On the stock market since 1980, it operates in the world of heavy industry. It has 64,000 employees. Now — the numbers.
This is an established company with proven profits.
Revenue is spread across several lines; no single product carries the company.
Average growth of 7% a year over the last 4 years. Every year shown ended in profit.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly above the class average — a step short of the very top.
Clearly below the class average.
The price isn’t cheap next to earnings — that’s why this grade sits in the middle.
This grade is a blend: the profit side is strong, the sales tempo slow.
Clearly above the class average — a step short of the very top.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
The stock trades below its recent peak — about 15% off the top. A pullback, not a collapse.
The net profit margin is 20% — still a thick cushion, though costs have been eating into it lately.
It met or beat analyst expectations in 8 of the last 8 quarters — consistency is a promise kept.
Over the last 12 months, company executives reported 34 buys and 30 sells. Management buying with its own money is usually read as a good sign.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 33/100.
On our five-subject report card, ADP sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: ADP is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s what that quality should cost.