Stock Analysis on Net
Stock Analysis on Net

Automatic Data Processing Inc. (NASDAQ:ADP)

This company has been moved to the archive! The financial data has not been updated since April 29, 2022.

Price to FCFE (P/FCFE)

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Automatic Data Processing Inc., FCFE calculation

US$ in thousands

Microsoft Excel
12 months ended: Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Net earnings 2,598,500 2,466,500 2,292,800 1,620,800 1,733,400 1,492,500
Net noncash charges 1,432,200 1,679,700 1,601,300 986,900 490,800 496,300
Changes in operating assets and liabilities (937,400) (1,120,000) (1,205,800) (92,500) (98,300) (128,900)
Net cash flows provided by operating activities 3,093,300 3,026,200 2,688,300 2,515,200 2,125,900 1,859,900
Capital expenditures (178,600) (172,700) (162,000) (206,100) (240,200) (168,500)
Additions to intangibles (327,300) (443,700) (404,500) (264,700) (230,400) (217,500)
Payments of debt (1,001,800) (2,200) (2,100) (7,300) (2,000) (1,500)
Proceeds from the issuance of debt 1,981,500 — — — — 1,998,300
Net proceeds (payments) related to reverse repurchase agreements 9,900 (248,400) 262,000 — — —
Free cash flow to equity (FCFE) 3,577,000 2,159,200 2,381,700 2,037,100 1,653,300 3,470,700

Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Automatic Data Processing Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Automatic Data Processing Inc. FCFE decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to FCFE Ratio, Current

Automatic Data Processing Inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 417,747,152
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 3,577,000
FCFE per share 8.56
Current share price (P) 218.18
Valuation Ratio
P/FCFE 25.48
Benchmarks
P/FCFE, Competitors1
Accenture PLC 23.58
Adobe Inc. 34.50
Autodesk Inc. 51.92
Cadence Design Systems Inc. 70.98
CrowdStrike Holdings Inc. 84.43
International Business Machines Corp. 11.66
Intuit Inc. 39.99
Microsoft Corp. 41.85
Oracle Corp. 61.70
Palo Alto Networks Inc. 60.67
Salesforce Inc. 38.17
ServiceNow Inc. 75.76
Synopsys Inc. 56.23
P/FCFE, Sector
Software & Services 50.11
P/FCFE, Industry
Information Technology 50.61

Based on: 10-K (reporting date: 2021-06-30).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Automatic Data Processing Inc., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
No. shares of common stock outstanding1 423,080,556 429,965,405 433,942,837 438,082,756 444,374,752 456,176,951
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 3,577,000 2,159,200 2,381,700 2,037,100 1,653,300 3,470,700
FCFE per share3 8.45 5.02 5.49 4.65 3.72 7.61
Share price1, 4 212.00 134.77 167.73 134.25 111.39 89.67
Valuation Ratio
P/FCFE5 25.07 26.84 30.56 28.87 29.94 11.79
Benchmarks
P/FCFE, Competitors6
Accenture PLC 25.76 19.01 19.50 — — —
Adobe Inc. 34.26 41.36 41.90 19.87 — —
Autodesk Inc. 64.43 24.07 41.92 — — —
Cadence Design Systems Inc. 36.31 45.86 36.04 — — —
CrowdStrike Holdings Inc. 41.38 880.68 — — — —
International Business Machines Corp. 48.45 9.43 4.39 — — —
Intuit Inc. 86.74 17.36 34.61 — — —
Microsoft Corp. 42.54 42.74 30.77 — — —
Oracle Corp. 8.36 6.27 22.31 — — —
Palo Alto Networks Inc. 32.91 8.11 46.20 — — —
Salesforce Inc. 49.52 50.40 29.09 — — —
ServiceNow Inc. 64.54 49.83 68.98 — — —
Synopsys Inc. 40.55 45.07 77.64 19.63 — —
P/FCFE, Sector
Software & Services 33.85 25.89 22.16 — — —
P/FCFE, Industry
Information Technology 27.52 23.46 19.14 — — —

Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,577,000,000 ÷ 423,080,556 = 8.45

4 Closing price as at the filing date of Automatic Data Processing Inc. Annual Report.

5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 212.00 ÷ 8.45 = 25.07

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Automatic Data Processing Inc. P/FCFE ratio decreased from 2019 to 2020 and from 2020 to 2021.