Automatic Data ProcessingBSP:ADPR34 94 ROE % is 83.55% as of Mar. 2026, which is 84% above its 10-year median of 45.37. 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 2,681 Software companies, Automatic Data Processing ranks better than 97.05% on this metric.
The historical rank and industry rank for Automatic Data Processing's ROE % or its related term are showing as below:
BSP:ADPR34'
s ROE % Range Over the Past 10 Years
Min: 32.13 Med: 45.37 Max: 101.33
Current: 69.73
During the past 13 years, Automatic Data Processing's highest ROE % was 101.33%. The lowest was 32.13%. And the median was 45.37%.
BSP:ADPR34's ROE % is ranked better than 97.05% of 2681
companies
in the Software industry
Industry Median: 4.73
vs BSP:ADPR34: 69.73
Automatic Data Processing (BSP:ADPR34) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Software Industry
For the Software industry and Technology sector, Automatic Data Processing's ROE % distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Automatic Data Processing (BSP:ADPR34) has a ROE % of 83.55% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Automatic Data Processing and its competitors. This is 84% above median its historical median of 45.37. Over the past decade, Automatic Data Processing's ROE % has ranged from 32.13 to 101.33. According to the industry distribution chart, Automatic Data Processing ranks #79 out of 2681 companies in the Software industry, placing it in the top 2.9%.
Is Automatic Data Processing's ROE % too high?
Automatic Data Processing's current ROE % of 83.55% is 84% above median its 10-year median of 45.37. Over the past 10 years, this metric has ranged from a low of 32.13 to a high of 101.33. The Software industry median ROE % is 4.73. Automatic Data Processing's value of 83.55% is 1666.4% above this industry median. Based on the distribution chart, Automatic Data Processing ranks #79 out of 2681 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 ROE % compare to SNOW and DDOG?
According to the Software industry distribution chart, Automatic Data Processing ranks #79 out of 2681 companies for ROE %. This places Automatic Data Processing in the top 3% of its industry — outperforming the majority of peers. The industry median ROE % is 4.73. Automatic Data Processing's value of 83.55% is 1666.4% above this benchmark. Historically, Automatic Data Processing's own ROE % has ranged from 32.13 to 101.33 over the past decade. While the company's 10-year median is 45.37 vs. the industry median of 4.73, 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 ROE % for a Software company?
The median ROE % among Software companies is 4.73, based on 2,681 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Automatic Data Processing's current ROE % of 83.55% is 1666.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Automatic Data Processing and its competitors. For the Software industry, the median ROE % is 4.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Automatic Data Processing's current ROE % is 83.55%, which is 84% above median its own 10-year median of 45.37. 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 ROE % is 83.55%, which is 84% above median its 10-year median of 45.37 and 1666.4% above the Software industry median of 4.73. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Automatic Data Processing (BSP:ADPR34), the current ROE % is 83.55% 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:
ROE %: 83.55% (84% above median its 10-year median of 45.37)
GF Value™: R$66.58 vs. price of R$48.31 (27.4% below fair value)
Industry Position: 1666.4% above the Software median (#79 of 2681)
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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