Automatic Data Processing (ADP) is a human resource & employment services company in the Industrials sector. Listed on the NASDAQ, Automatic Data Processing is a component of the S&P 500 index. As of 2026-06-10, the stock is trading at $231.10.
Key Metrics & Risk
Based on 5-year historical data from Yahoo Finance (daily returns, annualized using 252 trading days).
| Metric | Value |
|---|---|
| Latest Price | $231.10 |
| Latest Date | 2026-06-10 |
| Expected Return (Annualized) | 7.43% |
| Risk / Std Dev (Annualized) | 22.05% |
| Sharpe Ratio (rf=4.5%) | 0.13 |
S&P 500 Context
- Sector: Industrials
- Sub-Industry: Human Resource & Employment Services
- Exchange: NASDAQ
- Index: S&P 500 Component
Risk/Return Profile
The stock shows an annualized expected return of 7.43% with an annualized volatility of 22.05%. The Sharpe ratio of 0.13 (assuming 4.5% risk-free rate) indicates below-average risk-adjusted returns relative to the risk-free rate.
Modern Portfolio Theory Positioning
This stock is plotted on the S&P 500 Modern Portfolio Theory chart which visualizes the risk/return trade-off across all S&P 500 components. The chart uses Sharpe ratio as the color dimension, allowing quick identification of stocks with superior risk-adjusted performance.
Fundamentals
| Metric | Value |
|---|---|
| Market Cap | 92.38B |
| Enterprise Value | 93.55B |
| Trailing P/E | 21.56 |
| Forward P/E | 18.95 |
| Price to Book | 14.58 |
| Price to Sales | 4.28 |
| EV/Revenue | 4.33 |
| EV/EBITDA | 14.76 |
| Profitability | | | Profit Margin | 20.12% | | Operating Margin | 30.18% | | ROE | 71.21% | | ROA | 5.95% |
| Growth | | | Revenue Growth | 7.0% | | Earnings Growth | 10.5% |
| Dividend | | | Dividend Yield | 294.0% | | Payout Ratio | 60.45% | | 5Y Avg Yield | 204.0% |
| Financial Health | | | Total Revenue | 21.6B | | Total Debt | 4.4B | | Total Cash | 3.23B | | Free Cash Flow | 4.75B | | Operating Cash Flow | 5.45B |
| Price & Technical | | | 52W High | $315.98$ | | 52W Low | $188.16$ | | 50-Day Avg | $211.04$ | | 200-Day Avg | $245.81$ | | Beta | 0.84 | | Shares Outstanding | 0.4B | | Float Shares | 0.4B | | Insider Holdings | 0.15% | | Institutional Holdings | 90.39% | | Short Ratio | 5.28 | | Short % of Float | 4.28% |
| Analyst Targets | | | Target High | $305.0$ | | Target Low | $190.0$ | | Target Mean | $246.8$ | | Target Median | $240.0$ | | # of Analysts | 15 | | Recommendation | hold |
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research or consult a qualified financial advisor before making investment decisions.