Automatic Data ProcessingBSP:ADPR34 94 ROA % is 7.12% as of Mar. 2026, which is 23% above its 10-year median of 5.80. GuruFocus rates BSP:ADPR34 with a GF Score™ of 94/100 and a GF Value™ of R$66.79 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,883 Software companies, Automatic Data Processing ranks better than 72.32% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Automatic Data Processing's annualizedNet Income for the quarter that ended in Mar. 2026 was R$28,445 Mil.
Automatic Data Processing's average Total Assets over the quarter that ended in Mar. 2026 was R$399,497 Mil. Therefore, Automatic Data Processing's annualized ROA % for the quarter that ended in Mar. 2026 was 7.12%.
The historical rank and industry rank for Automatic Data Processing's ROA % or its related term are showing as below:
BSP:ADPR34'
s ROA % Range Over the Past 10 Years
Min: 3.89 Med: 5.8 Max: 7.57
Current: 6.94
During the past 13 years, Automatic Data Processing's highest ROA % was 7.57%. The lowest was 3.89%. And the median was 5.80%.
BSP:ADPR34's ROA % is ranked better than 72.32% of 2883
companies
in the Software industry
Industry Median: 1.68
vs BSP:ADPR34: 6.94
Automatic Data Processing (BSP:ADPR34) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Software - Application subindustry, Automatic Data Processing's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Software Industry
For the Software industry and Technology sector, Automatic Data Processing's ROA % distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Automatic Data Processing (BSP:ADPR34) has a ROA % of 7.12% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Automatic Data Processing and its competitors. This is 23% above median its historical median of 5.80. Over the past decade, Automatic Data Processing's ROA % has ranged from 3.89 to 7.57. According to the industry distribution chart, Automatic Data Processing ranks #798 out of 2883 companies in the Software industry, placing it in the top 27.7%.
Is Automatic Data Processing's ROA % too high?
Automatic Data Processing's current ROA % of 7.12% is 23% above median its 10-year median of 5.80. Over the past 10 years, this metric has ranged from a low of 3.89 to a high of 7.57. The Software industry median ROA % is 1.68. Automatic Data Processing's value of 7.12% is 323.8% above this industry median. Based on the distribution chart, Automatic Data Processing ranks #798 out of 2883 companies in the Software industry, which is above the industry midpoint. 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 ROA % compare to SNOW and DDOG?
According to the Software industry distribution chart, Automatic Data Processing ranks #798 out of 2883 companies for ROA %. This puts Automatic Data Processing in the upper half of its industry. The industry median ROA % is 1.68. Automatic Data Processing's value of 7.12% is 323.8% above this benchmark. Historically, Automatic Data Processing's own ROA % has ranged from 3.89 to 7.57 over the past decade. While the company's 10-year median is 5.80 vs. the industry median of 1.68, 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 ROA % for a Software company?
The median ROA % among Software companies is 1.68, based on 2,883 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Automatic Data Processing's current ROA % of 7.12% is 323.8% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Automatic Data Processing and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Automatic Data Processing's current ROA % is 7.12%, which is 23% above median its own 10-year median of 5.80. 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$66.79, compared to a current price of R$48.31 — trading 27.7% below its estimated fair value. The current ROA % is 7.12%, which is 23% above median its 10-year median of 5.80 and 323.8% above the Software industry median of 1.68. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Automatic Data Processing (BSP:ADPR34), the current ROA % is 7.12% 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 27.7% below its estimated GF Value™ of R$66.79.
GuruFocus considers Automatic Data Processing to be Modestly Undervalued.
Key valuation signals for BSP:ADPR34:
ROA %: 7.12% (23% above median its 10-year median of 5.80)
GF Value™: R$66.79 vs. price of R$48.31 (27.7% below fair value)
Industry Position: 323.8% above the Software median (#798 of 2883)
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
Get the complete analysis for BSP:ADPR34
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BSP:ADPR34 has been successfully added to your 
