Automatic Data Processing, Inc.ADP

Technology
Neutral

ASignal's systematic analysis rates ADP as Neutral. Automatic Data Processing, Inc. has a market cap of $106.00B, a P/E of 24.33, a 20.1% net margin, and 6.8% year-over-year revenue growth.

Reflects the latest available analysis · analyzed Aug 1, 2026

The case on ADP

Bull vs bear, surfaced by ASignal's framework agents from public market data. The precise verdict: ASignal Rank, confidence, and price targets - is in the app.

Bull case
  • MACD above signal line with expanding histogram indicating strengthening uptrend
  • Price trading above both SMA20 and SMA50, confirming uptrend
  • Strong free cash flow of $5.34B supporting financial stability
  • High return on equity (72.24%) indicating excellent capital efficiency
  • Operating margin of 23.13% showing pricing power and cost control
  • Forward P/E of 19.90x below current P/E, suggesting earnings growth expectations
VS
Bear case
  • Quick ratio of 0.15x indicates potential short-term liquidity concerns
  • PEG ratio of 2.55x suggests overvaluation relative to growth rate
  • High price-to-book ratio of 16.81x compared to sector median
  • Dividend yield of 258.00% appears erroneous or misreported
  • Low Reddit mentions (1) indicating limited retail investor interest

Key facts

Sector
Technology
Market cap
$106.00B
P/E ratio
24.33
Gross margin
48.6%
Net margin
20.1%
Rev growth YoY
6.8%
Price (Aug 1, 2026)
$266.46

Peers

Clustered with ADP by analysis-profile similarity.

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See the full verdict on ADP

ASignal Rank (1-4), confidence score, Buffett / Ackman / Dalio grades, price targets, and the full reasoning behind the call.

How ASignal analyzes ADP

Most investors never get a second opinion, let alone several. ASignal runs ADP past a panel of specialized investor-framework agents, each calibrated on a distinct school of investing: Warren Buffett's value discipline, Bill Ackman's activist lens, and Ray Dalio's macro view. They don't just score in isolation, they argue: a dedicated Challenger agent pushes back on every conclusion until the panel settles on a reasoned consensus, weighing fundamentals, macro conditions, market sentiment, and price action together. The kind of cross-examined read that takes a research desk hours, ASignal delivers in under two minutes, refreshed every cycle.

The signal direction and the bull and bear case above are free. The precise read, ASignal Rank, framework grades, price targets, and full reasoning, stays with subscribers.

Automatic Data Processing, Inc. (ADP) Stock Analysis - ASignal rates it Neutral