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CORPORATE BACKGROUND General In 1949, our founders established ADP with a simple, innovative idea: help clients focus on their business by solving their payroll challenges. In the more than 75 years since, we have shaped the world of work with innovation and expertise, transforming Human Capital Management ( HCM ) from an administrative challenge to a strategic business advantage.
$233.74
+$11.90 (+5.36%)
Price from 2 days ago
Margins and capital returns are both well above average: 24.10% operating margin, ROIC at 31.96%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 7.1%, steady but not accelerating.
ROIC dropped from 46.50% to 31.96%, capital efficiency is deteriorating.
21.8x earnings, 17.8x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$21.60B
▲ +7.1% YoY
Net Income (TTM)
$4.35B
▲ +8.7% YoY
Op. Margin
24.42%
▲ +0.2pp YoY
ROIC
29.90%
▼ -14.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$5.29B
▲ +20.8% YoY
Op. Cash Flow (TTM)
$5.45B
▲ +18.8% YoY
Net Debt
$1.17B
Cash & Equiv.
$3.23B
5Y CAGR: +7.1%
5Y CAGR: +10.8%
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