This company combines impressive quality with a generous valuation: Automatic Data Processing Inc. (ADP)

As of close of business last night, Automatic Data Processing Inc.’s stock clocked out at 230.42, down -1.34% from its previous closing price of $233.54. In other words, the price has decreased by $-3.12 from its previous closing price. On the day, 1419056 shares were traded. ADP reached its highest trading level at $237.09 during the session, while it also had its lowest trading level at $230.34.

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To gain a deeper understanding of ADP’s stock, we examine its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 63.74 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 74.67. For the most recent quarter (mrq), Quick Ratio is recorded 1.00 and its Current Ratio is at 1.00. In the meantime, Its Debt-to-Equity ratio is 0.93 whereas as Long-Term Debt/Eq ratio is at 0.93.

Upgrades & Downgrades

On August 17, 2021, JP Morgan Downgraded its rating to Underweight which previously was Neutral but kept the price unchanged to $224.

Credit Suisse Downgraded its Outperform to Neutral on August 16, 2021, while the target price for the stock was maintained at $215.

Insider Transactions:

Investing in insider trades can also provide an investor with insight into how management views future stock prices. A recent insider transaction in this stock occurred on Sep 14 when Rodriguez Carlos A sold 52,254 shares for $234.70 per share. The transaction valued at 12,263,965 led to the insider holds 44,426 shares of the business.

Rodriguez Carlos A sold 37,594 shares of ADP for $8,945,641 on Sep 13. The President & CEO now owns 44,426 shares after completing the transaction at $237.95 per share. On Sep 08, another insider, D’Ambrosio Christopher, who serves as the Corp. VP of the company, sold 174 shares for $236.69 each. As a result, the insider received 41,184 and left with 3,157 shares of the company.

Valuation Measures:

As of this moment, Automatic’s Price-to-Earnings (P/E) ratio for their current fiscal year is 32.90, and their Forward P/E ratio for the next fiscal year is 25.79. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.27. For the stock, the TTM Price-to-Sale (P/S) ratio is 5.73 while its Price-to-Book (P/B) ratio in mrq is 29.69.

Stock Price History:

Over the past 52 weeks, ADP has reached a high of $261.59, while it has fallen to a 52-week low of $192.26. The 50-Day Moving Average of the stock is 239.49, while the 200-Day Moving Average is calculated to be 224.31.

Shares Statistics:

It appears that ADP traded 1.57M shares on average per day over the past three months and 2.07M shares per day over the past ten days. A total of 415.80M shares are outstanding, with a floating share count of 415.07M. Insiders hold about 0.10% of the company’s shares, while institutions hold 81.10% stake in the company. Shares short for ADP as of Jul 14, 2022 were 3.98M with a Short Ratio of 2.93, compared to 3.7M on Jun 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 0.95% and a Short% of Float of 0.95%.

Dividends & Splits

With its trailing 12-month dividend rate of 3.68, ADP has a forward annual dividend rate of 4.16. Against a Trailing Annual Dividend Yield of 1.58%, it implies a Forward Annual Dividend Yield of 1.73%. The stock’s 5-year Average Dividend Yield is 1.97. The current Payout Ratio is 56.00% for ADP, which recently paid a dividend on Sep 30, 2022 with an ex-dividend date of Jun 08, 2022. Stock splits for the company last occurred on Sep 30, 2014 when the company split stock in a 1139:1000 ratio.

Earnings Estimates

As of right now, 17 analysts gave their recommendation on the stock of the company. On average, analysts expect EPS of $1.81 for the current quarter, with a high estimate of $1.89 and a low estimate of $1.71, while EPS last year was $1.65. The consensus estimate for the next quarter is $1.92, with high estimates of $1.99 and low estimates of $1.84.

Analysts are recommending an EPS of between $8.18 and $7.4 for the fiscal current year, implying an average EPS of $7.97. EPS for the following year is $8.94, with 17 analysts recommending between $9.17 and $8.57.

Revenue Estimates

A total of 18 analysts have provided revenue estimates for ADP’s current fiscal year. The highest revenue estimate was $17.98B, while the lowest revenue estimate was $17.44B, resulting in an average revenue estimate of $17.83B. In the same quarter a year ago, actual revenue was $16.5B, up 8.10% from the average estimate. Based on 17 analysts’ estimates, the company’s revenue will be $19.14B in the next fiscal year. The high estimate is $19.61B and the low estimate is $18.68B. The average revenue growth estimate for next year is up 7.30% from the average revenue estimate for this year.