Intrinsiqq

Automatic Data Processing Inc. (ADP) Quality Score

ADP
Quality79

Business quality remains strong (avg 90/100), but valuation is pulling the composite down (avg 70/100).

Broad-market heuristics · Not a buy/sell signal

Valuation and growth

Earnings Multiple
60/100
28.1x

25–30x, paying a growth premium

Cash Flow Multiple
80/100
23.3x

20–25x, moderate cash flow premium

Revenue Growth
70/100
6.8%

5–10% CAGR, steady but not exceptional

Cash Flow Growth
70/100
9.4%

5–10% CAGR, steady but not exceptional

Business Quality & Capital Allocation

Share Dilution
100/100
-3.0%

Shrinking >2%, active buybacks

Margin Trend
70/100
+0.6pp

Slight expansion, directionally positive

Capital Structure
90/100
$1.15B

Net debt/FCF of 0.2x, easily serviceable

2023
$2.10B
$3.44B
2024
$3.30B
$3.41B
2025
$7.85B
$9.17B
2026
$4.23B
$5.38B
Return on Capital
100/100
29.9%

Above 20%, exceptional capital efficiency

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Automatic Data Processing (ADP) quality: score, margins and returns

Automatic Data Processing (ADP) scores 79/100 on Intrinsiqq's quality score (a solid business), a weighted blend of 8 metrics each scored 0 to 100, on 24.2% operating margins and 29.9% ROIC. Every metric is computed from SEC filings; this is analysis, not investment advice.

Frequently asked

Is Automatic Data Processing (ADP) a high-quality business?+

Automatic Data Processing scores 79 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which rates it a solid business on these measures. Recent figures include a 24.2% operating margin and a 29.9% return on invested capital. Quality and price are separate questions: even a great business can be a poor investment if you overpay, so read this score alongside the valuation. The metric-by-metric breakdown is on this scorecard.

What does Automatic Data Processing's quality score measure?+

Intrinsiqq's quality score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, change in share count, and balance-sheet strength, each computed from ADP's SEC filings rather than opinion or sentiment. A higher score means a more durable, capital-efficient business; it is not a buy or sell signal. Open each metric on this page to see exactly where Automatic Data Processing scores well and where it falls behind.

What is Automatic Data Processing's return on invested capital (ROIC)?+

Automatic Data Processing earns about 29.9% on its invested capital, which is exceptional. ROIC measures how much profit a company generates per dollar put to work; sustained ROIC above its cost of capital is one of the clearest signs of a real competitive moat. Compare it to ADP's margins and growth on this scorecard to judge durability.

How profitable is Automatic Data Processing?+

Automatic Data Processing runs an operating margin of about 24.2% and a net margin of about 20.1%. Revenue has grown at roughly 7.9% a year recently. High, stable margins usually point to pricing power and operating discipline. Margins are most telling next to growth and returns on capital, all of which feed this quality score. This is analysis from SEC filings, not investment advice.

How the market compares: US profitability statistics

SourceQuality score computed from the 10-Q filed 31 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 28 Sept 2026. How this is calculated.

Fiscal year ends Jun. Sector medians are approximate S&P 500 benchmarks and update periodically. Checks use broad-market heuristics, so sector norms may differ, and the valuation checks are more cyclical than the quality checks.

Related stocks: Services-Computer Processing & Data Preparation

Spot a number that looks wrong? Check it in ADP's SEC filings or

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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.