NasdaqGS:DOX

Stock Analysis Report

Executive Summary

Amdocs Limited, through its subsidiaries, provides software and services to the communications, pay TV, entertainment, and media industry service providers worldwide.


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Amdocs's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DOX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.4%

DOX

16.8%

US IT

12.5%

US Market


1 Year Return

-4.7%

DOX

-5.0%

US IT

-12.7%

US Market

Return vs Industry: DOX matched the US IT industry which returned -5% over the past year.

Return vs Market: DOX exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

DOXIndustryMarket
7 Day12.4%16.8%12.5%
30 Day-18.7%-14.8%-14.7%
90 Day-28.2%-17.2%-21.5%
1 Year-3.5%-4.7%-4.1%-5.0%-10.9%-12.7%
3 Year-11.2%-15.0%58.2%51.4%12.6%5.4%
5 Year3.6%-3.4%86.5%70.1%31.9%17.5%

Price Volatility Vs. Market

How volatile is Amdocs's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Amdocs undervalued compared to its fair value and its price relative to the market?

46.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DOX ($51.86) is trading below our estimate of fair value ($96.54)

Significantly Below Fair Value: DOX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DOX is good value based on its PE Ratio (14.3x) compared to the IT industry average (23.1x).

PE vs Market: DOX is poor value based on its PE Ratio (14.3x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: DOX is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: DOX is good value based on its PB Ratio (2x) compared to the US IT industry average (2.8x).


Next Steps

Future Growth

How is Amdocs forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DOX's forecast earnings growth (3.9% per year) is above the savings rate (1.7%).

Earnings vs Market: DOX's earnings (3.9% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: DOX's earnings are forecast to grow, but not significantly.

Revenue vs Market: DOX's revenue (3.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: DOX's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DOX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Amdocs performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DOX has high quality earnings.

Growing Profit Margin: DOX's current net profit margins (12%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: DOX's earnings have declined by -1% per year over the past 5 years.

Accelerating Growth: DOX's earnings growth over the past year (45.5%) exceeds its 5-year average (-1% per year).

Earnings vs Industry: DOX earnings growth over the past year (45.5%) exceeded the IT industry 13.4%.


Return on Equity

High ROE: DOX's Return on Equity (13.8%) is considered low.


Next Steps

Financial Health

How is Amdocs's financial position?


Financial Position Analysis

Short Term Liabilities: DOX's short term assets ($1.7B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: DOX's short term assets ($1.7B) exceed its long term liabilities ($782.0M).


Debt to Equity History and Analysis

Debt Level: DOX is debt free.

Reducing Debt: DOX had no debt 5 years ago.

Debt Coverage: DOX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DOX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: DOX has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DOX's debt is covered by short term assets.


Next Steps

Dividend

What is Amdocs's current dividend yield, its reliability and sustainability?

2.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DOX's dividend (2.53%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: DOX's dividend (2.53%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DOX has been paying a dividend for less than 10 years.

Growing Dividend: DOX's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.4%), DOX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DOX's dividends in 3 years are forecast to be well covered by earnings (28.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

Shuky Sheffer (59yo)

1.42s

Tenure

Mr. Joshua Sheffer, also known as Shuky, has been President & Chief Executive Officer of Amdocs Management Ltd. since October 1, 2018 and serves as its Director. Mr. Sheffer served as President of Amdocs G ...


Leadership Team

NamePositionTenureCompensationOwnership
Joshua Sheffer
President1.42yrsno datano data
Tamar Rapaport-Dagim
CFO & COO13.17yrsno datano data
Matthew Smith
Secretary & Head of Investor Relations6.17yrsno datano data
Gary Miles
Chief Marketing Officerno datano datano data
Darcy Antonellis
Head of Amdocs Mediano datano datano data
Oren Marmur
Head of NFV - Amdocs Open Networkno datano datano data
Rajat Raheja
Division President of Amdocs Development Center India Pvt. Ltd4yrsno datano data
Anthony Goonetilleke
Group President of Mediano datano datano data

5.1yrs

Average Tenure

49yo

Average Age

Experienced Management: DOX's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joshua Sheffer
President1.42yrsno datano data
Robert Minicucci
Independent Chairman of the Board8.42yrsno datano data
James Kahan
Independent Director21.92yrsno datano data
Richard T. LeFave
Independent Director8.33yrsno datano data
Giora Yaron
Director10.67yrsno datano data
Adrian David Gardner
Independent Director21.92yrsno datano data
Eli Gelman
Director17.67yrsno datano data
Yvette Kanouff
Independent Director0.17yrno datano data
Rafael de la Vega
Independent Director2.17yrsno datano data
John MacDonald
Independent Director0.58yrno datano data

8.4yrs

Average Tenure

66yo

Average Age

Experienced Board: DOX's board of directors are considered experienced (8.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Amdocs Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amdocs Limited
  • Ticker: DOX
  • Exchange: NasdaqGS
  • Founded: 1988
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$6.979b
  • Shares outstanding: 134.58m
  • Website: https://www.amdocs.com

Number of Employees


Location

  • Amdocs Limited
  • 1390 Timberlake Manor Parkway
  • Chesterfield
  • Missouri
  • 63017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DOXNasdaqGS (Nasdaq Global Select)YesVoting Ordinary SharesUSUSDJun 1998
AOSDB (Deutsche Boerse AG)YesVoting Ordinary SharesDEEURJun 1998
AOSBRSE (Berne Stock Exchange)YesVoting Ordinary SharesCHCHFJun 1998

Biography

Amdocs Limited, through its subsidiaries, provides software and services to the communications, pay TV, entertainment, and media industry service providers worldwide. The company offers amdocsONE, a line of services designed for various stages of a service provider’s lifecycle, including planning, delivery, implementation, and ongoing support, as well as consumer experience and monetization, media and digital, enterprise and connected society, open cloud networks, domains and disruptions, and services and hybrid operations. It also provides managed, quality engineering, data and intelligence, cloud enablement, digital business operation, quality engineering, integration, and consulting services. In addition, the company offers mobile financial services, which enable service providers and financial institutions; revenue guard services designed to detect and resolve revenue leakage, fraud, and cyber fraud; and the BriteBill, a multi-channel bill presentment platform. Further, it provides advertising and media services for media publishers, TV networks, video streaming providers, advertising agencies, and service providers. The company was founded in 1988 and is headquartered in Chesterfield, Missouri. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:18
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.