Automatic Data Processing, Inc. ADP

263.67 0.56 0.21% as of 25 Sep
Market cap
$104.2B
P/E
24.0×
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Automatic Data Processing, Inc. (ADP) Free cash flow margin

Automatic Data Processing, Inc.'s free cash flow margin over the twelve months to 30 June 2026 was 21.8%. Over the past ten years it has ranged from 13.1% (fiscal 2016) to 21.8% (fiscal 2026) — the current reading is the highest in ten years. That is above the Software Application industry median of 4.32% and above the Technology sector median of 1.52%.

Free cash flow margin, annual

Annual

Period Free cash flow margin Change (points)
FY2026 21.8% 0.34
FY2025 21.4% 2.56
FY2024 18.9% (1.33)
FY2023 20.2% 4.55
FY2022 15.6% (1.73)
FY2021 17.4% 0.65
FY2020 16.7% 1.63
FY2019 15.1% (0.31)
FY2018 15.4% 2.02
FY2017 13.4% 0.29

Against its own ten years

Low 13.1% High 21.8%
Ten-year median 16.2%
Current reading's percentile 100

Free cash flow margin against peers

Company Free cash flow margin
ADBE Adobe Inc. compare 40.8%
INTU Intuit Inc. compare 40.2%
NOW ServiceNow, Inc. compare 31.1%
CDNS Cadence Design Systems, Inc. compare 28.6%
DDOG Datadog, Inc. compare 27.0%
SNOW Snowflake Inc. compare 21.9%
ADP Automatic Data Processing, Inc. 21.8%
UBER Uber Technologies, Inc. compare 18.3%
MSTR Strategy Inc compare −4,356.1%
Software Application industry median 4.32%
Technology sector median 1.52%
Market median 0.00%

What Free cash flow margin is

Free Cash Flow Margin tells an investor how much of each sale turns into cash the company keeps after paying for investment in its assets.

(Operating Cash Flow + Property, Plant, Equipment Change (Net) + Intangible Assets Change (Net)) ÷ Revenue

The full definition of Free cash flow margin →

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