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Corporation
BUSINESS PRODUCTS & SERVICES | HR & Staffing
adp.com

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Investments

7

Portfolio Exits

9

Partners & Customers

10

About Automatic Data Processing

Automatic Data Processing (NASDAQ: ADP) is a global provider of cloud-based Human Capital Management (HCM) solutions that unite HR, payroll, talent, time, tax, and benefits administration, and also provides business outsourcing services, analytics, and compliance expertise.

Automatic Data Processing Headquarter Location

One ADP Boulevard

Roseland, New Jersey, 07068,

United States

973-974-5000

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Expert Collections containing Automatic Data Processing

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Fortune 500 Investor list

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Latest Automatic Data Processing News

ADP Stock Looks Fairly Priced

Sep 15, 2021

SOPA Images/LightRocket via Getty Images [Updated 09/15/2021] After reaching the highs of $215 in the past month, Automatic Data Processing (NASDAQ: ADP) has been trending downward. The stock observed an uptick after the announcement of annual results in July largely due to broader momentum in the sector and strong FY2022 guidance. However, ADP stock currently trades at a P/E multiple of 33 – slightly higher than historical figures. Comparing the historical annual revenue growth rate of 4% with 7% guidance for FY2022, Trefis believes that the 13% YTD growth in the stock looks favorable. We highlight the key factors driving ADP Valuation including revenues, margins, valuation multiple, and competitive comparison with peers in an interactive dashboard analysis. EPS [Updated 07/26/2021] - Will ADP Stock Provide A Strong Fiscal Year 2022 Guidance? Last quarter, Automatic Data Processing (NASDAQ: ADP) raised its new business bookings growth figures for the year assisted by improving employment numbers and declining coronavirus cases. Per the recent Bureau of Labor Statistics report, 850,000 jobs were added in June 2021, but the unemployment rate remained fairly stable at 5.9%. In April 2020, the unemployment rate reached 14.7% with 20.5 million job losses. Given the ongoing vaccination drive and re-opening of the economy, re-hiring in the hospitality sector is a boon for payroll processing firms. The fourth-quarter revenues and earnings are expected to expand by 8.8% (y-o-y) and 1% (y-o-y), respectively. However, Trefis believes that the recent uptick in Covid-19 cases due to new variants is likely to remain a drag on ADP’s annual guidance figures. We highlight the quarterly trends in revenues, earnings, stock price, and expectations for Q4 FY2021 in an interactive dashboard analysis, ADP Earnings Preview. [Updated 06/24/2021] - ADP Stock Looks Overvalued The shares of ADP (NASDAQ: ADP) have gained 9% since the pre-Covid levels observed in February 2020, assisted by stable revenues and margins during the pandemic. The company offers cloud-based human capital management solutions including payroll processing, talent management, and employee benefit functions to enterprises. The domestic and international businesses contribute around 85% and 15% of total revenues, respectively. Given the ongoing fall in the U.S. unemployment rate, the company’s revenues and earnings are likely to grow at a low single-digit rate this fiscal year. In the previous fiscal year, ADP processed $2.2 trillion of U.S. payroll and taxes, for nearly one in six U.S. workers, on behalf of its clients. Our interactive dashboard on ADP Valuation highlights the historical trends in revenues, earnings, and valuation multiple along with the expectations for the next fiscal. MORE FOR YOU The company has been reporting stable growth in recent years ADP’s revenues have observed an 18% growth from $12.3 billion in 2017 to $14.6 billion in 2020, driven by a rising client base and the number of worksite employees. Moreover, the company’s margins improved by 2-percentage points from 14.5% in 2017 to 16.9% in 2020 – assisting a double-digit growth in earnings and dividend per share. For FY2021, the revenues are likely to expand by 2% with a slight improvement in net margin, assisting single-digit growth in earnings per share. Considering an implied valuation multiple of 30x from our detailed valuation model, we believe that the stock’s fair price is $185. Industry Outlook In the recent release, the Bureau of Labor Statistics reported that 559,000 jobs were added in May 2021 and the unemployment rate fell to 5.8%. Comparing to prior year statistics (before the pandemic), there are 7.6 million fewer jobs in the U.S. economy with hospitality, education, and public sectors affected the most. Notably, there are 2.5 million, 1 million, 0.8 million job losses in the hospitality, education, and public sectors, respectively. Significant job gains occurred in the leisure and hospitality industry in May (almost 52% of the total increase) with food services and drinking places registering the most. The government’s multiple relief packages along with the ongoing vaccination drive is likely to augment job growth across industries.

Automatic Data Processing Investments

7 Investments

Automatic Data Processing has made 7 investments. Their latest investment was in Payroll as part of their Private Equity - II on February 2, 2003.

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Automatic Data Processing Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

2/28/2003

Private Equity - II

Payroll

No

1

3/20/2002

Private Equity

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$99M

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10

3/20/2002

Secondary Market - II

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$99M

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10

1/22/1999

Series C

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$99M

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10

1/13/1998

Series A

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$99M

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10

Date

2/28/2003

3/20/2002

3/20/2002

1/22/1999

1/13/1998

Round

Private Equity - II

Private Equity

Secondary Market - II

Series C

Series A

Company

Payroll

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Amount

$99M

$99M

$99M

$99M

New?

No

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Co-Investors

Sources

1

10

10

10

10

Automatic Data Processing Portfolio Exits

9 Portfolio Exits

Automatic Data Processing has 9 portfolio exits. Their latest portfolio exit was Payroll on June 22, 2021.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

6/22/2021

IPO

1

00/00/0000

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$991

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10

00/00/0000

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10

00/00/0000

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10

00/00/0000

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10

Date

6/22/2021

00/00/0000

00/00/0000

00/00/0000

00/00/0000

Exit

IPO

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Companies

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Valuation

$991

Acquirer

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Sources

1

10

10

10

10

Automatic Data Processing Acquisitions

36 Acquisitions

Automatic Data Processing acquired 36 companies. Their latest acquisition was Celergo on August 01, 2018.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

8/1/2018

Growth Equity

$15M

Acquired

1

1/22/2018

Series E

$66M

Acquired

3

10/5/2017

Acquired

1

1/17/2017

Series A

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$99M

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10

9/30/2014

IPO

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$99M

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10

Date

8/1/2018

1/22/2018

10/5/2017

1/17/2017

9/30/2014

Investment Stage

Growth Equity

Series E

Series A

IPO

Companies

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Valuation

Total Funding

$15M

$66M

$99M

$99M

Note

Acquired

Acquired

Acquired

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Sources

1

3

1

10

10

Automatic Data Processing Partners & Customers

10 Partners and customers

Automatic Data Processing has 10 strategic partners and customers. Automatic Data Processing recently partnered with Sage Intacct on March 3, 2021.

Date

Type

Business Partner

Country

News Snippet

Sources

3/10/2021

Partner

Sage Intacct

United States

March 10, 2021|By Sandra Haddad. ADP + Sage Intacct: Powerful Partnership for Nonprofits - JMT Consulting

A formal partnership between ADP and Sage Intacct means they integrate seamlessly with one another through API .

1

2/19/2021

Partner

Globalization Partners

United States

Globalization Partners and ADP TotalSource® Come Together to Make Employee Compliance Turnkey for Small and Midsized Businesses Expanding Globally

Leading Employer of Record provider Globalization Partners has announced that the company will team up with ADP TotalSource to provide professional staffing resources to small and mid-sized businesses looking to expand .

1

2/18/2021

Licensor

Visa

United States

ADP integrates with Visa Direct

`` Our partnership with ADP is another important milestone in Visa 's efforts to help reimagine the way workers get paid , both today and in the future . ''

3

2/11/2021

Partner

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10

12/18/2020

Client

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10

Date

3/10/2021

2/19/2021

2/18/2021

2/11/2021

12/18/2020

Type

Partner

Partner

Licensor

Partner

Client

Business Partner

Sage Intacct

Globalization Partners

Visa

Country

United States

United States

United States

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News Snippet

March 10, 2021|By Sandra Haddad. ADP + Sage Intacct: Powerful Partnership for Nonprofits - JMT Consulting

A formal partnership between ADP and Sage Intacct means they integrate seamlessly with one another through API .

Globalization Partners and ADP TotalSource® Come Together to Make Employee Compliance Turnkey for Small and Midsized Businesses Expanding Globally

Leading Employer of Record provider Globalization Partners has announced that the company will team up with ADP TotalSource to provide professional staffing resources to small and mid-sized businesses looking to expand .

ADP integrates with Visa Direct

`` Our partnership with ADP is another important milestone in Visa 's efforts to help reimagine the way workers get paid , both today and in the future . ''

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Sources

1

1

3

10

10

Automatic Data Processing Team

34 Team Members

Automatic Data Processing has 34 team members, including current Chief Executive Officer, President, Carlos A Rodriguez.

Name

Work History

Title

Status

Carlos A Rodriguez

Chief Executive Officer, President

Current

Jan Siegmund

President

Current

Christopher R Reidy

Chief Financial Officer

Current

Michael L Capone

Chief Information Officer

Current

Frank Villavicencio

Chief Product Officer

Current

Name

Carlos A Rodriguez

Jan Siegmund

Christopher R Reidy

Michael L Capone

Frank Villavicencio

Work History

Title

Chief Executive Officer, President

President

Chief Financial Officer

Chief Information Officer

Chief Product Officer

Status

Current

Current

Current

Current

Current

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