Latest news with #AutomaticDataProcessing
The Sun
6 days ago
- Business
- The Sun
Ringgit rises as traders turn cautious ahead of US tariff move
KUALA LUMPUR: The ringgit opened higher against the US dollar on Thursday, rebounding from a weaker close the day before, as traders turned cautious and pared greenback holdings ahead of the July 9 expiry of the United States' 90-day tariff pause, an analyst said. At 8 am, the local note stood at 4.2205/2295 against the greenback, up from Wednesday's close of 4.2245/2305. Meanwhile, the US Dollar Index eased 0.04 per cent to 96.776, after US labour market data pointed to weakness in June. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US private sector shed 33,000 jobs in June, according to payroll data firm Automatic Data Processing (ADP), defying market expectations of a 99,000 increase. 'Job losses were most apparent in services sectors such as financial activities and professional and business services. Tonight's nonfarm payroll (NFP) report will be closely watched, given the positive correlation between ADP and NFP readings,' he told Bernama. Mohd Afzanizam said signs of a weakening labour market have started to emerge, which could influence the US Federal Reserve's interest rate outlook and strengthen the case for rate cuts. 'On Wednesday, the ringgit weakened to RM4.2275 from RM4.1980, marking a 0.7 per cent depreciation. This was likely due to profit-taking ahead of the expiry of the US tariff pause,' he added. He also noted possible signs of concessions from the US government, citing the case of Vietnam, where reciprocal tariffs were reduced to 20 per cent. 'Given these developments, the ringgit may remain range-bound as market participants stay cautious ahead of tonight's NFP data and the upcoming US tariff decision,' he added. At the opening, the ringgit was mixed against a basket of major and ASEAN currencies. It strengthened against the British pound to 5.7606/7728 from 5.7859/7941, but slipped versus the euro to 4.9793/9900 from 4.9748/9818 and fell against the Japanese yen to 2.9405/9470 from 2.9316/9360. The local note was firmer against the Singapore dollar at 3.3154/3230 from 3.3167/3217, edged up against the Indonesian rupiah to 259.7/260.4 from 259.9/260.5, and rose against the Philippine peso to 7.48/7.50 from 7.49/7.51. However, it eased against the Thai baht to 13.0391/0742 from 13.0233/0482.
Yahoo
22-06-2025
- Business
- Yahoo
Those who invested in Automatic Data Processing (NASDAQ:ADP) five years ago are up 135%
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, you can make far more than 100% on a really good stock. For example, the Automatic Data Processing, Inc. (NASDAQ:ADP) share price has soared 112% in the last half decade. Most would be very happy with that. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Automatic Data Processing achieved compound earnings per share (EPS) growth of 11% per year. This EPS growth is lower than the 16% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). Dive deeper into Automatic Data Processing's key metrics by checking this interactive graph of Automatic Data Processing's earnings, revenue and cash flow. It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Automatic Data Processing, it has a TSR of 135% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! It's good to see that Automatic Data Processing has rewarded shareholders with a total shareholder return of 26% in the last twelve months. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 19% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before spending more time on Automatic Data Processing it might be wise to click here to see if insiders have been buying or selling shares. For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
20-06-2025
- Business
- Yahoo
UBS Affirms ‘Neutral' Rating on Automatic Data Processing (ADP) Following Guidance Adjustment
Automatic Data Processing, Inc. (NASDAQ:ADP) is one of the 13 best software stocks to buy now. On June 13, UBS reiterated a 'Neutral' rating on the stock but cut the price target to $315 from $323. The adjustment follows significant updates at the company's investor day in New York City. A trader in a busy trading room, surrounded by real-time market data and automated execution services. The software company revised its revenue growth expectations to 6% and 7% at the event. Management also reiterated they expect earnings per share to grow by between 9% and 11%, a 200 basis point reduction from 2021 predictions. Automatic Data Processing's Professional Employer Organization Segment accounts for about 35% of total revenue and is expected to grow by 6% and 8%, down from a previous forecast of 10% and 12%. UBS remains optimistic about the company's long-term prospects, as it has a 15% market share in the human capital management market. Consequently, it is expected to generate significant value given that the total addressable market is expected to expand to $180 billion from $175 billion. Nevertheless, it maintains a neutral stance as it monitors the impact of technology and distribution investments on margins. Automatic Data Processing, Inc. (NASDAQ:ADP) is a software application company that provides solutions that automate data handling, particularly through software and services, to streamline business operations. While we acknowledge the potential of ADP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Healthcare Stocks to Buy Now and 10 Stocks Analysts Are Upgrading Today. Disclosure: None.
Yahoo
27-05-2025
- Business
- Yahoo
Are Strong Financial Prospects The Force That Is Driving The Momentum In Automatic Data Processing, Inc.'s NASDAQ:ADP) Stock?
Automatic Data Processing (NASDAQ:ADP) has had a great run on the share market with its stock up by a significant 10% over the last month. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. In this article, we decided to focus on Automatic Data Processing's ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Automatic Data Processing is: 68% = US$4.0b ÷ US$5.9b (Based on the trailing twelve months to March 2025). The 'return' is the yearly profit. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.68 in profit. View our latest analysis for Automatic Data Processing Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. Firstly, we acknowledge that Automatic Data Processing has a significantly high ROE. Additionally, the company's ROE is higher compared to the industry average of 20% which is quite remarkable. Probably as a result of this, Automatic Data Processing was able to see a decent net income growth of 11% over the last five years. We then performed a comparison between Automatic Data Processing's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 11% in the same 5-year period. Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Has the market priced in the future outlook for ADP? You can find out in our latest intrinsic value infographic research report. Automatic Data Processing has a significant three-year median payout ratio of 59%, meaning that it is left with only 41% to reinvest into its business. This implies that the company has been able to achieve decent earnings growth despite returning most of its profits to shareholders. Moreover, Automatic Data Processing is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 59%. Therefore, the company's future ROE is also not expected to change by much with analysts predicting an ROE of 75%. On the whole, we feel that Automatic Data Processing's performance has been quite good. Especially the high ROE, Which has contributed to the impressive growth seen in earnings. Despite the company reinvesting only a small portion of its profits, it still has managed to grow its earnings so that is appreciable. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Automatic Data Processing (NasdaqGS:ADP) Expands CPR Education With American Heart Association Partnership
Automatic Data Processing recently announced a partnership with the American Heart Association to integrate CPR training into its mobile app, aiming to boost health readiness among its workforce. This initiative aligns with the company's broader commitment to health and safety, reinforcing its corporate responsibility ethos. Over the past month, ADP's stock price moved up by 10%, amidst a generally positive market trend with major indexes like the S&P 500 experiencing growth. ADP's recent earnings report, showcasing a rise in sales and revenue, may have contributed positively, aligning well with the broader market's upward momentum. Buy, Hold or Sell Automatic Data Processing? View our complete analysis and fair value estimate and you decide. Trump's oil boom is here — pipelines are primed to profit. Discover the 22 US stocks riding the wave. The recent partnership between Automatic Data Processing (ADP) and the American Heart Association, targeting enhanced health readiness through CPR training integration, aligns well with ADP's ongoing commitment to corporate responsibility. This initiative could potentially influence ADP's long-term narrative positively by strengthening workforce engagement and satisfaction, possibly leading to higher productivity and operational efficiency. Such efforts might indirectly support revenue growth by sustaining a motivated workforce and possibly reducing turnover. Over the past five years, ADP has delivered a total shareholder return of 165.98%, indicative of substantial capital appreciation and consistent dividend payments. In comparison, over the past year, ADP's return surpassed the US Professional Services industry average of 12%, reflecting relative strength in performance. This reflects the company's robust execution of its growth strategy and ability to maintain momentum despite market fluctuations. With respect to revenue and earnings, the introduction of new health initiatives could enhance employee loyalty and efficiency, indirectly contributing to more stable revenue streams. While short-term earnings forecasts remain reliant on current product expansions and strategic partnerships, sustaining employee-focused programs might bolster long-term financial performance. The current share price of $308.19 is closely aligned with the consensus price target of $309.08, signaling that the stock is deemed fairly valued by analysts. This alignment suggests limited immediate upside but highlights confidence in the company's revenue and earnings projections, assuming continued execution of strategic initiatives. Our comprehensive valuation report raises the possibility that Automatic Data Processing is priced lower than what may be justified by its financials. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:ADP. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
