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Gearing Up for Jobs Week: What to Expect
ZACKS· 2025-09-02 14:55
Group 1 - The upcoming week is significant for the stock market due to the release of major employment reports, including Job Openings and Labor Turnover Survey (JOLTS) and private-sector payrolls from ADP [1][2] - Weekly Jobless Claims have shown consistency, currently around 230K, with longer-term claims remaining above 1.94 million for 12 consecutive weeks [3] - The Employment Situation report from the U.S. Bureau of Labor Statistics (BLS) is expected to show modest job growth of +75K new jobs, which is similar to the previous month's report [4][5] Group 2 - The Federal Reserve is likely to cut interest rates in response to lower job numbers, indicating that even a surprise increase in job growth would not alter their plans [6] - The S&P Manufacturing PMI and ISM Manufacturing reports for August are anticipated, with S&P expected to remain at 53.3 and ISM expected to rise to 48.5% [7] - Pre-market futures are declining, with major indexes falling below levels from five workdays ago, and bond yields have surged, indicating market volatility [8]
Why Is ADP (ADP) Down 1.7% Since Last Earnings Report?
ZACKS· 2025-08-29 16:31
Core Viewpoint - Automatic Data Processing (ADP) reported strong fourth-quarter fiscal 2025 results, with earnings and revenues exceeding estimates, but has seen a recent decline in share performance compared to the S&P 500 [1][2]. Financial Performance - ADP's earnings per share (EPS) for Q4 fiscal 2025 was $2.26, beating the consensus estimate by 1.8% and increasing 8.1% year-over-year [2]. - Total revenues reached $5.1 billion, surpassing estimates by 1.5% and growing 5.7% year-over-year [2]. Segmental Results - Employer Services generated revenues of $3.5 billion, an 8% increase on a reported basis but missed the estimate of $3.8 billion [3]. - PEO Services revenues rose 9% year-over-year to $1.2 billion, falling short of the $1.7 billion estimate [3]. - Average worksite employees paid by PEO Services increased by 3% to 761,000 [3]. Interest and Client Funds - Interest on funds held for clients grew 11% year-over-year to $308 million, missing the estimate of $342.4 million [4]. - The average client funds balance increased by 6% to $38.1 billion, with the average interest yield expanding by 20 basis points to 3.2% [4]. Margins - Adjusted EBIT rose 9% year-over-year to $5.3 billion, with the adjusted EBIT margin increasing by 50 basis points to 26% [5]. - The margin for Employer Services increased by 50 basis points, while PEO Services saw a decrease of 20 basis points [5]. Balance Sheet and Cash Flow - At the end of Q4 fiscal 2025, ADP had cash and cash equivalents of $3.3 billion, up from $2.7 billion in the previous quarter [6]. - Long-term debt increased to $4 billion from $3 billion in the preceding quarter [6]. - The company generated $1.4 billion in cash from operating activities during the quarter [6]. Fiscal 2025 Outlook - ADP lowered its revenue growth guidance for fiscal 2025 to 5-6% from the previous 6-7% [7]. - Adjusted EPS growth guidance was updated to 8-10% from 8-9% [7]. - The adjusted effective tax rate is estimated at 23%, and the guidance for adjusted EBIT margin was raised to 50-70 basis points [7]. Estimate Trends - There has been a downward trend in estimates for ADP, indicating a shift in expectations [10][12]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [12].
PCE Inflation Came In Line With Expectations
ZACKS· 2025-08-29 16:10
Economic Overview - Pre-market futures are improving following the release of major economic numbers, despite a drawback in EU markets due to rising unemployment and inflation in Germany [1] - U.S. indexes are experiencing volatility, with the small-cap Russell 2000 showing gains while other major indexes remain in the red [1] PCE and Inflation Metrics - July Personal Consumption Expenditures (PCE) figures were in-line with expectations, indicating no threat to the anticipated 25 basis point rate cut for the September Fed meeting [2] - Personal Income for July increased by 0.4%, the strongest since April, while Personal Spending rose by 0.5%, marking the highest increase since March [3] - The headline PCE Index showed a month-over-month increase of 0.2%, the lowest since May, with a year-over-year increase of 2.6%, consistent with the previous month [4] - Core PCE, excluding food and energy, increased by 0.3% month-over-month and 2.9% year-over-year, indicating stability in inflation metrics [5] Employment Data - July's non-farm payrolls increased by 73,000, surpassing the downwardly revised four-month average of 54,000, but significantly lower than the previous year's average of 122,000 [8] - The Fed's focus appears to be shifting from inflation to employment concerns, as weakening employment data is influencing the outlook for interest rates [9] Trade and Inventory Data - Advanced Trade in Goods for July showed a disappointing deficit of $103 billion, more than $10 billion lower than anticipated [10] - Advanced Retail Inventories and Wholesale Inventories both reported a month-over-month increase of 0.2%, indicating stable inventory levels in the current tariff environment [11] Market Expectations - The upcoming week will feature new jobs reports, including July JOLTS numbers and private-sector payrolls from ADP, with the significant BLS non-farm payrolls report expected next week [12]
PCE Numbers In-Line, Pre-Market Fighting Off Lows
ZACKS· 2025-08-29 15:31
Economic Overview - Pre-market futures are improving following the release of major economic numbers, despite a drawback in EU markets due to rising unemployment and inflation in Germany [1] - U.S. indexes are experiencing volatility, with the small-cap Russell 2000 showing gains while other major indexes remain in the red [1] PCE and Inflation Metrics - July Personal Consumption Expenditures (PCE) figures were in-line with expectations, indicating no hindrance to the anticipated 25 basis point rate cut for the September Fed meeting [2] - Personal Income for July increased by 0.4%, the strongest since April, while Personal Spending rose by 0.5%, marking the highest increase since March [3] - The headline PCE Index showed a month-over-month increase of 0.2%, the lowest since May, with a year-over-year increase of 2.6%, consistent with the previous month [4] - Core PCE, excluding food and energy, increased by 0.3% month-over-month and 2.9% year-over-year, indicating stability in inflation metrics [5] Employment and Economic Indicators - Fed Chair Jerome Powell's focus has shifted from inflation to employment concerns, with July's non-farm payrolls showing an increase of 73K, which is below the previous four-month average of 54K [8] - A significant upward revision in PCE would be necessary to alter the current outlook, as weakening employment is influencing the decision for a rate cut [9] Trade and Inventory Data - Advanced Trade in Goods for July reported a deficit of $103 billion, which was more than $10 billion lower than anticipated [10] - Advanced Retail Inventories and Wholesale Inventories both reported a month-over-month increase of 0.2%, indicating stable inventory levels [11] Market Expectations - The upcoming week will feature new jobs reports, including July JOLTS numbers and private-sector payrolls from ADP, leading up to the significant BLS non-farm payrolls report [12]
美国统计局“无法相信”后,华尔街更依赖“私人调查”:ADP就业、挑战者裁员人数等数据对市场愈发重要
Hua Er Jie Jian Wen· 2025-08-24 05:24
Core Viewpoint - Investors on Wall Street are increasingly considering reducing their reliance on government economic data due to concerns over potential political influence on the Bureau of Labor Statistics (BLS) data following President Trump's dismissal of its head and allegations of data manipulation [1][2][4] Group 1: Shift to Private Data Sources - Wall Street strategists are planning to increase their reliance on private data sources such as ADP Research's employment reports and Challenger, Gray & Christmas Inc.'s layoff data [1][2] - Philip Petursson, Chief Investment Strategist at IG Wealth Management, expressed concerns about the future effectiveness of government data due to the political turmoil surrounding the BLS [2] - Michael O'Rourke, Chief Market Strategist at Jonestrading, indicated that the situation looks "very bad" and plans to focus more on private data sources [2] Group 2: Concerns Over Data Politicalization - Investors believe that if government data becomes politicized, private data sources will help them quickly identify issues [4] - Brian Jacobsen, Chief Economist at Annex Wealth Management, stated that private data serves as a check against official data, allowing for cross-validation [4] - Donald Ellenberger, Senior Portfolio Manager at Federated Hermes, warned that if the Trump administration is seen as interfering with reporting procedures, the usefulness of government reports will diminish [4] Group 3: Current State of BLS Data - The BLS data has its own issues, including funding shortages leading to personnel shortages and outdated data collection methods, which have decreased reliability [5] - The response rate for surveys has been declining over the years, and the magnitude of data revisions has been increasing [5]
4 Women-Run Company Stocks Showing Strong 2025 Gains
ZACKS· 2025-08-14 17:36
Corporate Leadership and Performance - The shift towards gender-diverse leadership is transforming corporate cultures and enhancing business performance across various sectors, including technology and healthcare [2][4] - Women-led firms are setting new benchmarks for strategic growth and operational excellence, often outperforming their industry peers [2][4] Case Studies of Women-Led Companies - American Water Works' Cheryl Norton has advanced infrastructure resilience and innovation, earning multiple leadership awards [3] - Apple's Deirdre O'Brien has significantly shaped the company's global retail presence and internal culture, overseeing flagship store expansions and community engagement programs [3] Financial Market Recognition - ESG-focused funds are increasingly prioritizing companies with women in executive roles, recognizing the value of gender-diverse leadership [4] - Women entrepreneurs own 42% of U.S. businesses, employing 9.4 million workers and generating $1.9 trillion in annual revenues [4] Funding Challenges for Women Entrepreneurs - Women-led startups receive only about 2% of venture capital funding in the U.S. and Europe, partly due to biases in the investment community [5] - Women entrepreneurs are less likely to seek financing, with only 25% pursuing loans compared to 33% of male business owners [5] Investment Opportunities in Women-Led Companies - Companies like Newmont Corporation, Ralph Lauren Corporation, Automatic Data Processing, Inc., and Casey's General Stores exemplify strong leadership and strategic vision, making them attractive investment opportunities [6] - Newmont's recent performance includes adjusted earnings per share of $1.43 and revenue of approximately $5.32 billion, with a record $1.7 billion in quarterly free cash flow [9][10] - Ralph Lauren reported a 14% year-over-year revenue increase, with an 8% uptick in North America, indicating growth potential under new leadership [13][14] - Automatic Data Processing achieved 7% revenue growth and 9% adjusted EPS growth in fiscal 2025, supported by a people-centric strategy [15][17] - Casey's reported $15.9 billion in revenues and $546.5 million in net income for fiscal 2025, reflecting strong operational execution [19][20]
ADP® Lyric HCM Wins Top HR Product of 2025 Award By HR Executive
Prnewswire· 2025-08-11 13:45
Core Insights - ADP's Lyric has been recognized as a Top HR Product of 2025 by HR Executive, highlighting its innovative approach to human capital management [1][6] - The award will be presented during the HR Icons Awards Evening at HR Tech 2025 on September 15, 2025 [1] Product Overview - The Top HR Products competition evaluates solutions based on innovation, value to HR functions, user experience, and integration capabilities [2] - Lyric is designed to support enterprise organizations with personalized guidance, global adaptability, and proactive insights through integrated AI and automation [3][6] Features and Benefits - ADP Lyric HCM offers a unified platform for HR, payroll, talent, and workforce management, tailored for borderless work environments [7] - Key features include ADP Assist for proactive insights, automated workflows to reduce administrative overhead, and flexible position management [6][7] Industry Context - The recognition of Lyric aligns with the industry's need for HR technologies that address current and future challenges, enabling HR leaders to be proactive and strategic [4] - HR Tech is a premier event showcasing innovative HR solutions, further establishing the importance of advancements in human resource management [9][10]
Top Stocks From the Staffing Industry to Keep an Eye On
ZACKS· 2025-08-07 15:36
Core Insights - The staffing industry is evolving rapidly due to digital innovation, demographic changes, and the demand for flexible work arrangements, making effective staffing solutions critical for companies [3][4] - Staffing firms are increasingly viewed as growth enablers, helping organizations navigate economic uncertainties and scale for growth [4][5] Industry Overview - The staffing ecosystem has transformed, with organizations seeking strategic partners who understand talent needs and market trends [3] - Technology, including AI-enabled recruitment tools and talent analytics, is becoming standard in staffing strategies, allowing for faster and smarter hiring decisions [3] Investment Opportunities - The staffing sector presents compelling opportunities for investors, with firms like ADP, Korn Ferry, and Barrett Business Services positioned as key players in workforce transformation [5][6] - As hiring accelerates, staffing companies are at the forefront of providing scalable solutions that contribute to economic growth and long-term value creation [5] Company Highlights - **ADP**: A leader in human capital management solutions, ADP reported revenues of $5.1 billion for Q3 fiscal 2025, a 5.7% year-over-year increase, and is focused on expanding its cloud-based HCM and HR outsourcing solutions [8][9] - **Korn Ferry**: Specializes in executive search and workforce transformation, leveraging data-driven insights and AI tools to enhance hiring processes and leadership development [10][11][12] - **Barrett Business Services (BBSI)**: Provides HR outsourcing and management consulting, focusing on personalized client interactions and local market expertise, which supports its sustained growth [13]
ADP(ADP) - 2025 Q4 - Annual Report
2025-08-06 20:07
Part I [Business](index=4&type=section&id=Item%201.%20Business) ADP is a global leader in Human Capital Management solutions, serving over 1.1 million clients across 140+ countries, leveraging AI and strategic acquisitions - ADP is a global leader in HR and payroll solutions, serving over **1.1 million clients** and paying over **42 million workers** in more than **140 countries and territories**[10](index=10&type=chunk) - The company's three strategic priorities are: leading with best-in-class HCM technology, providing unmatched expertise and outsourcing solutions, and benefiting clients with its global scale[16](index=16&type=chunk) - ADP is strategically infusing AI into its products, highlighted by the rollout of ADP Assist, a generative AI-powered solution that provides actionable insights across all HR functions[23](index=23&type=chunk)[24](index=24&type=chunk) - In fiscal year 2025, ADP acquired WorkForce Software to enhance its workforce management solutions and Procesamiento Externo de Información, S.C. (PEI) to strengthen its capabilities in Mexico[33](index=33&type=chunk) Reportable Segments Overview | Segment | Description | | :--- | :--- | | **Employer Services** | Offers a comprehensive range of technology-based HCM solutions, including payroll, benefits administration, talent management, and HRO solutions to clients of all sizes | | **Professional Employer Organization (PEO)** | Provides a full-service PEO solution called ADP TotalSource® through a co-employment model for small and mid-sized businesses | [Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant legal, compliance, cybersecurity, technology, and economic risks, including interest rate fluctuations and rapid AI advancements - **Legal and Compliance Risks:** Failure to comply with a wide range of U.S. and foreign laws, including privacy, data protection (GDPR, CPRA), AI regulations, anti-corruption, and anti-money laundering laws, could result in substantial costs, penalties, and reputational damage[111](index=111&type=chunk)[116](index=116&type=chunk)[118](index=118&type=chunk) - **Security and Technology Risks:** The business is regularly targeted by sophisticated cyber-attacks. A security breach could lead to the disclosure of confidential information, disruption of operations, and significant financial loss. System disruptions or failures in data centers could also materially harm the business[126](index=126&type=chunk)[127](index=127&type=chunk)[133](index=133&type=chunk) - **Business and Industry Risks:** The HCM industry is subject to rapid technological change, particularly from AI, which could render existing solutions obsolete. The business is also exposed to market risks from changes in foreign currency exchange rates, economic slowdowns, and changes in employment levels and interest rates, which can impact client fund balances and investment income[137](index=137&type=chunk)[140](index=140&type=chunk)[146](index=146&type=chunk) [Unresolved Staff Comments](index=25&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[153](index=153&type=chunk) [Cybersecurity](index=25&type=section&id=Item%201C.%20Cybersecurity) ADP maintains an enterprise-wide cybersecurity program based on industry frameworks, overseen by CISO/CSO and the Board, to protect client data and funds - ADP has implemented a cybersecurity program based on industry frameworks like the NIST Cybersecurity Framework and ISO standards to manage risks from cybersecurity threats[156](index=156&type=chunk) - The program includes a global team for 24/7 monitoring and incident response, periodic external and internal assessments, threat intelligence collaboration, and a third-party risk management process[156](index=156&type=chunk) - Cybersecurity governance is led by the Chief Information Security Officer (CISO) and Chief Security Officer (CSO), with the Board of Directors actively engaged in oversight through regular quarterly reports and an annual third-party assessment[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) [Properties](index=27&type=section&id=Item%202.%20Properties) ADP owns approximately **2.6 million square feet** and leases **5.6 million square feet** of property worldwide, deeming its facilities adequate for operations - ADP owns 6 processing/print centers and 10 other offices, including its corporate headquarters, totaling approximately **2,555,369 square feet**[164](index=164&type=chunk) - The company leases approximately **5,640,668 square feet** of space worldwide, with leases expiring at various times up to the year 2036[164](index=164&type=chunk) [Legal Proceedings](index=27&type=section&id=Item%203.%20Legal%20Proceedings) The company is subject to various legal claims and litigation, but management anticipates no material adverse impact on its financial condition or operations - The company is subject to various claims and litigation in the normal course of business[165](index=165&type=chunk) - Management believes the resolution of pending legal matters will not have a materially adverse impact on its financial condition or results of operations[165](index=165&type=chunk) [Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[166](index=166&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters,%20and%20Issuer%20Purchases%20of%20Equity%20Securities) ADP's common stock trades on NASDAQ, with the company detailing Q4 FY2025 share repurchases under a **$5 billion** authorization and providing a performance graph - The company's common stock is principally traded on the NASDAQ Global Select Market under the symbol ADP[168](index=168&type=chunk) Issuer Purchases of Equity Securities (Q4 FY2025) | Period | Total Shares Purchased | Average Price Paid per Share ($) | Maximum Dollar Value Remaining for Repurchase ($) | | :--- | :--- | :--- | :--- | | April 2025 | 400,430 | $296.09 | $2,010,261,167 | | May 2025 | 333,958 | $315.74 | $1,904,817,267 | | June 2025 | 327,239 | $314.51 | $1,801,895,701 | | **Total** | **1,061,627** | - | - | - The share repurchase plan was approved by the Board of Directors in November 2022 for **$5 billion** and has no expiration date[168](index=168&type=chunk)[169](index=169&type=chunk) [Selected Financial Data](index=30&type=section&id=Item%206.%20Selected%20Financial%20Data) This item is not applicable to the company - Not applicable[173](index=173&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) ADP achieved strong FY2025 financial results with **7% revenue growth** to **$20.6 billion**, **50 bps adjusted EBIT margin expansion**, and **9% adjusted diluted EPS growth**, maintaining solid liquidity Fiscal 2025 Financial Highlights | Metric | FY 2025 Result (in millions) | YoY Growth | | :--- | :--- | :--- | | **Revenue** | $20,560.9 | 7% | | **Revenue (Organic Constant Currency)** | - | 7% | | **Diluted EPS ($)** | $9.98 | 10% | | **Adjusted Diluted EPS ($)** | $10.01 | 9% | | **Adjusted EBIT Margin** | 26.0% | +50 bps | - Revenue growth was driven by new business bookings, strong client retention, increased pricing, higher interest on funds held for clients, and the acquisition of WorkForce Software[183](index=183&type=chunk) - The company returned **$3.7 billion** to shareholders in fiscal 2025, consisting of **$2.4 billion** in dividends and **$1.3 billion** in share repurchases[182](index=182&type=chunk) [Results and Analysis of Consolidated Operations](index=33&type=section&id=Results%20and%20Analysis%20of%20Consolidated%20Operations) FY2025 consolidated revenues grew **7%** to **$20.6 billion**, with EBIT margin expanding **50 bps** to **25.8%** and net earnings increasing **9%** to **$4.1 billion** Consolidated Revenue (FY2025 vs FY2024) | Metric | FY 2025 (in millions) | FY 2024 (in millions) | YoY Growth | | :--- | :--- | :--- | :--- | | **Total Revenues** | $20,560.9 | $19,202.6 | 7% | | **Organic Constant Currency Growth** | - | - | 7% | - Interest on funds held for clients increased to **$1,189.1 million** in FY2025 from **$1,024.7 million** in FY2024, due to a higher average interest rate (**3.2% vs 2.9%**) and a **6.4% increase** in average client funds balances to **$37.6 billion**[184](index=184&type=chunk) Consolidated Earnings (FY2025 vs FY2024) | Metric | FY 2025 (in millions) | FY 2024 (in millions) | YoY Growth | | :--- | :--- | :--- | :--- | | **EBIT** | $5,310.1 | $4,872.3 | 9% | | **EBIT Margin** | 25.8% | 25.4% | +50 bps | | **Net Earnings** | $4,079.7 | $3,752.0 | 9% | | **Diluted EPS ($)** | $9.98 | $9.10 | 10% | [Analysis of Reportable Segments](index=36&type=section&id=Analysis%20of%20Reportable%20Segments) In FY2025, Employer Services revenue grew **7%** to **$13.9 billion** with **100 bps margin expansion**, while PEO Services revenue also grew **7%** to **$6.7 billion** but saw a **60 bps margin contraction** Segment Performance (FY2025) | Segment | Revenues (in millions) | YoY Growth | Earnings before Income Taxes (in millions) | YoY Growth | Margin | Margin Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Employer Services** | $13,883.1 | 7% | $5,008.5 | 10% | 36.1% | +100 bps | | **PEO Services** | $6,690.4 | 7% | $950.5 | 3% | 14.2% | -60 bps | - Employer Services revenue growth was supported by a **1% increase** in pays per control, new business, strong client retention, and the WorkForce Software acquisition[199](index=199&type=chunk) - PEO Services revenue growth was driven by a **3% increase** in average worksite employees and an **8% increase** in zero-margin benefits pass-throughs[202](index=202&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=40&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) As of June 30, 2025, ADP maintained a strong financial position with **$3.3 billion** cash, **$10.6 billion** credit facilities, and **$4.9 billion** cash from operations, supporting acquisitions, repurchases, and dividends - The company ended fiscal 2025 with **$3.3 billion** in cash and cash equivalents[217](index=217&type=chunk) - ADP has access to significant liquidity through a **$10.6 billion** commercial paper program and **$10.6 billion** in committed credit facilities[218](index=218&type=chunk)[219](index=219&type=chunk) Cash Flow Summary (FY2025) | Cash Flow Activity | Amount (in millions) | | :--- | :--- | | **Operating Activities** | $4,939.7 | | **Investing Activities** | ($3,035.0) | | **Financing Activities** | ($6,973.4) | - The company repurchased approximately **4.4 million shares** of common stock for about **$1.3 billion** during fiscal 2025[223](index=223&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) ADP is exposed to interest rate and foreign currency risks, with a **25 bps** rate change impacting pre-tax earnings by **$24 million**, managed through investment strategies and high-quality securities - The company's primary market risks are interest rate risk on its investment portfolio and foreign currency exchange rate risk[234](index=234&type=chunk)[242](index=242&type=chunk) - A hypothetical **25 basis point change** in both short-term and intermediate-term interest rates would result in an approximate **$24 million** impact to earnings before income taxes over the next twelve months[240](index=240&type=chunk) - The client funds investment strategy is designed to average through interest rate cycles by laddering maturities out to **ten years**, supported by short-term financing arrangements like a **$10.6 billion** commercial paper program and **$7.5 billion** in committed reverse repurchase agreements[237](index=237&type=chunk)[238](index=238&type=chunk) - Credit risk is managed by investing in investment-grade securities, with minimum ratings of **BBB** for corporate bonds and **AAA** for asset-backed securities at the time of purchase[239](index=239&type=chunk)[241](index=241&type=chunk) [Financial Statements and Supplementary Data](index=47&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents ADP's audited consolidated financial statements for FY2023-2025, including earnings, balance sheets, and cash flows, with auditor-identified critical audit matters - The independent auditor's report from Deloitte & Touche LLP provides an unqualified opinion on the financial statements and the effectiveness of internal control over financial reporting[256](index=256&type=chunk)[257](index=257&type=chunk) - Critical Audit Matters identified were the valuation of Goodwill for the Employer Services segment, particularly concerning forecasts for the next-gen platform, and the accuracy and completeness of Client Funds Obligations due to high transaction volume and complexity[261](index=261&type=chunk)[264](index=264&type=chunk) [Statements of Consolidated Earnings](index=50&type=section&id=Statements%20of%20Consolidated%20Earnings) FY2025 consolidated earnings show total revenues of **$20.6 billion** and net earnings of **$4.1 billion**, or **$9.98 per diluted share** Consolidated Earnings Summary (in millions, except per share amounts) | Metric | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | **Total Revenues** | $20,560.9 | $19,202.6 | $18,012.2 | | **Earnings Before Income Taxes** | $5,310.1 | $4,872.3 | $4,437.6 | | **Net Earnings** | $4,079.7 | $3,752.0 | $3,412.0 | | **Diluted EPS ($)** | $9.98 | $9.10 | $8.21 | [Consolidated Balance Sheets](index=52&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, ADP's balance sheet shows **$53.4 billion** in total assets, **$47.2 billion** in total liabilities, and **$6.2 billion** in total stockholders' equity Consolidated Balance Sheet Summary (in millions) | Account | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $43,252.2 | $45,542.5 | | *Funds held for clients* | *$30,985.7* | *$37,996.1* | | **Total Assets** | **$53,369.3** | **$54,362.7** | | **Total Current Liabilities** | $41,278.3 | $45,080.0 | | *Client funds obligations* | *$31,343.3* | *$39,503.9* | | **Long-Term Debt** | $3,974.7 | $2,991.3 | | **Total Liabilities** | **$47,181.3** | **$49,815.1** | | **Total Stockholders' Equity** | **$6,188.0** | **$4,547.6** | [Statements of Consolidated Cash Flows](index=54&type=section&id=Statements%20of%20Consolidated%20Cash%20Flows) FY2025 cash flows show **$4.9 billion** from operations, **$3.0 billion** used in investing, and **$7.0 billion** used in financing, primarily for client funds, dividends, and share repurchases Consolidated Cash Flow Summary (in millions) | Cash Flow Activity | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $4,939.7 | $4,157.6 | $4,207.6 | | **Net Cash from Investing Activities** | ($3,035.0) | ($1,389.0) | ($2,517.3) | | **Net Cash from Financing Activities** | ($6,973.4) | ($1,431.7) | ($15,680.7) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=86&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting and financial disclosure - None[432](index=432&type=chunk) [Controls and Procedures](index=86&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of June 30, 2025, with an unqualified auditor opinion - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[434](index=434&type=chunk) - Based on an assessment using the COSO framework, management determined that ADP's internal control over financial reporting was effective as of June 30, 2025[438](index=438&type=chunk) - There were no changes in internal control over financial reporting during the fourth quarter of fiscal 2025 that materially affected, or are reasonably likely to materially affect, these controls[440](index=440&type=chunk) [Other Information](index=90&type=section&id=Item%209B.%20Other%20Information) The company disclosed a separation agreement for Don McGuire effective September 30, 2025, and reported no Rule 10b5-1 trading plan changes by officers or directors - Don McGuire entered into a separation agreement and release on August 1, 2025, related to his departure from the company on September 30, 2025[447](index=447&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=90&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - None[448](index=448&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=91&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) This section lists executive officers and incorporates information on directors, the audit committee, and corporate governance from the 2025 Proxy Statement - Provides a list of executive officers, including CEO Maria Black, CFO Peter Hadley, and CAO Michael A. Bonarti, along with their professional backgrounds[450](index=450&type=chunk) - Information regarding Directors and the Audit Committee is incorporated by reference from the Proxy Statement for the 2025 Annual Meeting of Stockholders[460](index=460&type=chunk)[463](index=463&type=chunk) [Executive Compensation](index=92&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation, including the Compensation Discussion and Analysis, is incorporated by reference from the 2025 Proxy Statement - All information regarding executive compensation is incorporated by reference from the Proxy Statement for the Company's 2025 Annual Meeting of Stockholders[464](index=464&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=92&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership by beneficial owners and management, and equity compensation plans, is incorporated by reference from the 2025 Proxy Statement - All information regarding security ownership and equity compensation plans is incorporated by reference from the Proxy Statement for the Company's 2025 Annual Meeting of Stockholders[465](index=465&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=92&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the 2025 Proxy Statement - All information regarding related transactions and director independence is incorporated by reference from the Proxy Statement for the Company's 2025 Annual Meeting of Stockholders[466](index=466&type=chunk) [Principal Accounting Fees and Services](index=93&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the 2025 Proxy Statement - Information regarding principal accounting fees and services is incorporated by reference from the Proxy Statement for the Company's 2025 Annual Meeting of Stockholders[467](index=467&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=93&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Annual Report on Form 10-K, including governance documents and material contracts - Lists all financial statements and schedules included in the filing, such as the Report of Independent Registered Public Accounting Firm and the Consolidated Financial Statements[469](index=469&type=chunk) - Provides a detailed index of all exhibits filed with the report, including governance documents, material contracts, and certifications by the CEO and CFO[471](index=471&type=chunk)
5 Relatively Secure And Cheap Dividend Stocks, Yields Up To 8.5% (August 2025)
Seeking Alpha· 2025-08-02 12:01
Group 1 - The primary goal of the "High Income DIY Portfolios" service is to provide high income with low risk and capital preservation for DIY investors [1] - The service offers six different portfolios tailored for various investment strategies, including two High-Income portfolios, a Dividend Growth Investing (DGI) portfolio, a conservative strategy for 401K accounts, a Sector-Rotation strategy, and a High-Growth portfolio [1] - The target audience for these portfolios includes income-seeking investors, particularly retirees or those nearing retirement [1] Group 2 - The monthly series on Dividend Stocks involves scanning approximately 7,500 stocks listed on U.S. exchanges using proprietary filtering criteria [2] - The author has disclosed beneficial long positions in a wide range of stocks, indicating a vested interest in the performance of these companies [2]