Automatic Data Processing, Inc. ranks in an above-average position in its peer group, with growth as the main structural constraint. Trend conditions have deteriorated, without yet reaching an extreme downside state. The market is broadly confirming the structural profile.
Peer-relative scores, weakest to strongest
ADP provides payroll and human capital management solutions to businesses worldwide. Its services focus on automating HR processes and ensuring compliance for clients across industries.
ADP delivers strong quality, but lacks valuation leverage or growth spark. The company’s sector-leading ROIC of 59.0% signals excellent capital efficiency, yet a Trend Score of just 20/100 highlights missing growth momentum and valuation catalysts compared to peers. As a global payroll and HR services leader, ADP benefits from stable recurring revenues, but the business model limits the pace of expansion. Strong, stable, but with no lever for more.
Break down ADP's position across all dimensions with the full interactive tool.
This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.
AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.
Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.
Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.
Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.