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 82 industry peers in the IT Services industry. While DOX has a great profitability rating, there are some minor concerns on its financial health. DOX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DOX had positive earnings in the past year.
In the past year DOX had a positive cash flow from operations.
DOX had positive earnings in each of the past 5 years.
Each year in the past 5 years DOX had a positive operating cash flow.
1.2 Ratios
DOX's Return On Assets of 8.56% is fine compared to the rest of the industry. DOX outperforms 76.83% of its industry peers.
The Return On Equity of DOX (15.34%) is better than 74.39% of its industry peers.
With an excellent Return On Invested Capital value of 13.74%, 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 significantly below the industry average of 21.64%.
The last Return On Invested Capital (13.74%) for DOX is above the 3 year average (12.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.56% | ||
| ROE | 15.34% | ||
| ROIC | 13.75% |
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
Looking at the Profit Margin, with a value of 11.17%, DOX is in the better half of the industry, outperforming 79.27% of the companies in the same industry.
In the last couple of years the Profit Margin of DOX has declined.
DOX has a Operating Margin of 16.62%. This is amongst the best in the industry. DOX outperforms 86.59% of its industry peers.
DOX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 36.55%, DOX is in line with its industry, outperforming 53.66% of the companies in the same industry.
DOX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.62% | ||
| PM (TTM) | 11.17% | ||
| GM | 36.55% |
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
DOX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, DOX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.10 indicates that DOX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.10, DOX is doing good in the industry, outperforming 73.17% of the companies in the same industry.
DOX has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
DOX's Debt to FCF ratio of 1.07 is amongst the best of the industry. DOX outperforms 81.71% 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.
DOX's Debt to Equity ratio of 0.19 is fine compared to the rest of the industry. DOX outperforms 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 5.1 |
ROIC/WACC1.47
WACC9.33%
2.3 Liquidity
DOX has a Current Ratio of 1.16. 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 Current ratio value of 1.16, DOX is not doing good in the industry: 70.73% 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 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.64% over the past year.
DOX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.36% yearly.
The Revenue has decreased by -4.37% in the past year.
The Revenue has been growing slightly by 4.14% on average over the past years.
EPS 1Y (TTM)10.64%
EPS 3Y10.29%
EPS 5Y8.36%
EPS Q2Q%14.1%
Revenue 1Y (TTM)-4.37%
Revenue growth 3Y5.28%
Revenue growth 5Y4.14%
Sales Q2Q%-9.44%
3.2 Future
The Earnings Per Share is expected to grow by 8.75% on average over the next years. This is quite good.
Based on estimates for the next years, DOX will show a small growth in Revenue. The Revenue will grow by 0.58% on average per year.
EPS Next Y9.35%
EPS Next 2Y9.19%
EPS Next 3Y8.75%
EPS Next 5YN/A
Revenue Next Year-9.84%
Revenue Next 2Y-3.04%
Revenue Next 3Y0.58%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 13.60 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 80.49% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. DOX is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 11.97 indicates a reasonable valuation of DOX.
84.15% of the companies in the same industry are more expensive than DOX, based on the Price/Forward Earnings ratio.
DOX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 11.97 |
4.2 Price Multiples
75.61% of the companies in the same industry are more expensive than DOX, based on the Enterprise Value to EBITDA ratio.
81.71% 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 | 16.99 | ||
| EV/EBITDA | 10.95 |
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)1.45
PEG (5Y)1.63
EPS Next 2Y9.19%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
DOX has a Yearly Dividend Yield of 2.32%.
DOX's Dividend Yield is rather good when compared to the industry average which is at 2.52. DOX pays more dividend than 92.68% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, DOX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
On average, the dividend of DOX grows each year by 11.39%, which is quite nice.
DOX has been paying a dividend for at least 10 years, so it has 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
DOX pays out 41.07% of its income as dividend. 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.
DP41.07%
EPS Next 2Y9.19%
EPS Next 3Y8.75%
91.95
-2.13 (-2.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners99.51%
Inst Owner Change-0.12%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.23B
Analysts83.64
Price Target103.73 (12.81%)
Short Float %3.06%
Short Ratio4.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend1.84
Dividend Growth(5Y)11.39%
DP41.07%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.88%
Min EPS beat(2)0.39%
Max EPS beat(2)3.37%
EPS beat(4)2
Avg EPS beat(4)0.7%
Min EPS beat(4)-0.91%
Max EPS beat(4)3.37%
EPS beat(8)3
Avg EPS beat(8)0.61%
EPS beat(12)4
Avg EPS beat(12)0.91%
EPS beat(16)7
Avg EPS beat(16)2.77%
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)-0.6%
Revenue beat(4)0
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)-0.6%
Revenue beat(8)0
Avg Revenue beat(8)-0.96%
Revenue beat(12)1
Avg Revenue beat(12)-0.85%
Revenue beat(16)2
Avg Revenue beat(16)5.3%
PT rev (1m)0.08%
PT rev (3m)-1.19%
EPS NQ rev (1m)-3.39%
EPS NQ rev (3m)-3.39%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 11.97 | ||
| P/S | 2.15 | ||
| P/FCF | 16.99 | ||
| P/OCF | 14.88 | ||
| P/B | 2.96 | ||
| P/tB | 25.25 | ||
| EV/EBITDA | 10.95 |
EPS(TTM)6.76
EY7.35%
EPS(NY)7.68
Fwd EY8.35%
FCF(TTM)5.41
FCFY5.89%
OCF(TTM)6.18
OCFY6.72%
SpS42.73
BVpS31.12
TBVpS3.64
PEG (NY)1.45
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.56% | ||
| ROE | 15.34% | ||
| ROCE | 16.24% | ||
| ROIC | 13.75% | ||
| ROICexc | 14.73% | ||
| ROICexgc | 45.04% | ||
| OM | 16.62% | ||
| PM (TTM) | 11.17% | ||
| GM | 36.55% | ||
| FCFM | 12.67% |
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-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 45.45% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 20.25 | ||
| Cash Conversion | 70.3% | ||
| Profit Quality | 113.39% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 5.1 |
F-Score6
WACC9.33%
ROIC/WACC1.47
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)10.64%
EPS 3Y10.29%
EPS 5Y8.36%
EPS Q2Q%14.1%
EPS Next Y9.35%
EPS Next 2Y9.19%
EPS Next 3Y8.75%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.37%
Revenue growth 3Y5.28%
Revenue growth 5Y4.14%
Sales Q2Q%-9.44%
Revenue Next Year-9.84%
Revenue Next 2Y-3.04%
Revenue Next 3Y0.58%
Revenue Next 5YN/A
EBIT growth 1Y6.56%
EBIT growth 3Y8.26%
EBIT growth 5Y5.9%
EBIT Next Year22.95%
EBIT Next 3Y12.03%
EBIT Next 5YN/A
FCF growth 1Y5.62%
FCF growth 3Y-4.71%
FCF growth 5Y3.22%
OCF growth 1Y-9.72%
OCF growth 3Y-7.85%
OCF growth 5Y1.99%