This Automatic Data Processing, Inc. (ADP) article analyses Q4 and FY2019 results, FY2020 guidance, and amended FY2021 targets which were released July 31, 2019. Summary ADP should benefit from the evolving and increasingly complex relationship between businesses and their employees, changes in the US tax code, labor regulation and benefit compliance. Investors with a low [...]
I will occasionally employ the use of conservative option strategies to generate additional income. This article provides an update on option positions for 4 companies in which I own the underlying shares. I continue to be dumfounded as to the extent to which the share price of several companies have appreciated in the last [...]
Summary In early February I recommended a short-term conservative option strategy on the basis that I viewed ADP as being richly valued. A comparison of ADP’s current valuation relative to the FY2011 – FY2018 timeframe suggests ADP continues to be overvalued. Shares have pulled back from a 52 week high following the recent release of [...]
Summary ADP reported Q2 2019 results on January 30th and raised its guidance for the remainder of FY2019. ADP continues to richly reward shareholders but shares appear to be overvalued. I plan to employ the conservative option strategy I successfully used in November 2018 to enhance my investment returns. Introduction Following Automatic Data Processing’s (NADAQ: [...]
Automatic Data Processing (ADP) released its Q3 2018 results May 2, 2018. It also held its Investor Day June 12, 2018. In this article I analyze whether ADP presents a sound investment based on projections and current valuation. Summary ADP reported Q3 results May 2 in which it announced an upward revision in its FY2018 [...]
Summary ADP reported Q3 results May 2 in which it announced an upward revision in its FY2018 outlook.’ At the June 12th Investor Day, ADP indicated it is accelerating the pace of margin expansion and it now targets its prior 3 year margin targets to occur one year sooner. The anticipated increase in interest rates [...]
Summary ADP released its Q2 2018 results January 31, 2018 making further positive revisions to its FY2018 Outlook. While ADP’s forecasts for FY2018 keep being revised upward, the stock price has risen significantly in recent months. This has resulted in ADP being even more overvalued than when I last analyzed the company in August 2017. [...]
Summary This ADP Stock Analysis is based on FY 2017 results as at June 30, 2017 and FY2018 projections. ADP is currently the 3rd most heavily shorted company in the data processing and outsourced services sector. Pershing Square Capital Management L.P. has accumulated an 8% stake and has put forth an amended proposal in an [...]
Summary This Automatic Data Processing stock analysis is based on Q2 2017 results and outlook for the remainder of fiscal 2017 which were released February 1, 2017. Revenues increased 6% to $3.0B, 7% on a constant dollar basis. Adjusted diluted EPS from continuing operations increased 20% to $0.87, 19% on a constant dollar basis. Fiscal [...]
Summary This Automatic Data Processing stock analysis is based on Q1 2017 results and forecast for the remainder of fiscal 2017 released November 2, 2016. ADP has increased its dividend each year for 42 years making the company a dividend aristocrat. While ADP has aptly rewarded shareholders over the years it is expensive at [...]
