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Cash Flow Analysis: There Is An Opportunity For Automatic Data Processing To Improve Its Valuation (NASDAQ:ADP)

Cash Flow Analysis: There Is An Opportunity For Automatic Data Processing To Improve Its Valuation (NASDAQ:ADP)

Automatic Data Processing (ADP) was going strong into 2020 and they laid out plans in their February Investor Day of goals to have 5-6% top-line growth given their new product rollouts, large addressable market, and favorable operating environment. Both the business performance and stock price were hit hard by the COVID-19 pandemic. Although FY20 revenue and margins were slightly higher compared to the previous year, the fourth quarter ended 6/30 was rough as revenue declined and margins compressed. To preserve cash, management put share repurchases on hold. These were reasons why the stock price crumbled from ~$180 per share to ~$140 per share before rebounding to where it is currently trading ~$160 per share. This article will explore ADP’s future cash flows and valuation to see if there is coverage for business operations, expansion, share buybacks, and dividends, and how ADP can expand its premium.

Revenue

ADP had some consistent revenue growth over the last several years. The real outlier was FY20 that was plagued by the pandemic.

Source: Seeking Alpha

The figures outlined in the FY20 Press Release show how the pandemic impacted the fourth quarter (the wavy highlighting was included for emphasis). Bookings were down, retention rate was down, and margins were down. A bright spot is that the business was doing well enough into the second half that they still generated revenue growth.

In February, ADP had its Innovation Day and it laid out its plans for long term of 5-6% per annum. This was to be achieved by continuing to penetrate the addressable market and rolling out products that they spent a bunch of capital on. 2020 was to be the year that these new products were supposed to be scaled and drive incremental revenue. The increase in sales from these products will not be as

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Pachama: Carbon-credit startup puts a price on trees, market opportunity

Pachama: Carbon-credit startup puts a price on trees, market opportunity

  • Backed by Amazon and a fund led by Bill Gates, Pachama runs a marketplace for forest carbon credits. 
  • Carbon credits are generated when a forest is conserved or restored. 
  • As more companies pledge to reduce or eliminate their emissions, the market for carbon credits is expected to surge. 
  • Researchers challenge the efficacy of carbon credits for curbing deforestation and reducing global emissions.
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In late August, a forest fire, set by lightning and emboldened by climate change, whipped across the Santa Cruz Mountains in California, ultimately burning more than 85,000 acres. 

Diego Saez Gil’s home was among its victims. 

Ironically, it was in that home that Saez Gil dreamt up the idea for his startup, Pachama. Founded in 2018, the company aims to fight climate change — which makes wildfires more common and severe — by protecting forests.

“It is meaningful that now my house is taken by the consequences of climate change, and that those forests will need restoring soon,” Saez Gil, the company’s cofounder, wrote on Medium the day after his home was destroyed. “You can’t make our mission more personal to me now.” 

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Saez Gil’s startup is a tech company, but it’s not your typical Silicon Valley startup.

Pachama sells carbon credits, which represent the carbon dioxide that trees remove from the air. Forests that are protected or restored can generate credits, and companies can buy them to offset their own emissions.

The idea is that, in doing so, businesses can help curb deforestation while reducing their overall climate footprint. 

Though Pachama is just a few years old, it’s won backing from major investors including Bill Gates’ Breakthrough Energy Ventures, Amazon, and tennis

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Insights on the Motion Picture Global Market to 2027 – Opportunity Analysis and Industry Forecast

Insights on the Motion Picture Global Market to 2027 – Opportunity Analysis and Industry Forecast

DUBLIN–(BUSINESS WIRE)–Oct 12, 2020–

The “Motion Picture Industry by Genre, Demographics and Dimension: Global Opportunity Analysis and Industry Forecast, 2021-2027” report has been added to ResearchAndMarkets.com’s offering.

The global entertainment industry is growing steadily, with China, India and Southeast Asian countries outperforming the average growth. These countries are amongst the world’s youngest nations with more people under the age of 25. Rise in disposable incomes along with favorable demographics have resulted in increased propensity to spend on entertainment and leisure. With the expansion of theatres, markets in countries such as India, China, and others South East Asian nations are surging.

Growing middle class increasing per capita income, and working population are all together generating colossal domestic demand for leisure services – including entertainment. Players operating in the region are rapidly diversifying their offerings beyond their traditional domains; thus, leveraging synergies and building presence across diversified segments of the entertainment industry. Globalization of the motion picture industry, along with emergence of multiple entertainment options supplemented by relative easy access to capital have been some of the key growth factors that are driving the global motion picture market across geographies.

Uncertainties about current and future economic conditions might dissuade foot fall amongst multiplexes. The COVID-19 outbreak results in widespread economic crisis around the world. Emergence of an alternate platforms such as Netflix and Amazon Prime coupled with piracy of films act as major challenges for the engaged stakeholders.

Recent years have seen uprising of the online crowdfunding platforms. IndieGoGo was the first major platform which was launched in the year January 2008 however new crowdfunding platforms such as Kickstarter, Seed & Spark, Slated, The Bottom Line, have been launched owing to increasing popularity amongst stakeholders .One of the biggest crowdfunded movie in recent years is the Veronica Mars movie, which raised about

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Automotive Differential Gear Market Share and Size Report with Geographical Segmentation, Market Opportunity, Challenges and Drivers

Automotive Differential Gear Market Share and Size Report with Geographical Segmentation, Market Opportunity, Challenges and Drivers

The MarketWatch News Department was not involved in the creation of this content.

Sep 30, 2020 (The Expresswire) —
“Final Report will add the analysis of the impact of COVID-19 on this industry.”

Global “Automotive Differential Gear Market” Research Report provides exhaustive analysis of major driving factors, market trends, Automotive Differential Gear business opportunities, threats and challenges. Report offers decisive analysis of the Automotive Differential Gear market based on leading players, market size over the forecast period of five years, market share, segmentation study, current Automotive Differential Gear market trends, activities and major geographical regions involved in Automotive Differential Gear market.

Get a Sample Copy of the Report- https://www.industryresearch.co/enquiry/request-sample/14784185

About Automotive Differential Gear Market: the passenger cars segment had a significant market share, and this trend is expected to continue over the forecast period. Factors such as the growing demand for luxury vehicles and SUVs across the world will play a significant role in the passenger cars segment to maintain its market position. Also, our global automotive differential gear market report looks at factors such as the increase in sales of SUVs, rising consumer preference for AWD and FWD vehicles, and increasing sales of luxury cars. However, product recalls, global decrease in vehicle sales, and raw material price volatility may hamper the growth of the automotive differential gear industry over the forecast period.

All Manufacturers are listed on the basis of Automotive Differential Gear product specification, capacity, Automotive Differential Gear volume, price and cost of the product manufactured by the company, Automotive Differential Gear sales revenue, and gross margin. Other parameters include Automotive Differential Gear product pictures, quality, reliability and technological development adopted by Automotive Differential Gear marketing player. Top Manufacturing Companies are:

● American Axle and Manufacturing Inc. ● AmTech International ● Bharat Gears Ltd. ● Dana Ltd.

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