Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Automatic Data Processing has the Profitability Rank of 9. It has a higher profitability and may stay that way.
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:
1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank
A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
Automatic Data Processing Profitability Rank Related Terms
ADP vs SNOW, DDOG, ADBE: Profitability Rank Comparison
For the Software - Application subindustry, Automatic Data Processing's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank vs Software Industry
For the Software industry and Technology sector, Automatic Data Processing's Profitability Rank distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's Profitability Rank falls into.
Automatic Data Processing Profitability Rank Calculation
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.
The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
Automatic Data Processing has the Profitability Rank of 9. It has a higher profitability and may stay that way.
Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.
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.
* 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 (ADP) has a Profitability Rank of 9 as of Mar. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Automatic Data Processing and its competitors. This is near median its historical median of 9.00. Over the past decade, Automatic Data Processing's Profitability Rank has ranged from 8.00 to 10.00.
Is Automatic Data Processing's Profitability Rank too high?
Automatic Data Processing's current Profitability Rank of 9 is near median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 8.00 to a high of 10.00. Overall, Automatic Data Processing has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Automatic Data Processing's Profitability Rank compare to SNOW and DDOG?
Automatic Data Processing's Profitability Rank of 9 can be compared against companies in the Software industry. Historically, Automatic Data Processing's own Profitability Rank has ranged from 8.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Software company?
A good Profitability Rank depends on the Software industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Automatic Data Processing and its competitors. Automatic Data Processing's current Profitability Rank is 9, which is near median its own 10-year median of 9.00. 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 (ADP) is currently considered Modestly Undervalued. The stock's GF Value™ is $305.46, compared to a current price of $243.01 — trading 20.4% below its estimated fair value. The current Profitability Rank is 9, which is near median its 10-year median of 9.00. Automatic Data Processing's overall GF Score™ is 87/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Automatic Data Processing (ADP), the current Profitability Rank is 9 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 (ADP) Overvalued in 2026?
Based on GuruFocus' analysis, Automatic Data Processing stock appears to be undervalued.
The current stock price of $243.01 is trading 20.4% below its estimated GF Value™ of $305.46.
GuruFocus considers Automatic Data Processing to be Modestly Undervalued.
Key valuation signals for ADP:
Profitability Rank: 9 (near median its 10-year median of 9.00)
GF Value™: $305.46 vs. price of $243.01 (20.4% below fair value)
No single metric tells the full story. See the ADP 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.
87GF Score
Get the complete analysis for ADP
Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ADP has been successfully added to your 
