3.08 | 0.69 | 0.03 | |
Price/Book | 20.0x | 1.9x | 1.4x | |
Price / LTM Sales | 6.0x | 0.9x | 1.2x | |
Upside (Analyst Target) | 5.5% | 92.4% | 14.2% | |
Fair Value Upside | Unlock | 6.3% | 5.5% | Unlock |