Assessing Automatic Data Processing: Insights From 6 Financial Analysts

Automatic Data Processing ADP underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Automatic Data Processing, revealing an average target of $313.17, a high estimate of $321.00, and a low estimate of $298.00. This current average reflects an increase of 0.92% from the previous average price target of $310.33.

Investigating Analyst Ratings: An Elaborate Study

The perception of Automatic Data Processing by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Automatic Data Processing. This information offers a snapshot of how analysts perceive 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: Delving into movements, analysts provide estimates for the future value of Automatic Data Processing's stock. This analysis reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Automatic Data Processing's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Automatic Data Processing analyst ratings.

Delving into Automatic Data Processing's Background

Automatic Data Processing is a global technology company providing cloud-based human capital management solutions enabling clients to better implement payroll, talent, time, tax, and benefits administration. Additionally, ADP provides human resource outsourcing solutions that allow customers to offload some of their traditional HR tasks. The company operates through two segments: employer services and the professional employer organization services. Employer services consists of the company's HCM products as well as a la carte HRO solutions. PEO services contains ADP's comprehensive HRO solution where it acts as a co-employer with its customer. As of fiscal 2024, ADP serves over 1.1 million clients and pays over 42 million workers across 140 countries.

A Deep Dive into Automatic Data Processing's Financials

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Positive Revenue Trend: Examining Automatic Data Processing's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.37% as of 31 March, 2025, showcasing a substantial increase in 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 24.04%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 22.86%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Automatic Data Processing's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.07% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Automatic Data Processing's debt-to-equity ratio is below the industry average at 0.73, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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