Automatic Data Processing Stock Buy Hold or Sell Recommendation
| ADP Stock | USD 241.99 0.91 0.37% |
Considering the 90-day investment horizon and your below-average risk tolerance, our recommendation regarding Automatic Data Processing is 'Hold'. Macroaxis provides Automatic Data buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding ADP positions. The advice algorithm takes into account all of Automatic Data's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Automatic Data's buy or sell advice are summarized below:
Real Value 251.6 | Target Price 259.93 | Hype Value 241.91 | Market Value 241.99 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Automatic Data Processing given historical horizon and risk tolerance towards Automatic Data. When Macroaxis issues a 'buy' or 'sell' recommendation for Automatic Data Processing, the advice is generated through an automated system that utilizes algorithms and statistical models.
Automatic |
Execute Automatic Data Buy or Sell Advice
The Automatic recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Automatic Data Processing. Macroaxis does not own or have any residual interests in Automatic Data Processing or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Automatic Data's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Automatic Data Trading Alerts and Improvement Suggestions
| The company has 3.34 B in debt with debt to equity (D/E) ratio of 1.4, which is OK given its current industry classification. Automatic Data Processing has a current ratio of 0.95, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Automatic Data until it has trouble settling it off, either with new capital or with free cash flow. So, Automatic Data's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Automatic Data Processing sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Automatic to invest in growth at high rates of return. When we think about Automatic Data's use of debt, we should always consider it together with cash and equity. | |
| Automatic Data has a strong financial position based on the latest SEC filings | |
| Over 84.0% of Automatic Data shares are held by institutions such as insurance companies | |
| On 1st of April 2024 Automatic Data paid $ 1.4 per share dividend to its current shareholders | |
| Latest headline from benzinga.com: 100 Invested In This Stock 10 Years Ago Would Be Worth 400 Today |
Automatic Data Returns Distribution Density
The distribution of Automatic Data's historical returns is an attempt to chart the uncertainty of Automatic Data's future price movements. The chart of the probability distribution of Automatic Data daily returns describes the distribution of returns around its average expected value. We use Automatic Data Processing price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Automatic Data returns is essential to provide solid investment advice for Automatic Data.
| Mean Return | 0.05 | Value At Risk | -1.4 | Potential Upside | 1.37 | Standard Deviation | 0.83 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Automatic Data historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Automatic Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Automatic Data is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Automatic Data Processing backward and forwards among themselves. Automatic Data's institutional investor refers to the entity that pools money to purchase Automatic Data's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Northern Trust Corp | 2023-12-31 | 5.7 M | Wellington Management Company Llp | 2023-12-31 | 5.5 M | Goldman Sachs Group Inc | 2023-12-31 | 4.8 M | State Farm Mutual Automobile Ins Co | 2023-12-31 | 3.7 M | Ameriprise Financial Inc | 2023-12-31 | 3.5 M | Capital Research Global Investors | 2023-12-31 | 3.5 M | Legal & General Group Plc | 2023-12-31 | 3.4 M | Amundi | 2023-12-31 | 3.2 M | Amvescap Plc. | 2023-12-31 | 3.2 M | Vanguard Group Inc | 2023-12-31 | 39.6 M | Blackrock Inc | 2023-12-31 | 33.3 M |
Automatic Data Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 257.4M | 6.1B | 9.6B | (14.0B) | (12.6B) | (12.0B) | |
| Free Cash Flow | 2.4B | 2.6B | 2.5B | 3.6B | 4.2B | 4.4B | |
| Depreciation | 480M | 510.7M | 515.1M | 549.3M | 631.7M | 332.6M | |
| Dividends Paid | (1.5B) | (1.6B) | (1.7B) | (1.9B) | (1.7B) | (1.6B) | |
| Capital Expenditures | 616.4M | 505.9M | 553.4M | 571.6M | 657.3M | 690.2M | |
| Net Income | 2.5B | 2.6B | 2.9B | 3.4B | 3.9B | 4.1B | |
| End Period Cash Flow | 7.1B | 13.1B | 22.8B | 8.8B | 10.1B | 10.6B | |
| Other Non Cash Items | 1.0B | 997.3M | 1.0B | 1.0B | 1.2B | 1.3B | |
| Change To Inventory | 107.7M | 266M | (77.5M) | (938.7M) | (1.1B) | (1.0B) | |
| Investments | 3.7B | (3.0B) | (6.5B) | (2.5B) | (2.3B) | (2.2B) | |
| Change Receivables | (113.8M) | (339.8M) | (486.5M) | 129.2M | 116.3M | 122.1M | |
| Net Borrowings | (2.2M) | 989.6M | 127.4M | (1M) | (1.2M) | (1.1M) | |
| Change To Netincome | 220.1M | (13.8M) | 318.6M | 291.8M | 335.6M | 211.1M |
Automatic Data Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Automatic Data or Professional Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Automatic Data's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Automatic stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | 0.02 | |
β | Beta against NYSE Composite | 0.45 | |
σ | Overall volatility | 0.84 | |
Ir | Information ratio | -0.02 |
Automatic Data Volatility Alert
Automatic Data Processing has low volatility with Treynor Ratio of 0.1, Maximum Drawdown of 4.79 and kurtosis of 1.53. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Automatic Data's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Automatic Data's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Automatic Data Implied Volatility
Automatic Data's implied volatility exposes the market's sentiment of Automatic Data Processing stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Automatic Data's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Automatic Data stock will not fluctuate a lot when Automatic Data's options are near their expiration.
Automatic Data Fundamentals Vs Peers
Comparing Automatic Data's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Automatic Data's direct or indirect competition across all of the common fundamentals between Automatic Data and the related equities. This way, we can detect undervalued stocks with similar characteristics as Automatic Data or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Automatic Data's fundamental indicators could also be used in its relative valuation, which is a method of valuing Automatic Data by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Automatic Data to competition |
| Fundamentals | Automatic Data | Peer Average |
| Return On Equity | 0.97 | -0.31 |
| Return On Asset | 0.0532 | -0.14 |
| Profit Margin | 0.19 % | (1.27) % |
| Operating Margin | 0.26 % | (5.51) % |
| Current Valuation | 101.18 B | 16.62 B |
| Shares Outstanding | 410.79 M | 571.82 M |
| Shares Owned By Insiders | 0.11 % | 10.09 % |
| Shares Owned By Institutions | 83.67 % | 39.21 % |
| Number Of Shares Shorted | 4.56 M | 4.71 M |
| Price To Earning | 35.60 X | 28.72 X |
| Price To Book | 23.20 X | 9.51 X |
| Price To Sales | 5.39 X | 11.42 X |
| Revenue | 17.2 B | 9.43 B |
| Gross Profit | 8.51 B | 27.38 B |
| EBITDA | 5.26 B | 3.9 B |
| Net Income | 3.41 B | 570.98 M |
| Cash And Equivalents | 1.23 B | 2.7 B |
| Cash Per Share | 2.97 X | 5.01 X |
| Total Debt | 3.34 B | 5.32 B |
| Debt To Equity | 1.40 % | 48.70 % |
| Current Ratio | 0.97 X | 2.16 X |
| Book Value Per Share | 10.52 X | 1.93 K |
| Cash Flow From Operations | 4.21 B | 971.22 M |
| Short Ratio | 1.94 X | 4.00 X |
| Earnings Per Share | 8.60 X | 3.12 X |
| Price To Earnings To Growth | 2.69 X | 4.89 X |
| Target Price | 259.16 | |
| Number Of Employees | 63 K | 18.84 K |
| Beta | 0.79 | -0.15 |
| Market Capitalization | 99.41 B | 19.03 B |
| Total Asset | 50.97 B | 29.47 B |
| Retained Earnings | 22.12 B | 9.33 B |
| Working Capital | (597 M) | 1.48 B |
Note: Acquisition by Sandra Wijnberg of 1574 shares of Automatic Data subject to Rule 16b-3 [view details]
Automatic Data Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Automatic . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 0.0136 | |||
| Daily Balance Of Power | (0.27) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 243.33 | |||
| Day Typical Price | 242.89 | |||
| Market Facilitation Index | 3.33 | |||
| Price Action Indicator | (1.80) | |||
| Period Momentum Indicator | (0.91) |
About Automatic Data Buy or Sell Advice
When is the right time to buy or sell Automatic Data Processing? Buying financial instruments such as Automatic Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 3.5B | 3.3B | 3.8B | 4.0B | Total Assets | 63.1B | 51.0B | 58.6B | 61.5B |
Use Investing Ideas to Build Portfolios
In addition to having Automatic Data in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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An experimental equal-weighted theme of equities with high dividend yield and solid fundamentals based on Macroaxis rating system. The Dividend Beast theme has 69 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Dividend Beast Theme or any other thematic opportunities.
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Check out Automatic Data Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Complementary Tools for Automatic Stock analysis
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 8.6 | 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.