AMDOCS LTD (DOX)
GB0022569080 - Common Stock
Overall DOX gets a fundamental rating of 7 out of 10. We evaluated DOX against 86 industry peers in the IT Services industry. DOX has an excellent profitability rating, but 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. DOX also has an excellent dividend rating. These ratings would make DOX suitable for value and dividend investing!
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.
In the past 5 years DOX has always been profitable.
DOX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DOX's Return On Assets of 10.49% is amongst the best of the industry. DOX outperforms 83.33% of its industry peers.
DOX has a better Return On Equity (19.07%) than 84.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.35%, DOX belongs to the top of the industry, outperforming 89.29% 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 12.82%.
The 3 year average ROIC (10.98%) for DOX is below the current ROIC(15.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.49% | ||
| ROE | 19.07% | ||
| ROIC | 15.35% |
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 (11.07%) than 82.14% of its industry peers.
DOX's Profit Margin has improved in the last couple of years.
DOX has a Operating Margin of 14.83%. This is amongst the best in the industry. DOX outperforms 80.95% of its industry peers.
In the last couple of years the Operating Margin of DOX has grown nicely.
DOX has a Gross Margin (35.22%) 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 | 14.83% | ||
| PM (TTM) | 11.07% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DOX is 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.
DOX has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of DOX is 0.82, which is an excellent value as it means it would take DOX, only 0.82 years of fcf income to pay off all of its debts.
DOX has a better Debt to FCF ratio (0.82) than 82.14% of its industry peers.
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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | N/A |
ROIC/WACC1.45
WACC10.58%
2.3 Liquidity
DOX has a Current Ratio of 1.29. 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 (1.29) which is comparable to the rest of the industry.
A Quick Ratio of 1.29 indicates that DOX should not have too much problems paying its short term obligations.
DOX's Quick ratio of 1.29 is in line compared to the rest of the industry. DOX outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
DOX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.47%, which is quite good.
The Earnings Per Share has been growing slightly by 7.96% on average over the past years.
DOX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.43%.
Measured over the past years, DOX shows a small growth in Revenue. The Revenue has been growing by 4.22% on average per year.
EPS 1Y (TTM)8.47%
EPS 3Y10%
EPS 5Y7.96%
EPS growth Q2Q7.59%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y5.44%
Revenue growth 5Y4.22%
Revenue growth Q2Q5.02%
3.2 Future
DOX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.20% yearly.
Based on estimates for the next years, DOX will show a small growth in Revenue. The Revenue will grow by 5.01% on average per year.
EPS Next Y11.09%
EPS Next 2Y10.44%
EPS Next 3Y10.2%
EPS Next 5YN/A
Revenue Next Year3.14%
Revenue Next 2Y4.01%
Revenue Next 3Y5.01%
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 accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DOX is valuated correctly with a Price/Earnings ratio of 13.92.
Based on the Price/Earnings ratio, DOX is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.67, DOX is valued a bit cheaper.
DOX is valuated reasonably with a Price/Forward Earnings ratio of 11.63.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DOX indicates a rather cheap valuation: DOX is cheaper than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.02, DOX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 11.63 |
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 76.19% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DOX is valued cheaply inside the industry as 84.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.44 | ||
| EV/EBITDA | 8.85 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of DOX may justify a higher PE ratio.
PEG (NY)1.26
PEG (5Y)1.75
EPS Next 2Y10.44%
EPS Next 3Y10.2%
5. Dividend
5.1 Amount
DOX has a Yearly Dividend Yield of 2.24%.
Compared to an average industry Dividend Yield of 2.81, DOX pays a better dividend. On top of this DOX pays more dividend than 92.86% of the companies listed in the same industry.
DOX's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
On average, the dividend of DOX grows each year by 12.15%, 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)12.15%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
29.88% of the earnings are spent on dividend by DOX. This is a low number and sustainable payout ratio.
The dividend of DOX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.88%
EPS Next 2Y10.44%
EPS Next 3Y10.2%
AMDOCS LTD
NASDAQ:DOX (5/1/2024, 10:52:00 AM)
83.815
-0.17 (-0.21%)
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 Cap9.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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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 | 13.92 | ||
| Fwd PE | 11.63 | ||
| 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)1.26
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.49% | ||
| ROE | 19.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.83% | ||
| PM (TTM) | 11.07% | ||
| 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 Turnover0.95
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 | 1.29 | ||
| Quick Ratio | 1.29 | ||
| 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)
Growth
EPS 1Y (TTM)8.47%
EPS 3Y10%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.43%
Revenue growth 3Y5.44%
Revenue growth 5Y
Revenue growth 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