Fundamental analysis · SEC EDGAR · as of 30/06/2026
ADP · Nasdaq · Technology
Fundamental quality
86
out of 100
Automatic Data Processing Inc fits the profile of a quality compounder: it pairs high return on capital (ROE 73.2%) with wide margins (net margin 20.1%) and a business that keeps growing (7.9% a year). On fundamental quality it scores 86 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +7.9%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
ADP is the largest payroll and human-resources company in the U.S. It processes the wages of millions of workers on behalf of employers. It's a sticky service: once a company entrusts it with payroll, it rarely switches.
EPS growth: 12.5% · Revenue growth: 7.9%
Net margin: 20.1% · ROE: 73.2% · ROIC: 70.5%
Net debt/EBITDA: 0.11x · FCF: 23.9%
Source: SEC EDGAR · as of 30/06/2026
The score includes +4 for dividend strength: 51 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.
The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.
Percentile against the other 100 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).
Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2021 | 15,005 | 2,599 | 2,915 | 411 |
| 2022 | 16,498 | 2,949 | 2,925 | 1,552 |
| 2023 | 18,012 | 3,412 | 4,001 | 907 |
| 2024 | 19,203 | 3,752 | 3,949 | 79 |
| 2025 | 20,561 | 4,080 | 4,771 | 628 |
| 2026 | 21,947 | 4,414 | 5,245 | 735 |
Between 2021 and 2026, revenue went from $15,005M to $21,947M (+46%) and net income went from $2,599M to $4,414M (+70%). Meanwhile, its margins have widened (from 17% to 20%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Latest results
Compared with the previous close (March 31, 2026), this is what moved in its accounts:
Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.
$6.64
per share, yearly
59.5% of earnings
Payout
51 straight years raising it
Growth
The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →
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Is Automatic Data Processing Inc cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is Automatic Data Processing Inc a good company to invest in?
In terms of business quality, Automatic Data Processing Inc scores 86 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Automatic Data Processing Inc a profitable company?
Very. Automatic Data Processing Inc shows a net margin of 20.1% and an ROE of 73.2%, typical of a highly profitable business.
Does Automatic Data Processing Inc have a lot of debt?
Not particularly. Its net debt is 0.11 times its EBITDA, a low level.
Is Automatic Data Processing Inc growing?
Its revenue has grown 7.9% annualized in recent years and its earnings per share 12.5%, and without interruption since 2021.
Does Automatic Data Processing Inc generate cash?
Yes. It converts about 23.9% of its revenue into free cash flow, and has done so positively year after year.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
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Who's behind the methodology and model · how the score is computed
Data: see Automatic Data Processing Inc's filings on EDGAR
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