"ADP processes payroll for roughly 1 in 6 U.S. workers, making it an embedded infrastructure for the American economy. The stock is down 37% from its June 2025 peak, yet the fundamentals suggest a mispricing of a durable business."
"ADP has raised its dividend for 51 consecutive years, earning it the rare Dividend King designation. The quarterly payout recently increased to $1.70 per share, reflecting the durability of the underlying cash flows."
"In the most recent quarter, ADP posted EPS of $2.62 against a $2.57 estimate and revenue of $5.4 billion, up 6% year-over-year, with net income rising 10% from the prior year."
ADP processes payroll and manages human capital for businesses, covering various HR functions. The stock has decreased significantly, yet the fundamentals remain strong. ADP has raised its dividend for 51 consecutive years, reflecting its cash flow durability. Recent operating results showed EPS of $2.62 and revenue growth of 6% year-over-year. Management raised guidance for adjusted diluted EPS growth and revenue growth. For fiscal year 2025, revenue reached $21 billion, with operating cash flow increasing nearly 19%. ADP's business model remains resilient despite market fluctuations.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]