Automatic Data Processing Inc.
ADP
Market Cap$118B
Close$
Earnings Call Q4 2025
July 30, 2025 - AI Summary
Strong Q4 and Fiscal 2025 Performance: ADP reported an 8% revenue growth in Q4 and 7% for the full fiscal 2025, with adjusted EBIT margin expansion of 50 basis points and adjusted EPS growth of 9%. This indicates a solid overall business performance despite certain challenges in bookings.
Bookings Growth Underperformance: The company achieved $2.1 billion in Employer Services (ES) new business bookings, a 3% growth that fell below expectations. Challenges were noted particularly in the HR Outsourcing (HRO) segment and some international markets, which experienced delays in client decision-making due to macroeconomic uncertainty. However, the overall pipeline remains healthy.
Retention Rates at Record Levels: Employee retention exceeded expectations, reaching 92.1%, which is nearing the record high of 92.2%. This metric points towards strong client satisfaction and indicates that current offerings are resonating well with clients, reducing churn risk.
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$342.88
17.7% upside
Current Fair Value
17.7% upsideUndervalued by 17.7% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $118.00 Billion |
|---|---|
| Enterprise Value | $123.99 Billion |
| Dividend Yield | $6.16 (2.11%) |
| Earnings per Share | $10.02 |
| Beta | 0.83 |
| Outstanding Shares | 406,000,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 28.99 |
|---|---|
| PEG | 295.72 |
| Price to Sales | 5.83 |
| Price to Book Ratio | 19.42 |
| Enterprise Value to Revenue | 6.03 |
| Enterprise Value to EBIT | 21.5 |
| Enterprise Value to Net Income | 30 |
| Total Debt to Enterprise | 0.08 |
| Debt to Equity | 1.51 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Automatic Data Processing Inc.
58,000 employees
CEO: Carlos Rodriguez ADP is a comprehensive global provider of cloud-based human capital management (HCM) solutions that unite HR, payroll, talent, time, tax and benefits administration, and a leader in business outsourcing services, analytics and compliance...