ADP Technology

Automatic Data Processing, Inc.

$296.01-0.93%

Price as of close on Nov 3, 2026 · Financials updated Oct 6, 2026

Basics

Sector: Technology
Industry: Software - Application
Country: United States
Market cap: 117.3B USD
Enterprise value: 115.5B USD
Full-time employees: 67,000

Overall health

Drawback: higher risk than most peers: less short-term liquidity (current ratio 1.05 vs a peer median of 1.83) and more debt relative to equity (0.83× vs a peer median of 0.25×)higher risk: less liquidity (current ratio 1.05 vs peers 1.83) and more debt vs equity (0.83× vs peers 0.25×)
About average: growth and valuation

Ranks #620 of 1,612 technology companies (top 39%)

See how it ranks against its peers

Worth knowing

Borrowing rising faster than profit. Since FY Jun 2023: debt +66%, operating profit +18%.
Automatic Data Processing's debt grew 66% since FY Jun 2023 while operating profit changed +18%.
Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $15.0B in FY Jun 2021 to $21.9B in FY Jun 2026.
Automatic Data Processing's fiscal-year revenue rose in each of the five years to FY Jun 2026, from $15.0B to $21.9B.
Profit is backed by cash. Free cash flow is 108% of reported profit.
Automatic Data Processing's free cash flow is 108% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.
Wide margins. Operating margin 24% (12 months to Jun 2026) vs a peer median of 6.3%.Operating margin 24% vs peers 6.3%.
Automatic Data Processing keeps 24% of revenue as operating profit, more than 90% of peers (median 6.3%).

StockQuotient Score

56/ 100

Oct 5 58 → Nov 4 56 (-2)

Valuation

Is the price right?

58/100

Moderate▼ 3 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 61 → 58

Peer companies moved-3

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Helped by:

▲ Earnings yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield3.8%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 0.67Sector median: 0.0225 · MAD: 0.0225

EBITDA yield5.0%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score 0.21Sector median: 0.0423 · MAD: 0.0361

Free cash flow yield4.1%

Yahoo Finance fallback · SEC cash flow or share count unavailable · trailing 12 months · operating cash flow − capital spendingReported value20% base weight · Z-score 0.48Sector median: 0.0274 · MAD: 0.0274

Other data (not scored)

Book yield5.1%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.3292 · MAD: 0.1754

Growth

Is it growing?

48/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Close to the peer norm on every measure.

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth10.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.03Sector median: 0.1108 · MAD: 0.3050

3-year revenue growth6.8%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 0.25Sector median: 0.0483 · MAD: 0.0793

Revenue growth6.7%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.18Sector median: 0.0853 · MAD: 0.1017

Profitability

Does it earn well?

95/100

Strong

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ ROIC
▲ Operating margin
▲ ROA

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin24.2%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 2.53Sector median: 0.0631 · MAD: 0.0710

Return on assets7.0%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.12Sector median: 0.0293 · MAD: 0.0362

Return on invested capital61.8%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentile33% base weight · Z-score 6.00Sector median: 0.0676 · MAD: 0.0857

Other data (not scored)

Gross margin46.4%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.3343 · MAD: 0.1632

Return on equity73.2%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentileInformational · 0% composite weightSector median: 0.0753 · MAD: 0.0889

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Current ratio
▼ Debt / equity

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.84

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score 0.08Sector median: 0.8710 · MAD: 0.3700

Current ratio1.05×

SEC filings · latest balance sheetReported value33% base weight · Z-score -1.14Sector median: 1.8295 · MAD: 0.6848

Debt / equity0.83×

SEC filings · latest balance sheetReported value33% base weight · Z-score -2.55Sector median: 0.2495 · MAD: 0.2270

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Automatic Data Processing

Is Automatic Data Processing getting weaker?: Its latest SEC filing (Sep 24, 2026) showed no major changes. Its overall score is unchanged at 56/100 since Oct 28, 2026.
How is Automatic Data Processing valued vs its peers?: Priced about in line with its peers. Valuation scores 58/100 against 1,711 technology peers. Earnings yield 3.8% vs a peer median of 2.2% (stronger than 66% of peers).Earnings yield 3.8% vs peers 2.2% (stronger than 66% of peers).
Is Automatic Data Processing growing?: At about the same pace as its peers. Growth scores 48/100 against 1,711 technology peers.
How profitable is Automatic Data Processing?: More profitable than most of its peers. Profitability scores 95/100 against 1,711 technology peers. Return on invested capital 61.8% vs a peer median of 6.8% (stronger than 95% of peers).Return on invested capital 61.8% vs peers 6.8% (stronger than 95% of peers).
How risky is Automatic Data Processing?: Higher risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Current ratio 1.05× vs a peer median of 1.83× (weaker than 86% of peers).Current ratio 1.05× vs peers 1.83× (weaker than 86% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Sep 24, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	21.6B USD	21.9B USD	+1.6%
Net income (12 months)	4.3B USD	4.4B USD	+1.6%
Operating margin	24.4%	24.2%	−0.2 pts
Debt	4.0B USD	5.0B USD	+25.0%
Cash	3.2B USD	4.2B USD	+31.0%
Shares outstanding	399.7M	397.3M	−0.6%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Software - Application · 81 companies

Valuations in Software - Application are near the bottom of their range since 2016.

6% of months since 2016 were valued lower than now.
8% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values −16% and earnings +31% (medians): earnings grew faster than prices.
Median price-to-sales is +85% vs the whole market, against a usual +235%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY Jun 2022	FY Jun 2023	FY Jun 2024	FY Jun 2025	FY Jun 2026	Change
Gross margin	42.6%	44.7%	45.4%	46.0%	46.4%	▲ 0.4 pts
Operating margin	23.1%	25.0%	25.8%	24.1%	24.2%	▲ 0.1 pts
Net margin	17.9%	18.9%	19.5%	19.8%	20.1%	▲ 0.3 pts
Return on assets (ROA)	4.7%	6.7%	6.9%	7.6%	7.0%	▼ 0.7 pts
Return on equity (ROE)	91.4%	97.2%	82.5%	65.9%	73.2%	▲ 7.2 pts
Current ratio	0.99×	0.99×	1.01×	1.05×	1.05×	▲ 0.3%
Debt to equity	0.93×	0.86×	0.66×	1.42×	0.83×	▼ 42%
Interest coverage	46.44×	17.79×	13.69×	10.87×	11.58×	▲ 6.5%

ADP price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Drawback: higher risk than most peers: less short-term liquidity (current ratio 1.05 vs a peer median of 1.83) and more debt relative to equity (0.83× vs a peer median of 0.25×)higher risk: less liquidity (current ratio 1.05 vs peers 1.83) and more debt vs equity (0.83× vs peers 0.25×)

About average: growth and valuation

Ranks #620 of 1,612 technology companies (top 39%)

See how it ranks against its peers

Worth knowing

Borrowing rising faster than profit. Since FY Jun 2023: debt +66%, operating profit +18%.

Automatic Data Processing's debt grew 66% since FY Jun 2023 while operating profit changed +18%.

Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $15.0B in FY Jun 2021 to $21.9B in FY Jun 2026.

Automatic Data Processing's fiscal-year revenue rose in each of the five years to FY Jun 2026, from $15.0B to $21.9B.

Profit is backed by cash. Free cash flow is 108% of reported profit.

Automatic Data Processing's free cash flow is 108% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.

Wide margins. Operating margin 24% (12 months to Jun 2026) vs a peer median of 6.3%.Operating margin 24% vs peers 6.3%.

Automatic Data Processing keeps 24% of revenue as operating profit, more than 90% of peers (median 6.3%).

Questions investors ask about Automatic Data Processing

Is Automatic Data Processing getting weaker?

Its latest SEC filing (Sep 24, 2026) showed no major changes. Its overall score is unchanged at 56/100 since Oct 28, 2026.

How is Automatic Data Processing valued vs its peers?

Priced about in line with its peers. Valuation scores 58/100 against 1,711 technology peers. Earnings yield 3.8% vs a peer median of 2.2% (stronger than 66% of peers).Earnings yield 3.8% vs peers 2.2% (stronger than 66% of peers).

Is Automatic Data Processing growing?

At about the same pace as its peers. Growth scores 48/100 against 1,711 technology peers.

How profitable is Automatic Data Processing?

More profitable than most of its peers. Profitability scores 95/100 against 1,711 technology peers. Return on invested capital 61.8% vs a peer median of 6.8% (stronger than 95% of peers).Return on invested capital 61.8% vs peers 6.8% (stronger than 95% of peers).

How risky is Automatic Data Processing?

Higher risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Current ratio 1.05× vs a peer median of 1.83× (weaker than 86% of peers).Current ratio 1.05× vs peers 1.83× (weaker than 86% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

21.6B USD

21.9B USD

+1.6%

Net income (12 months)

4.3B USD

4.4B USD

+1.6%

Operating margin

24.4%

24.2%

−0.2 pts

Debt

4.0B USD

5.0B USD

+25.0%

Cash

3.2B USD

4.2B USD

+31.0%

Shares outstanding

399.7M

397.3M

−0.6%

Key ratios

FY Jun 2022

FY Jun 2023

FY Jun 2024

FY Jun 2025

FY Jun 2026

Change

Gross margin

42.6%

44.7%

45.4%

46.0%

46.4%

▲ 0.4 pts

Operating margin

23.1%

25.0%

25.8%

24.1%

24.2%

▲ 0.1 pts

Net margin

17.9%

18.9%

19.5%

19.8%

20.1%

▲ 0.3 pts

Return on assets (ROA)

4.7%

6.7%

6.9%

7.6%

7.0%

▼ 0.7 pts

Return on equity (ROE)

91.4%

97.2%

82.5%

65.9%

73.2%

▲ 7.2 pts

Current ratio

0.99×

1.01×

1.05×

▲ 0.3%

Debt to equity

0.93×

0.86×

0.66×

1.42×

0.83×

▼ 42%

Interest coverage

46.44×

17.79×

13.69×

10.87×

11.58×

▲ 6.5%