Automatic Data Processing Stock Piotroski F Score

ADP Stock  USD 306.93  0.01  0%   
This module uses fundamental data of Automatic Data to approximate its Piotroski F score. Automatic Data F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Automatic Data Processing. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Automatic Data financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Check out Automatic Data Altman Z Score, Automatic Data Correlation, Automatic Data Valuation, as well as analyze Automatic Data Alpha and Beta and Automatic Data Hype Analysis.
  
At this time, Automatic Data's Interest Debt Per Share is relatively stable compared to the past year. As of 11/30/2024, Debt To Assets is likely to grow to 0.07, while Long Term Debt Total is likely to drop slightly above 2.1 B. At this time, Automatic Data's ROIC is relatively stable compared to the past year. As of 11/30/2024, Net Income Per Share is likely to grow to 9.59, while Book Value Per Share is likely to drop 6.13.
At this time, it appears that Automatic Data's Piotroski F Score is Healthy. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
6.0
Piotroski F Score - Healthy
Current Return On Assets

Positive

Focus
Change in Return on Assets

Increased

Focus
Cash Flow Return on Assets

Positive

Focus
Current Quality of Earnings (accrual)

Decreasing

Focus
Asset Turnover Growth

Increase

Focus
Current Ratio Change

Increase

Focus
Long Term Debt Over Assets Change

Higher Leverage

Focus
Change In Outstending Shares

Increase

Focus
Change in Gross Margin

Increase

Focus

Automatic Data Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Automatic Data is to make sure Automatic is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Automatic Data's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Automatic Data's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Return On Assets0.08040.069
Fairly Up
Slightly volatile
Asset Turnover0.620.3532
Way Up
Pretty Stable
Gross Profit Margin0.550.4544
Fairly Up
Slightly volatile
Total Current Liabilities47.3 B45.1 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total4.8 B4.7 B
Fairly Up
Slightly volatile
Total Assets57.1 B54.4 B
Sufficiently Up
Slightly volatile
Total Current Assets47.8 B45.5 B
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities4.4 B4.2 B
Sufficiently Up
Slightly volatile

Automatic Data Processing F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Automatic Data's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Automatic Data in a much-optimized way.

About Automatic Data Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Common Stock Shares Outstanding

431.67 Million

At this time, Automatic Data's Common Stock Shares Outstanding is relatively stable compared to the past year.

Automatic Data ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Automatic Data's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Automatic Data's managers, analysts, and investors.
Environmental
Governance
Social

About Automatic Data Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Automatic Data Processing's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Automatic Data using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Automatic Data Processing based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Pair Trading with Automatic Data

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Automatic Data position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Automatic Data will appreciate offsetting losses from the drop in the long position's value.

Moving together with Automatic Stock

  0.82DJCO Daily Journal CorpPairCorr
  0.8AI C3 Ai Inc Earnings Call This WeekPairCorr
  0.95BL BlacklinePairCorr
  0.69DT Dynatrace Holdings LLCPairCorr

Moving against Automatic Stock

  0.61VERB VERB TECHNOLOGY PANY Tech BoostPairCorr
  0.59VTEX VTEXPairCorr
  0.35DMAN Innovativ Media GroupPairCorr
The ability to find closely correlated positions to Automatic Data could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Automatic Data when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Automatic Data - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Automatic Data Processing to buy it.
The correlation of Automatic Data is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Automatic Data moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Automatic Data Processing moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Automatic Data can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Additional Tools for Automatic Stock Analysis

When running Automatic Data's price analysis, check to measure Automatic Data's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Automatic Data is operating at the current time. Most of Automatic Data's value examination focuses on studying past and present price action to predict the probability of Automatic Data's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Automatic Data's price. Additionally, you may evaluate how the addition of Automatic Data to your portfolios can decrease your overall portfolio volatility.