peshkov Joel Greenblatt's Magic Formula That Beats The Market... Upgraded Joel Greenblatt achieved 40% annual returns for 21 years at Gotham Capital using a combination of value and quality investing in a more advanced version of his famous "Magic Formula that beats the market." Key Components of the Magic Formula Earnings Yield: This is calculated as earnings before interest and taxes (EBIT) divided by the company's enterprise value (EV). It measures how cheap a company is relative to its earnings. Ret ...

NicoElNino It's been almost 6 months since I last wrote about Automatic Data Processing, Inc. (NASDAQ:ADP). During this time, it has delivered a total return to its shareholders of 11.88% compared to the 5.76% provided by the S&P 500. Several things have happened over these months, but the most important one, and the focus of today's article, is reviewing its annual results and future prospects. Thesis Review If we recall a bit from what I mentioned in my previous article about the company, I said that ADP ...

Automatic Data Processing, Inc. (NASDAQ:ADP) Citi's 2024 Global TMT Conference September 5, 2024 10:50 AM ET Company Participants Joe DeSilva - Executive Vice President, Global Sales Conference Call Participants Peter Christiansen - Citi Investment Research Peter Christiansen Good morning, everyone. My name is Pete Christiansen. I'm with Citi's Equity Research Department covering info services, HR, HCM services, fintech and crypto all have been everywhere here. But great to have Joe DeSilva here. EVP of Glo ...

Summary of Automatic Data Processing, Inc. (ADP) Conference Call Company Overview - **Company**: Automatic Data Processing, Inc. (NASDAQ: ADP) - **Event**: Citi's 2024 Global TMT Conference - **Date**: September 5, 2024 - **Key Participant**: Joe DeSilva, Executive Vice President, Global Sales Key Points Industry and Market Demand - **End Market Demand**: ADP reported a 7% growth in employer services bookings, reaching $2 billion in Q4, indicating strong demand across small, mid, and large markets globally [2][3] - **Macro Environment**: No signs of slowing demand were observed, with healthy pipelines for Q1, suggesting resilience against macroeconomic pressures [3][4] - **Sales Dynamics**: The sales strategy focuses on both existing clients and new prospects, with 50% of sales coming from the existing client base and 50% from new prospects [17][18] Sales and Marketing Strategy - **Sales Structure**: ADP employs approximately 8,500 sales representatives, segmented by market size and geography, focusing on productivity and headcount growth [8][10] - **Productivity Focus**: Emphasis on enhancing sales productivity through better training and tools, adapting to a more informed buyer landscape post-COVID [12][13] - **Onboarding Process**: New sales representatives undergo a rigorous year-long training program, particularly in the small market, to ensure effective sales practices [22][24] Product Offerings and Innovations - **RUN Product**: The RUN platform is highlighted for its ease of use and implementation, contributing to high retention rates and client satisfaction [46][47] - **Next Gen Payroll**: This modern offering is expected to drive higher attach rates and sales, with 30% to 40% of current sales attributed to it [52][53] - **Next Gen HCM**: Positive reception and sales growth in the enterprise space, with a focus on building confidence among sales reps regarding the product [56][57] Competitive Landscape - **Market Position**: ADP maintains a strong competitive position, with no irrational pricing observed in the industry, and a focus on profitability among competitors [43][44] - **Client Base Expansion**: The company continues to attract clients from regional providers to national offerings, leveraging technology and service quality [15][41] International Growth Opportunities - **Global Expansion**: ADP is actively scaling its international operations, particularly through products like GlobalView and Celergo, with significant investments in marketing and sales headcount [63][66] - **Market Challenges**: Acknowledgment of the complexities in international markets, but optimism about the potential for growth with a unified global offering [64][68] Financial Performance and Outlook - **Bookings and Retention**: ADP reported strong bookings and client retention, particularly in the RUN segment, with 50,000 new clients added in Q4 [45][49] - **Upselling Opportunities**: There are significant opportunities for upselling additional services to existing clients, particularly in insurance and HR services [33][34] Additional Insights - **Health Care Costs**: Rising health care costs are seen as an opportunity for ADP's PEO offerings, enhancing their value proposition [40][41] - **Sales Flexibility**: ADP's ability to flex its sales force capacity is noted, with a focus on maintaining a balance between headcount and productivity [20][21] This summary encapsulates the key insights from the conference call, highlighting ADP's strong market position, innovative product offerings, and strategic focus on sales productivity and international growth.

Without much ado, we have lots of economic data out ahead of the opening bell this morning, plenty of which will add to whether interest rates are ready to come down by an incremental 25 basis points (bps) or a more significant 50 bps. Our analysis won’t be complete until we see non-farm payrolls reported Friday morning, but these figures bring us closer to what we need to know.ADP Private-Sector Payrolls 99K, Much Lower than AnticipatedIn the monthly private-sector payroll report from Automatic Data Proces ...

Thursday, September 5th, 2024Without much ado, we have lots of economic data out ahead of the opening bell this morning, plenty of which will add to whether interest rates are ready to come down by an incremental 25 basis points (bps) or a more significant 50 bps. Our analysis won’t be complete until we see non-farm payrolls reported Friday morning, but these figures bring us closer to what we need to know. ADP Private-Sector Payrolls 99K, Much Lower than AnticipatedIn the monthly private-sector payroll rep ...

Labor Market Overview - The labor market continued to cool in August, with private sector job creation slowing for the fifth consecutive month, increasing by 99,000 jobs compared to 111,000 in July [1] - Wage growth remained flat, with year-over-year pay gains for job-stayers at 4.8% and for job-changers at 7.3% [2] Industry Sector Performance - Among the 10 industry sectors tracked, seven experienced job gains, while professional/business services, manufacturing, and information sectors saw declines of 16,000, 8,000, and 4,000 jobs respectively [2] Job Openings and Economic Activity - The number of job openings declined to 7.67 million in July, the lowest since early 2021, indicating a slowdown in demand for workers [2] - The Federal Reserve reported that the number of districts with flat or declining economic activity rose to nine in August, up from five in July, with firms becoming more selective in hiring [3]

ROSELAND, N.J., Sept. 5, 2024 /PRNewswire/ -- ADP (Nasdaq: ADP), a leading global technology company providing human capital management (HCM) solutions, today announced the pricing of a public offering of $1.0 billion aggregate principal amount of its 4.450% senior notes due 2034.ADP expects to receive the net offering proceeds upon closing on or about September 9, 2024. The intended use of proceeds from the offering is for general corporate purposes.ADP has filed a registration statement (including a prosp ...

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Tuesday, September 3rd, 2024It was a tough day for the market indexes. With jobs numbers looming later this week, market participants took a look at stock levels and decided they were too high. The Dow tumbled -626 points, -1.51%, while the Nasdaq shed -577 points, -3.26%. The S&P 500 and small-cap Russell 2000 were down -2.12% and -3.09%, respectively.This was the worst single trading day for tech stocks two years — the worst for the chips segment since 2020. Magnificent 7 stock leader NVIDIA (NVDA) fell - ...