Assessing Automatic Data Processing: Insights From 5 Financial Analysts

Automatic Data Processing ADP has been analyzed by 5 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

In the assessment of 12-month price targets, analysts unveil insights for Automatic Data Processing, presenting an average target of $254.0, a high estimate of $280.00, and a low estimate of $235.00. A 8.19% drop is evident in the current average compared to the previous average price target of $276.67.

Breaking Down Analyst Ratings: A Detailed Examination

A comprehensive examination of how financial experts perceive Automatic Data Processing is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Automatic Data Processing. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Automatic Data Processing compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Automatic Data Processing's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Automatic Data Processing's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Automatic Data Processing analyst ratings.

About Automatic Data Processing

ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 1 million clients primarily in the United States. ADP's employer services segment offers payroll, human capital management solutions, human resources outsourcing, insurance and retirement services. The smaller but faster-growing professional employer organization segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.

A Deep Dive into Automatic Data Processing's Financials

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Automatic Data Processing's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 5.79%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Automatic Data Processing's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 19.94% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 24.62%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.71%, the company showcases effective utilization of assets.

Debt Management: Automatic Data Processing's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.96.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.