Invest Well in Automatic Data Processing Stock: Products, Dividend, Financial Statements, and More
When making long-term investments to ensure stability through diversified investments, it is recommended to prioritize ETFs that include Automatic Data Processing stocks. However, there might still be individuals who wish to invest directly in Automatic Data Processing stocks. Shall we also explore a value investing approach to assess whether Automatic Data Processing's performance will grow in the long term?
Q. What products and services does Automatic Data Processing provide?
- It provides solutions that manage various HR processes such as recruitment, education, performance evaluation, and organizational development.
- It provides services related to payroll calculation, tax notification, and year-end settlement to support companies to easily manage payroll.
Q. Is Automatic Data Processing's executive CEO honest and competent?
- She was appointed CEO of ADP in 2023.
- She joined ADP as a sales representative in 1996.
- She received a bachelor’s degree in political science and international relations from the University of Colorado Boulder.
Q. Is Automatic Data Processing's financial statements healthy?
Net Profit Margin
- Automatic Data Processing has earned an annual net profit equivalent to 3.48% of the current stock price.
- It's good to see that the net profit has been growing at an annual rate of 13.77% over the past 5 years.
Total Debt
- The debt is 84.06% of the annual net profit.
- It would take about 1 years for the company to repay all of its debt.
- The net profit is growing, so Automatic Data Processing can repay the debt faster.
Dividend
- Automatic Data Processing offers a 2.29% annual dividend.
- Over the past 5 years, the annual average dividend has grown by 12.11%.
- Dividends are growing, which is good.
Share Buyback
- Apple recently repurchased its own shares equivalent to 1.05% of the stock price in the past year.
Q. What is Automatic Data Processing's stock performance like?
- This year's total return is 16.48%.
- 5-year mean total return is 10.87%.
Q. When is a good time to buy and sell Automatic Data Processing?
If Automatic Data Processing is healthy and growing, it will rise in the long run, so it is good to buy in installments even if you think the current stock price is a bit high. On the other hand, if you think that Automatic Data Processing is no longer healthy in the long run, you can consider selling.
PER
- Current: 28.50
- 5Y Avg: 30.46
- Current value is lower than the average, so it may be time to consider buying. However, this strategy is only recommended if you are convinced that the company will continue to be healthy and grow in the long term.
Price/Sale Ratio
- Current: 5.50
- 5Y Avg: 5.39
- Current value is higher than average so be careful when buying. However, purchasing can be considered only if you judge that the company will sustain high long-term growth.