Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>The global HRTech market is forecast to grow at a CAGR of 5.8% between 2022-2028E to US$35.68bn driven by increased investment in product and technology development.</li>
<li>We have chosen four companies that will have an exciting year ahead (either bullish or bearish) and have discussed their business models, key drivers, fundamentals and their valuation.</li>
<li>We have chosen two stocks from the US (Ceridian and Automatic Data Processing) and two from Japan (Recruit and Visional) with a market capitalisation of &gt;$1bn and ADTV&gt;$1m.</li>
</ul>


The global HRTech market is forecast to grow at a CAGR of 5.8% between 2022-2028E to US$35.68bn driven by increased investment in product and technology development.
We have chosen four companies that will have an exciting year ahead (either bullish or bearish) and have discussed their business models, key drivers, fundamentals and their valuation.
We have chosen two stocks from the US (Ceridian and Automatic Data Processing) and two from Japan (Recruit and Visional) with a market capitalisation of &gt;$1bn and ADTV&gt;$1m.


HRTech Sector Series: Changing HR Landscape Post-Covid Create Opportunities

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

Automatic Data Processing / Equity Capital Markets

<ul><li>ADP delivered a strong start to the year with combination of growth in revenue and expansion of margin.</li><li>The ES new business bookings of the company were major growth drivers and the management saw ongoing strength in its International business and its HR portfolio.</li><li>The strong booking performance of ADP’s PEO led to the rise in the guidance of the company for the growth of average worksite employees.</li></ul>

ADP delivered a strong start to the year with combination of growth in revenue and expansion of margin.The ES new business bookings of the company were major growth drivers and the management saw ongoing strength in its International business and its HR portfolio.The strong booking performance of ADP’s PEO led to the rise in the guidance of the company for the growth of average worksite employees.

Automatic Data Processing Inc.: The Cloud Upside

<ul><li>Automatic Data Processing had a strong start to the year, with revenue growth of 10% and margin expansion of 140 basis points with respect to its earnings.</li><li>In addition to the strong ES performance, ADP's PEO had another strong quarter, with 15% revenue growth and 15% average worksite employee growth, exceeding its high expectations.</li><li>Moreover, if ADP continues to drive outsized bookings performance for the rest of the year, their turnover and margins could surpass our estimates in the report.</li></ul>

Automatic Data Processing had a strong start to the year, with revenue growth of 10% and margin expansion of 140 basis points with respect to its earnings.In addition to the strong ES performance, ADP's PEO had another strong quarter, with 15% revenue growth and 15% average worksite employee growth, exceeding its high expectations.Moreover, if ADP continues to drive outsized bookings performance for the rest of the year, their turnover and margins could surpass our estimates in the report.

Automatic Data Processing Inc: Financial & Price Forecasts

<ul><li>Automatic Data Processing delivered a solid start to the new financial year with revenue growth of 10% and margin expansion of 140 basis points, resulting in a 17% increase in adjusted diluted EPS.</li><li>Their new business bookings were strong and the company saw another record Q1 bookings amount above their forecasts.</li><li>In addition to the outstanding ES performance, the company’s PEO had another great quarter, with 15% revenue growth and 15% average worksite employee growth, exceeding the company's high expectations.</li></ul>

Automatic Data Processing delivered a solid start to the new financial year with revenue growth of 10% and margin expansion of 140 basis points, resulting in a 17% increase in adjusted diluted EPS.Their new business bookings were strong and the company saw another record Q1 bookings amount above their forecasts.In addition to the outstanding ES performance, the company’s PEO had another great quarter, with 15% revenue growth and 15% average worksite employee growth, exceeding the company's high expectations.

Automatic Data Processing (ADP): Why Is This HR Tech Player Soaring To New Highs? (12/2021)

<ul><li>Automatic Data Processing (ADP) reported yet another all-around beat backed by strong new business bookings.</li><li>The company’s leading Human Capital Management solution, RUN has over 750,000 clients and has witnessed a strong momentum.</li><li>The company’s overall client base has gone up by 7% to 920,000 and it is a strong player in the human capital and workforce management tech solutions.</li></ul>

Automatic Data Processing (ADP) reported yet another all-around beat backed by strong new business bookings.The company’s leading Human Capital Management solution, RUN has over 750,000 clients and has witnessed a strong momentum.The company’s overall client base has gone up by 7% to 920,000 and it is a strong player in the human capital and workforce management tech solutions.

Automatic Data Processing - Investment Thesis

United States

Automatic Data Processing, Inc. is a global provider of business outsourcing solutions.  The Company's services include a wide range of human resource, payroll, tax and benefits administration solutions.  Automatic Data also provides solutions to auto, truck, motorcycle, marine and recreational vehicle dealers.

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Automatic Data Processing (ADP US)

HRTech Sector Series: Changing HR Landscape Post-Covid Create Opportunities

The global HRTech market has been undergoing rapid changes and in this insight we have discussed 4 companies that will have an exciting year ahead...

Shifara Samsudeen, ACMA, CGMA

Automatic Data Processing Inc.: The Cloud Upside

ADP delivered a strong start to the year with combination of growth in revenue and expansion of margin. The ES new business bookings of the...

Baptista Research

Automatic Data Processing Inc: Financial & Price Forecasts

Automatic Data Processing had a strong start to the year, with revenue growth of 10% and margin expansion of 140 basis points with respect to its...

Baptista Research

Automatic Data Processing (ADP): Why Is This HR Tech Player Soaring To New Highs? (12/2021)

Automatic Data Processing delivered a solid start to the new financial year with revenue growth of 10% and margin expansion of 140 basis points,...

Baptista Research

Automatic Data Processing - Investment Thesis

Automatic Data Processing (ADP) reported yet another all-around beat backed by strong new business bookings. The company’s leading Human Capital...

Baptista Research

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