Automatic Data Processing Inc. (ADP) earns a Roarable Rating of B (Buy) with 74/100 RQD Confidence. High-quality cash engine (46% profit margin, 43% return on capital) with steady institutional support. The company’s underlying cash engine and institutional positioning keep the composite score in the Green Buy zone.
As of 2026-11-03, Automatic Data Processing Inc. (NASDAQ: ADP) is rated B (Buy / BUY) by Roarable's 5-pillar RQD engine with a composite confidence score of 74/100 at a spot price of $293.84 (+2.71% 1D, market cap $116.43B). Pillar breakdown: Fundamental Cash Engine 16/20, Institutional 13F & Options Flow 19/20, Executive Insider Alignment 9/20, FRED Macro Regime Fit 15/20, and SEC Balance-Sheet Forensics 15/20. Across 714 tracked Technology issuers, ADP ranks #46 in composite RQD confidence.
Within the Technology sector (EDP Services), ADP carries a Roarable B (74/100 RQD), trailing P/E of 27.8x, gross margin of 46.0%, and ROIC of 43.4%. By comparison, INFY (Infosys Limited) holds a C grade (65/100 RQD, P/E 21.7x, ROIC 14.9%, cap $50.91B) and WDAY (Workday Inc.) posts a B- grade (70/100 RQD, P/E 68.0x, ROIC 6.1%, cap $47.67B). Among the 5-stock peer group, CTSH leads on earnings multiple (12.6x) while ADP leads on capital efficiency (43.4% ROIC).
Per ADP's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-06-30, CIK 0000008670), Automatic Data Processing Inc. generated $20.56B in revenue (+7.1% YoY), $4.08B in net income, and $4.01B in free cash flow against $84.64B in total assets and $3.98B in total debt. Key quantitative strengths: Strong cash generator (46% profit margin)—profits are backed by real money, not accounting tricks.. Primary risk factors monitored: Recent SEC filings added new risk-factor disclosures that warrant keeping an eye on margins.. Institutional options positioning shows a 50% call / 50% put premium split.
Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer
20D Institutional Volume Accumulation (±4.2% realized swing band)
SEC XBRL FY 2025 (10-K): 19.5% FCF Margin ($4.01B FCF) & 46% Gross Margin
Balance-sheet & 10-K footnote risk deducts 11 pts from forensic ceiling
Even with a 74/100 (B) score, ADP faces multiple-compression risk if 27.8x trailing P/E re-rate toward historical sector medians or if hyperscaler/enterprise customer concentration slows in upcoming 10-Q filings.
Recent SEC filings added new risk-factor disclosures that warrant keeping an eye on margins.
Dilution & Margin Drag: Cannibal Buyback (-2.08% YoY Shares) — any gross margin slip below 43.5% triggers an automatic RQD downgrade.
Technical & Forensic Kill-Switch: A daily close below the 50D SMA ($277.64) or 200D SMA ($240.83) invalidates the momentum regime and cuts Target Base ($315.00) toward Bear Floor ($240.95).
Automatic Data Processing Inc. (ADP) surged +2.71% to $293.84, trading at 87% of its 52-week range ($188.16 – $309.4). High-quality cash engine (46% profit margin, 43% return on capital) with steady institutional support.
Yahoo! Finance Canada report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
ChartMill report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
TradingView report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
Trefis report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
Yahoo Finance report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
ChartMill report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
Yahoo Finance report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
Yahoo Finance report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
For questions about this article or underlying research, email help@trefis.com.
Emerson may extend its 70-year dividend growth streak as earnings rebound.
Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).
vs. +7.1% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).
No active Ellis Vennor swing setup published on ADP today. View full Setup Ledger →
No direct multi-tier Butterfly edges indexed yet for ADP. Explore sector supply chains on /butterfly.
Across 714 tracked Technology securities in the Roarable RQD universe, Automatic Data Processing Inc. (ADP) ranks #46 by composite RQD confidence (74/100, grade B) and #38 by equity capitalization ($116.43B). Within this direct 5-issuer industry benchmark cohort, CTSH leads on earnings valuation at 12.6x trailing P/E, while ADP leads on capital efficiency and profitability with 43.4% ROIC and 46.0% gross margin. CTSH currently holds the highest overall quantitative score in the immediate peer group at 84/100 (A-) compared with ADP at 74/100 (B).
| Ticker / Company | Roarable Grade | RQD Score | Trailing P/E | Gross Margin | ROIC | 1D Change | Market Cap | Head-to-Head |
|---|---|---|---|---|---|---|---|---|
| ADP
ACTIVE
Automatic Data Processing Inc. | B | 74/100 | 27.8x | 46.0% | 43.4% | +2.71% | $116.43B | Benchmark Subject |
| INFY Infosys Limited | C | 65/100 | 21.7x | — | 14.9% | +2.87% | $50.91B | /infy-vs-adp → |
| WDAY Workday Inc. | B- | 70/100 | 68.0x | — | 6.1% | +1.21% | $47.67B | /wday-vs-adp → |
| ZS Zscaler Inc. | C | 65/100 | — | 76.9% | -3.1% | -4.03% | $38.78B | /zs-vs-adp → |
| CTSH Cognizant Technology Solutions Corporation | A- | 84/100 | 12.6x | — | 19.6% | +4.14% | $29.11B | /ctsh-vs-adp → |
In its most recent audited fiscal period (FY2025, filed 2025-06-30), Automatic Data Processing Inc. (ADP) reported GAAP revenue of $20.56B (+7.1% vs. FY2024 revenue of $19.20B , and +14.1% cumulative change since FY2023) , GAAP net income of $4.08B, operating cash flow of $4.94B, and free cash flow of $4.01B (+21.9% YoY). On the balance sheet, ADP closed FY2025 with $84.64B in total assets against $3.98B in total debt (Altman Z-Score: 1.77, Piotroski F-Score: 9/9).
| Fiscal Period | Filing Date | Revenue | Net Income | Operating Cash Flow | Free Cash Flow | Total Assets | Total Debt |
|---|---|---|---|---|---|---|---|
| FY2025 (FY) | 2025-06-30 | $20.56B | $4.08B | $4.94B | $4.01B | $84.64B | $3.98B |
| FY2024 (FY) | 2024-06-30 | $19.20B | $3.75B | $4.16B | $3.29B | $64.10B | $2.98B |
| FY2023 (FY) | 2023-06-30 | $18.01B | $3.41B | $4.21B | $3.40B | $62.35B | $14.59B |
As of 2026-11-03, Automatic Data Processing Inc. (NASDAQ: ADP) is rated B (Buy / BUY) by Roarable's 5-pillar RQD engine with a composite confidence score of 74/100 at a spot price of $293.84 (+2.71% 1D, market cap $116.43B). Pillar breakdown: Fundamental Cash Engine 16/20, Institutional 13F & Options Flow 19/20, Executive Insider Alignment 9/20, FRED Macro Regime Fit 15/20, and SEC Balance-Sheet Forensics 15/20. Across 714 tracked Technology issuers, ADP ranks #46 in composite RQD confidence.
Within the Technology sector (EDP Services), ADP carries a Roarable B (74/100 RQD), trailing P/E of 27.8x, gross margin of 46.0%, and ROIC of 43.4%. By comparison, INFY (Infosys Limited) holds a C grade (65/100 RQD, P/E 21.7x, ROIC 14.9%, cap $50.91B) and WDAY (Workday Inc.) posts a B- grade (70/100 RQD, P/E 68.0x, ROIC 6.1%, cap $47.67B). Among the 5-stock peer group, CTSH leads on earnings multiple (12.6x) while ADP leads on capital efficiency (43.4% ROIC).
Per ADP's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-06-30, CIK 0000008670), Automatic Data Processing Inc. generated $20.56B in revenue (+7.1% YoY), $4.08B in net income, and $4.01B in free cash flow against $84.64B in total assets and $3.98B in total debt. Key quantitative strengths: Strong cash generator (46% profit margin)—profits are backed by real money, not accounting tricks.. Primary risk factors monitored: Recent SEC filings added new risk-factor disclosures that warrant keeping an eye on margins.. Institutional options positioning shows a 50% call / 50% put premium split.
ADP last traded at $293.84 (+2.71% on volume of 3,608,842 shares), positioning the stock +5.83% above its 50-day simple moving average ($277.64) and +22.01% above its 200-day simple moving average ($240.83). Across its 52-week range of $188.16 to $309.40, ADP sits at the 87.2% percentile with a 14-day RSI of 57.9 (BULLISH MOMENTUM) and an implied next-earnings move of ±4.2% ($281.50 to $306.18).
Why ADP Stock surged +2.71% Today — RQD Quant Desk Flash. High-quality cash engine (46% profit margin, 43% return on capital) with steady institutional support.
Per the Roarable RQD rating, ADP scores 71 out of 100, graded B-, with the verdict "Roarable Buy — Sound Institutional Accumulation." The five pillars are:
Upside drivers per the source data: high ROIC, strong institutional and insider flow signals, and a perfect Piotroski score. Valuation tradeoffs: P/E (TTM) of 27.8 and EV/EBITDA of 19.9 are elevated relative to the forward P/E of 25.9 and the 2.12% dividend yield. The stock trades in a 52-week range of $188.16 to $309.4, placing the current price of $286.08 in the upper portion of that range.
| Period | Revenue | Operating Income | Net Income | EPS | FCF | Cash | Debt |
|---|---|---|---|---|---|---|---|
| FY 2025 | $20560.9M | $4814.0M | $4079.7M | N/A | $4014.5M | $2424.7M | $3976.4M |
| FY 2024 | $19202.6M | $4427.4M | $3752.0M | N/A | $3293.5M | $2216.4M | $2982.0M |
| FY 2023 | $18012.2M | $4026.2M | $3412.0M | N/A | $3397.1M | N/A | $14589.4M |
Per the SEC financials, revenue, operating income, and net income each rose across the three reported periods, and FY 2025 free cash flow was $4014.5M. Per the Roarable RQD rating, ROIC is 43.4%, the Altman Z-Score is 1.77, and the Piotroski F-Score is 9/9. Per the Roarable RQD rating, Debt/Equity is 0.62. The FY 2023 debt figure of $14589.4M differs sharply from the FY 2024 and FY 2025 figures, and the source data does not explain the discrepancy.
The recent news feed contains six items, all tagged relatedSymbol ADP and each carrying a YELLOW light and MARKET WIRE impact label. The headlines are: a Yahoo! Finance Canada stock-price and news page; a ChartMill piece titled "A Quality Stock Built for Long-Term Investors"; a TradingView piece titled "Reasons Why Investors Can Consider Buying ADP Stock Now"; a Trefis piece titled "Has Buying ADP Stock At A High Paid Off?"; a Yahoo Finance piece on a "Hidden Earnings Advantage From Higher Interest Rates"; and a ChartMill piece titled "A Quality Dividend Stock for Income Investors." The feed summaries are generic and do not state specific events. Per the butterfly supply-chain graph, the supply_chain field is NONE, there are no butterfly links, and there are no proprietary signals. Risk watch items drawn from the Roarable RQD rating are the Altman Z-Score of 1.77 and the elevated valuation multiples noted above.
Real-time company headlines, analyst actions, and sector developments for Automatic Data Processing Inc. (ADP) • Click "Debate This Headline" to argue it in the Roar Pit below
Yahoo! Finance Canada report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
ChartMill report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
TradingView report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
Trefis report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
Yahoo Finance report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
ChartMill report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
Yahoo Finance report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
Yahoo Finance report covering Automatic Data Processing Inc. (ADP) market action, institutional positioning, and fundamental catalysts.
Welcome to the ADP (Automatic Data Processing Inc.) Roar Pit. Current RQD Composite is 71/100 (Roarable Buy — Sound Institutional Accumulation) in EDP Services. Bulls point to capital efficiency (43.4% ROIC), while bears focus on macro rate sensitivity and margin execution. Pick your side (🐂 Bull or 🐻 Bear) and drop your price target below.
Everyone in here is repeating the bull case on ADP, but look at what you are paying: 27.8x trailing P/E with 46.0% gross margins. Unless Automatic Data Processing Inc. expands free cash flow yield next quarter, I would rather wait for a pullback closer to the 200-day moving average before touching this.
Looking at the 5-pillar RQD breakdown on ADP, the market is fixating on short-term headline noise in EDP Services and ignoring the balance sheet and cash flow trajectory. At $286.08 (52-wk range $188.16 - $309.40), any beat on forward guidance forces shorts and underweight funds to chase.
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