4 Analysts Have This To Say About Automatic Data Processing

Automatic Data Processing ADP has been analyzed by 4 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $313.75, a high estimate of $325.00, and a low estimate of $305.00. This current average reflects an increase of 4.93% from the previous average price target of $299.00.

Exploring Analyst Ratings: An In-Depth Overview

An in-depth analysis of recent analyst actions unveils how financial experts perceive Automatic Data Processing. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Automatic Data Processing. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.

To gain a panoramic view of Automatic Data Processing's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Automatic Data Processing analyst ratings.

Delving into Automatic Data Processing's Background

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.

Automatic Data Processing: Financial Performance Dissected

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Automatic Data Processing's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 6.23%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: Automatic Data Processing's net margin is impressive, surpassing industry averages. With a net margin of 20.88%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Automatic Data Processing's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 19.33%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Automatic Data Processing's ROA stands out, surpassing industry averages. With an impressive ROA of 1.84%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Automatic Data Processing's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.75, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: What Are They?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

Breaking: Wall Street's Next Big Mover

Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details.

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