Comprehensive Review: Automatic Data Processing, Inc. (ADP)


Trading Statistics:

Automatic Data Processing, Inc. (ADP) closed its previous trading session at $103.04 with the gain of 0.95%. The company’s market cap is $46.05 Billion, and the average volume is 1.77 Million. The 1-year High price of the stock is $05.20, while the 1-year low price is $82.40. The Price to Sales (P/S) ratio of the stock is 3.82, while P/B (Price to Book) stands at 12.01. When we look at the Volatility of the company, Week Volatility is at 1.08% whereas Month Volatility is at 1.06%.

Earnings Forecast:

An earnings forecast is an analyst’s outlook for a company’s future quarterly or annual earnings. Future earnings predictions are perhaps the most essential input when trying to value a company.

12 analysts on average are expecting Automatic Data Processing, Inc. to report earnings of $0.95 per share for the current quarter. The Lower end of the earnings estimate is $0.91, while the higher end of the earnings estimate is $0.97. Comparatively, ADP posted earnings of $0.99 per share in the same quarter, a year earlier.

Revenue Forecast:

Analysts’ ultimate objective when projecting revenue is to determine the appropriate value for a stock.

9 analysts on average are expecting the company to report revenue of $3.19 Billion for the current quarter. The Higher end of the revenue forecast is $3.22 Billion, while the Lower end of the forecast is $3.15 Billion. ADP generated revenue of $3.33 Billion in the same quarter, one year ago.

Price Target Estimates:

Price targets show what analysts believes a stock will be worth at the end of a certain time period. Price Target plays a critical role when it comes to the analysis of a Stock.

Analysts on average have given a price target of $100 to Automatic Data Processing, Inc. (ADP) stock.

(According to data compiled by finviz)

Simple Moving Average Analysis:

Moving average is significant analytical tool used to discover current price trends and the possibility for a change in an established trend. Simple moving average analysis helps investors to quickly identify if a security is in an uptrend or downtrend.

According to Finviz reported data, The SMA20 of the stock is at 0.76 percent, SMA50 is 1.14 percent, while SMA200 is 8.69 percent.

Return on Assets (ROA) Analysis:

ROA ratio indicates how profitable a company is relative to its total assets. The return on assets ratio shows how well management is employing the company’s total assets to make a profit. The bigger the return, the more efficient management is in utilizing its asset base. The ROA ratio is calculated by comparing net income to average total assets, and is expressed as a percentage.

Automatic Data Processing, Inc. (ADP) currently has a Return on Assets (ROA) value of 4 Percent.

Return on Investment (ROI) Analysis:

Return on Investment measures the amount of return on an investment relative to the investment’s cost. The Return on Investment (ROI) ratio of Automatic Data Processing, Inc. (ADP) is 22.8 percent.

Return on Equity (ROE) Analysis:

ROE ratio is a measure of profitability which calculates how much dollars of profit a firm makes with every dollar of stakeholder’s equity. An increasing ROE indicates that a company is improving its ability to make profit without requiring as much capital.

Usually, the ROE ratio’s between 12-15 percent are considered desirable. The Return on Equity ratio of Automatic Data Processing, Inc. (ADP) is 39.7 percent, according to data compiled by Finviz

Analysts Ratings:

A stock rating usually tells investors how well a stock’s market value relates to what analysts think is a fair value for the stock, based on an independent evaluation of the company.

According to the Recommendation Trends of the stock polled by Zacks Investment Research for this month, the company has a consensus recommendation of 2.5 out of the scale from 1 to 5 where 1 stands for Strong Buy and 5 means Strong Sell.

Growth Analysis:

Automatic Data Processing, Inc.’s growth estimate for the current quarter is 5.1 percent, and 1.4 percent for the next quarter. Expected growth of Automatic Data Processing, Inc. (ADP) for the next year 5 years is 11.52 percent (per annum), as compared to 3.71 percent (per annum) in the past 5 years. (These Growth Estimates are reported by Yahoo Finance)

Stock Price Analysis:

The purpose of a stock price analysis is to study the behaviour of stock prices. It helps investors in determining whether buying, selling or holding on to a stock would be beneficial for them.

Automatic Data Processing, Inc. (ADP) stock price rose 12.49 percent over the past one year, while increased 16.74 percent during the past 6 months. The stock plummeted -1.55 percent over the past month and fell -0.69 percent year-to-date. The stock’s quarterly performance represents pessimistic momentum of -0.82 percent.