AMDOCS LTD (DOX)
GB0022569080 - Common Stock
DOX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 84 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 bad growth rate and is valued cheaply. These ratings would make DOX suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year DOX was profitable.
DOX had a positive operating cash flow in the past year.
DOX had positive earnings in 4 of the past 5 years.
DOX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of DOX (7.81%) is better than 76.83% of its industry peers.
The Return On Equity of DOX (14.25%) is better than 74.39% of its industry peers.
With an excellent Return On Invested Capital value of 12.81%, DOX belongs to the best of the industry, outperforming 84.15% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DOX is in line with the industry average of 9.59%.
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 better Profit Margin (10.02%) than 73.17% of its industry peers.
DOX's Profit Margin has improved in the last couple of years.
DOX's Operating Margin of 15.03% is amongst the best of the industry. DOX outperforms 84.15% of its industry peers.
In the last couple of years the Operating Margin of DOX has grown nicely.
The Gross Margin of DOX (35.22%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DOX has remained more or less at the same level.
| 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
DOX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 4.70 indicates that DOX is not in any danger for bankruptcy at the moment.
The Altman-Z score of DOX (4.70) is better than 69.51% of its industry peers.
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.
DOX's Debt to FCF ratio of 0.96 is fine compared to the rest of the industry. DOX outperforms 79.27% of its industry peers.
DOX has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.18, DOX is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 4.7 |
ROIC/WACC1.2
WACC10.64%
2.3 Liquidity
A Current Ratio of 1.24 indicates that DOX should not have too much problems paying its short term obligations.
DOX has a worse Current ratio (1.24) than 67.07% 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.
With a Quick ratio value of 1.24, DOX is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.97% over the past year.
The Earnings Per Share has been growing by 8.36% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 9.36% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.05% on average over the next years.
EPS Next Y10.3%
EPS Next 2Y9.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.62%
Revenue Next 2Y4.05%
Revenue Next 3YN/A
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 13.23, the valuation of DOX can be described as correct.
DOX's Price/Earnings ratio is rather cheap when compared to the industry. DOX is cheaper than 85.37% of the companies in the same industry.
DOX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 11.99 indicates a reasonable valuation of DOX.
Based on the Price/Forward Earnings ratio, DOX is valued cheaper than 87.80% of the companies in the same industry.
DOX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.23 | ||
| Fwd PE | 11.99 |
4.2 Price Multiples
79.27% of the companies in the same industry are more expensive than DOX, based on the Enterprise Value to EBITDA ratio.
87.80% of the companies in the same industry are more expensive than DOX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.46 | ||
| EV/EBITDA | 10.13 |
4.3 Compensation for Growth
DOX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DOX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.28
PEG (5Y)1.58
EPS Next 2Y9.36%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.29%, DOX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.85, DOX pays a better dividend. On top of this DOX pays more dividend than 93.90% of the companies listed in the same industry.
DOX's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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 Years11
Div Non Decr Years11
5.3 Sustainability
DOX pays out 41.87% of its income as dividend. 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 2Y9.36%
EPS Next 3YN/A
AMDOCS LTD
NASDAQ:DOX (11/21/2024, 4:30:01 PM)
After market: 85.2 0 (0%)85.2
+1.47 (+1.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.23 | ||
| Fwd PE | 11.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.28
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | 14.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.03% | ||
| PM (TTM) | 10.02% | ||
| GM | 35.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.97%
EPS 3Y10.29%
EPS 5Y
EPS Q2Q%
EPS Next Y10.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y