ADP
ACCE-researchedOverview
ACCE thesis
ADP processes payroll for 41 million workers globally and handles HR services for 920,000 clients, from corner barbershops to Fortune 500 companies. The business benefits from massive switching costs - migrating payroll systems creates operational nightmares that keep client retention above 92% annually. Rising minimum wages and complex compliance requirements drive consistent demand for outsourced payroll, while their Professional Employer Organization segment grew 12% last quarter as small businesses seek bundled HR solutions. Trading at 17.4x forward earnings with 71% ROE, ADP generates returns that dwarf most tech names while maintaining the predictable cash flows of a utility. Management just raised full-year guidance after beating Q2 estimates, with new bookings accelerating 8% as labor market tightness forces companies to professionalize their HR operations.
Walk me through this stock
Plain-English pros, cons, and what to watch. Pro feature.
Price
Valuation
INVESTORSix independent models converge on one confidence-weighted fair value, with full methodology and editable assumptions.
- +All six models: DCF, P/E and EV/EBITDA comps, Graham, dividend discount, residual income
- +Scenario bands, sensitivity tornado, and the 5-year historical valuation range
- +Editable DCF workbench with saved scenarios
Quality
INVESTORThe full quality picture: conviction breakdown, earnings quality, score history, and backtested returns.
- +Conviction score breakdown and earnings-quality grade
- +Growth / value / quality / momentum component scores
- +90-day score history and score-threshold backtests
Analysts
Wall Street consensus
The full analyst picture: the price-target distribution against the current price, forward consensus estimates, and how ACCE's own models compare.
- +Price-target low / average / high vs the current price, with implied upside
- +Forward revenue and EPS consensus by fiscal year
- +ACCE fair-value models lined up against the Street
Smart Money
PROFollow the institutions: 13F position changes, insider trades, and active 13D activist filings.
- +Quarter-over-quarter institutional position changes
- +Recent open-market insider transactions
- +Active 13D activist filings and top holders
Compare
Where it sits vs peers
Algorithmic peers (6)
| Ticker | Company | Mcap | P/E | ROE | D/E | Yield | Quality | |
|---|---|---|---|---|---|---|---|---|
| SNOW | Snowflake Inc. Common Stock | $117.3B | - | -48.1% | 1.21 | 0.0% | - | Compare |
| ADBE | Adobe Inc. Common Stock | $98.9B | 13.9 | 61.9% | 0.54 | 0.0% | - | Compare |
| NOW | ServiceNow Inc. Common Stock | $140.1B | 84.7 | 14.2% | 0.12 | 0.0% | - | Compare |
| DDOG | Datadog Inc. Class A Common Stock | $82.6B | 450.8 | 4.7% | 0.27 | 0.0% | - | Compare |
| INTU | Intuit Inc. Common Stock | $81.0B | 18.4 | 23.6% | 0.40 | 1.8% | - | Compare |
| UBER | Uber Technologies Inc. Common Stock | $144.0B | 15.5 | 37.2% | 0.40 | 0.0% | - | Compare |
Sector report card
Where ADP ranks against its sector peers on each metric.
News and Record
Press releases mentioning this company
- PR Newswire•Sep 15, 2026ADP National Employment Report Preliminary Estimate for August 29, 2026
- Business Wire•Sep 9, 2026Edelman Financial Engines Expands Access to Fiduciary Advice with Integrated Retirement Plan Solution for Small and Mid-Sized Businesses and Their Employees
- PR Newswire•Sep 9, 2026ADP National Employment Report Preliminary Estimate for August 22, 2026
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