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A look at a High Market Cap Stock: Automatic Data Processing, Inc., ADP

Automatic Data Processing, Inc., ADP is in the exchange NASDAQ and its industry is Business Software & Services in the sector of Technology. Based in USA, Automatic Data Processing, Inc., ADP  has a market cap of 42592.74. Since its IPO date on the 4/6/1983, Automatic Data Processing, Inc., ADP performance year to date is 12.89%. Today Automatic Data Processing, Inc., ADP has gained 0.72%, with a current price of 95.15.

Ownership of the company is 0.10% for insider ownership while institutional ownership is 78.70%. The management of the company have seen the company have a payout ratio of 60.60%. Return of assets are at 3.90%, with return on investment at 27.40%.

In terms of debt levels and profit levels, Automatic Data Processing, Inc., ADP is seeing a long-term debt/equity of 0.45. While Total debt/equity is 0. With a profit margin of 13.50%, this is combined with a gross margin of 43.00%, and operating margin of 18.80%. Automatic Data Processing, Inc. ability to meet debt levels, with a current ratio of 1.1, while the quick ratio is 1.1.

For the last year Automatic Data Processing, Inc., ADP has seen a EPS growth of 12.50%. A performance for the year of 20.02%. The 52-week high is 0.59%, and the 52-week low is 51.72%. The average volume for Automatic Data Processing, Inc., ADP is 3033.

With a target price of 89.69, can Automatic Data Processing, Inc., ADP reach this target? Looking at the value indicators of Automatic Data Processing, Inc., ADP. Automatic Data Processing, Inc. has a P/E of 29.79 and a forward P/E of 25.61. Perhaps the more useful indicator than P/E, is PEG which has a value of 2.86. Automatic Data Processing, Inc. also has a P/S and a P/B of 3.72 and 9.53 respectively. For P/cash, Automatic Data Processing, Inc. has a value of 14.36, while it is 130.65 for P/free cash flow.

At the current price of 95.15, Automatic Data Processing, Inc. has a dividend yield of 2.24%. We see a return on equity of 34.10%.

Looking more long-term Automatic Data Processing, Inc., is projected to get an EPS growth for the next five years of 10.40%. In the short-term an EPS growth of 13.75% in the next year is forecasted. This is after a EPS growth of 12.50% for this year and for the last five years a 3.80% growth has been seen.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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