Why the dividend investor may take a look at NASDAQ:DOX.

Last update: Jun 26, 2024

Unearth the potential of AMDOCS LTD (NASDAQ:DOX) as a dividend stock recommended by our stock screening tool. NASDAQ:DOX maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Dividend Assessment of NASDAQ:DOX

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NASDAQ:DOX has been awarded a 7 for its dividend quality:

DOX's Dividend Yield is rather good when compared to the industry average which is at 2.78. DOX pays more dividend than 92.77% of the companies in the same industry.
On average, the dividend of DOX grows each year by 12.15%, which is quite nice.
DOX has paid a dividend for at least 10 years, which is a reliable track record.
DOX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
39.71% of the earnings are spent on dividend by DOX. This is a low number and sustainable payout ratio.

Understanding NASDAQ:DOX's Health

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 4.61 indicates that DOX is not in any danger for bankruptcy at the moment.
The Altman-Z score of DOX (4.61) is better than 72.29% of its industry peers.
The Debt to FCF ratio of DOX is 1.01, which is an excellent value as it means it would take DOX, only 1.01 years of fcf income to pay off all of its debts.
DOX's Debt to FCF ratio of 1.01 is fine compared to the rest of the industry. DOX outperforms 75.90% of its industry peers.
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.
DOX does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:DOX, the assigned 8 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 8.09%, DOX is in the better half of the industry, outperforming 78.31% of the companies in the same industry.
DOX's Return On Equity of 14.62% is fine compared to the rest of the industry. DOX outperforms 75.90% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.52%, DOX belongs to the top of the industry, outperforming 81.93% of the companies in the same industry.
The 3 year average ROIC (10.98%) for DOX is below the current ROIC(12.52%), indicating increased profibility in the last year.
The Profit Margin of DOX (10.43%) is better than 77.11% of its industry peers.
DOX's Profit Margin has improved in the last couple of years.
DOX has a Operating Margin of 14.92%. This is amongst the best in the industry. DOX outperforms 83.13% of its industry peers.
DOX's Operating Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of DOX

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.