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Automatic Data Processing Inc ADP Stock Quote

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Morningstar‘s Stock Analysis ADP

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ADP Clients Are Stickier Post Platform Migrations, but We Expect Natural Attrition to Normalize

Emma Williams Equity Analyst

Business Strategy and Outlook

| Emma Williams |

ADP has invested heavily over the past decade to develop public cloud native solutions and consolidate its portfolio of disparate platforms. As of fiscal 2021, ADP has successfully migrated most of its small and midsize clients to its strategic platforms and will be migrating enterprise clients to its new HCM platform over the coming decade, as well as rolling out its new underlying payroll and tax engines. While we expect platform migrations to ultimately result in higher retention and profitability, the forced migrations will likely create a catalyst for enterprise clients to reassess providers, temporarily hindering both metrics.

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Key Statistics ADP

Company Profile ADP

Business Description

ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 990,000 clients primarily in the United States. ADP's employer services segment offers payroll, HCM solutions, HR outsourcing, insurance and retirement services. The smaller but faster-growing PEO segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.

One ADP Boulevard
Roseland, NJ, 07068
T +1 973 974-5000
Industry Staffing & Employment Services
Most Recent Earnings Jun 30, 2022
Fiscal Year End Jun 30, 2023
Employees 60,000

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