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ADP

9/9 Score

Automatic Data Processing, Inc.

Analysis Date: February 1, 2026

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 68.3%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 24.0%

  • Cash Machine

    FCF / Assets > 5%

    Value: 8.9%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 4.2%

  • Share Buybacks

    Share Count is Dropping

    Value: -0.9%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 48.4%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Industrials

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 0.72x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 75.0%

Analysis Summary

Well now, looking at ADP here, it's got a lot of the right ingredients. The returns on equity and invested capital are certainly impressive – the business seems to be working hard for its shareholders. And with a strong moat and consistent growth, it looks like a company with staying power, generating a good bit of cash along the way. This one deserves a closer peek.

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