AMDOCS LTD (DOX) Stock Fundamental Analysis
NASDAQ:DOX - Nasdaq - GB0022569080 - Common Stock
We assign a fundamental rating of 6 out of 10 to DOX. DOX was compared to 82 industry peers in the IT Services industry. DOX scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on DOX. This makes DOX very considerable 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.
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's Return On Assets of 7.58% is fine compared to the rest of the industry. DOX outperforms 77.22% of its industry peers.
DOX has a Return On Equity of 14.00%. This is in the better half of the industry: DOX outperforms 74.68% of its industry peers.
DOX's Return On Invested Capital of 13.08% is amongst the best of the industry. DOX outperforms 84.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DOX is above the industry average of 9.86%.
The 3 year average ROIC (12.04%) for DOX is below the current ROIC(13.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 14% | ||
| ROIC | 13.08% |
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 (9.67%) than 72.15% of its industry peers.
In the last couple of years the Profit Margin of DOX has declined.
The Operating Margin of DOX (15.18%) is better than 83.54% of its industry peers.
In the last couple of years the Operating Margin of DOX has grown nicely.
DOX has a Gross Margin (35.07%) which is in line with its industry peers.
DOX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.18% | ||
| PM (TTM) | 9.67% | ||
| GM | 35.07% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DOX is still creating some value.
Compared to 1 year ago, DOX has less shares outstanding
DOX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DOX is higher compared to a year ago.
2.2 Solvency
DOX has an Altman-Z score of 4.71. This indicates that DOX is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.71, DOX is doing good in the industry, outperforming 70.89% of the companies in the same industry.
DOX has a debt to FCF ratio of 1.04. This is a very positive value and a sign of high solvency as it would only need 1.04 years to pay back of all of its debts.
DOX has a better Debt to FCF ratio (1.04) than 78.48% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that DOX is not too dependend on debt financing.
The Debt to Equity ratio of DOX (0.19) is better than 63.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.04 | ||
| Altman-Z | 4.71 |
ROIC/WACC1.13
WACC11.61%
2.3 Liquidity
A Current Ratio of 1.20 indicates that DOX should not have too much problems paying its short term obligations.
DOX has a worse Current ratio (1.20) than 69.62% of its industry peers.
DOX has a Quick Ratio of 1.20. 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 worse Quick ratio (1.20) than 68.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
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.
Measured over the past years, DOX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.36% on average per year.
DOX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.59%.
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)8.97%
EPS 3Y10.29%
EPS 5Y8.36%
EPS Q2Q%19.72%
Revenue 1Y (TTM)-17.59%
Revenue growth 3Y5.28%
Revenue growth 5Y4.14%
Sales Q2Q%1.72%
3.2 Future
The Earnings Per Share is expected to grow by 7.99% on average over the next years.
Based on estimates for the next years, DOX will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
EPS Next Y9.33%
EPS Next 2Y8.9%
EPS Next 3Y7.99%
EPS Next 5YN/A
Revenue Next Year-9.58%
Revenue Next 2Y-2.68%
Revenue Next 3Y2.26%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.31, which indicates a correct valuation of DOX.
Based on the Price/Earnings ratio, DOX is valued cheaper than 88.61% of the companies in the same industry.
DOX is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
DOX is valuated correctly with a Price/Forward Earnings ratio of 12.17.
Based on the Price/Forward Earnings ratio, DOX is valued cheaper than 87.34% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. DOX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.31 | ||
| Fwd PE | 12.17 |
4.2 Price Multiples
DOX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DOX is cheaper than 82.28% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DOX is valued cheaply inside the industry as 87.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.62 | ||
| EV/EBITDA | 10.11 |
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)1.43
PEG (5Y)1.59
EPS Next 2Y8.9%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
DOX has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
DOX's Dividend Yield is rather good when compared to the industry average which is at 2.88. DOX pays more dividend than 92.41% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, DOX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.39%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
43.81% 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.
DP43.81%
EPS Next 2Y8.9%
EPS Next 3Y7.99%
AMDOCS LTD
NASDAQ:DOX (1/21/2025, 8:00:02 PM)
After market: 85.7 0 (0%)85.7
+0.81 (+0.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.87%
Inst Owner Change0.18%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.67B
Analysts85
Price Target104.16 (21.54%)
Short Float %3.51%
Short Ratio5.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly Dividend1.84
Dividend Growth(5Y)11.39%
DP43.81%
Div Incr Years12
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.47%
Min EPS beat(2)-0.91%
Max EPS beat(2)-0.03%
EPS beat(4)0
Avg EPS beat(4)-0.79%
Min EPS beat(4)-1.22%
Max EPS beat(4)-0.03%
EPS beat(8)2
Avg EPS beat(8)1.11%
EPS beat(12)4
Avg EPS beat(12)2.47%
EPS beat(16)6
Avg EPS beat(16)2.53%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-1.34%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-0.97%
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)7.4%
Revenue beat(16)3
Avg Revenue beat(16)5.44%
PT rev (1m)1.82%
PT rev (3m)3.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-12.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.31 | ||
| Fwd PE | 12.17 | ||
| P/S | 1.93 | ||
| P/FCF | 15.62 | ||
| P/OCF | 13.35 | ||
| P/B | 2.8 | ||
| P/tB | 21.42 | ||
| EV/EBITDA | 10.11 |
EPS(TTM)6.44
EY7.51%
EPS(NY)7.04
Fwd EY8.22%
FCF(TTM)5.49
FCFY6.4%
OCF(TTM)6.42
OCFY7.49%
SpS44.36
BVpS30.64
TBVpS4
PEG (NY)1.43
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 14% | ||
| ROCE | 15.46% | ||
| ROIC | 13.08% | ||
| ROICexc | 14.61% | ||
| ROICexgc | 46.09% | ||
| OM | 15.18% | ||
| PM (TTM) | 9.67% | ||
| GM | 35.07% | ||
| FCFM | 12.37% |
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-Score4
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.04 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 54.64% | ||
| Cap/Sales | 2.11% | ||
| Interest Coverage | 21.46 | ||
| Cash Conversion | 76.03% | ||
| Profit Quality | 127.92% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 4.71 |
F-Score4
WACC11.61%
ROIC/WACC1.13
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)8.97%
EPS 3Y10.29%
EPS 5Y8.36%
EPS Q2Q%19.72%
EPS Next Y9.33%
EPS Next 2Y8.9%
EPS Next 3Y7.99%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.59%
Revenue growth 3Y5.28%
Revenue growth 5Y4.14%
Sales Q2Q%1.72%
Revenue Next Year-9.58%
Revenue Next 2Y-2.68%
Revenue Next 3Y2.26%
Revenue Next 5YN/A
EBIT growth 1Y-15.54%
EBIT growth 3Y8.26%
EBIT growth 5Y5.9%
EBIT Next Year24.46%
EBIT Next 3Y12.11%
EBIT Next 5YN/A
FCF growth 1Y-11.36%
FCF growth 3Y-4.71%
FCF growth 5Y3.22%
OCF growth 1Y-11.94%
OCF growth 3Y-7.85%
OCF growth 5Y1.99%