At this point, however, I view the company’s share price to be unfairly high in the light of the coming troubles in the next year – even if these troubles are likely only temporary. The bulls would make the argument that based on ADP’s market position, share and potential, a 23X multiple shouldn’t be adjusted simply because of one negative potential year – and this may be so. Bullish investors on ADP would also tell bears to have more faith in management and their proven, capital allocation skills. In this case, however, I’ll sleep well knowing I’ve invested in companies that, in my view, have a better potential of providing me with higher returns. The bullish thesis on ADP is that the company won’t in fact fall further, even as a result of at least a further negative 3 fiscal quarters in 2021, and we won’t see valuations close to the valuation range I’ve given. If this turns out to be the case, then today’s price for the company marks an opportunity to invest in ADP at what could be considered a good price.
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Most Common Benefits at Automatic Data Processing, Inc. (ADP)
Whether you’ve been in operating for 25 years or you’re just getting started, RUN Powered by ADP® can help. Smart, simple, and affordable payroll, and tax solutions to help you get back to the missions that matter most to your organization. Both S&P and Moody’s downgraded ADP to AA in April 2014, after the dealer services unit was spun off. By using this site, you are agreeing to security monitoring and auditing.
What does ADP stand for in insurance?
All insurance products will be offered and sold only through Automatic Data Processing Insurance Agency, Inc., its licensed agents or its licensed insurance partners; 1 ADP Blvd., Roseland, NJ 07068.
When typing in this field, a list of search results will appear and be automatically updated as you type. Try another search query or take our salary survey to get a personalized salary report for your job title. That will proactively plan out your benefits, specific to your business needs. In addition, OneDigital will serve as your personal business advisor for all things benefits and compliance. ADP and its insurance agency affiliate aren’t liable to a New Orleans bar seeking coverage for a workers’ compensation claim, they told a Louisiana federal judge, saying the bar “has no… I wrote this article myself, and it expresses my own opinions.
We need no crystal ball to know what trends will impact payroll/HR companies during a time of unprecedented global deployment decline. It would be surprising to see anything close to positive, and indeed, we’re not. The company’s growth prospects are, for the moment, somewhat muted, and a weighted average multiple of 23X is demanded for the company’s earnings. Formerly called ADP Dealer Services, CDK Global was formed October 1, 2014 and provides technology services to automotive dealerships, as well as vehicle manufacturers.In 2010, ADP acquired the automotive marketing company Cobalt.
- At ADP, we are committed to unlocking potential — not only in our clients and their businesses, but in our people, our communities and society as a whole.
- The company calls overall performance better than expected with numbers gradually improving, but new business bookings are down 67% YOY, including the backlog, with the continued strong FX from the USD impacting company operations as well.
- ADP is great, but I don’t see it being able to keep up the sort of growth warranted for a 30X earnings multiple – as we saw in 2019.
- Pays per control are expected to be negative through 3Q21, but turn positive in 4Q21, then average for FY21.
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Business Technology Overview
These results were driven primarily by the Employer Services segment, with significant COVID-19 headwinds. The company calls overall performance better than expected with numbers gradually improving, but new business bookings are down 67% YOY, including the backlog, with the continued strong FX from the USD impacting company operations as well. Fund balances are down, client fund yields are down, and only expense reduction across its entire portfolio of businesses saved ES margins from dropping.
Some material covers the offering of the ADP Pay-by-Pay Premium Payment Program. All insurance products will be offered and sold only through Automatic Data Processing Insurance Agency, Inc., its licensed agents or its licensed insurance partners. ADP’s Pay-by-Pay is a payroll enhancement feature of ADP’s payroll processing services.
How much does Automatic Data Processing, Inc. (ADP) pay?
ADP went public in 1961 with 300 clients, 125 employees, and revenues of approximately $400,000 USD. The company established a subsidiary in the United Kingdom in 1965. In 1970, Lautenberg was noted as being the president of the company.