AMDOCS LTD (DOX) Stock Fundamental Analysis
NASDAQ:DOX - Nasdaq - GB0022569080 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to DOX. DOX was compared to 81 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
In the past year DOX was profitable.
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 8.56%, DOX is doing good in the industry, outperforming 76.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.34%, DOX is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
DOX has a Return On Invested Capital of 13.74%. This is amongst the best in the industry. DOX outperforms 83.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DOX is significantly below the industry average of 21.85%.
The 3 year average ROIC (12.04%) for DOX is below the current ROIC(13.74%), indicating increased profibility in the last year.
| 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
DOX's Profit Margin of 11.17% is fine compared to the rest of the industry. DOX outperforms 79.01% of its industry peers.
DOX's Profit Margin has declined in the last couple of years.
DOX's Operating Margin of 16.62% is amongst the best of the industry. DOX outperforms 86.42% of its industry peers.
DOX's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 36.55%, DOX perfoms like the industry average, outperforming 53.09% of the companies in the same industry.
In the last couple of years the Gross Margin of DOX has remained more or less at the same level.
| 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
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.
Compared to 5 years ago, DOX has less shares outstanding
The debt/assets ratio for DOX is higher compared to a year ago.
2.2 Solvency
DOX has an Altman-Z score of 5.03. This indicates that DOX is financially healthy and has little risk of bankruptcy at the moment.
DOX has a Altman-Z score of 5.03. This is in the better half of the industry: DOX outperforms 71.60% of its industry peers.
The Debt to FCF ratio of DOX is 1.07, which is an excellent value as it means it would take DOX, only 1.07 years of fcf income to pay off all of its debts.
DOX's Debt to FCF ratio of 1.07 is amongst the best of the industry. DOX outperforms 81.48% 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 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 5.03 |
ROIC/WACC1.49
WACC9.22%
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 70.37% 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.
The Quick ratio of DOX (1.16) is worse than 69.14% 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.
The Earnings Per Share has been growing by 8.36% on average over the past years. This is quite good.
The Revenue has decreased by -4.37% 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)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.
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
A Price/Earnings ratio of 13.64 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 81.48% of the companies listed in the same industry.
DOX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 12.01, the valuation of DOX can be described as correct.
Based on the Price/Forward Earnings ratio, DOX is valued cheaply inside the industry as 83.95% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, DOX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 12.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOX is valued a bit cheaper than 76.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DOX is valued cheaper than 82.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.03 | ||
| EV/EBITDA | 10.63 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DOX may justify a higher PE ratio.
PEG (NY)1.46
PEG (5Y)1.63
EPS Next 2Y9.19%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, DOX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.60, DOX pays a better dividend. On top of this DOX pays more dividend than 93.83% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, DOX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
The dividend of DOX is nicely growing with an annual growth rate of 11.39%!
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
41.07% of the earnings are spent on dividend by DOX. 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.
DP41.07%
EPS Next 2Y9.19%
EPS Next 3Y8.75%
92.19
+0.95 (+1.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners100.53%
Inst Owner Change-0.14%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.25B
Analysts83.64
Price Target103.73 (12.52%)
Short Float %3.02%
Short Ratio5.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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)0%
EPS NQ rev (3m)-3.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 12.01 | ||
| P/S | 2.16 | ||
| P/FCF | 17.03 | ||
| P/OCF | 14.92 | ||
| P/B | 2.96 | ||
| P/tB | 25.32 | ||
| EV/EBITDA | 10.63 |
EPS(TTM)6.76
EY7.33%
EPS(NY)7.68
Fwd EY8.33%
FCF(TTM)5.41
FCFY5.87%
OCF(TTM)6.18
OCFY6.7%
SpS42.73
BVpS31.12
TBVpS3.64
PEG (NY)1.46
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 | 5.03 |
F-Score6
WACC9.22%
ROIC/WACC1.49
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%