Comparing Automatic Data Processing With Industry Competitors In Professional Services Industry
Portfolio Pulse from Benzinga Insights
The article provides a comprehensive comparison of Automatic Data Processing (ADP) with its competitors in the Professional Services industry. ADP's P/E ratio of 26.4 is significantly below the industry average, suggesting undervaluation. The P/B ratio of 26.32 is also lower than the industry average, indicating potential undervaluation. However, the P/S ratio of 5.29 surpasses the industry average, indicating possible overvaluation. ADP's ROE of 24.62% is above the industry average, indicating efficient use of equity. The company's EBITDA and gross profit are also higher than the industry average, indicating strong profitability and robust cash flow generation. ADP's revenue growth of 5.79% surpasses the industry average.
November 08, 2023 | 4:00 pm
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POSITIVE IMPACT
ADP's lower P/E and P/B ratios suggest undervaluation, while its higher P/S ratio indicates possible overvaluation. The company's higher ROE, EBITDA, gross profit, and revenue growth suggest strong financial performance.
ADP's lower P/E and P/B ratios compared to the industry average suggest that the stock may be undervalued. The higher P/S ratio indicates possible overvaluation in terms of sales performance. However, the company's higher ROE, EBITDA, gross profit, and revenue growth compared to the industry average suggest strong financial performance and robust cash flow generation, which could positively impact the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100