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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 102.35
ADP's Cash to Debt is ranked higher than
77% of the 959 Companies
in the Global Business Services industry.

( Industry Median: 1.72 vs. ADP: 102.35 )
ADP' s 10-Year Cash to Debt Range
Min: 0.06   Max: 117.49
Current: 102.35

0.06
117.49
Equity to Asset 0.16
ADP's Equity to Asset is ranked lower than
60% of the 937 Companies
in the Global Business Services industry.

( Industry Median: 0.49 vs. ADP: 0.16 )
ADP' s 10-Year Equity to Asset Range
Min: 0.15   Max: 0.71
Current: 0.16

0.15
0.71
Interest Coverage 219.47
ADP's Interest Coverage is ranked higher than
77% of the 675 Companies
in the Global Business Services industry.

( Industry Median: 21.89 vs. ADP: 219.47 )
ADP' s 10-Year Interest Coverage Range
Min: 15.87   Max: 252.57
Current: 219.47

15.87
252.57
F-Score: 6
Z-Score: 1.69
M-Score: -2.49
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 17.66
ADP's Operating margin (%) is ranked higher than
87% of the 950 Companies
in the Global Business Services industry.

( Industry Median: 7.12 vs. ADP: 17.66 )
ADP' s 10-Year Operating margin (%) Range
Min: 16.61   Max: 23.89
Current: 17.66

16.61
23.89
Net-margin (%) 12.43
ADP's Net-margin (%) is ranked higher than
86% of the 950 Companies
in the Global Business Services industry.

( Industry Median: 4.59 vs. ADP: 12.43 )
ADP' s 10-Year Net-margin (%) Range
Min: 12.29   Max: 22.73
Current: 12.43

12.29
22.73
ROE (%) 22.71
ADP's ROE (%) is ranked higher than
91% of the 919 Companies
in the Global Business Services industry.

( Industry Median: 10.28 vs. ADP: 22.71 )
ADP' s 10-Year ROE (%) Range
Min: 17.27   Max: 25.85
Current: 22.71

17.27
25.85
ROA (%) 4.36
ADP's ROA (%) is ranked higher than
68% of the 965 Companies
in the Global Business Services industry.

( Industry Median: 4.48 vs. ADP: 4.36 )
ADP' s 10-Year ROA (%) Range
Min: 3.66   Max: 12.33
Current: 4.36

3.66
12.33
ROC (Joel Greenblatt) (%) 274.08
ADP's ROC (Joel Greenblatt) (%) is ranked higher than
92% of the 960 Companies
in the Global Business Services industry.

( Industry Median: 33.29 vs. ADP: 274.08 )
ADP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 8.84   Max: 280.49
Current: 274.08

8.84
280.49
Revenue Growth (%) 9.40
ADP's Revenue Growth (%) is ranked higher than
79% of the 727 Companies
in the Global Business Services industry.

( Industry Median: 6.20 vs. ADP: 9.40 )
ADP' s 10-Year Revenue Growth (%) Range
Min: -2.2   Max: 17
Current: 9.4

-2.2
17
EBITDA Growth (%) 4.60
ADP's EBITDA Growth (%) is ranked higher than
65% of the 605 Companies
in the Global Business Services industry.

( Industry Median: 8.30 vs. ADP: 4.60 )
ADP' s 10-Year EBITDA Growth (%) Range
Min: -2.5   Max: 15.5
Current: 4.6

-2.5
15.5
EPS Growth (%) 5.30
ADP's EPS Growth (%) is ranked higher than
66% of the 579 Companies
in the Global Business Services industry.

( Industry Median: 7.80 vs. ADP: 5.30 )
ADP' s 10-Year EPS Growth (%) Range
Min: 0.8   Max: 17.1
Current: 5.3

0.8
17.1
» ADP's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

ADP Guru Trades in Q1 2013

Bill Frels 5,000 sh (+6.38%)
Manning & Napier Advisors, Inc 74,409 sh (+5.23%)
Jeremy Grantham 563,912 sh (+5.11%)
Tom Gayner 523,900 sh (+1.59%)
Jean-Marie Eveillard 3,301,276 sh (+0.35%)
Scott Black 23,779 sh (+0.21%)
Ruane Cunniff 6,011 sh (unchged)
Tweedy Browne 141,914 sh (unchged)
Bill Nygren 1,430,000 sh (unchged)
Tom Russo 1,100 sh (unchged)
Mark Hillman Sold Out
Pioneer Investments 1,389,808 sh (-1.11%)
Chris Davis 127,260 sh (-6.08%)
Jeff Auxier 17,526 sh (-13.56%)
Steven Cohen 12,865 sh (-24.83%)
» More
Q2 2013

ADP Guru Trades in Q2 2013

Paul Tudor Jones 150,000 sh (New)
Dodge & Cox 2,920 sh (New)
Manning & Napier Advisors, Inc 78,054 sh (+4.9%)
Tom Gayner 526,000 sh (+0.4%)
Chris Davis 127,711 sh (+0.35%)
Bill Frels 5,000 sh (unchged)
Bill Nygren 1,430,000 sh (unchged)
Tweedy Browne 141,914 sh (unchged)
Ruane Cunniff 6,011 sh (unchged)
Tom Russo Sold Out
Jean-Marie Eveillard 3,295,176 sh (-0.18%)
Scott Black 23,577 sh (-0.85%)
Jeremy Grantham 539,348 sh (-4.36%)
Jeff Auxier 16,295 sh (-7.02%)
Pioneer Investments 1,274,334 sh (-8.31%)
Steven Cohen 5,852 sh (-54.51%)
» More
Q3 2013

ADP Guru Trades in Q3 2013

Steven Cohen 108,176 sh (+1748.53%)
Jeremy Grantham 651,824 sh (+20.85%)
Bill Frels 5,127 sh (+2.54%)
Tom Gayner 532,500 sh (+1.24%)
Jean-Marie Eveillard 3,334,870 sh (+1.2%)
Manning & Napier Advisors, Inc 78,659 sh (+0.78%)
Bill Nygren 1,430,000 sh (unchged)
Ruane Cunniff 6,011 sh (unchged)
Tweedy Browne 141,914 sh (unchged)
Dodge & Cox Sold Out
Chris Davis Sold Out
Pioneer Investments 1,166,114 sh (-8.49%)
Scott Black 19,257 sh (-18.32%)
Paul Tudor Jones 120,000 sh (-20%)
Jeff Auxier 12,295 sh (-24.55%)
» More
Q4 2013

ADP Guru Trades in Q4 2013

Dodge & Cox 2,720 sh (New)
Ray Dalio 101,298 sh (New)
Jeremy Grantham 828,940 sh (+27.17%)
Bill Frels 5,329 sh (+3.94%)
Bill Nygren 1,430,000 sh (unchged)
Tweedy Browne 141,914 sh (unchged)
Ruane Cunniff 6,011 sh (unchged)
Pioneer Investments 1,165,355 sh (-0.07%)
Tom Gayner 532,100 sh (-0.08%)
Jeff Auxier 12,245 sh (-0.41%)
Scott Black 19,152 sh (-0.55%)
Jean-Marie Eveillard 3,065,898 sh (-8.07%)
Manning & Napier Advisors, Inc 51,411 sh (-34.64%)
Steven Cohen 10,913 sh (-89.91%)
Paul Tudor Jones 3,678 sh (-96.94%)
» More
» Details

Insider Trades

Latest Guru Trades with ADP

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ray Dalio 2013-12-31 New Buy0.07%$70.24 - $81.08 $ 75.43-2%101298
Dodge & Cox 2013-12-31 New Buy$70.24 - $81.08 $ 75.43-2%2720
Dodge & Cox 2013-09-30 Sold Out $70.08 - $74.74 $ 75.434%0
Dodge & Cox 2013-06-30 New Buy$63.77 - $71.99 $ 75.4311%2920
Tweedy Browne 2012-09-30 Reduce -21.44%0.08%$55.25 - $59.36 $ 75.4332%141914
Ray Dalio 2012-06-30 Sold Out 0.04%$51.35 - $55.84 $ 75.4340%0
Tweedy Browne 2012-03-31 Reduce -29.21%0.14%$53.79 - $56.92 $ 75.4348%180909
Ray Dalio 2012-03-31 New Buy0.04%$53.79 - $56.92 $ 75.4348%51508
Ruane Cunniff 2012-03-31 Add 33.54%$53.79 - $56.92 $ 75.4348%6211
Arnold Van Den Berg 2011-12-31 Sold Out 3.03%$46.47 - $54.44 $ 75.4347%0
George Soros 2011-03-31 Sold Out $46.28 - $51.15 $ 75.4353%0
Mario Gabelli 2011-03-31 Sold Out $46.28 - $51.15 $ 75.4353%0
Premium More recent guru trades are included for Premium Members only!!
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Top Ranked Articles about Automatic Data Processing

Are These Great Companies Still Cheap: Wal-Mart, ADP, and Microsoft
In November of 2010, renowned deep value investor Arnold van den Berg wrote a great piece called How do great companies get so cheap? He pointed out in the article that the stocks of the great companies like Wal-Mart (WMT), ADP (ADP) and Microsoft (MSFT) were on sale. He argued that the four emotions that investors went through when owning the stocks made them cheap: apathy, disgust, fear and anger. At the time of the writing, the stocks were traded at $54 (WMT), $43 (ADP), and $26 (MSFT). Since then their stock prices had gained 44%, 63%, and 34%, respectively. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 25.90
ADP's P/E(ttm) is ranked higher than
51% of the 766 Companies
in the Global Business Services industry.

( Industry Median: 20.70 vs. ADP: 25.90 )
ADP' s 10-Year P/E(ttm) Range
Min: 12.82   Max: 27.69
Current: 25.9

12.82
27.69
P/B 5.70
ADP's P/B is ranked lower than
69% of the 899 Companies
in the Global Business Services industry.

( Industry Median: 2.50 vs. ADP: 5.70 )
ADP' s 10-Year P/B Range
Min: 3.18   Max: 6.21
Current: 5.7

3.18
6.21
P/S 3.10
ADP's P/S is ranked lower than
71% of the 948 Companies
in the Global Business Services industry.

( Industry Median: 1.32 vs. ADP: 3.10 )
ADP' s 10-Year P/S Range
Min: 1.9   Max: 4.29
Current: 3.1

1.9
4.29
PFCF 27.10
ADP's PFCF is ranked lower than
59% of the 611 Companies
in the Global Business Services industry.

( Industry Median: 17.63 vs. ADP: 27.10 )
ADP' s 10-Year PFCF Range
Min: 10.53   Max: 29.14
Current: 27.1

10.53
29.14
EV-to-EBIT 16.90
ADP's EV-to-EBIT is ranked higher than
53% of the 843 Companies
in the Global Business Services industry.

( Industry Median: 15.40 vs. ADP: 16.90 )
ADP' s 10-Year EV-to-EBIT Range
Min: 8.6   Max: 34.6
Current: 16.9

8.6
34.6
PEG 7.00
ADP's PEG is ranked lower than
64% of the 457 Companies
in the Global Business Services industry.

( Industry Median: 2.16 vs. ADP: 7.00 )
ADP' s 10-Year PEG Range
Min: 0.95   Max: 295.88
Current: 7

0.95
295.88
Shiller P/E 26.90
ADP's Shiller P/E is ranked higher than
58% of the 469 Companies
in the Global Business Services industry.

( Industry Median: 24.20 vs. ADP: 26.90 )
ADP' s 10-Year Shiller P/E Range
Min: 14.5   Max: 29.1
Current: 26.9

14.5
29.1

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.40
ADP's Dividend Yield is ranked higher than
59% of the 638 Companies
in the Global Business Services industry.

( Industry Median: 2.19 vs. ADP: 2.40 )
ADP' s 10-Year Dividend Yield Range
Min: 1.26   Max: 3.79
Current: 2.4

1.26
3.79
Dividend Payout 0.61
ADP's Dividend Payout is ranked lower than
56% of the 552 Companies
in the Global Business Services industry.

( Industry Median: 0.40 vs. ADP: 0.61 )
ADP' s 10-Year Dividend Payout Range
Min: 0.15   Max: 0.93
Current: 0.61

0.15
0.93
Dividend growth (3y) 8.00
ADP's Dividend growth (3y) is ranked higher than
71% of the 345 Companies
in the Global Business Services industry.

( Industry Median: 8.70 vs. ADP: 8.00 )
ADP' s 10-Year Dividend growth (3y) Range
Min: 6.5   Max: 22.1
Current: 8

6.5
22.1
Yield on cost (5-Year) 3.41
ADP's Yield on cost (5-Year) is ranked higher than
65% of the 660 Companies
in the Global Business Services industry.

( Industry Median: 2.64 vs. ADP: 3.41 )
ADP' s 10-Year Yield on cost (5-Year) Range
Min: 1.79   Max: 5.39
Current: 3.41

1.79
5.39
Share Buyback Rate 1.10
ADP's Share Buyback Rate is ranked higher than
90% of the 673 Companies
in the Global Business Services industry.

( Industry Median: -0.70 vs. ADP: 1.10 )
ADP' s 10-Year Share Buyback Rate Range
Min: 4.5   Max: -3.5
Current: 1.1

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 14.50
ADP's Price/Tangible Book is ranked lower than
78% of the 678 Companies
in the Global Business Services industry.

( Industry Median: 3.60 vs. ADP: 14.50 )
ADP' s 10-Year Price/Tangible Book Range
Min: 5.19   Max: 15.54
Current: 14.5

5.19
15.54
Price/DCF (Projected) 1.80
ADP's Price/DCF (Projected) is ranked higher than
51% of the 514 Companies
in the Global Business Services industry.

( Industry Median: 1.40 vs. ADP: 1.80 )
ADP' s 10-Year Price/DCF (Projected) Range
Min: 1.05   Max: 3.75
Current: 1.8

1.05
3.75
Price/Median PS Value 1.10
ADP's Price/Median PS Value is ranked higher than
71% of the 897 Companies
in the Global Business Services industry.

( Industry Median: 1.10 vs. ADP: 1.10 )
ADP' s 10-Year Price/Median PS Value Range
Min: 0.71   Max: 2.25
Current: 1.1

0.71
2.25
Price/Graham Number 4.10
ADP's Price/Graham Number is ranked lower than
68% of the 567 Companies
in the Global Business Services industry.

( Industry Median: 1.80 vs. ADP: 4.10 )
ADP' s 10-Year Price/Graham Number Range
Min: 1.87   Max: 4.83
Current: 4.1

1.87
4.83
Earnings Yield (Greenblatt) 5.90
ADP's Earnings Yield (Greenblatt) is ranked higher than
56% of the 848 Companies
in the Global Business Services industry.

( Industry Median: 6.60 vs. ADP: 5.90 )
ADP' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.9   Max: 11.7
Current: 5.9

2.9
11.7
Forward Rate of Return (Yacktman) 6.94
ADP's Forward Rate of Return (Yacktman) is ranked higher than
72% of the 660 Companies
in the Global Business Services industry.

( Industry Median: 6.90 vs. ADP: 6.94 )
ADP' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 2   Max: 21.8
Current: 6.94

2
21.8

Business Description

Industry: Business Services » Business Services
Compare:G, ENV, CMPGY, SGSOY, EXPGY » details
Traded in other countries:ADP.Germany
Automatic Data Processing, Inc., incorporated in Delaware in 1961. It is the providers of business outsourcing solutions. It offers a range of human resource (HR), payroll, tax and benefits administration solutions from a single source. The Company is also a provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle ('RV') and heavy equipment retailers and manufacturers. The Company's reportable segments are: Employer Services, Professional Employer Organization ('PEO') Services, and Dealer Services. Employer Services offers a comprehensive range of HR information, payroll processing, time and labor management, and tax and benefits administration solutions and services, including traditional and Web-based outsourcing solutions, that assist employers in the United States, Canada, Europe, South America (primarily Brazil), Australia, and Asia to recruit, staff, manage, pay and retain their employees. PEO Services provides approximately 6,900 small and medium sized businesses with comprehensive employment administration outsourcing solutions through a co-employment relationship, including payroll, payroll tax filing, HR guidance, 401(k) plan administration, benefits administration, compliance services, health and workers' compensation coverage and other supplemental benefits for employees. Dealer Services provides integrated dealer management systems (such a system is also known in the industry as a 'DMS'), digital marketing solutions, including website, sales leads, email, search, display and social media marketing services under the Cobalt brand and other business management solutions to auto, truck, motorcycle, marine, RV and heavy equipment retailers and manufacturers in North America, Europe, South Africa, the Middle East, and the Asia Pacific region. Employer Services and PEO Services compete with other independent business outsourcing companies, companies providing enterprise resource planning services, software companies and financial institutions. Dealer Services' competitors include full service DMS providers such as The Reynolds & Reynolds Company (Dealer Services' largest DMS competitor in the United States and Canada), DealerTrack, Inc., and companies providing applications and services that compete with Dealer Services' non-DMS applications and services, such as Auto Trader Group, Inc. and Dealer.com, Inc. Portions of the Company's business are subject to governmental regulations.

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