AMDOCS LTD (DOX) Stock Fundamental Analysis
USA - NASDAQ:DOX - GB0022569080 - Common Stock
83.42 USD
-0.1 (-0.12%)
83.42 USD
0 (0%)
Overall DOX gets a fundamental rating of 6 out of 10. We evaluated DOX against 85 industry peers in the IT Services industry. While DOX has a great profitability rating, there are some minor concerns on its financial health. DOX scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make DOX a good candidate 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.
Each year in the past 5 years DOX has been profitable.
In the past 5 years DOX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DOX (8.60%) is better than 81.40% of its industry peers.
DOX has a Return On Equity of 15.54%. This is in the better half of the industry: DOX outperforms 75.58% of its industry peers.
DOX has a better Return On Invested Capital (13.62%) than 82.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DOX is significantly below the industry average of 21.61%.
The 3 year average ROIC (12.04%) for DOX is below the current ROIC(13.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.6% | ||
| ROE | 15.54% | ||
| ROIC | 13.62% |
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's Profit Margin of 11.72% is amongst the best of the industry. DOX outperforms 81.40% of its industry peers.
In the last couple of years the Profit Margin of DOX has declined.
DOX's Operating Margin of 17.25% is amongst the best of the industry. DOX outperforms 90.70% of its industry peers.
DOX's Operating Margin has improved in the last couple of years.
DOX has a Gross Margin (37.24%) 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 | 17.25% | ||
| PM (TTM) | 11.72% | ||
| GM | 37.24% |
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.
The number of shares outstanding for DOX has been reduced compared to 1 year ago.
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
DOX has an Altman-Z score of 4.73. This indicates that DOX is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.73, DOX is doing good in the industry, outperforming 69.77% of the companies in the same industry.
The Debt to FCF ratio of DOX is 1.01, which is an excellent value as it means it would take DOX, only 1.01 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.01, DOX belongs to the best of the industry, outperforming 80.23% 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 61.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 4.73 |
ROIC/WACC1.51
WACC9.03%
2.3 Liquidity
A Current Ratio of 1.22 indicates that DOX should not have too much problems paying its short term obligations.
DOX has a worse Current ratio (1.22) than 67.44% of its industry peers.
A Quick Ratio of 1.22 indicates that DOX should not have too much problems paying its short term obligations.
DOX's Quick ratio of 1.22 is on the low side compared to the rest of the industry. DOX is outperformed by 66.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.36% 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 -6.76% in the past year.
DOX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.14% yearly.
EPS 1Y (TTM)11.36%
EPS 3Y10.29%
EPS 5Y8.36%
EPS Q2Q%6.17%
Revenue 1Y (TTM)-6.76%
Revenue growth 3Y5.28%
Revenue growth 5Y4.14%
Sales Q2Q%-8.45%
3.2 Future
The Earnings Per Share is expected to grow by 9.15% 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 1.11% on average per year.
EPS Next Y9.53%
EPS Next 2Y9.54%
EPS Next 3Y9.06%
EPS Next 5Y9.15%
Revenue Next Year-9.46%
Revenue Next 2Y-2.93%
Revenue Next 3Y-0.28%
Revenue Next 5Y1.11%
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.
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
DOX is valuated correctly with a Price/Earnings ratio of 12.16.
Compared to the rest of the industry, the Price/Earnings ratio of DOX indicates a rather cheap valuation: DOX is cheaper than 84.88% of the companies listed in the same industry.
DOX is valuated cheaply when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.80 indicates a reasonable valuation of DOX.
DOX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DOX is cheaper than 87.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. DOX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 10.8 |
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 77.91% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DOX is valued cheaply inside the industry as 80.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.37 | ||
| EV/EBITDA | 9.47 |
4.3 Compensation for Growth
The 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)1.45
EPS Next 2Y9.54%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.52%, DOX has a reasonable but not impressive dividend return.
DOX's Dividend Yield is rather good when compared to the industry average which is at 2.51. DOX pays more dividend than 91.86% of the companies in the same industry.
DOX's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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
DOX pays out 40.62% 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.
DP40.62%
EPS Next 2Y9.54%
EPS Next 3Y9.06%
83.42
-0.1 (-0.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners99.22%
Inst Owner Change0.13%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.18B
Revenue(TTM)4.65B
Net Income(TTM)544.37M
Analysts85
Price Target105.97 (27.03%)
Short Float %4.16%
Short Ratio5.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Yearly Dividend1.84
Dividend Growth(5Y)11.39%
DP40.62%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.48%
Min EPS beat(2)-0.41%
Max EPS beat(2)3.37%
EPS beat(4)2
Avg EPS beat(4)0.61%
Min EPS beat(4)-0.91%
Max EPS beat(4)3.37%
EPS beat(8)2
Avg EPS beat(8)-0.07%
EPS beat(12)4
Avg EPS beat(12)0.94%
EPS beat(16)6
Avg EPS beat(16)1.91%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)0.3%
Revenue beat(4)1
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)0.3%
Revenue beat(8)1
Avg Revenue beat(8)-0.8%
Revenue beat(12)2
Avg Revenue beat(12)-0.74%
Revenue beat(16)3
Avg Revenue beat(16)5.36%
PT rev (1m)0.08%
PT rev (3m)1.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 10.8 | ||
| P/S | 1.97 | ||
| P/FCF | 14.37 | ||
| P/OCF | 12.45 | ||
| P/B | 2.62 | ||
| P/tB | 19.95 | ||
| EV/EBITDA | 9.47 |
EPS(TTM)6.86
EY8.22%
EPS(NY)7.73
Fwd EY9.26%
FCF(TTM)5.81
FCFY6.96%
OCF(TTM)6.7
OCFY8.03%
SpS42.25
BVpS31.85
TBVpS4.18
PEG (NY)1.28
PEG (5Y)1.45
Graham Number70.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.6% | ||
| ROE | 15.54% | ||
| ROCE | 16.1% | ||
| ROIC | 13.62% | ||
| ROICexc | 14.63% | ||
| ROICexgc | 42.55% | ||
| OM | 17.25% | ||
| PM (TTM) | 11.72% | ||
| GM | 37.24% | ||
| FCFM | 13.74% |
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%
ROICexgc growth 3Y7.36%
ROICexgc 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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.65 | ||
| Cap/Depr | 51.39% | ||
| Cap/Sales | 2.12% | ||
| Interest Coverage | 20.08 | ||
| Cash Conversion | 74.2% | ||
| Profit Quality | 117.32% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 4.73 |
F-Score6
WACC9.03%
ROIC/WACC1.51
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)11.36%
EPS 3Y10.29%
EPS 5Y8.36%
EPS Q2Q%6.17%
EPS Next Y9.53%
EPS Next 2Y9.54%
EPS Next 3Y9.06%
EPS Next 5Y9.15%
Revenue 1Y (TTM)-6.76%
Revenue growth 3Y5.28%
Revenue growth 5Y4.14%
Sales Q2Q%-8.45%
Revenue Next Year-9.46%
Revenue Next 2Y-2.93%
Revenue Next 3Y-0.28%
Revenue Next 5Y1.11%
EBIT growth 1Y7.02%
EBIT growth 3Y8.26%
EBIT growth 5Y5.9%
EBIT Next Year23.38%
EBIT Next 3Y10.49%
EBIT Next 5Y8.69%
FCF growth 1Y8.69%
FCF growth 3Y-4.71%
FCF growth 5Y3.22%
OCF growth 1Y-3.91%
OCF growth 3Y-7.85%
OCF growth 5Y1.99%
AMDOCS LTD / DOX FAQ
What is the ChartMill fundamental rating of AMDOCS LTD (DOX) stock?
ChartMill assigns a fundamental rating of 6 / 10 to DOX.
What is the valuation status of AMDOCS LTD (DOX) stock?
ChartMill assigns a valuation rating of 7 / 10 to AMDOCS LTD (DOX). This can be considered as Undervalued.
What is the profitability of DOX stock?
AMDOCS LTD (DOX) has a profitability rating of 7 / 10.
What is the valuation of AMDOCS LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMDOCS LTD (DOX) is 12.16 and the Price/Book (PB) ratio is 2.62.
Can you provide the dividend sustainability for DOX stock?
The dividend rating of AMDOCS LTD (DOX) is 6 / 10 and the dividend payout ratio is 40.62%.