Stock Updates

Automatic Data Processing, Inc. (NASDAQ: ADP) – Is this large market cap stock undervalued?

Automatic Data Processing, Inc. (NASDAQ: ADP), is firmly in the large market cap category with market cap of 39735.53. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Automatic Data Processing, Inc. is 87.45 (with a change from open of -1.84%), this in conjunction with a target price of 93.08. Volume today has so far reached 2094500, with an average volume of about 1683.6. The GAP for this stock, is 0.16%.

The P/E ratio is 26.89, bringing the forward P/E to a value of 21.53. The current EPS for Automatic Data Processing, Inc., is 3.25, with a EPS growth for this year coming to a value of 12.40%. Performance has been interesting with performance year to date coming to 5.12%.

Looking further into the growth statistics for Automatic Data Processing, Inc., EPS is looking like it will grow 12.49% in the next year. Looking even further it is projected to be 10.50%. Quarter over quarter is 15.10% for EPS growth and for sales growth quarter over quarter it is 8.50%. Looking at past EPS growth statistics we see that for the past five years it has been 5.40%. Sales growth for the past five years has in fact been 3.50%.

Looking at the ownership, we see that the insider ownership is at 0.10% and institutional ownership is 78.60%. Shares outstanding is 454.38, while shares float is at a value of 453.74. Float short for Automatic Data Processing, Inc. is 1.09% and the short ratio is 2.93.

In terms of debt, long term debt/equity is 0.45, while the total debt/equity comes to 0. The ability to meet these debts, means that the current ratio is 1.1, and the quick ratio is 1.1. The most recent gross margin is 43.20% and their operating margin is 19.00%. The profit margin is 12.80%.

Automatic Data Processing, Inc. has seen returns on assets of 3.50%, and on investment, 22.80%. Return on equity is 33.50%. Price/Earnings to growth ratio is 2.56. Price/Sales ratio is at a value of 3.41, with Price/book ratio coming to 8.85 and Price/cash is 12.36, and finally Price/Free cash Flow is 74.93.

The simple moving averages are -2.39% and 1.08% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -8.37% and the 52 week low is 16.19%.

Automatic Data Processing, Inc. has a dividend yield of 2.42%, with a current price of 87.45. The ability to pay this means the payout ratio is 63.70%. This is in an industry, Business Software & Services, with equally high dividends from other companies in this sector, which it is Technology. Automatic Data Processing, Inc. is based in USA.

Performance in the Business Software & Services industry means that Automatic Data Processing, Inc. has seen performance for the past week of -1.61%, with performance for the month coming to -1.81%. Looking at the data for the quarter it is at a value of -1.30%, and for the half year the performance is 13.30%. Volatility for this week is 1.13% and for the month this is 1.24%.

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.

About the author

Stephen Butters

Leave a Comment