Automatic Data Processing (XSGO:ADP) 3-Year FCF Growth Rate

: 16.20% (As of Dec. 2023)

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Automatic Data Processing's Free Cash Flow per Share for the three months ended in Dec. 2023 was $2.18.

During the past 12 months, Automatic Data Processing's average Free Cash Flow per Share Growth Rate was 16.70% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 16.20% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 11.90% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 10.90% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.

During the past 13 years, the highest 3-Year average Free Cash Flow per Share Growth Rate of Automatic Data Processing was 309.50% per year. The lowest was -71.10% per year. And the median was 7.35% per year.

Competitive Comparison

For the Staffing & Employment Services subindustry, Automatic Data Processing's 3-Year FCF Growth Rate, along with its competitors' market caps and 3-Year FCF Growth Rate data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Automatic Data Processing 3-Year FCF Growth Rate Distribution

For the Business Services industry and Industrials sector, Automatic Data Processing's 3-Year FCF Growth Rate distribution charts can be found below:

* The bar in red indicates where Automatic Data Processing's 3-Year FCF Growth Rate falls into.

Automatic Data Processing 3-Year FCF Growth Rate Calculation

This is the 3-year average growth rate of Free Cash Flow per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.

Automatic Data Processing (XSGO:ADP) 3-Year FCF Growth Rate Explanation

Free Cash Flow per Share is the amount of Free Cash Flow per outstanding share of the company's stock. Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company. It's used in the calculation of Forward Rate of Return (Yacktman) %.

Automatic Data Processing 3-Year FCF Growth Rate Related Terms

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Automatic Data Processing (XSGO:ADP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Automatic Data Processing Inc (XSGO:ADP) » Definitions » 3-Year FCF Growth Rate

Comparable Companies

Traded in Other Exchanges

ADP:USA ADAP:Mexico 1ADP:Italy ADP:Germany ADPR34:Brazil ADP:Austria ADP:Argentina

Address

One ADP Boulevard, Roseland, NJ, USA, 07068

Website

https://www.adp.com

ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 1 million clients primarily in the United States. ADP's employer services segment offers payroll, human capital management solutions, human resources outsourcing, insurance and retirement services. The smaller but faster-growing professional employer organization segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.