ADP

Automatic Data Processing Inc

TMT, Finance/Real Estate


Presented:07/24/2017
Price:$103.54
Cap:$46.51B
Current Price:$290.04
Cap:$118.29B

Presented

Date07/24/2017
Price$103.54
Market Cap$46.51B
Ent Value$45.00B
P/E Ratio26.72x
Book Value$9.16
Div Yield1.93%
Shares O/S449.20M
Ave Daily Vol2,892,561
Short Int1.32%

Current

Price$290.04
Market Cap$118.29B
Automatic Data Processing, Inc. provides business outsourcing solutions. It operates through the following segments: Employer Services and Professional Employer Organization Services. The Employer Services segment offers business outsourcing and human capital management solutions, including payroll, benefits administration, talent management, human resources management, time and attendance management, insurance, retirement and compliance & payment. The Professional Employer Organization Services segment provides employment administration outsourcing solutions through a co-employment relationship, including payroll, payroll tax filing, HR guidance, 401(k) plan administration, benefits administration, compliance services, health and worker's compensation coverage and other supplemental benefits for employees. The company was founded by Henry Taub in 1949 and is headquartered in Roseland, NJ.

Publicly traded companies mentioned herein: Automatic Data Processing (ADP), Workday Inc (WDAY)

Highlights

The presenter is short shares of Automatic Data Processing (ADP), feeling that the company is at peak valuation and there’s limited room for further upside. He sees increased competition in human capital management as well as some leading indicators from the past few quarters that will come into play over the course of fiscal 2018 (calendar 2017). The presenter believes ADP’s EPS growth will decelerate from the historical 18% down to the 4% - 5% range, which would likely lead to multiple compression.

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Idea Discussion

Commentor 1 - 2 weeks ago

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