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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 39557.12. 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 86.74 (with a change from open of 0.36%), this in conjunction with a target price of 93.08. Volume today has so far reached 647280, with an average volume of about 1576. The GAP for this stock, is -0.51%.

The P/E ratio is 26.71, bringing the forward P/E to a value of 21.39. 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 4.43%.

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 78.80%. Shares outstanding is 455.36, while shares float is at a value of 453.88. Float short for Automatic Data Processing, Inc. is 1.25% and the short ratio is 3.6.

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 2.54. Price/Sales ratio is at a value of 3.39, with Price/book ratio coming to 8.79 and Price/cash is 12.31, and finally Price/Free cash Flow is 74.59.

The simple moving averages are -1.94% and 0.01% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -9.11% and the 52 week low is 15.25%.

Automatic Data Processing, Inc. has a dividend yield of 2.44%, with a current price of 86.74. 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 -0.81%, with performance for the month coming to 0.21%. Looking at the data for the quarter it is at a value of -8.22%, and for the half year the performance is 4.53%. Volatility for this week is 1.26% and for the month this is 1.19%.

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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