Automatic Data ProcessingBSP:ADPR34 94 Operating Margin % is 30.06% as of Mar. 2026, which is 38% above its 10-year median of 21.85. 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 2,818 Software companies, Automatic Data Processing ranks better than 93.26% on this metric.
Automatic Data Processing (BSP:ADPR34) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Automatic Data Processing Operating Margin % Related Terms
Automatic Data Processing Operating 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.
Automatic Data Processing Operating Margin % Chart
BSP:ADPR34 vs SNOW, DDOG, INTU: Operating Margin % Comparison
For the Software - Application subindustry, Automatic Data Processing's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Software Industry
For the Software industry and Technology sector, Automatic Data Processing's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's Operating Margin % falls into.
Automatic Data Processing Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Automatic Data Processing's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as
* 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 Operating Margin % of 30.06% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Automatic Data Processing and its competitors. This is 38% above median its historical median of 21.85. Over the past decade, Automatic Data Processing's Operating Margin % has ranged from 18.77 to 26.51. According to the industry distribution chart, Automatic Data Processing ranks #190 out of 2818 companies in the Software industry, placing it in the top 6.7%.
Is Automatic Data Processing's Operating Margin % too high?
Automatic Data Processing's current Operating Margin % of 30.06% is 38% above median its 10-year median of 21.85. Over the past 10 years, this metric has ranged from a low of 18.77 to a high of 26.51. The Software industry median Operating Margin % is 3.88. Automatic Data Processing's value of 30.06% is 675.7% above this industry median. Based on the distribution chart, Automatic Data Processing ranks #190 out of 2818 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 Operating Margin % compare to SNOW and DDOG?
According to the Software industry distribution chart, Automatic Data Processing ranks #190 out of 2818 companies for Operating Margin %. This places Automatic Data Processing in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.88. Automatic Data Processing's value of 30.06% is 675.7% above this benchmark. Historically, Automatic Data Processing's own Operating Margin % has ranged from 18.77 to 26.51 over the past decade. While the company's 10-year median is 21.85 vs. the industry median of 3.88, 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 Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Automatic Data Processing's current Operating Margin % of 30.06% is 675.7% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Automatic Data Processing and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Automatic Data Processing's current Operating Margin % is 30.06%, which is 38% above median its own 10-year median of 21.85. 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 Operating Margin % is 30.06%, which is 38% above median its 10-year median of 21.85 and 675.7% above the Software industry median of 3.88. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Automatic Data Processing (BSP:ADPR34), the current Operating Margin % is 30.06% 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:
Operating Margin %: 30.06% (38% above median its 10-year median of 21.85)
GF Value™: R$66.58 vs. price of R$48.31 (27.4% below fair value)
Industry Position: 675.7% above the Software median (#190 of 2818)
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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