ADP - Automatic Data Processing Inc

ADP

Compliant
Exchange
Sector
Headquarters
Group
NASDAQ
Industrials
USA
Large Cap

Automatic Data Processing Inc is Shariah Compliant. It passes 5/5 Shariah standards we screen against.

1.06%

Impure Income*

$0.099

Purification*

$0.145

Zakat*

Financials

Market cap Group
Analysts' Rating
Price Target (Mean)
Total Analysts
Revenue Growth
Large Cap
HOLD
$252.16
20
6.95%
Operating Margin
Net Profit Margin
Quick Ratio
Current Ratio
EPS Growth
26.40%
19.84%
0.00
1.05
10.65%

Shariah Compliance

  • Updated on July 21, 2026
Debt
4.46%
✓
Non-Compliant Assets
✓
Impure Income
1.06%
✓

AAOIFI Rulebook:

  • Non-compliant Liabilities (like Interest-based Debt) < 30% of Market cap
  • Non-compliant Assets (like Interest-based Investments) < 30% of Market cap
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: AAOIFI SS21

Debt
3.74%
✓
Impure Income
1.06%
✓

S&P Sharia Rulebook:

  • Interest-based Debt < 33% of 36-mo avg. Market cap
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: S&P Shariah Methodology

Debt
3.58%
✓
Impure Income
1.06%
✓

Dow Jones Islamic Market (DJIM) Rulebook:

  • Interest-based Debt < 33% of 24-mo avg. Market cap
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: DJIM Methodology

Debt
6.17%
✓
Cash
5.01%
✓
Cash & AR
10.61%
✓
Impure Income
1.06%
✓

FTSE Shariah Rulebook:

  • Interest-based Debt < 33.33% of Total Assets
  • Cash and interest-bearing items < 33.33% of Total Assets
  • Accounts receivable and cash < 50% of Total Assets
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: FTSE RUSSELL

Debt
6.17%
✓
Cash
5.01%
✓
Cash & AR
10.61%
✓
Impure Income
1.06%
✓

MSCI Islamic Rulebook:

  • Interest-based Debt < 33.33% of Total Assets
  • Cash and interest-bearing items < 33.33% of Total Assets
  • Accounts receivable and cash < 33.33% of Total Assets
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: MSCI Islamic Indexes

Impure Income Breakdown

-
-
Interest Income
1.06%

Note on Purification and Zakat:

  • Purification and Zakat (for long-term investing) calculations are in USD per share and based on AAOIFI methodology. AAOIFI requires purification every financial period (e.g. quarterly). 
  • If you follow S&P Shariah’s Dividend-only purification, then remove the impure income % from the dividends you receive. No purification required for non-dividend paying stocks, according to S&P Shariah.
  • For Zakat, if you did not invest in a company from a long term perspective, then consider the shares as trading goods and give 2.5% of the total value if a year has passed on them. 

Company Profile

Automatic Data Processing, Inc. is a provider of cloud-based human resources management, payroll processing, and professional employer organization services. Its segments include Employer Services and Professional Employer Organization (PEO). Its Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of technology-based HCM solutions, including its cloud-based platforms, and human resource outsourcing (HRO) (other than PEO) solutions. Its offerings include payroll services, benefits administration, talent management, HR management, workforce management, compliance services, insurance services and others. Its PEO business, called ADP TotalSource, provides clients with guidance, technology, comprehensive employee benefits, risk management, safety, and workers’ compensation programs. Its compensation management software supports the compensation planning needs.

Ready to get started with halal investing? Open an Account Today!

Opening an account has never been easier! Please fill out the form here and an advisor will be in touch to walk you through the process!

Still have some further questions?

Schedule a Free Consultation