AMDOCS LTD (DOX) Stock Fundamental Analysis
NASDAQ:DOX - Nasdaq - GB0022569080 - Common Stock - Currency: USD
Overall DOX gets a fundamental rating of 6 out of 10. We evaluated DOX against 81 industry peers in the IT Services industry. DOX scores excellent on profitability, but there are some minor concerns on its financial health. DOX has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year DOX was profitable.
In the past year DOX had a positive cash flow from operations.
In the past 5 years DOX has always been profitable.
In the past 5 years DOX always reported a positive cash flow from operatings.
1.2 Ratios
DOX has a better Return On Assets (7.74%) than 76.54% of its industry peers.
Looking at the Return On Equity, with a value of 14.06%, DOX is in the better half of the industry, outperforming 72.84% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.47%, DOX belongs to the best of the industry, outperforming 86.42% of the companies in the same industry.
DOX had an Average Return On Invested Capital over the past 3 years of 12.04%. This is in line with the industry average of 10.72%.
The 3 year average ROIC (12.04%) for DOX is below the current ROIC(13.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.74% | ||
| ROE | 14.06% | ||
| ROIC | 13.47% |
ROA(3y)8.11%
ROA(5y)8.52%
ROE(3y)14.83%
ROE(5y)15.42%
ROIC(3y)12.04%
ROIC(5y)11.1%
1.3 Margins
DOX has a better Profit Margin (10.00%) than 76.54% of its industry peers.
DOX's Profit Margin has declined in the last couple of years.
DOX's Operating Margin of 16.04% is amongst the best of the industry. DOX outperforms 87.65% of its industry peers.
DOX's Operating Margin has improved in the last couple of years.
DOX has a Gross Margin of 35.95%. This is comparable to the rest of the industry: DOX outperforms 55.56% of its industry peers.
DOX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.04% | ||
| PM (TTM) | 10% | ||
| GM | 35.95% |
OM growth 3Y2.83%
OM growth 5Y1.69%
PM growth 3Y-15.26%
PM growth 5Y-3.67%
GM growth 3Y0.59%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DOX is creating some value.
Compared to 1 year ago, DOX has less shares outstanding
The number of shares outstanding for DOX has been reduced compared to 5 years ago.
DOX has a worse debt/assets ratio than last year.
2.2 Solvency
DOX has an Altman-Z score of 4.74. This indicates that DOX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.74, DOX is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
DOX has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
DOX has a Debt to FCF ratio of 1.16. This is amongst the best in the industry. DOX outperforms 81.48% of its industry peers.
DOX has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, DOX is in the better half of the industry, outperforming 65.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 4.74 |
ROIC/WACC1.44
WACC9.38%
2.3 Liquidity
A Current Ratio of 1.16 indicates that DOX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.16, DOX is not doing good in the industry: 67.90% of the companies in the same industry are doing better.
A Quick Ratio of 1.16 indicates that DOX should not have too much problems paying its short term obligations.
DOX's Quick ratio of 1.16 is on the low side compared to the rest of the industry. DOX is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
DOX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.64%, which is quite good.
The Earnings Per Share has been growing by 8.36% on average over the past years. This is quite good.
Looking at the last year, DOX shows a very negative growth in Revenue. The Revenue has decreased by -20.59% in the last year.
Measured over the past years, DOX shows a small growth in Revenue. The Revenue has been growing by 4.14% on average per year.
EPS 1Y (TTM)8.64%
EPS 3Y10.29%
EPS 5Y8.36%
EPS Q2Q%6.41%
Revenue 1Y (TTM)-20.59%
Revenue growth 3Y5.28%
Revenue growth 5Y4.14%
Sales Q2Q%-10.85%
3.2 Future
The Earnings Per Share is expected to grow by 7.99% on average over the next years.
DOX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by 0.00% yearly.
EPS Next Y9.39%
EPS Next 2Y8.92%
EPS Next 3Y7.99%
EPS Next 5YN/A
Revenue Next Year-9.72%
Revenue Next 2Y-2.97%
Revenue Next 3Y0%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.72, which indicates a correct valuation of DOX.
Compared to the rest of the industry, the Price/Earnings ratio of DOX indicates a rather cheap valuation: DOX is cheaper than 86.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, DOX is valued rather cheaply.
DOX is valuated reasonably with a Price/Forward Earnings ratio of 10.89.
DOX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DOX is cheaper than 88.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DOX to the average of the S&P500 Index (21.08), we can say DOX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 10.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DOX indicates a somewhat cheap valuation: DOX is cheaper than 77.78% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DOX is valued a bit cheaper than the industry average as 76.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.7 | ||
| EV/EBITDA | 9.74 |
4.3 Compensation for Growth
DOX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DOX may justify a higher PE ratio.
PEG (NY)1.35
PEG (5Y)1.52
EPS Next 2Y8.92%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.53%, DOX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.23, DOX pays a better dividend. On top of this DOX pays more dividend than 92.59% of the companies listed in the same industry.
DOX's Dividend Yield is comparable with the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
On average, the dividend of DOX grows each year by 11.39%, 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.
Dividend Growth(5Y)11.39%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
44.15% of the earnings are spent on dividend by DOX. This is a bit on the high side, but may be sustainable.
DOX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.15%
EPS Next 2Y8.92%
EPS Next 3Y7.99%
83.18
-0.1 (-0.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners99.51%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.33B
Analysts85.45
Price Target104.98 (26.21%)
Short Float %4.42%
Short Ratio7.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend1.84
Dividend Growth(5Y)11.39%
DP44.15%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.26%
Min EPS beat(2)-0.91%
Max EPS beat(2)0.39%
EPS beat(4)1
Avg EPS beat(4)-0.39%
Min EPS beat(4)-0.99%
Max EPS beat(4)0.39%
EPS beat(8)2
Avg EPS beat(8)0.07%
EPS beat(12)4
Avg EPS beat(12)2.47%
EPS beat(16)6
Avg EPS beat(16)2.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)-0.87%
Revenue beat(8)0
Avg Revenue beat(8)-0.97%
Revenue beat(12)2
Avg Revenue beat(12)7.33%
Revenue beat(16)3
Avg Revenue beat(16)5.35%
PT rev (1m)0%
PT rev (3m)0.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 10.89 | ||
| P/S | 1.92 | ||
| P/FCF | 16.7 | ||
| P/OCF | 14.41 | ||
| P/B | 2.69 | ||
| P/tB | 23.48 | ||
| EV/EBITDA | 9.74 |
EPS(TTM)6.54
EY7.86%
EPS(NY)7.64
Fwd EY9.19%
FCF(TTM)4.98
FCFY5.99%
OCF(TTM)5.77
OCFY6.94%
SpS43.42
BVpS30.89
TBVpS3.54
PEG (NY)1.35
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.74% | ||
| ROE | 14.06% | ||
| ROCE | 15.91% | ||
| ROIC | 13.47% | ||
| ROICexc | 14.5% | ||
| ROICexgc | 44.28% | ||
| OM | 16.04% | ||
| PM (TTM) | 10% | ||
| GM | 35.95% | ||
| FCFM | 11.47% |
ROA(3y)8.11%
ROA(5y)8.52%
ROE(3y)14.83%
ROE(5y)15.42%
ROIC(3y)12.04%
ROIC(5y)11.1%
ROICexc(3y)13.94%
ROICexc(5y)13.13%
ROICexgc(3y)42.67%
ROICexgc(5y)40.42%
ROCE(3y)14.23%
ROCE(5y)13.16%
ROICexcg growth 3Y7.36%
ROICexcg growth 5Y-2.03%
ROICexc growth 3Y6.95%
ROICexc growth 5Y1.8%
OM growth 3Y2.83%
OM growth 5Y1.69%
PM growth 3Y-15.26%
PM growth 5Y-3.67%
GM growth 3Y0.59%
GM growth 5Y-0.01%
F-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 46.02% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 21.62 | ||
| Cash Conversion | 66.45% | ||
| Profit Quality | 114.7% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 4.74 |
F-Score5
WACC9.38%
ROIC/WACC1.44
Cap/Depr(3y)73.13%
Cap/Depr(5y)84.75%
Cap/Sales(3y)3.21%
Cap/Sales(5y)3.89%
Profit Quality(3y)119.02%
Profit Quality(5y)110.73%
High Growth Momentum
Growth
EPS 1Y (TTM)8.64%
EPS 3Y10.29%
EPS 5Y8.36%
EPS Q2Q%6.41%
EPS Next Y9.39%
EPS Next 2Y8.92%
EPS Next 3Y7.99%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.59%
Revenue growth 3Y5.28%
Revenue growth 5Y4.14%
Sales Q2Q%-10.85%
Revenue Next Year-9.72%
Revenue Next 2Y-2.97%
Revenue Next 3Y0%
Revenue Next 5YN/A
EBIT growth 1Y-14.1%
EBIT growth 3Y8.26%
EBIT growth 5Y5.9%
EBIT Next Year23.38%
EBIT Next 3Y12.03%
EBIT Next 5YN/A
FCF growth 1Y29.24%
FCF growth 3Y-4.71%
FCF growth 5Y3.22%
OCF growth 1Y1.85%
OCF growth 3Y-7.85%
OCF growth 5Y1.99%