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Is Automatic Data Processing, Inc.(NASDAQ: ADP), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Automatic Data Processing, Inc. (NASDAQ: ADP) has been on the stock market since its IPO date on the 4/6/1983. Automatic Data Processing, Inc. is in the Business Software & Services industry and Technology sector. Average volume for Automatic Data Processing, Inc., is 1792.03, and so far today it has a volume of 1240300. Performance year to date since the 4/6/1983 is 7.55%.

To help you determine whether Automatic Data Processing, Inc. is undervalued the following values will help you decide. P/E is 27.51 and forward P/E is 22.03. PEG perhaps more useful shows that Automatic Data Processing, Inc. has a value for PEG of 2.62. P/S ratio is 3.51 and the P/B ratio is 9.06. The P/Cash and P/Free cash flow is 12.73 and 77.17 respectively.

At the current price Automatic Data Processing, Inc. is trading at, 89.47 (-0.54% today), Automatic Data Processing, Inc. has a dividend yield of 2.37%, and this is covered by a payout ratio of 63.70%. Earnings per share (EPS) is 3.25, and this is looking to grow in the next year to 12.37% after growing 12.40% this past year. EPS growth quarter over quarter is 15.10%, and 8.50% for sales growth quarter over quarter.

The number of shares outstanding is 457.39, and the number of shares float is 455.45. The senior management bring insider ownership to 0.10%, and institutional ownership is at 78.40%. The float short is 1.04%, with the short ratio at a value of 2.65. Management has seen a return on assets of 3.50%, and also a return on investment of 22.80%.

The ability for Automatic Data Processing, Inc., to deal with debt, means it current ratio is 1.1, and quick ratio is 1.1. Long term debt/equity is 0.45 and total debt/equity is 0. In terms of margins, Automatic Data Processing, Inc. has a gross margin of 43.20%, with its operating margin at 19.00%, and Automatic Data Processing, Inc. has a profit margin of 12.80%.

The 52 week high is -6.25%, with 19.79% being its 52 week low. The 20 day simple moving average is -1.65% and the 200 day simple moving average is 3.70%.

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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Peter Clarke

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