AMDOCS LTD (DOX) Stock Fundamental Analysis
NASDAQ:DOX - Nasdaq - GB0022569080 - Common Stock - Currency: USD
Taking everything into account, DOX scores 6 out of 10 in our fundamental rating. DOX was compared to 82 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 correct valuation and a medium 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.
DOX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.74%, DOX is doing good in the industry, outperforming 75.61% of the companies in the same industry.
DOX has a Return On Equity of 14.06%. This is in the better half of the industry: DOX outperforms 71.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.47%, DOX belongs to the top of the industry, outperforming 82.93% 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 22.63%.
The 3 year average ROIC (12.04%) for DOX is below the current ROIC(13.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.74% | ||
| ROE | 14.06% | ||
| ROIC | 13.47% |
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 Profit Margin of 10.00%. This is in the better half of the industry: DOX outperforms 76.83% of its industry peers.
In the last couple of years the Profit Margin of DOX has declined.
DOX has a better Operating Margin (16.04%) than 85.37% of its industry peers.
DOX's Operating Margin has improved in the last couple of years.
DOX has a Gross Margin of 35.95%. This is comparable to the rest of the industry: DOX outperforms 53.66% of its industry peers.
DOX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.04% | ||
| PM (TTM) | 10% | ||
| GM | 35.95% |
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
DOX has less shares outstanding than it did 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 4.95. This indicates that DOX is financially healthy and has little risk of bankruptcy at the moment.
DOX has a better Altman-Z score (4.95) than 73.17% of its industry peers.
The Debt to FCF ratio of DOX is 1.16, which is an excellent value as it means it would take DOX, only 1.16 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.16, DOX is in the better half of the industry, outperforming 76.83% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that DOX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, DOX is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 4.95 |
ROIC/WACC1.41
WACC9.55%
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.
DOX has a Current ratio of 1.16. This is in the lower half of the industry: DOX underperforms 68.29% of its industry peers.
DOX has a Quick 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.
DOX has a Quick ratio of 1.16. This is in the lower half of the industry: DOX underperforms 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
DOX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.64%, which is quite good.
The Earnings Per Share has been growing by 8.36% on average over the past years. This is quite good.
Looking at the last year, DOX shows a small growth in Revenue. The Revenue has grown by 2.40% in the last 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)10.64%
EPS 3Y10.29%
EPS 5Y8.36%
EPS Q2Q%14.1%
Revenue 1Y (TTM)2.4%
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 decrease in Revenue. The Revenue will decrease by -0.22% on average per year.
EPS Next Y9.35%
EPS Next 2Y9.19%
EPS Next 3Y8.75%
EPS Next 5YN/A
Revenue Next Year-9.91%
Revenue Next 2Y-3.09%
Revenue Next 3Y-0.22%
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
Based on the Price/Earnings ratio of 13.51, the valuation of DOX can be described as correct.
81.71% of the companies in the same industry are more expensive than DOX, based on the Price/Earnings ratio.
DOX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
With a Price/Forward Earnings ratio of 11.90, the valuation of DOX can be described as very reasonable.
DOX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DOX is cheaper than 84.15% of the companies in the same industry.
DOX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 11.9 |
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 75.61% of the companies listed in the same industry.
75.61% 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 | 18.35 | ||
| EV/EBITDA | 10.71 |
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)1.45
PEG (5Y)1.62
EPS Next 2Y9.19%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
DOX has a Yearly Dividend Yield of 2.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.35, DOX pays a better dividend. On top of this DOX pays more dividend than 92.68% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, 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 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 44.15% 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.
DP44.15%
EPS Next 2Y9.19%
EPS Next 3Y8.75%
91.36
-0.26 (-0.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners99.51%
Inst Owner Change-0.08%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.25B
Analysts85.45
Price Target103.64 (13.44%)
Short Float %3.39%
Short Ratio5.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend1.84
Dividend Growth(5Y)11.39%
DP44.15%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.26%
Min EPS beat(2)-0.91%
Max EPS beat(2)0.39%
EPS beat(4)1
Avg EPS beat(4)-0.39%
Min EPS beat(4)-0.99%
Max EPS beat(4)0.39%
EPS beat(8)2
Avg EPS beat(8)0.07%
EPS beat(12)4
Avg EPS beat(12)2.47%
EPS beat(16)6
Avg EPS beat(16)2.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)-0.87%
Revenue beat(8)0
Avg Revenue beat(8)-0.97%
Revenue beat(12)2
Avg Revenue beat(12)7.33%
Revenue beat(16)3
Avg Revenue beat(16)5.35%
PT rev (1m)-1.27%
PT rev (3m)-0.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 11.9 | ||
| P/S | 2.1 | ||
| P/FCF | 18.35 | ||
| P/OCF | 15.82 | ||
| P/B | 2.96 | ||
| P/tB | 25.79 | ||
| EV/EBITDA | 10.71 |
EPS(TTM)6.76
EY7.4%
EPS(NY)7.68
Fwd EY8.4%
FCF(TTM)4.98
FCFY5.45%
OCF(TTM)5.77
OCFY6.32%
SpS43.42
BVpS30.89
TBVpS3.54
PEG (NY)1.45
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.74% | ||
| ROE | 14.06% | ||
| ROCE | 15.91% | ||
| ROIC | 13.47% | ||
| ROICexc | 14.5% | ||
| ROICexgc | 44.28% | ||
| OM | 16.04% | ||
| PM (TTM) | 10% | ||
| GM | 35.95% | ||
| FCFM | 11.47% |
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-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 46.02% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 21.62 | ||
| Cash Conversion | 66.45% | ||
| Profit Quality | 114.7% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 4.95 |
F-Score5
WACC9.55%
ROIC/WACC1.41
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)2.4%
Revenue growth 3Y5.28%
Revenue growth 5Y4.14%
Sales Q2Q%-9.44%
Revenue Next Year-9.91%
Revenue Next 2Y-3.09%
Revenue Next 3Y-0.22%
Revenue Next 5YN/A
EBIT growth 1Y-14.1%
EBIT growth 3Y8.26%
EBIT growth 5Y5.9%
EBIT Next Year23.38%
EBIT Next 3Y12.03%
EBIT Next 5YN/A
FCF growth 1Y29.24%
FCF growth 3Y-4.71%
FCF growth 5Y3.22%
OCF growth 1Y1.85%
OCF growth 3Y-7.85%
OCF growth 5Y1.99%