AMDOCS LTD (DOX) Stock Fundamental Analysis
USA - NASDAQ:DOX - GB0022569080 - Common Stock
81.3925 USD
-0.66 (-0.8%)
We assign a fundamental rating of 6 out of 10 to DOX. DOX was compared to 87 industry peers in the IT Services industry. While DOX has a great profitability rating, there are some minor concerns on its financial health. DOX may be a bit undervalued, certainly considering the very reasonable score on growth This makes DOX very considerable 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.
DOX had positive earnings in each of the past 5 years.
In the past 5 years DOX always reported a positive cash flow from operatings.
1.2 Ratios
DOX has a Return On Assets of 8.60%. This is amongst the best in the industry. DOX outperforms 81.61% of its industry peers.
DOX has a better Return On Equity (15.54%) than 77.01% of its industry peers.
DOX has a Return On Invested Capital of 13.62%. This is amongst the best in the industry. DOX outperforms 82.76% of its industry peers.
DOX had an Average Return On Invested Capital over the past 3 years of 12.04%. This is significantly below the industry average of 21.81%.
The last Return On Invested Capital (13.62%) for DOX is above the 3 year average (12.04%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 11.72%. This is amongst the best in the industry. DOX outperforms 82.76% of its industry peers.
In the last couple of years the Profit Margin of DOX has declined.
Looking at the Operating Margin, with a value of 17.25%, DOX belongs to the top of the industry, outperforming 90.80% of the companies in the same industry.
In the last couple of years the Operating Margin of DOX has grown nicely.
With a Gross Margin value of 37.24%, DOX perfoms like the industry average, outperforming 54.02% of the companies in the same industry.
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
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
DOX has a worse debt/assets ratio than last year.
2.2 Solvency
DOX has an Altman-Z score of 4.70. This indicates that DOX is financially healthy and has little risk of bankruptcy at the moment.
DOX's Altman-Z score of 4.70 is fine compared to the rest of the industry. DOX outperforms 68.97% of its industry peers.
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.
DOX's Debt to FCF ratio of 1.01 is amongst the best of the industry. DOX outperforms 80.46% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that DOX is not too dependend on debt financing.
DOX has a better Debt to Equity ratio (0.18) than 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 4.7 |
ROIC/WACC1.48
WACC9.23%
2.3 Liquidity
A Current Ratio of 1.22 indicates that DOX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.22, DOX is not doing good in the industry: 67.82% of the companies in the same industry are doing better.
DOX has a Quick Ratio of 1.22. This is a normal value and indicates that DOX is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.22, DOX is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
DOX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.36%, which is quite good.
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.
Measured over the past years, DOX shows a small growth in Revenue. The Revenue has been growing by 4.14% on average per year.
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
DOX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.15% yearly.
The Revenue is expected to grow by 1.11% on average over the next years.
EPS Next Y9.53%
EPS Next 2Y9.54%
EPS Next 3Y9.06%
EPS Next 5Y9.15%
Revenue Next Year-9.48%
Revenue Next 2Y-2.92%
Revenue Next 3Y-0.33%
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.
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
The Price/Earnings ratio is 11.86, which indicates a very decent valuation of DOX.
87.36% of the companies in the same industry are more expensive than DOX, based on the Price/Earnings ratio.
DOX is valuated cheaply when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
DOX is valuated reasonably with a Price/Forward Earnings ratio of 10.53.
DOX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DOX is cheaper than 87.36% of the companies in the same industry.
DOX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOX is valued cheaper than 80.46% of the companies in the same industry.
81.61% 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 | 14.02 | ||
| EV/EBITDA | 9.31 |
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)1.24
PEG (5Y)1.42
EPS Next 2Y9.54%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
DOX has a Yearly Dividend Yield of 2.54%. Purely for dividend investing, there may be better candidates out there.
DOX's Dividend Yield is rather good when compared to the industry average which is at 2.48. DOX pays more dividend than 93.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, DOX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
5.2 History
On average, the dividend of DOX grows each year by 11.39%, 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)11.39%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
40.62% of the earnings are spent on dividend by DOX. 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%
NASDAQ:DOX (10/1/2025, 12:20:42 PM)
81.3925
-0.66 (-0.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners99.22%
Inst Owner Change-2.15%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.95B
Analysts85
Price Target105.88 (30.09%)
Short Float %4.01%
Short Ratio5.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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)0.52%
PT rev (3m)2.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 10.53 | ||
| P/S | 1.93 | ||
| P/FCF | 14.02 | ||
| P/OCF | 12.14 | ||
| P/B | 2.56 | ||
| P/tB | 19.47 | ||
| EV/EBITDA | 9.31 |
EPS(TTM)6.86
EY8.43%
EPS(NY)7.73
Fwd EY9.49%
FCF(TTM)5.81
FCFY7.13%
OCF(TTM)6.7
OCFY8.23%
SpS42.25
BVpS31.85
TBVpS4.18
PEG (NY)1.24
PEG (5Y)1.42
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%
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 Turnover0.73
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 | 4.7 |
F-Score6
WACC9.23%
ROIC/WACC1.48
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-9.48%
Revenue Next 2Y-2.92%
Revenue Next 3Y-0.33%
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%