ADP (ADP): analysis in plain words
Is ADP cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
ADP (ADP) is listed on the Nasdaq and we classify it in industrials. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against ADP according to those figures, and the questions people ask most about the stock. No buy or sell tips.
ADP (ADP) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $303.54 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 26.9x | Price over earnings per share |
| Revenue growth | +6.1% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 20.3% | Profit for every 100 of sales |
| Net debt / EBITDA | 0.3x | Years of operating profit to repay debt |
| Dividend yield | 2.30% | Annual dividend over price |
| Market cap | $119.8 billion | What the stock market values it at |
The ADP figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any ADP figure that is not available shows as N/A: we do not estimate it.
How ADP makes money
ADP handles payroll, HR and benefits for employers. Employer Services, its larger segment, provides payroll and workforce software, while PEO Services acts as a co-employer for small businesses, taking over payroll, insurance and benefits. ADP also earns interest on client funds it holds briefly before paying out wages and taxes.
Over the last 12 months, ADP brought in revenue of $22.3 billion. For every 100 it sells, ADP keeps 48.8 after the direct cost of what it sells (gross margin) and 26.7 after all operating costs (operating margin). With 67,000 full-time employees, that is about $332,000 of revenue per employee.
ADP against its sector
To know whether a ADP figure is high or low you have to put it next to similar companies. This table compares ADP with the median of the 20 industrials companies Fintols covers, with data as of November 4, 2026.
| Figure | ADP | industrials median |
|---|---|---|
| P/E | 26.9x | 27.3x (20) |
| Revenue growth | +6.1% | +9.8% (20) |
| Net margin | 20.3% | 13.0% (20) |
| Dividend yield | 2.30% | 1.60% (20) |
| Net debt / EBITDA | 0.3x | 2.1x (20) |
In short, against the typical industrials company, ADP grows more slowly, earns a wider margin and pays a higher dividend yield. By size, ADP ranks number 5 of 15 industrials companies quoted in USD on Fintols.
The bull case for ADP
These are the strengths in the ADP figures as of November 4, 2026:
- ADP earns 78.9% a year on its shareholders' money (return on equity).
- Its net margin over the last 12 months is 20.3% (sector median: 13.0%): ADP turns a large share of its sales into profit.
- ADP generates real cash: $6.5 billion of free cash flow over 12 months, 5.4% of its stock market value.
The main risk for ADP
The ADP figures as of November 4, 2026 show no clear red flag (no heavy debt, no losses, no falling sales). Its main risk is the one built into its business: the economic cycle: when industry and trade slow, its orders fall.
Frequently asked questions about ADP
Is it a good time to buy ADP stock?
Fintols does not tell you whether to buy or sell ADP, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, ADP stock trades at $303.54, 2% below its 52-week high ($309.40) and 61% above its low ($188.16). Its P/E is 26.9x against a industrials median of 27.3x, and 22.4x on the earnings analysts expect over the next 12 months. With ADP, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does ADP pay a dividend?
Yes. As of November 4, 2026, ADP pays $6.80 per share a year, which at today's price is a yield of 2.30%. It uses 60% of its profit to pay it. Its average dividend yield over the last five years is 2.05%. The industrials median on Fintols is 1.60%.
Is ADP stock expensive?
It depends on what you compare it with. On P/E, ADP trades at 26.9x its last 12 months of earnings: in line with the industrials median (27.3x). Including its debt, ADP is valued at 18.2x its EBITDA (EV/EBITDA). A high P/E alone does not make ADP expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are ADP's competitors?
On Fintols we compare ADP with Eaton, Parker-Hannifin and Emerson, which are also in industrials. As of November 4, 2026, Eaton is worth $137.2 billion and trades on a P/E of 35.3; Parker-Hannifin is worth $114.8 billion and trades on a P/E of 32.0; Emerson is worth $95.1 billion and trades on a P/E of 37.3. Each has a side-by-side comparison with ADP below.
ADP competitors
- Eaton (ETN) analysis · ADP vs Eaton comparison
- Parker-Hannifin (PH) analysis · ADP vs Parker-Hannifin comparison
- Emerson (EMR) analysis · ADP vs Emerson comparison
To understand ADP better
- DCF and WACC Explained: A Practical Valuation Guide
- P/E Ratio and EPS Explained: How to Read Them Without Traps
More companies like ADP: industrials stocks and S&P 500 companies. Open the full ADP analysis with its valuation and scenarios. Educational content about ADP, not investment advice.