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Automatic Data Processing Inc (ADP)'s Winning Formula: Financial Metrics and Competitive Strengths
GuruFocus· 2024-10-04 15:02
Core Insights - Automatic Data Processing Inc (ADP) has demonstrated strong financial performance, with a current share price of $283.24 and a three-month gain of 20.38% despite a minor daily loss of 0.49% [1] - The company has a GF Score of 95/100, indicating significant growth potential and a strong position for future outperformance [2][3] Financial Overview - ADP has a market capitalization of $115.51 billion and annual sales of $19.20 billion, with an operating margin of 25.85% [3] - The breakdown of financials shows a pretax income of $13.0 billion (67.6% of total), operating income of $5.0 billion (25.9%), and gross profit of $8.7 billion (45.4%) [4] - The company’s interest coverage ratio stands at 13.74, well above the benchmark of 5, and its debt-to-revenue ratio is 0.19, indicating strong financial health [5] Profitability and Growth Metrics - ADP's operating margin has increased to 25.94% in 2024, reflecting improved efficiency in converting revenue into profit [5] - The company has achieved a 3-Year Revenue Growth Rate of 9.9%, outperforming over half of its industry peers [5] Business Model - ADP serves over 1 million clients, providing a range of services from payroll to human capital management, primarily in the United States [3] - The company has a rapidly growing professional employer organization segment that offers HR outsourcing solutions to small and midsize businesses [3]
US Dollar Forecast: Higher as Strong ADP Jobs Report Pressures Gold and Euro
FX Empire· 2024-10-02 18:43
EnglishItalianoEspañolPortuguêsDeutschالعربيةFrançaisImportant DisclaimersThe content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your ...
U.S. Stocks Edge Up as ADP Employment Data Exceeds Expectations; Nike and Nvidia Struggle
GuruFocus· 2024-10-02 16:30
U.S. stocks experienced modest gains with the Dow Jones Industrial Average rising by 68.04 points (0.16%) to 42225.01 points. The Nasdaq Composite increased by 51.52 points (0.29%) to 17961.88 points, and the S&P 500 index climbed by 7.36 points (0.13%) to 5716.11 points.Chinese stocks listed in the U.S. broadly rose, with the Nasdaq Golden Dragon China Index surging around 3%. Despite the rise, short-sellers of Chinese stocks faced significant losses, estimated at approximately $6.9 billion in market value ...
ADP Data Higher Than Expected in September
ZACKS· 2024-10-02 15:51
Economic Indicators - Pre-market futures are mixed with the Dow down 65 points and the S&P 500 down 5 points, while the Nasdaq is up 20 points [1] - ADP reported 143K new jobs in the private sector for September, exceeding the expected 128K and up from the revised 103K from the previous month [2] - The Goods/Services ratio returned to normal, with 42K jobs from the Goods sector and 101K from Services [2] - Small businesses lost 8K jobs, while medium-sized firms gained 64K and large companies added 86K jobs [2] Wage Growth - Average wage growth for those staying in their jobs was 4.7%, while job changers saw a growth of 6.6%, both down from previous months [3] Company Performance - ConAgra reported Q1 earnings of 53 cents per share, missing the Zacks consensus of 59 cents and down from 66 cents in the same quarter last year, resulting in a negative earnings surprise of 10.17% [4] - Revenues for ConAgra were $2.79 billion, which is 1.57% below consensus expectations [4] - Following the earnings report, ConAgra's shares fell by 5%, impacting the company's year-to-date gains of 14% [4]
ADP Up +143K, an Improvement on Private-Sector Payrolls
ZACKS· 2024-10-02 15:36
Wednesday, October 2nd, 2024Pre-market futures are mixed this morning, after kicking off Q4 yesterday with a port strike affecting 35% of U.S. imports and an attack on Israel from Iran, escalating Middle Eastern tensions which have grown in the wake of October 7th of last year. The Dow is -65 points and the S&P 500 is -5, but the Nasdaq is +20 atb this hour.ADP Bounces Back in SeptemberAutomatic Data Processing (ADP Quick Quote - Free Report) released private-sector payrolls this morning, and results were ...
Gold price struggling as ADP shows US economy created 143K jobs in September
KITCO· 2024-10-02 12:26
Neils ChristensenNeils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada. He has worked exclusively within the financial sector since 2007, when he started with the Canadian Economic Press. Neils can be contacted at: 1 866 925 4826 ext. 1526 nchristensen at kitco.com @Neils_cShareDisclaimer: The views expressed ...
ADP Unveils Lyric: The Flexible, Intelligent and Human-Centric Global HR Platform
Prnewswire· 2024-09-23 13:59
ADP Lyric HCM leverages GenAI to provide personalized employee experiences on a global scaleROSELAND, N.J., Sept. 23, 2024 /PRNewswire/ -- ADP® today announced the launch of ADP Lyric HCM, a Human Capital Management (HCM) platform designed to meet the evolving needs of the modern workforce through global HR, payroll and service. By combining flexibility, intelligence and human-centric design, Lyric provides a ground-breaking solution that enhances employee experience on a global scale.ADP® today announced t ...
Nonfarm Payrolls Fall Short of Expectations
ZACKS· 2024-09-06 15:41
This morning, the long-awaited Employment Situation report of non-farm payrolls from the U.S. Bureau of Labor Statistics (BLS) is out, with numbers perhaps stronger than the “whisper number” on Wall Street, but nevertheless weakening over the course of the year. Headline +142K was lower than the consensus +160K expected, but notably higher than the +99K from the ADP (ADP) private-sector August payrolls yesterday. The Unemployment Rate ticked down to +4.2%, as expected.Monthly Jobs Revisions -86K Over Last 2 ...
Jobs Report, Revisions Lower: 50 bps Cut in the Cards?
ZACKS· 2024-09-06 15:21
Friday, September 6th, 2024This morning, the long-awaited Employment Situation report of non-farm payrolls from the U.S. Bureau of Labor Statistics (BLS) is out, with numbers perhaps stronger than the “whisper number” on Wall Street, but nevertheless weakening over the course of the year. Headline +142K was lower than the consensus +160K expected, but notably higher than the +99K from the ADP (ADP) private-sector August payrolls yesterday. The Unemployment Rate ticked down to +4.2%, as expected. Monthly Job ...
10 Dividend Blue-Chip Bargains To Potentially Profit From This Irrational Market Freakout
Seeking Alpha· 2024-09-06 11:00
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 ...