Automatic Data Processing ($ADP) Confident Investor Rating: Poor

Company name Automatic Data Processing
Stock ticker ADP
Live stock price [stckqut]ADP[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Fair
Sales growth Poor
EPS growth Fair
P/E growth Poor
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $49.64
Target stock price (averages with growth) $58.08
Target stock price (averages with no growth) $50.99
Target stock price (manual assumptions) $67.89

The following company description is from Google Finance: http://www.google.com/finance?q=adp
Automatic Data Processing, Inc. (ADP), is a provider of business outsourcing solutions. ADP offers a wide range of human resource, payroll, tax and benefits administration solutions from a single source. ADP is also a provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world. The Company's operating segments include: Employer Services, Professional Employer organization (PEO) Services, and Dealer Services. In October 2011, the Company acquired WALLACE - The Training Tax Credit Company. In January 2012, the Company acquired Indian payroll business of Randstad Holding NV. In April 2012, it acquired the human resource solutions subsidiary of SHPS, Inc.

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

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