Core Insights - Automatic Data Processing (ADP) has returned $28 billion to shareholders over the past ten years through dividends and buybacks, ranking 100th in historical returns to shareholders [2][3] - The capital returned to shareholders as a percentage of current market cap appears inversely related to growth prospects for reinvestments, with companies like Meta and Microsoft showing faster growth but lower capital returns [4][5] Financial Performance - ADP has demonstrated revenue growth of 7.1% in the last twelve months (LTM) and an average of 7.4% over the past three years [10] - The company has a free cash flow margin of nearly 20.1% and an operating margin of 26.2% LTM [10] - The minimum annual revenue growth for ADP over the last three years was 6.6% [10] - ADP's stock has a price-to-earnings (P/E) ratio of 24.7 [10] Market Behavior - ADP has experienced significant declines in the past, including a 36% drop during the Dot-Com bubble and a nearly 39% drop during the Covid market downturn [7][8] - The company’s stock can also decline during favorable market conditions, particularly around earnings announcements and business updates [8]