AMDOCS LTD (DOX)
GB0022569080 - Common Stock
Overall DOX gets a fundamental rating of 5 out of 10. We evaluated DOX against 83 industry peers in the IT Services industry. DOX has an excellent profitability rating, but there are some minor concerns on its financial health. DOX has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DOX had positive earnings in the past year.
DOX had a positive operating cash flow in the past year.
DOX had positive earnings in 4 of the past 5 years.
Of the past 5 years DOX 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DOX (7.81%) is better than 77.78% of its industry peers.
DOX's Return On Equity of 14.25% is fine compared to the rest of the industry. DOX outperforms 75.31% of its industry peers.
With an excellent Return On Invested Capital value of 12.81%, DOX belongs to the best of the industry, outperforming 83.95% of the companies in the same industry.
DOX had an Average Return On Invested Capital over the past 3 years of 10.98%. This is in line with the industry average of 9.40%.
The last Return On Invested Capital (12.81%) for DOX is above the 3 year average (10.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | 14.25% | ||
| ROIC | 12.81% |
ROA(3y)9.07%
ROA(5y)8.8%
ROE(3y)16.48%
ROE(5y)15.34%
ROIC(3y)10.98%
ROIC(5y)10.9%
1.3 Margins
DOX has a Profit Margin of 10.02%. This is in the better half of the industry: DOX outperforms 74.07% of its industry peers.
In the last couple of years the Profit Margin of DOX has grown nicely.
With an excellent Operating Margin value of 15.03%, DOX belongs to the best of the industry, outperforming 83.95% of the companies in the same industry.
In the last couple of years the Operating Margin of DOX has grown nicely.
DOX has a Gross Margin (35.22%) which is comparable to the rest of the industry.
DOX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.03% | ||
| PM (TTM) | 10.02% | ||
| GM | 35.22% |
OM growth 3Y1.3%
OM growth 5Y2.8%
PM growth 3Y-2.83%
PM growth 5Y4.21%
GM growth 3Y1.4%
GM growth 5Y0.37%
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.
DOX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
DOX has an Altman-Z score of 4.76. This indicates that DOX is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.76, DOX is doing good in the industry, outperforming 70.37% of the companies in the same industry.
DOX has a debt to FCF ratio of 0.96. This is a very positive value and a sign of high solvency as it would only need 0.96 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.96, DOX is in the better half of the industry, outperforming 79.01% 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's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. DOX outperforms 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 4.76 |
ROIC/WACC1.09
WACC11.72%
2.3 Liquidity
A Current Ratio of 1.24 indicates that DOX should not have too much problems paying its short term obligations.
DOX's Current ratio of 1.24 is on the low side compared to the rest of the industry. DOX is outperformed by 66.67% of its industry peers.
DOX has a Quick Ratio of 1.24. This is a normal value and indicates that DOX is financially healthy and should not expect problems in meeting its short term obligations.
DOX has a Quick ratio of 1.24. This is in the lower half of the industry: DOX underperforms 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
DOX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.97%, which is quite good.
DOX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.36% yearly.
EPS 1Y (TTM)8.97%
EPS 3Y10.29%
EPS 5Y8.36%
EPS Q2Q%19.72%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.72%
3.2 Future
Based on estimates for the next years, DOX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.61% on average per year.
Based on estimates for the next years, DOX will show a small growth in Revenue. The Revenue will grow by 4.38% on average per year.
EPS Next Y9.34%
EPS Next 2Y8.83%
EPS Next 3Y8.61%
EPS Next 5YN/A
Revenue Next Year-9.54%
Revenue Next 2Y-3.13%
Revenue Next 3Y4.38%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.51, the valuation of DOX can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of DOX indicates a rather cheap valuation: DOX is cheaper than 87.65% of the companies listed in the same industry.
DOX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
Based on the Price/Forward Earnings ratio of 12.36, the valuation of DOX can be described as correct.
Based on the Price/Forward Earnings ratio, DOX is valued cheaper than 86.42% 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 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOX is valued a bit cheaper than the industry average as 79.01% of the companies are valued more expensively.
DOX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DOX is cheaper than 80.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.77 | ||
| EV/EBITDA | 10.42 |
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)1.45
PEG (5Y)1.62
EPS Next 2Y8.83%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
DOX has a Yearly Dividend Yield of 2.22%.
DOX's Dividend Yield is rather good when compared to the industry average which is at 2.74. DOX pays more dividend than 92.59% of the companies in the same industry.
DOX's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
The dividend of DOX is nicely growing with an annual growth rate of 12.15%!
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)12.15%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
41.87% of the earnings are spent on dividend by DOX. This is a bit on the high side, but may be sustainable.
The dividend of DOX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.87%
EPS Next 2Y8.83%
EPS Next 3Y8.61%
AMDOCS LTD
NASDAQ:DOX (12/20/2024, 8:05:46 PM)
After market: 87.01 0 (0%)87.01
+0.86 (+1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.87%
Inst Owner Change1.15%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.94B
Analysts84.29
Price Target102.3 (17.57%)
Short Float %2.87%
Short Ratio5.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Dividend Growth(5Y)12.15%
DP41.87%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.51%
Min EPS beat(2)-0.99%
Max EPS beat(2)-0.03%
EPS beat(4)0
Avg EPS beat(4)-0.75%
Min EPS beat(4)-1.22%
Max EPS beat(4)-0.03%
EPS beat(8)2
Avg EPS beat(8)1.1%
EPS beat(12)4
Avg EPS beat(12)2.35%
EPS beat(16)7
Avg EPS beat(16)2.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-1.34%
Max Revenue beat(2)-0.97%
Revenue beat(4)0
Avg Revenue beat(4)-0.96%
Min Revenue beat(4)-1.34%
Max Revenue beat(4)-0.7%
Revenue beat(8)1
Avg Revenue beat(8)-0.79%
Revenue beat(12)2
Avg Revenue beat(12)7.36%
Revenue beat(16)4
Avg Revenue beat(16)5.54%
PT rev (1m)1.21%
PT rev (3m)1.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 12.36 | ||
| P/S | 1.99 | ||
| P/FCF | 14.77 | ||
| P/OCF | 12.76 | ||
| P/B | 2.84 | ||
| P/tB | 20.5 | ||
| EV/EBITDA | 10.42 |
EPS(TTM)6.44
EY7.4%
EPS(NY)7.04
Fwd EY8.09%
FCF(TTM)5.89
FCFY6.77%
OCF(TTM)6.82
OCFY7.84%
SpS43.64
BVpS30.69
TBVpS4.24
PEG (NY)1.45
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | 14.25% | ||
| ROCE | 15.06% | ||
| ROIC | 12.81% | ||
| ROICexc | 14.24% | ||
| ROICexgc | 43.87% | ||
| OM | 15.03% | ||
| PM (TTM) | 10.02% | ||
| GM | 35.22% | ||
| FCFM | 13.5% |
ROA(3y)9.07%
ROA(5y)8.8%
ROE(3y)16.48%
ROE(5y)15.34%
ROIC(3y)10.98%
ROIC(5y)10.9%
ROICexc(3y)13.11%
ROICexc(5y)12.93%
ROICexgc(3y)39.9%
ROICexgc(5y)41.61%
ROCE(3y)12.91%
ROCE(5y)12.86%
ROICexcg growth 3Y5.98%
ROICexcg growth 5Y-3.63%
ROICexc growth 3Y6.08%
ROICexc growth 5Y2.88%
OM growth 3Y1.3%
OM growth 5Y2.8%
PM growth 3Y-2.83%
PM growth 5Y4.21%
GM growth 3Y1.4%
GM growth 5Y0.37%
F-Score4
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 55.62% | ||
| Cap/Sales | 2.13% | ||
| Interest Coverage | 23.5 | ||
| Cash Conversion | 82.85% | ||
| Profit Quality | 134.72% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 4.76 |
F-Score4
WACC11.72%
ROIC/WACC1.09
Cap/Depr(3y)88.5%
Cap/Depr(5y)86.27%
Cap/Sales(3y)4.14%
Cap/Sales(5y)4.1%
Profit Quality(3y)111.38%
Profit Quality(5y)107.33%
High Growth Momentum
Growth
EPS 1Y (TTM)8.97%
EPS 3Y10.29%
EPS 5Y8.36%
EPS Q2Q%19.72%
EPS Next Y9.34%
EPS Next 2Y8.83%
EPS Next 3Y8.61%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.72%
Revenue Next Year-9.54%
Revenue Next 2Y-3.13%
Revenue Next 3Y4.38%
Revenue Next 5YN/A
EBIT growth 1Y-15.44%
EBIT growth 3Y6.82%
EBIT growth 5Y7.14%
EBIT Next Year26.7%
EBIT Next 3Y10.96%
EBIT Next 5Y9.76%
FCF growth 1Y26.14%
FCF growth 3Y15.55%
FCF growth 5Y16.45%
OCF growth 1Y5.32%
OCF growth 3Y7.72%
OCF growth 5Y8.1%