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About

Automatic Data Processing is the largest payroll and human capital management provider in the world, serving over 1 million clients ranging from small businesses to multinational corporations. The company benefits from high switching costs, recurring subscription revenue, and the float income it earns on payroll funds held before disbursement to employees. ADP is a Dividend Aristocrat that attracts conservative investors seeking a high-quality compounder with recession-resistant cash flows.

Blue Chip Stocks

As the world's largest payroll processor with unmatched scale, regulatory expertise, and client retention rates exceeding 90 percent, ADP is a blue chip compounder that has delivered consistent earnings growth through multiple economic cycles.

Dividend Stocks

ADP is a Dividend Aristocrat that has increased its dividend for nearly 50 consecutive years, powered by its highly recurring subscription revenue model and the float income it earns on billions of dollars in client payroll funds.

Tech Stocks

ADP is fundamentally a technology company that processes payroll, manages human resources data, and provides cloud-based workforce management software to over one million businesses, making it a tech stock at the intersection of enterprise software and financial services.

Key Financials ADP

Price $212.11
Change (1D) +1.02%
Change (30D) -17.54%
Change (60D) -15.46%
Change (90D) -27.00%
Change (180D) -34.56%
Change (1Y) -30.83%
Change (5Y) +26.72%
P/E Ratio 20.34
EPS (TTM) $10.43
52-Week Range $208.62 โ€” $329.93
50-Day MA $252.67
Volume 3.84M

Data updated Feb 15 ยท Source: Twelve Data

4.3 2 reviews

AI Reviews

๐Ÿค–
4.0 /5

Automatic Data Processing is a dominant force in human capital management, serving over 1 million clients globally with payroll, HR, and workforce management solutions. The company benefits from a highly recurring revenue model, strong client retention rates exceeding 90%, and a float-based earnings advantage from holding client payroll funds.

The stock has experienced a significant pullback, down roughly 31% over the past year and trading near its 52-week low of $208.62"well below its 50-day moving average of $252.67. This decline has brought the P/E ratio to a more reasonable 20.3x on solid EPS of $10.43, potentially creating an attractive entry point for long-term investors.

ADP has a strong dividend track record as a Dividend Aristocrat with decades of consecutive increases. Its competitive moat stems from deep enterprise integration and high switching costs. Bear case risks include macroeconomic sensitivity"fewer employees processed during downturns"and increasing competition from cloud-native HCM platforms like Workday and Paylocity. However, ADP's scale, brand trust, and consistent free cash flow generation make it a reliable core holding for conservative portfolios.

Category Ratings

Blue Chip Stocks
4.3
Dividend Stocks
4.2
Tech Stocks
3.5
Feb 15, 2026
AI-Generated Review Generated via Anthropic API. This is an automated evaluation, not a consumer review. Learn more
๐Ÿค–
4.5 /5

Automatic Data Processing (ADP) remains the gold standard in the Human Capital Management (HCM) sector, benefiting from a massive, sticky client base and high switching costs. Trading near its 52-week low of $216.65, the stock currently presents a compelling valuation opportunity with a P/E ratio of roughly 21x, significantly below its recent highs and 50-day moving average.

For dividend investors, ADP is a cornerstone holding, boasting a stellar track record of annual payout increases. The company's business model generates substantial recurring revenue, providing stability even during market volatility. However, risks remain; ADP's performance is inherently tied to global employment levels, making it sensitive to macroeconomic downturns. Additionally, the company faces stiff competition from agile, cloud-native challengers in the HR tech space. Despite these headwinds, the current price correction offers an attractive entry point for long-term investors seeking a blend of income and defensive stability.

Category Ratings

Blue Chip Stocks
4.8
Dividend Stocks
4.7
Tech Stocks
3.9
Feb 12, 2026
AI-Generated Review Generated via Google API. This is an automated evaluation, not a consumer review. Learn more
Automatic Data Processing Screenshot

Added: Feb 11, 2026

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