Automatic Data Revenue vs. Net Income

ADP Stock  USD 266.02  0.35  0.13%   
Based on the key profitability measurements obtained from Automatic Data's financial statements, Automatic Data Processing may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in February. Profitability indicators assess Automatic Data's ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
1985-09-30
Previous Quarter
5.1 B
Current Value
5.2 B
Quarterly Volatility
1.4 B
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Automatic Data's Price To Sales Ratio is relatively stable compared to the past year. As of 01/09/2026, EV To Sales is likely to grow to 6.03, while Days Of Sales Outstanding is likely to drop 43.33. At this time, Automatic Data's Income Quality is relatively stable compared to the past year. As of 01/09/2026, Gross Profit is likely to grow to about 12.6 B, while Pretax Profit Margin is likely to drop 0.16.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.570.58
Fairly Down
Slightly volatile
Net Profit Margin0.110.18
Way Down
Slightly volatile
Operating Profit Margin0.160.24
Way Down
Slightly volatile
Pretax Profit Margin0.160.23
Way Down
Slightly volatile
Return On Assets0.08050.0879
Significantly Down
Slightly volatile
Return On Equity0.620.59
Sufficiently Up
Slightly volatile
For Automatic Data profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Automatic Data to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Automatic Data Processing utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Automatic Data's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Automatic Data Processing over time as well as its relative position and ranking within its peers.

Automatic Data's Revenue Breakdown by Earning Segment

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The next projected EPS of Automatic Data is estimated to be 3.2733 with future projections ranging from a low of 2.9271 to a high of 3.37. Automatic Data's most recent 12-month trailing earnings per share (EPS TTM) is at 10.14. Please be aware that the consensus of earnings estimates for Automatic Data Processing is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
Automatic Data is projected to generate 3.2733 in earnings per share on the 31st of March 2026. Automatic Data earnings estimates show analyst consensus about projected Automatic Data Processing EPS (Earning Per Share). It derives the highest and the lowest estimates based on Automatic Data's historical volatility. Many public companies, such as Automatic Data, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Automatic Data Revenue Breakdown by Earning Segment

By analyzing Automatic Data's earnings estimates, investors can diagnose different trends across Automatic Data's analyst sentiment over time as well as compare current estimates against different timeframes.
Is Human Resource & Employment Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Automatic Data. If investors know Automatic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Automatic Data listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.064
Dividend Share
6.16
Earnings Share
10.14
Revenue Per Share
51.436
Quarterly Revenue Growth
0.071
The market value of Automatic Data Processing is measured differently than its book value, which is the value of Automatic that is recorded on the company's balance sheet. Investors also form their own opinion of Automatic Data's value that differs from its market value or its book value, called intrinsic value, which is Automatic Data's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Automatic Data's market value can be influenced by many factors that don't directly affect Automatic Data's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Automatic Data's value and its price as these two are different measures arrived at by different means. Investors typically determine if Automatic Data is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Automatic Data's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Automatic Data Processing Net Income vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Automatic Data's current stock value. Our valuation model uses many indicators to compare Automatic Data value to that of its competitors to determine the firm's financial worth.
Automatic Data Processing is rated below average in revenue category among its peers. It is rated below average in net income category among its peers making up about  0.20  of Net Income per Revenue. The ratio of Revenue to Net Income for Automatic Data Processing is roughly  5.04 . At this time, Automatic Data's Total Revenue is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Automatic Data by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Automatic Revenue vs. Competition

Automatic Data Processing is rated below average in revenue category among its peers. Market size based on revenue of Industrials industry is presently estimated at about 424.24 Billion. Automatic Data holds roughly 20.56 Billion in revenue claiming about 5% of equities under Industrials industry.

Automatic Net Income vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Automatic Data

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
20.56 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Automatic Data

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
4.08 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Automatic Net Income Comparison

Automatic Data is currently under evaluation in net income category among its peers.

Automatic Data Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Automatic Data, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Automatic Data will eventually generate negative long term returns. The profitability progress is the general direction of Automatic Data's change in net profit over the period of time. It can combine multiple indicators of Automatic Data, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-795.1 M-755.3 M
Operating Income6.2 B6.5 B
Income Before Tax6.1 B6.4 B
Total Other Income Expense Net-91.6 M-87 M
Net Income4.7 B4.9 B
Income Tax Expense1.4 B1.5 B
Net Income Applicable To Common Shares3.9 B4.1 B
Net Income From Continuing Ops4.7 B2.4 B
Non Operating Income Net Other165.2 M173.4 M
Net Interest Income-156.9 M-149 M
Interest Income367.4 M263.6 M
Change To Netincome335.6 M211.1 M
Net Income Per Share 9.02  9.47 
Income Quality 1.39  1.46 
Net Income Per E B T 0.69  0.56 

Automatic Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Automatic Data. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Automatic Data position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Automatic Data's important profitability drivers and their relationship over time.

Automatic Data Earnings Estimation Breakdown

The calculation of Automatic Data's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Automatic Data is estimated to be 3.2733 with the future projection ranging from a low of 2.9271 to a high of 3.37. Please be aware that this consensus of annual earnings estimates for Automatic Data Processing is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
2.93
Lowest
Expected EPS
3.2733
3.37
Highest

Automatic Data Earnings Projection Consensus

Suppose the current estimates of Automatic Data's value are higher than the current market price of the Automatic Data stock. In this case, investors may conclude that Automatic Data is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Automatic Data's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of March 2026Current EPS (TTM)
1694.37%
0.0
3.2733
10.14

Automatic Data Earnings History

Earnings estimate consensus by Automatic Data Processing analysts from Wall Street is used by the market to judge Automatic Data's stock performance. Investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we recommend analyzing not only Automatic Data's upcoming profit reports and earnings-per-share forecasts but also comparing them to our different valuation methods.

Automatic Data Quarterly Gross Profit

2.34 Billion

At this time, Automatic Data's Retained Earnings are relatively stable compared to the past year. As of 01/09/2026, Earnings Yield is likely to grow to 0.05, while Retained Earnings Total Equity is likely to drop slightly above 17.1 B. As of 01/09/2026, Common Stock Shares Outstanding is likely to grow to about 429 M. Also, Net Income Applicable To Common Shares is likely to grow to about 4.1 B.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Automatic Data's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
264.02265.31266.60
Details
Intrinsic
Valuation
LowRealHigh
238.65277.52278.81
Details
Naive
Forecast
LowNextHigh
269.56270.85272.14
Details
18 Analysts
Consensus
LowTargetHigh
263.48289.54321.39
Details
Note that many institutional investors and large investment bankers can move markets due to the volume of Automatic assets they manage. They also follow analysts to some degree and often drive overall investor sentiments towards Automatic Data. With so many stockholders watching consensus numbers, the difference between actual and projected earnings is one of the most critical factors driving Automatic Data's stock price in the short term.

Automatic Data Earnings per Share Projection vs Actual

Actual Earning per Share of Automatic Data refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering Automatic Data Processing predict the company's earnings will be in the future. The higher the earnings per share of Automatic Data, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.

Automatic Data Estimated Months Earnings per Share

For an investor who is primarily interested in generating an income out of investing in entities such as Automatic Data, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of Automatic Data should always be considered in relation to other companies to make a more educated investment decision.

Automatic Quarterly Analyst Estimates and Surprise Metrics

Earnings surprises can significantly impact Automatic Data's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
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nullnullnullnull
2025-10-29
2025-09-302.452.490.04
2025-07-30
2025-06-302.232.260.03
2025-04-30
2025-03-312.973.060.09
2025-01-29
2024-12-312.32.350.05
2024-10-30
2024-09-302.212.330.12
2024-07-31
2024-06-302.062.090.03
2024-05-01
2024-03-312.792.880.09
2024-01-31
2023-12-312.12.130.03
2023-10-25
2023-09-302.032.080.05
2023-07-26
2023-06-301.831.890.06
2023-04-26
2023-03-312.452.520.07
2023-01-25
2022-12-311.941.960.02
2022-10-26
2022-09-301.81.860.06
2022-07-27
2022-06-301.461.50.04
2022-04-27
2022-03-312.082.210.13
2022-01-26
2021-12-311.631.650.02
2021-10-27
2021-09-301.491.650.1610 
2021-07-28
2021-06-301.141.20.06
2021-04-28
2021-03-311.821.890.07
2021-01-27
2020-12-311.291.520.2317 
2020-10-28
2020-09-300.981.410.4343 
2020-07-29
2020-06-300.961.140.1818 
2020-04-29
2020-03-311.891.920.03
2020-01-29
2019-12-311.451.520.07
2019-10-30
2019-09-301.331.340.01
2019-07-31
2019-06-301.131.140.01
2019-05-01
2019-03-311.691.770.08
2019-01-30
2018-12-311.181.340.1613 
2018-10-31
2018-09-301.111.20.09
2018-08-01
2018-06-300.90.920.02
2018-05-02
2018-03-311.441.520.08
2018-01-31
2017-12-310.90.990.0910 
2017-11-02
2017-09-300.850.910.06
2017-07-27
2017-06-300.670.66-0.01
2017-05-03
2017-03-311.231.310.08
2017-02-01
2016-12-310.810.870.06
2016-11-02
2016-09-300.760.860.113 
2016-07-28
2016-06-300.670.690.02
2016-04-28
2016-03-311.181.17-0.01
2016-02-03
2015-12-310.720.720.0
2015-10-28
2015-09-300.650.680.03
2015-07-30
2015-06-300.590.55-0.04
2015-04-30
2015-03-311.021.040.02
2015-02-04
2014-12-310.680.70.02
2014-10-29
2014-09-300.60.620.02
2014-07-31
2014-06-300.630.630.0
2014-04-30
2014-03-311.081.06-0.02
2014-02-05
2013-12-310.770.80.03
2013-10-30
2013-09-300.660.680.02
2013-08-01
2013-06-300.570.55-0.02
2013-05-03
2013-03-310.980.990.01
2013-02-05
2012-12-310.710.720.01
2012-11-01
2012-09-300.620.620.0
2012-08-01
2012-06-300.530.530.0
2012-05-01
2012-03-310.910.920.01
2012-01-25
2011-12-310.680.680.0
2011-10-26
2011-09-300.610.610.0
2011-07-28
2011-06-300.490.48-0.01
2011-05-02
2011-03-310.850.850.0
2011-01-26
2010-12-310.610.620.01
2010-10-27
2010-09-300.530.560.03
2010-07-29
2010-06-300.420.420.0
2010-04-27
2010-03-310.780.790.01
2010-02-02
2009-12-310.570.60.03
2009-11-04
2009-09-300.50.560.0612 
2009-07-30
2009-06-300.450.450.0
2009-05-05
2009-03-310.80.80.0
2009-02-03
2008-12-310.560.590.03
2008-11-03
2008-09-300.50.540.04
2008-07-31
2008-06-300.410.420.01
2008-05-01
2008-03-310.750.770.02
2008-02-01
2007-12-310.530.550.02
2007-10-30
2007-09-300.430.450.02
2007-07-31
2007-06-300.360.35-0.01
2007-05-01
2007-03-310.630.650.02
2007-02-06
2006-12-310.510.510.0
2006-10-31
2006-09-300.430.430.0
2006-08-02
2006-06-300.460.44-0.02
2006-04-28
2006-03-310.620.61-0.01
2006-01-25
2005-12-310.450.44-0.01
2005-10-26
2005-09-300.350.350.0
2005-07-26
2005-06-300.440.440.0
2005-04-21
2005-03-310.570.570.0
2005-01-21
2004-12-310.420.420.0
2004-10-25
2004-09-300.330.350.02
2004-07-27
2004-06-300.350.360.01
2004-04-22
2004-03-310.50.50.0
2004-01-22
2003-12-310.370.380.01
2003-10-17
2003-09-300.290.320.0310 
2003-07-29
2003-06-300.380.36-0.02
2003-04-17
2003-03-310.520.540.02
2003-01-15
2002-12-310.430.430.0
2002-10-17
2002-09-300.340.340.0
2002-07-17
2002-06-300.470.46-0.01
2002-04-15
2002-03-310.550.560.01
2002-01-17
2001-12-310.410.420.01
2001-10-17
2001-09-300.320.31-0.01
2001-08-13
2001-06-300.410.4-0.01
2001-04-16
2001-03-310.480.490.01
2001-01-17
2000-12-310.360.360.0
2000-10-13
2000-09-300.270.270.0
2000-08-14
2000-06-300.350.350.0
2000-04-18
2000-03-310.410.420.01
2000-01-18
1999-12-310.320.31-0.01
1999-10-14
1999-09-300.230.230.0
1999-08-10
1999-06-300.330.3-0.03
1999-04-15
1999-03-310.350.370.02
1999-01-14
1998-12-310.280.27-0.01
1998-10-13
1998-09-300.20.20.0
1998-08-13
1998-06-300.270.270.0
1998-04-15
1998-03-310.320.31-0.01
1998-01-16
1997-12-310.250.250.0
1997-10-14
1997-09-300.190.18-0.01
1997-08-20
1997-06-300.240.240.0
1997-04-14
1997-03-310.290.28-0.01
1997-01-16
1996-12-310.220.220.0
1996-10-11
1996-09-300.170.16-0.01
1996-08-14
1996-06-300.210.210.0
1996-04-11
1996-03-310.250.250.0

Use Automatic Data in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Automatic Data position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Automatic Data will appreciate offsetting losses from the drop in the long position's value.

Automatic Data Pair Trading

Automatic Data Processing Pair Trading Analysis

The ability to find closely correlated positions to Automatic Data could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Automatic Data when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Automatic Data - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Automatic Data Processing to buy it.
The correlation of Automatic Data is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Automatic Data moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Automatic Data Processing moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Automatic Data can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Automatic Data position

In addition to having Automatic Data in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Dividend Beast
Dividend Beast Theme
An experimental equal-weighted theme of equities with high dividend yield and solid fundamentals based on Macroaxis rating system. The Dividend Beast theme has 65 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Dividend Beast Theme or any other thematic opportunities.
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Additional Tools for Automatic Stock Analysis

When running Automatic Data's price analysis, check to measure Automatic Data's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Automatic Data is operating at the current time. Most of Automatic Data's value examination focuses on studying past and present price action to predict the probability of Automatic Data's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Automatic Data's price. Additionally, you may evaluate how the addition of Automatic Data to your portfolios can decrease your overall portfolio volatility.