Automatic Data Financials

ADP Stock  USD 249.74  1.41  0.57%   
Based on the key measurements obtained from Automatic Data's financial statements, Automatic Data Processing is doing better financially then in previous quarter. It has a moderate probability of reporting better financial numbers in April. At this time, Automatic Data's Net Receivables is relatively stable compared to the past year. As of 03/29/2024, Common Stock Shares Outstanding is likely to grow to about 434.3 M, while Non Current Assets Total are likely to drop slightly above 7.7 B. Key indicators impacting Automatic Data's financial strength include:
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.110.18
Way Down
Slightly volatile
Return On Assets0.08060.077
Sufficiently Up
Slightly volatile
Return On Equity0.920.88
Sufficiently Up
Slightly volatile
Debt Equity Ratio1.931.84
Sufficiently Up
Slightly volatile
Operating Income5.4 B5.1 B
Sufficiently Up
Slightly volatile
Current Ratio1.761.13
Way Up
Pretty Stable
The financial analysis of Automatic Data is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for Automatic Data includes many different criteria found on its balance sheet. For example, investors should never minimize Automatic Data's ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor Automatic Data's cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in Automatic Data.

Net Income

4.12 Billion

With this module, you can analyze Automatic financials for your investing period. You should be able to track the changes in Automatic Data individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
  
Understanding current and past Automatic Data Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Automatic Data's financial statements are interrelated, with each one affecting the others. For example, an increase in Automatic Data's assets may result in an increase in income on the income statement.
Evaluating Automatic Data's financials involves analyzing a range of financial metrics and ratios to gain insights into the company's financial health and performance. However, considering all of Automatic Data's profitability, liquidity ratios, and efficiency indicators at the same time could be an enormous task, and our Financial Distress score can provide you with a snapshot of the Automatic Data's relative financial performance

Chance Of Distress

Less than 9

 
100  
 
Zero
Low
Automatic Data Processing has less than 9 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for Automatic Data stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity.
Please note, Automatic Data's odds of distress score SHOULD NOT be confused with the real chance of Automatic Data Processing filing for bankruptcy protection for chapters 7, 11, 12, or 13. We define Financial Distress as an operational condition where an entity such as Automatic is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from public financial statements and analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors considered include Automatic Data's liquidity analysis, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
More Info
The data published in Automatic Data's official financial statements usually reflect Automatic Data's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Automatic Data Processing. For example, before you start analyzing numbers published by Automatic accountants, it's critical to develop an understanding of what Automatic Data's liquidity, profitability, and earnings quality are in the context of the Professional Services space in which it operates.
Please note, the presentation of Automatic Data's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Automatic Data's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Automatic Data's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Automatic Data Processing. Please utilize our Beneish M Score to check the likelihood of Automatic Data's management manipulating its earnings.

Automatic Data Company Summary

Automatic Data competes with Tenaris SA, Orbit Garant, Superior Drilling, Bank Of America, and Montauk Renewables. Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. The company was founded in 1949 and is headquartered in Roseland, New Jersey. Automatic Data operates under Staffing Employment Services classification in the United States and is traded on NASDAQ Exchange. It employs 60000 people.
Foreign Associates
Specialization
Industrials, Commercial & Professional Services
InstrumentUSA Stock View All
ExchangeNASDAQ Exchange
CIK Number0000008670
ISINUS0530151036
CUSIP053015103
RegionNorth America
LocationNew Jersey; U.S.A
Business AddressOne ADP Boulevard,
SectorProfessional Services
IndustryIndustrials
BenchmarkNYSE Composite
Websitewww.adp.com
Phone973 974 5000
CurrencyUSD - US Dollar
You should never invest in Automatic Data without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Automatic Stock, because this is throwing your money away. Analyzing the key information contained in Automatic Data's financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

Automatic Data Key Financial Ratios

Generally speaking, Automatic Data's financial ratios allow both analysts and investors to convert raw data from Automatic Data's financial statements into concise, actionable information that can be used to evaluate the performance of Automatic Data over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Automatic Data Processing reports annually and quarterly.

Automatic Data Key Balance Sheet Accounts

201920202021202220232024 (projected)
Total Assets39.2B48.8B63.1B51.0B58.6B61.5B
Other Current Liab28.8B37.7B54.7B38.6B44.4B46.7B
Net Debt440.5M753M2.1B1.3B1.1B1.2B
Retained Earnings18.4B19.5B20.7B22.1B25.4B26.7B
Cash1.9B2.6B1.4B2.1B2.4B1.4B
Net Receivables2.4B2.7B3.2B3.0B3.5B3.6B
Good Will2.3B2.3B2.3B2.3B2.7B1.9B
Inventory26.7B34.9B49.6B36.3B41.8B43.9B
Other Current Assets506.2M533.4M50.2B743.9M855.5M812.7M
Total Liab33.4B43.1B59.8B47.5B54.6B57.3B
Total Current Assets31.6B40.7B54.8B42.2B48.5B50.9B
Short Term Debt1.0B23.5M136.4M3.8B4.4B4.6B
Intangible Assets1.2B1.2B1.3B1.3B1.5B1.1B
Accounts Payable102M141.1M110.2M96.8M111.3M138.1M
Other Liab1.9B1.7B1.3B1.4B1.2B1.2B
Other Assets2.9B3.3B3.5B4.0B3.6B5.1B
Long Term Debt1.0B3.0B3.0B3.0B3.4B3.6B
Treasury Stock(14.1B)(15.4B)(17.3B)(18.5B)(16.6B)(15.8B)
Net Tangible Assets2.2B2.1B(408.3M)(173.9M)(156.5M)(148.7M)
Capital Surpluse1.3B1.5B1.8B2.1B2.4B2.5B

Automatic Data Key Income Statement Accounts

An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what Automatic Data's earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
201920202021202220232024 (projected)
Interest Expense107.1M59.7M81.9M253.3M291.3M305.9M
Total Revenue14.0B14.6B16.0B17.2B19.8B20.8B
Gross Profit5.6B5.9B6.6B7.2B8.3B8.7B
Operating Income3.3B3.4B3.9B4.5B5.1B5.4B
Ebit3.3B3.4B3.9B4.7B5.4B5.7B
Ebitda3.8B3.9B4.4B5.3B6.0B6.3B
Cost Of Revenue8.4B8.6B9.5B10.0B11.4B12.0B
Income Before Tax3.2B3.4B3.8B4.4B5.1B5.4B
Net Income2.5B2.6B2.9B3.4B3.9B4.1B
Income Tax Expense716.1M762.7M855.2M1.0B1.2B1.2B
Research Development674.1M716.6M798.6M844.8M971.5M591.6M
Tax Provision716.1M762.7M855.2M1.0B1.2B837.9M
Net Interest Income(107.1M)(23.2M)410.9M709.6M816.0M856.8M
Interest Income84.5M36.5M492.8M962.9M1.1B1.2B

Automatic Data Key Cash Accounts

Cash flow analysis captures how much money flows into and out of Automatic Data Processing. It measures of how well Automatic is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money Automatic Data brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money Automatic had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what Automatic Data has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201920202021202220232024 (projected)
Change In Cash257.4M6.1B9.6B(14.0B)(12.6B)(12.0B)
Free Cash Flow2.4B2.6B2.5B3.6B4.2B4.4B
Depreciation480M510.7M515.1M549.3M631.7M332.6M
Dividends Paid(1.5B)(1.6B)(1.7B)(1.9B)(1.7B)(1.6B)
Capital Expenditures616.4M505.9M553.4M571.6M657.3M690.2M
Net Income2.5B2.6B2.9B3.4B3.9B4.1B
End Period Cash Flow7.1B13.1B22.8B8.8B10.1B10.6B
Other Non Cash Items1.0B997.3M1.0B1.0B1.2B1.3B
Change To Inventory107.7M266M(77.5M)(938.7M)(1.1B)(1.0B)
Investments3.7B(3.0B)(6.5B)(2.5B)(2.3B)(2.2B)
Change Receivables(113.8M)(339.8M)(486.5M)129.2M116.3M122.1M
Net Borrowings(2.2M)989.6M127.4M(1M)(1.2M)(1.1M)
Change To Netincome220.1M(13.8M)318.6M291.8M335.6M211.1M

Automatic Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Automatic Data's current stock value. Our valuation model uses many indicators to compare Automatic Data value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Automatic Data competition to find correlations between indicators driving Automatic Data's intrinsic value. More Info.
Automatic Data Processing is number one stock in return on asset category among related companies. It is number one stock in price to earning category among related companies reporting about  669.17  of Price To Earning per Return On Asset. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Automatic Data by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Automatic Data's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Automatic Data's earnings, one of the primary drivers of an investment's value.

Automatic Data Processing Systematic Risk

Automatic Data's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Automatic Data volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
Incorrect Input. Please change your parameters or increase the time horizon required for running this function. The output start index for this execution was zero with a total number of output elements of zero. The Beta measures systematic risk based on how returns on Automatic Data Processing correlated with the market. If Beta is less than 0 Automatic Data generally moves in the opposite direction as compared to the market. If Automatic Data Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Automatic Data Processing is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Automatic Data is generally in the same direction as the market. If Beta > 1 Automatic Data moves generally in the same direction as, but more than the movement of the benchmark.

About Automatic Data Financials

What exactly are Automatic Data Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include Automatic Data's income statement, its balance sheet, and the statement of cash flows. Potential Automatic Data investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Automatic Data investors may use each financial statement separately, they are all related. The changes in Automatic Data's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Automatic Data's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

Steps to analyze Automatic Data Financials for Investing

There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Automatic Data is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Automatic has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.
In summary, you can determine if Automatic Data's financials are consistent with your investment objective using the following steps:
  • Review Automatic Data's balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
  • Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
  • Study the cash flow inflows and outflows to understand Automatic Data's liquidity and solvency.
  • Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
  • Compare Automatic Data's financials to those of its peers to see how it stacks up and identify any potential red flags.
  • Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Automatic Data's stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.

Automatic Data Thematic Clasifications

Automatic Data Processing is part of Macroaxis Picks investing theme. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. Macroaxis daily picks. Daily selected watch list of stocks of large companies handpicked by Macroaxis Team based on their diversification potential
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Today, most investors in Automatic Data Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Automatic Data's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Automatic Data growth as a starting point in their analysis.

Price Earnings To Growth Ratio

1.24

At this time, Automatic Data's Price Earnings To Growth Ratio is relatively stable compared to the past year.

Automatic Data March 29, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of Automatic Data help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Automatic Data Processing. We use our internally-developed statistical techniques to arrive at the intrinsic value of Automatic Data Processing based on widely used predictive technical indicators. In general, we focus on analyzing Automatic Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Automatic Data's daily price indicators and compare them against related drivers.
When determining whether Automatic Data Processing is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Automatic Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Automatic Data Processing Stock. Highlighted below are key reports to facilitate an investment decision about Automatic Data Processing Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Automatic Data Processing. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment.
Note that the Automatic Data Processing information on this page should be used as a complementary analysis to other Automatic Data's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.

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When running Automatic Data's price analysis, check to measure Automatic Data's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Automatic Data is operating at the current time. Most of Automatic Data's value examination focuses on studying past and present price action to predict the probability of Automatic Data's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Automatic Data's price. Additionally, you may evaluate how the addition of Automatic Data to your portfolios can decrease your overall portfolio volatility.
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Is Automatic Data's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Automatic Data. If investors know Automatic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Automatic Data listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.092
Dividend Share
5.15
Earnings Share
8.64
Revenue Per Share
45.09
Quarterly Revenue Growth
0.063
The market value of Automatic Data Processing is measured differently than its book value, which is the value of Automatic that is recorded on the company's balance sheet. Investors also form their own opinion of Automatic Data's value that differs from its market value or its book value, called intrinsic value, which is Automatic Data's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Automatic Data's market value can be influenced by many factors that don't directly affect Automatic Data's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Automatic Data's value and its price as these two are different measures arrived at by different means. Investors typically determine if Automatic Data is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Automatic Data's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.