AMDOCS LTD (DOX) Stock Fundamental Analysis
NASDAQ:DOX - GB0022569080 - Common Stock
85.75 USD
+0.27 (+0.32%)
85.75 USD
0 (0%)
Taking everything into account, DOX scores 6 out of 10 in our fundamental rating. DOX was compared to 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.
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 8.60% is amongst the best of the industry. DOX outperforms 81.18% of its industry peers.
Looking at the Return On Equity, with a value of 15.54%, DOX is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for DOX is significantly below the industry average of 21.77%.
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.
DOX's Profit Margin has declined in the last couple of years.
DOX has a Operating Margin of 17.25%. This is amongst the best in the industry. DOX outperforms 90.59% of its industry peers.
DOX's Operating Margin has improved in the last couple of years.
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.
Compared to 1 year ago, DOX has less shares outstanding
Compared to 5 years ago, DOX has less shares outstanding
Compared to 1 year ago, DOX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.78 indicates that DOX is not in any danger for bankruptcy at the moment.
The Altman-Z score of DOX (4.78) is better than 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.
With an excellent Debt to FCF ratio value of 1.01, DOX belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that DOX is not too dependend on debt financing.
The Debt to Equity ratio of DOX (0.18) is better than 61.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 4.78 |
ROIC/WACC1.53
WACC8.88%
2.3 Liquidity
A Current Ratio of 1.22 indicates that DOX should not have too much problems paying its short term obligations.
The Current ratio of DOX (1.22) is worse than 69.41% of its industry peers.
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.
DOX has a worse Quick ratio (1.22) than 68.24% 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.
Measured over the past years, DOX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.36% on average per year.
The Revenue has decreased by -6.76% in the past year.
The Revenue has been growing slightly by 4.14% on average over the past years.
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.
DOX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.11% yearly.
EPS Next Y9.51%
EPS Next 2Y9.49%
EPS Next 3Y8.99%
EPS Next 5Y9.15%
Revenue Next Year-9.48%
Revenue Next 2Y-2.93%
Revenue Next 3Y-0.42%
Revenue Next 5Y1.11%
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
The Price/Earnings ratio is 12.50, which indicates a correct valuation of DOX.
Based on the Price/Earnings ratio, DOX is valued cheaper than 83.53% of the companies in the same industry.
DOX is valuated cheaply when we compare the Price/Earnings ratio to 27.07, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.11, the valuation of DOX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, DOX is valued cheaply inside the industry as 87.06% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.59, DOX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 11.11 |
4.2 Price Multiples
DOX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DOX is cheaper than 80.00% of the companies in the same industry.
83.53% 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 | 14.77 | ||
| EV/EBITDA | 9.69 |
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)1.31
PEG (5Y)1.49
EPS Next 2Y9.49%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
DOX has a Yearly Dividend Yield of 2.49%.
DOX's Dividend Yield is rather good when compared to the industry average which is at 2.37. DOX pays more dividend than 92.94% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, DOX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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
DOX pays out 40.62% of its income as dividend. 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 2Y9.49%
EPS Next 3Y8.99%
85.75
+0.27 (+0.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners100.47%
Inst Owner Change-2.15%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.43B
Analysts85
Price Target105.88 (23.48%)
Short Float %4.36%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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)-0.82%
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 11.11 | ||
| P/S | 2.03 | ||
| P/FCF | 14.77 | ||
| P/OCF | 12.79 | ||
| P/B | 2.69 | ||
| P/tB | 20.51 | ||
| EV/EBITDA | 9.69 |
EPS(TTM)6.86
EY8%
EPS(NY)7.72
Fwd EY9%
FCF(TTM)5.81
FCFY6.77%
OCF(TTM)6.7
OCFY7.82%
SpS42.25
BVpS31.85
TBVpS4.18
PEG (NY)1.31
PEG (5Y)1.49
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 | 4.78 |
F-Score6
WACC8.88%
ROIC/WACC1.53
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 Y9.51%
EPS Next 2Y9.49%
EPS Next 3Y8.99%
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-2.93%
Revenue Next 3Y-0.42%
Revenue Next 5Y1.11%
EBIT growth 1Y7.02%
EBIT growth 3Y8.26%
EBIT growth 5Y5.9%
EBIT Next Year23.49%
EBIT Next 3Y11.97%
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%