Automatic Data Processing, Inc.ADP
NASDAQ • Industrials
$188.79
P/E
18.14
PEG
0.02
FCF Yield
—
Rev Growth YoY
+659.0% YoY
Gross Margin
4616.0%
Health Score
6/10
D/E Ratio
1.41
Confidence
LOW
Business Snapshot
Automatic Data Processing, Inc. is a leading provider of human capital management (HCM) solutions, including payroll processing, tax compliance, HR software, and workforce management services for businesses of all sizes globally. The company operates primarily within the Staffing & Employment Services industry on the NASDAQ exchange. Based on a current price of $188.79 and the data available, ADP is a well-established large-cap enterprise, though a precise market capitalisation figure is not available in this payload for confirmation.
Financial Health
**Score: 6/10** ADP's reported gross margin of 4,616% and net margin of 1,996% appear anomalous — figures of this magnitude almost certainly reflect a data normalisation or accounting quirk (such as client fund flows being netted) rather than true operational margins, and should be treated with caution rather than taken at face value. Debt/equity of 1.41x is manageable but not negligible, sitting at a moderate leverage level that warrants monitoring...
Risk Assessment
- **TECHNICAL DETERIORATION:** ADP's price of $188.79 sits below both its 50-day moving average of $213.52 and its 200-day moving average of $261.01, with an active death cross (50-day crossing below 200-day) — a bearish structural signal. - **52-WEEK DRAWDOWN:** The stock has fallen to a new 52-week low of $188.16, representing a decline of approximately 43% from its 52-week high of $329.93. - **DATA INTEGRITY:** Reported gross margins of 4,616% and revenue growth of 659% YoY are statistically implausible for a mature large-cap and suggest underlying data normalisation issues that compromise the reliability of fundamental analysis. - **ANALYST SENTIMENT:** Only 35% of analysts rate ADP a Buy, with 52% recommending Hold and the consensus sitting at Sell — a notable lack of Wall Street conviction at current price levels. - **COMPLIANCE RISK:** Recent news highlights compliance mistakes risking client retirement plans, which represents a reputational and regulatory risk for a company whose core value proposition is accuracy and trust in payroll and HR administration. ---...