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Morningstar

Morningstar

Apr 08, 2026

Automatic Data Processing, Inc.: Updating Moat Ratings and Fair Value Estimates for Payroll Firms

Symbols

ADP

Sector(s)

Technology

Rating

Current Price

214.21

Fair Value

Economic Moat

Stewardship

Summary

ADP is a global technology company providing cloud-based human capital management solutions, enabling clients to better implement payroll, talent, time, tax, and benefits administration. Additionally, ADP provides human resources outsourcing solutions that permit customers to offload some of their traditional HR tasks. The company operates through two segments: employer services and professional employer organization services. Employer services consist of the company’s HCM products as well as a la carte HRO solutions. PEO services contain ADP’s com

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Analyst Profile

Eric Compton

Equity Analyst

Eric Compton, CFA, is an equity analyst for Morningstar Research Services LLC, covering the U.S. and Canadian banking sectors, including the U.S. money center banks, U.S. regional banks, and the Big Six Canadian banks.Before joining Morningstar in 2015, Compton was a business analyst for ESIS, a global provider of risk management products and a subsidiary of ACE Group. Compton holds a bachelor's degree in applied health science from Wheaton College. He has passed all three levels of the Chartered Financial Analyst® program and holds the Chartered Financial Analyst® designation.

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