Automatic Data Processing Inc
NASDAQ:ADP

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Automatic Data Processing Inc
NASDAQ:ADP
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Price: 306.26 USD -0.17% Market Closed
Market Cap: 124.3B USD

Operating Margin
Automatic Data Processing Inc

26.3%
Current
25%
Average
3.3%
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
26.3%
=
Operating Profit
5.3B
/
Revenue
20.2B

Operating Margin Across Competitors

Automatic Data Processing Inc
Glance View

Economic Moat
None
Market Cap
124.4B USD
Industry
Technology

Automatic Data Processing Inc., commonly known as ADP, has carved a niche for itself as a heavyweight in workplace management solutions, with roots that trace back to the back-office needs of payroll processing. The journey began humbly in 1949 when Henry Taub founded the company with the ambition of helping businesses streamline their payroll tasks. Through the years, ADP expanded its capabilities and infused technological advancements into its core services, positioning itself at the forefront of human capital management. The company’s evolution is marked by its ability to adapt and expand beyond just payroll, offering comprehensive solutions like human resources management, talent management, and tax and compliance services. ADP's business model revolves around leveraging its vast client network—spanning small businesses to multinational corporations—to provide subscription-based, cloud-hosted solutions that facilitate seamless HR operations. By offering a suite of products that cater to different aspects of workforce management, such as time tracking, benefit administration, and talent analytics, ADP generates a steady stream of revenue through service subscriptions and client-related add-ons. Its focus on innovation and customer-centric solutions ensures the company meets the ever-evolving demands of modern businesses. Through these diversified offerings, ADP secures its foothold as an indispensable partner for organizations looking to optimize their workforce administration, ensuring compliance and efficiency in an increasingly complex corporate landscape.

ADP Intrinsic Value
228.37 USD
Overvaluation 25%
Intrinsic Value
Price
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
26.3%
=
Operating Profit
5.3B
/
Revenue
20.2B
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 26.3%.

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