NASDAQ:DOX, an undervalued stock with good fundamentals.

Our stock screening tool has identified AMDOCS LTD (NASDAQ:DOX) as an undervalued gem with strong fundamentals. NASDAQ:DOX boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Valuation Analysis for NASDAQ:DOX

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:DOX has achieved a 8 out of 10:

• Based on the Price/Earnings ratio, DOX is valued cheaper than 80.72% of the companies in the same industry.
• When comparing the Price/Earnings ratio of DOX to the average of the S&P500 Index (27.82), we can say DOX is valued rather cheaply.
• A Price/Forward Earnings ratio of 10.93 indicates a reasonable valuation of DOX.
• DOX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DOX is cheaper than 86.75% of the companies in the same industry.
• DOX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 19.80.
• Based on the Enterprise Value to EBITDA ratio, DOX is valued cheaper than 80.72% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, DOX is valued cheaper than 86.75% of the companies in the same industry.
• The excellent profitability rating of DOX may justify a higher PE ratio.

A Closer Look at Profitability for NASDAQ:DOX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:DOX has earned a 8 out of 10:

• DOX's Return On Assets of 10.46% is amongst the best of the industry. DOX outperforms 84.34% of its industry peers.
• DOX's Return On Equity of 19.01% is amongst the best of the industry. DOX outperforms 84.34% of its industry peers.
• With an excellent Return On Invested Capital value of 15.35%, DOX belongs to the best of the industry, outperforming 90.36% of the companies in the same industry.
• The last Return On Invested Capital (15.35%) for DOX is above the 3 year average (10.98%), which is a sign of increasing profitability.
• DOX's Profit Margin of 11.04% is amongst the best of the industry. DOX outperforms 81.93% of its industry peers.
• In the last couple of years the Profit Margin of DOX has grown nicely.
• The Operating Margin of DOX (14.83%) is better than 80.72% of its industry peers.
• DOX's Operating Margin has improved in the last couple of years.

Evaluating Health: NASDAQ:DOX

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:DOX, the assigned 8 for health provides valuable insights:

• An Altman-Z score of 4.80 indicates that DOX is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 4.80, DOX is doing good in the industry, outperforming 75.90% of the companies in the same industry.
• DOX has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 0.82, DOX is doing good in the industry, outperforming 78.31% of the companies in the same industry.
• A Debt/Equity ratio of 0.18 indicates that DOX is not too dependend on debt financing.
• DOX has a better Debt to Equity ratio (0.18) than 67.47% of its industry peers.
• The current and quick ratio evaluation for DOX is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Evaluating Growth: NASDAQ:DOX

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:DOX scores a 5 out of 10:

• DOX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.50%, which is quite good.
• DOX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.84% yearly.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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Our latest full fundamental report of DOX contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.