ADPAUTOMATIC DATA PROCESSING INC

Services-Computer Processing & Data Preparation

Revenue: $21.9B; 6.7% YoY
Operating margin: —
EBITDA: —
Market cap: $116.2B
Employees: 67,000; $328K revenue each
Net debt / EBITDA: —; −$3.2B net debt
AI in 10-K: 13.5; mentions per 10K words

Takeover score 1 of 13

Fixable underperformance 0 of 7

TSR below peersNo
1 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
123% of net income
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
87% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
5% of assets
Over 40% of assets
Shareholder dissentNo
92% lowest support
Any vote under 80% support

Buyer economics 0 of 4

Low revenue per employeeNo
$328K · 28th pct
Bottom quartile of its SIC industry
Quiet on AINo
13.5 per 10K words · 96th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
—
More cash than debt, positive EBITDA
Buyout-sizedNo
$116.2B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$13M net
Net sales over $10M in 12 months

Financials

Metric	FY2022	FY2023	FY2024	FY2025	FY2026	YoY	Trend
Revenue	$16.5B	$18.0B	$19.2B	$20.6B	$21.9B	6.7%
Net income	$2.9B	$3.4B	$3.8B	$4.1B	$4.4B	8.2%
Operating cash flow	$3.1B	$4.2B	$4.2B	$4.9B	$5.4B	10%
Stock-based comp	$202M	$220M	$244M	$266M	$243M	8.8%
Buybacks	$2.0B	$1.1B	$1.2B	$1.3B	$2.1B	63%
Dividends	$1.7B	$1.9B	$2.2B	$2.4B	$2.6B	9.5%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $746K · 1
Open-market sells, 12 mo: $14M · 38
Net: −$13M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2026	—	—	126	167
FY2025	—	—	169	146
FY2024	—	—	128	126
FY2023	—	—	115	109
FY2022	—	—	108	94