ADPNEUTRAL

Return on Equity (ROE)

65.9%

Higher than 89% of Industrials sector peers

Updated 1928h ago

Sector Performance

89th percentile

ADP

65.9%

Sector Median

12.6%

Sector Avg

-23.5%

📊

Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders’ equity, and ADP’s current 65.9% means it earns nearly 66 cents of profit for every dollar of equity.

This vastly exceeds the sector median of 10.8% and places ADP in the 93rd percentile among its Industrials peers, indicating exceptional profitability relative to competitors. Trend data is not available — both the year-over-year and quarter-over-quarter changes are listed as N/A, and no historical values beyond the current figure are provided. Without a trend, the high ROE level alone suggests strong operational efficiency, but the lack of direction makes it impossible to assess whether this performance is improving or deteriorating. The overall NEUTRAL verdict is not contradicted by this metric; the outstanding ROE supports a positive view, but the missing trend information prevents a stronger bullish assessment.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ADP?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ADP's Return on Equity (ROE) compare to its sector?

ADP's Return on Equity (ROE) of 65.9% compares to a Industrials sector median of 12.6%, placing it in the 89th percentile.

Who are ADP's closest peers by Return on Equity (ROE)?

The closest Industrials peers by Return on Equity (ROE) include: PWR (13.5%), RTX (11.6%), AME (13.9%), SAIA (10.2%), CARR (9.9%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.