Automatic Data Processing, Inc. cash flow to debt ratio of 103.23% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Automatic Data Processing, Inc.'s free cash flow has increased 9.93% from $4.77B last year to $5.24B, signaling increasing performance

Automatic Data Processing, Inc.'s debt to equity ratio is 0.87, which means that the company's assets are unhealthy financed, signaling financial risk.

Automatic Data Processing, Inc.'s debt has decreased relative to shareholder equity from 1.46 last year to 0.87 today, signaling strengthened financials

Automatic Data Processing, Inc. has a net debt to EBITDA ratio of 0.16x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Automatic Data Processing, Inc.'s interest coverage ratio of 8.88 indicates that earnings with good margin can cover interest payments on company debt

Automatic Data Processing, Inc.'s profit margin was 19.84% last year and is 20.11% this year, signaling increasing performance

Automatic Data Processing, Inc.'s short-term liabilities of $50.02B exceed its short-term assets of $8.60B, signaling financial risk

Automatic Data Processing, Inc.'s return on assets of 6.98% is higher than the 5.00% threshold, indicating efficient asset utilization

Automatic Data Processing, Inc.'s return on equity of 70.20%, is higher than 15.00%, indicating good performance

Automatic Data Processing, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Automatic Data Processing, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Automatic Data Processing, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Automatic Data Processing, Inc. has a free cash flow yield of 4.98%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Automatic Data Processing, Inc.'s yearly earnings has increased 8.18% since last year from $4.08B to $4.41B, signaling increasing performance

Automatic Data Processing, Inc.'s yearly revenue has increased 6.74% since last year from $20.56B to $21.95B, signaling increasing performance

ROIC 23.85% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Automatic Data Processing, Inc.'s 3-year revenue CAGR of 6.81% is positive, indicating growing revenue over the past 3 years

Automatic Data Processing, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Automatic Data Processing, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Automatic Data Processing, Inc. is overvalued relative to its fair value price of 230.46 based on Base Cash Flow Valuation (DCF) model

Automatic Data Processing, Inc. has an earnings yield of 4.19%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Automatic Data Processing, Inc. is overvalued relative to its fair value price of 108.74 based on Base EBITDA Valuation model

Automatic Data Processing, Inc. has an EV/EBITDA ratio of 16.75x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Automatic Data Processing, Inc. is overvalued relative to its fair value price of 258.13 based on Base Earnings Fair Value model

Automatic Data Processing, Inc. has a PEG-ratio over 1 which is considered overvalued

Automatic Data Processing, Inc. has a price-to-book ratio of 17.46x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Automatic Data Processing, Inc. has a price-to-sales ratio of 4.80x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue