ScoreWhy is Automatic Data Processing, Inc. ?
1
High Management Efficiency with a high ROCE of 78.05%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.67 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 7.77% and Operating profit at 11.96%
4
With a growth in Net Profit of 8.83%, the company declared Very Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at USD 5,452.4 MM
- DIVIDEND PER SHARE(HY) Highest at USD 6.07
- INTEREST COVERAGE RATIO(Q) Highest at 2,603.64
5
With ROCE of 69.22%, it has a attractive valuation with a 15.68 Enterprise value to Capital Employed
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -26.97%, its profits have risen by 7.8% ; the PEG ratio of the company is 3.4
6
High Institutional Holdings at 84.34%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Automatic Data Processing, Inc. should be less than 10%
- Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Automatic Data Processing, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Automatic Data Processing, Inc.
-26.97%
-0.34
24.78%
S&P 500
22.93%
1.75
13.09%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.77%
EBIT Growth (5y)
11.96%
EBIT to Interest (avg)
31.23
Debt to EBITDA (avg)
0.18
Net Debt to Equity (avg)
0.24
Sales to Capital Employed (avg)
2.02
Tax Ratio
23.24%
Dividend Payout Ratio
60.31%
Pledged Shares
0
Institutional Holding
84.34%
ROCE (avg)
78.05%
ROE (avg)
69.91%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
Price to Book Value
19.50
EV to EBIT
22.66
EV to EBITDA
20.51
EV to Capital Employed
15.68
EV to Sales
5.95
PEG Ratio
3.44
Dividend Yield
1.13%
ROCE (Latest)
69.22%
ROE (Latest)
66.25%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 5,452.4 MM
DIVIDEND PER SHARE(HY)
Highest at USD 6.07
INTEREST COVERAGE RATIO(Q)
Highest at 2,603.64
RAW MATERIAL COST(Y)
Fallen by -0.85% (YoY
CASH AND EQV(HY)
Highest at USD 5,698.8 MM
NET SALES(Q)
Highest at USD 5,939.2 MM
OPERATING PROFIT(Q)
Highest at USD 1,931.9 MM
OPERATING PROFIT MARGIN(Q)
Highest at 32.53 %
PRE-TAX PROFIT(Q)
Highest at USD 1,781.8 MM
NET PROFIT(Q)
Highest at USD 1,359.8 MM
EPS(Q)
Highest at USD 3.38
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Automatic Data Processing, Inc.
Operating Cash Flow
Highest at USD 5,452.4 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 2,603.64
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 6.07 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 5,939.2 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 1,931.9 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 32.53 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 1,781.8 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 1,359.8 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 3.38
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 5,698.8 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -0.85% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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