AMDOCS LTD (DOX) Stock Fundamental Analysis
USA - NASDAQ:DOX - GB0022569080 - Common Stock
84.47 USD
+0.31 (+0.37%)
DOX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. While DOX belongs to the best of the industry regarding profitability, 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. These ratings would make DOX suitable for value 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.
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
Looking at the Return On Assets, with a value of 8.60%, DOX belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
DOX's Return On Equity of 15.54% is fine compared to the rest of the industry. DOX outperforms 76.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.62%, DOX belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
DOX had an Average Return On Invested Capital over the past 3 years of 12.04%. This is significantly below the industry average of 27.89%.
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
The Profit Margin of DOX (11.72%) is better than 82.35% 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 90.59% of its industry peers.
In the last couple of years the Operating Margin of DOX has grown nicely.
DOX has a Gross Margin of 37.24%. This is comparable to the rest of the industry: DOX outperforms 52.94% of 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
DOX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, DOX has a worse debt to assets ratio.
2.2 Solvency
DOX has an Altman-Z score of 4.75. This indicates that DOX is financially healthy and has little risk of bankruptcy at the moment.
DOX has a Altman-Z score of 4.75. This is in the better half of the industry: DOX outperforms 70.59% of its industry peers.
DOX has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
DOX has a better Debt to FCF ratio (1.01) than 80.00% 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 61.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 4.75 |
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.
Looking at the Current ratio, with a value of 1.22, DOX is doing worse than 67.06% of the companies in the same industry.
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 65.88% 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.
DOX shows a decrease in Revenue. In the last year, the revenue decreased by -6.76%.
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
Based on estimates for the next years, DOX will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.15% on average per year.
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
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 12.31, which indicates a correct valuation of DOX.
Based on the Price/Earnings ratio, DOX is valued cheaper than 84.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.76, DOX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.93, the valuation of DOX can be described as reasonable.
Based on the Price/Forward Earnings ratio, DOX is valued cheaply inside the industry as 83.53% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DOX to the average of the S&P500 Index (22.63), we can say DOX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 10.93 |
4.2 Price Multiples
76.47% of the companies in the same industry are more expensive than DOX, based on the Enterprise Value to EBITDA ratio.
78.82% 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 | 14.55 | ||
| EV/EBITDA | 9.55 |
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)1.29
PEG (5Y)1.47
EPS Next 2Y9.54%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
DOX has a Yearly Dividend Yield of 2.52%.
Compared to an average industry Dividend Yield of 2.50, DOX pays a better dividend. On top of this DOX pays more dividend than 91.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, DOX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
The dividend of DOX is nicely growing with an annual growth rate of 11.39%!
DOX has been paying a dividend for at least 10 years, so it has 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
DOX pays out 40.62% 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.
DP40.62%
EPS Next 2Y9.54%
EPS Next 3Y9.06%
NASDAQ:DOX (10/30/2025, 10:20:02 AM)
84.47
+0.31 (+0.37%)
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 Cap9.29B
Revenue(TTM)4.65B
Net Income(TTM)544.37M
Analysts85
Price Target105.97 (25.45%)
Short Float %4.68%
Short Ratio6.04
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 | 12.31 | ||
| Fwd PE | 10.93 | ||
| P/S | 2 | ||
| P/FCF | 14.55 | ||
| P/OCF | 12.6 | ||
| P/B | 2.65 | ||
| P/tB | 20.2 | ||
| EV/EBITDA | 9.55 |
EPS(TTM)6.86
EY8.12%
EPS(NY)7.73
Fwd EY9.15%
FCF(TTM)5.81
FCFY6.87%
OCF(TTM)6.7
OCFY7.93%
SpS42.25
BVpS31.85
TBVpS4.18
PEG (NY)1.29
PEG (5Y)1.47
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 | 4.75 |
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 12.31 and the Price/Book (PB) ratio is 2.65.
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%.