Automatic Data ProcessingBSP:ADPR34 94 Net Margin % is 22.90% as of Mar. 2026, which is 34% above its 10-year median of 17.12. GuruFocus rates BSP:ADPR34 with a GF Score™ of 94/100 and a GF Value™ of R$66.58 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,825 Software companies, Automatic Data Processing ranks better than 90.19% on this metric.
The historical rank and industry rank for Automatic Data Processing's Net Margin % or its related term are showing as below:
BSP:ADPR34'
s Net Margin % Range Over the Past 10 Years
Min: 12.79 Med: 17.12 Max: 20.12
Current: 20.12
BSP:ADPR34's Net Margin % is ranked better than 90.19% of 2825
companies
in the Software industry
Industry Median: 2.54
vs BSP:ADPR34: 20.12
Automatic Data Processing (BSP:ADPR34) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Automatic Data Processing Net Margin % Related Terms
Automatic Data Processing Net Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BSP:ADPR34 vs SNOW, DDOG, INTU: Net Margin % Comparison
For the Software - Application subindustry, Automatic Data Processing's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Software Industry
For the Software industry and Technology sector, Automatic Data Processing's Net Margin % distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Automatic Data Processing (BSP:ADPR34) has a Net Margin % of 22.90% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Automatic Data Processing and its competitors. This is 34% above median its historical median of 17.12. Over the past decade, Automatic Data Processing's Net Margin % has ranged from 12.79 to 20.12. According to the industry distribution chart, Automatic Data Processing ranks #277 out of 2825 companies in the Software industry, placing it in the top 9.8%.
Is Automatic Data Processing's Net Margin % too high?
Automatic Data Processing's current Net Margin % of 22.90% is 34% above median its 10-year median of 17.12. Over the past 10 years, this metric has ranged from a low of 12.79 to a high of 20.12. The Software industry median Net Margin % is 2.54. Automatic Data Processing's value of 22.90% is 801.6% above this industry median. Based on the distribution chart, Automatic Data Processing ranks #277 out of 2825 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Automatic Data Processing has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Automatic Data Processing's Net Margin % compare to SNOW and DDOG?
According to the Software industry distribution chart, Automatic Data Processing ranks #277 out of 2825 companies for Net Margin %. This places Automatic Data Processing in the top 10% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. Automatic Data Processing's value of 22.90% is 801.6% above this benchmark. Historically, Automatic Data Processing's own Net Margin % has ranged from 12.79 to 20.12 over the past decade. While the company's 10-year median is 17.12 vs. the industry median of 2.54, Automatic Data Processing has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Automatic Data Processing's current Net Margin % of 22.90% is 801.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Automatic Data Processing and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Automatic Data Processing's current Net Margin % is 22.90%, which is 34% above median its own 10-year median of 17.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Automatic Data Processing stock overvalued right now?
Based on GuruFocus' analysis, Automatic Data Processing (BSP:ADPR34) is currently considered Modestly Undervalued. The stock's GF Value™ is R$66.58, compared to a current price of R$48.31 — trading 27.4% below its estimated fair value. The current Net Margin % is 22.90%, which is 34% above median its 10-year median of 17.12 and 801.6% above the Software industry median of 2.54. Automatic Data Processing's overall GF Score™ is 94/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Automatic Data Processing (BSP:ADPR34), the current Net Margin % is 22.90% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Automatic Data Processing (BSP:ADPR34) Overvalued in 2026?
Based on GuruFocus' analysis, Automatic Data Processing stock appears to be undervalued.
The current stock price of R$48.31 is trading 27.4% below its estimated GF Value™ of R$66.58.
GuruFocus considers Automatic Data Processing to be Modestly Undervalued.
Key valuation signals for BSP:ADPR34:
Net Margin %: 22.90% (34% above median its 10-year median of 17.12)
GF Value™: R$66.58 vs. price of R$48.31 (27.4% below fair value)
Industry Position: 801.6% above the Software median (#277 of 2825)
No single metric tells the full story. See the BSP:ADPR34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Automatic Data Processing, or ADP, is a global, cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides HR outsourcing services, including PEO offerings, enabling clients to reduce HR overhead. Its broad suite serves customers of all sizes across diverse sectors, and the firm holds large market shares in its core markets. As of fiscal 2025, ADP counts over 1.1 million clients and manages payroll for more than 42 million workers across 140 countries.
94GF Score
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