Risk factor
Very poor trading liquidity
Profitability factor
Very strong margins and returns
About
Automatic Data Processing, Inc. (ADP) offers cloud-based human capital management (HCM) solutions to organizations worldwide. The company operates through two main divisions: Employer Services and its Professional Employer Organization (PEO) segment. The Employer Services arm provides strategic online platforms and outsourced human resources capabilities, encompassing payroll processing, benefits administration, talent management, general HR oversight, workforce scheduling, insurance, retirement planning, and regulatory compliance services, alongside integrated HCM systems. In contrast, the PEO Services segment delivers comprehensive HR outsourcing to businesses via a co-employment model. Its offerings include employee benefits, protection and compliance, talent engagement strategies, expert guidance, extensive outsourcing, and external recruitment process management. Established in 1949, Automatic Data Processing, Inc. is headquartered in Roseland, New Jersey.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. In particular, the stock is reasonably priced on P/E, of fair value on EV/E