Automatic Data Processing Inc. (ADP) exhibits 46.0% gross margins and 43.4% return on invested capital within Technology (EDP Services), balanced against a 19.9x enterprise multiple and 8.1% implied options volatility.
Sustained 46.0% gross profitability converts into 24.2% operating margin and 43.4% ROIC, outpacing sector cost of capital.
ROIC: 43.4% // GM: 46.0%YoY revenue trajectory of +7.1% paired with 3.54% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +7.1% // FCF YLD: 3.54%Altman Z-Score of 1.77 and Piotroski F-Score of 9/9 indicate low near-term refinancing stress.
ALTMAN Z: 1.77 // F-SCORE: 9/9Trading at 27.8x trailing P/E (25.9x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 27.8x // EV/EBITDA: 19.9xOptions market prices a ±8.1% implied move with a 0.85 put/call ratio around $280.00 max pain.
IMPL MOVE: ±8.1% // P/C: 0.85Elevated industry capital intensity and customer concentration in EDP Services require continuous execution to defend 19.8% net margins.
NET MARGIN: 19.8% // D/E: 0.62x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
|---|---|---|
| INSPECT GEX & CHAIN IN OPT <GO> | ||
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