May 31, 2025 3:11 PM ETAutomatic Data Processing, Inc. (ADP) StockPAYX, PAYC, PCTY, ADPSivanand Birusumanti37 Followers(16min)SummaryExcellent new business bookings, the three-tier business strategy, and solid retention of the client base drive Automatic Data Processing’s growth potential and provide a competitive advantage.The management provided a slight increase in its FY 2025 guidance, with an 8-9% EPS growth expected while maintaining its revenue growth outlook of 6-7%.ADP has strong financials, with a healthy balance sheet and an outstanding track record of dividend raises for 26 consecutive years.With a forward P/E multiple above 32x and the company trading above its intrinsic value, ADP is at a premium and investors should wait for a pullback.NicoElNino/iStock via Getty ImagesInvestment ThesisAutomatic Data Processing (NASDAQ:ADP) is a human capital management company that has operated globally for over 75 years, providing services to more than 1.1 million clients across at least 140 countries. The human resourcesThis article was written bySivanand Birusumanti37 FollowersEver since I was eleven years old, I have been an ardent follower of the Stock Market and avid of learning new investing concepts. By providing fundamental analysis on dividend and growth equities across diverse sectors, I aim to guide new and inexperienced investors thrive with long-term returns on their Road to Financial Independence. My mission is to make a positive impact on people's financial lives.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments