Automatic Data Processing Inc
NASDAQ:ADP

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Automatic Data Processing Inc
NASDAQ:ADP
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Price: 296.33 USD -0.52%
Market Cap: 120.7B USD
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Operating Margin
Automatic Data Processing Inc

26.1%
Current
24%
Average
3.1%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
26.1%
=
Operating Profit
5.1B
/
Revenue
19.5B

Operating Margin Across Competitors

Country US
Market Cap 120.9B USD
Operating Margin
26%
Country US
Market Cap 608.6B USD
Operating Margin
67%
Country US
Market Cap 476.4B USD
Operating Margin
59%
Country US
Market Cap 121.5B USD
Operating Margin
28%
Country US
Market Cap 83.9B USD
Operating Margin
18%
Country US
Market Cap 56.3B USD
Operating Margin
6%
Country US
Market Cap 50.7B USD
Operating Margin
41%
Country US
Market Cap 46.7B USD
Operating Margin
17%
Country NL
Market Cap 37.7B EUR
Operating Margin
37%
Country ES
Market Cap 28.5B EUR
Operating Margin
29%
Country US
Market Cap 29.2B USD
Operating Margin
23%
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Automatic Data Processing Inc
Glance View

Market Cap
120.8B USD
Industry
Technology

Automatic Data Processing Inc. (ADP) stands as a prominent leader in the realm of human capital management (HCM), integrating payroll services, tax compliance, and employee benefits administration into its expansive suite of offerings. Founded in 1949, the company has evolved from a mere payroll processing entity to a comprehensive technology solutions provider, effectively helping organizations streamline their HR management processes. ADP’s diverse client base, ranging from small businesses to large enterprises, benefits significantly from its data-driven insights and robust software solutions. With a relentless focus on innovation and efficiency, ADP consistently positions itself at the forefront of the industry, leveraging cutting-edge technology and analytics to enhance the employee experience and optimize workforce productivity. For investors, ADP presents a compelling opportunity characterized by steady revenue growth and a strong competitive moat. The company's subscription-based revenue model fosters predictable cash flows and supports a resilient business framework, even amidst economic fluctuations. ADP's commitment to continuous improvement is evident in its significant investments in technology, automation, and client service, which are designed to attract and retain clients in a rapidly changing marketplace. Furthermore, ADP’s track record of returning value to shareholders through dividends and share buybacks underscores its financial health and commitment to rewarding investor loyalty. As the demand for comprehensive HCM solutions continues to surge globally, ADP’s strategic positioning makes it a formidable player poised for sustainable growth in the years to come.

ADP Intrinsic Value
222.01 USD
Overvaluation 25%
Intrinsic Value
Price

See Also

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What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
26.1%
=
Operating Profit
5.1B
/
Revenue
19.5B
What is the Operating Margin of Automatic Data Processing Inc?

Based on Automatic Data Processing Inc's most recent financial statements, the company has Operating Margin of 26.1%.