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Amdocs

Nasdaq:DOX
Snowflake Description

Flawless balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DOX
Nasdaq
$8B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Amdocs Limited, through its subsidiaries, provides software and services to the communications, pay TV, entertainment, and media industry service providers worldwide. The last earnings update was 20 days ago. More info.


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DOX Share Price and Events
7 Day Returns
0.6%
NasdaqGS:DOX
-0.5%
US IT
0.3%
US Market
1 Year Returns
-12.4%
NasdaqGS:DOX
19.3%
US IT
0.7%
US Market
DOX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Amdocs (DOX) 0.6% 1.1% 12.4% -12.4% 8% 30.1%
US IT -0.5% 3.3% 9% 19.3% 89.5% 109.3%
US Market 0.3% 0.4% 0.6% 0.7% 37.2% 37.4%
1 Year Return vs Industry and Market
  • DOX underperformed the IT industry which returned 19.3% over the past year.
  • DOX underperformed the Market in United States of America which returned 0.7% over the past year.
Price Volatility
DOX
Industry
5yr Volatility vs Market

DOX Value

 Is Amdocs undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Amdocs to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Amdocs.

NasdaqGS:DOX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:DOX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.01
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.011 (1 + (1- 21%) (0%))
1.008
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.008 * 5.96%)
8.74%

Discounted Cash Flow Calculation for NasdaqGS:DOX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Amdocs is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:DOX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.74%)
2019 492.48 Analyst x3 452.92
2020 547.99 Analyst x3 463.48
2021 581.97 Est @ 6.2% 452.68
2022 611.99 Est @ 5.16% 437.79
2023 639.11 Est @ 4.43% 420.46
2024 664.16 Est @ 3.92% 401.84
2025 687.83 Est @ 3.56% 382.72
2026 710.62 Est @ 3.31% 363.64
2027 732.92 Est @ 3.14% 344.92
2028 755.02 Est @ 3.02% 326.78
Present value of next 10 years cash flows $4,047.22
NasdaqGS:DOX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $755.02 × (1 + 2.73%) ÷ (8.74% – 2.73%)
$12,915.71
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $12,915.71 ÷ (1 + 8.74%)10
$5,589.99
NasdaqGS:DOX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,047.22 + $5,589.99
$9,637.20
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $9,637.20 / 137.13
$70.28
NasdaqGS:DOX Discount to Share Price
Calculation Result
Value per share (USD) From above. $70.28
Current discount Discount to share price of $61.44
= -1 x ($61.44 - $70.28) / $70.28
12.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Amdocs is available for.
Intrinsic value
13%
Share price is $61.44 vs Future cash flow value of $70.28
Current Discount Checks
For Amdocs to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Amdocs's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Amdocs's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Amdocs's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Amdocs's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:DOX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.58
NasdaqGS:DOX Share Price ** NasdaqGS (2019-06-17) in USD $61.44
United States of America IT Industry PE Ratio Median Figure of 77 Publicly-Listed IT Companies 34.95x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Amdocs.

NasdaqGS:DOX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:DOX Share Price ÷ EPS (both in USD)

= 61.44 ÷ 2.58

23.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Amdocs is good value based on earnings compared to the US IT industry average.
  • Amdocs is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Amdocs's expected growth come at a high price?
Raw Data
NasdaqGS:DOX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
7%per year
United States of America IT Industry PEG Ratio Median Figure of 66 Publicly-Listed IT Companies 2.45x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:DOX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.8x ÷ 7%

3.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Amdocs is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Amdocs's assets?
Raw Data
NasdaqGS:DOX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $25.16
NasdaqGS:DOX Share Price * NasdaqGS (2019-06-17) in USD $61.44
United States of America IT Industry PB Ratio Median Figure of 128 Publicly-Listed IT Companies 4.13x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NasdaqGS:DOX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:DOX Share Price ÷ Book Value per Share (both in USD)

= 61.44 ÷ 25.16

2.44x

* Primary Listing of Amdocs.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Amdocs is good value based on assets compared to the US IT industry average.
X
Value checks
We assess Amdocs's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Amdocs has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DOX Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Amdocs expected to grow at an attractive rate?
  • Amdocs's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Amdocs's earnings growth is positive but not above the United States of America market average.
  • Amdocs's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:DOX Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:DOX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 7%
NasdaqGS:DOX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 2.8%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.8%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 10.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:DOX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:DOX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 4,319 732 486 1
2020-09-30 4,212 723 488 5
2019-09-30 4,089 658 468 5
NasdaqGS:DOX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 4,036 557 362
2018-12-31 4,009 502 339
2018-09-30 3,975 557 354
2018-06-30 3,952 641 417
2018-03-31 3,916 639 445
2017-12-31 3,890 633 456
2017-09-30 3,867 636 437
2017-06-30 3,828 590 425
2017-03-31 3,792 579 411
2016-12-31 3,751 589 406
2016-09-30 3,718 620 409
2016-06-30 3,704 674 405

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Amdocs's earnings are expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
  • Amdocs's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:DOX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Amdocs Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:DOX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30 3.79 3.79 3.79 1.00
2020-09-30 3.62 3.75 3.48 5.00
2019-09-30 3.39 3.43 3.33 5.00
NasdaqGS:DOX Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.58
2018-12-31 2.40
2018-09-30 2.49
2018-06-30 2.91
2018-03-31 3.08
2017-12-31 3.14
2017-09-30 2.99
2017-06-30 2.90
2017-03-31 2.79
2016-12-31 2.74
2016-09-30 2.74
2016-06-30 2.69

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Amdocs will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Amdocs's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Amdocs has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DOX Past Performance

  How has Amdocs performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Amdocs's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Amdocs's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Amdocs's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Amdocs's 1-year earnings growth is negative, it can't be compared to the US IT industry average.
Earnings and Revenue History
Amdocs's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Amdocs Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:DOX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 4,036.50 361.77 484.55 278.96
2018-12-31 4,009.18 339.22 484.29 277.12
2018-09-30 3,974.84 354.40 481.09 276.62
2018-06-30 3,951.97 417.34 475.50 270.52
2018-03-31 3,916.47 445.07 473.10 264.91
2017-12-31 3,890.14 455.91 467.37 267.28
2017-09-30 3,867.16 436.83 472.78 259.10
2017-06-30 3,828.09 425.33 469.57 255.45
2017-03-31 3,791.53 411.12 469.41 253.39
2016-12-31 3,751.45 406.28 469.41 249.80
2016-09-30 3,718.23 409.33 464.88 252.29
2016-06-30 3,704.35 404.75 459.04 257.15
2016-03-31 3,682.11 407.47 453.34 254.70
2015-12-31 3,658.76 416.02 446.05 253.79
2015-09-30 3,643.54 446.16 440.09 254.94
2015-06-30 3,617.02 455.54 438.95 256.65
2015-03-31 3,611.60 457.58 443.50 258.91
2014-12-31 3,605.88 451.68 446.76 259.21
2014-09-30 3,563.64 422.12 445.13 257.90
2014-06-30 3,508.60 410.57 440.11 251.56
2014-03-31 3,447.46 420.30 430.83 246.28
2013-12-31 3,383.54 414.86 423.07 243.23
2013-09-30 3,345.85 412.44 418.57 240.27
2013-06-30 3,322.76 421.51 418.35 240.55
2013-03-31 3,290.26 400.70 421.64 239.83
2012-12-31 3,266.25 397.66 425.79 240.12
2012-09-30 3,246.90 391.37 424.67 242.06
2012-06-30 3,236.98 380.73 423.59 239.46

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Amdocs has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Amdocs used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • Amdocs has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Amdocs's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Amdocs has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DOX Health

 How is Amdocs's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Amdocs's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Amdocs is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Amdocs's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Amdocs's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Amdocs has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Amdocs Company Filings, last reported 2 months ago.

NasdaqGS:DOX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,492.79 0.00 449.70
2018-12-31 3,499.16 0.00 458.65
2018-09-30 3,492.04 0.00 519.22
2018-06-30 3,562.87 0.00 561.04
2018-03-31 3,606.22 120.00 666.84
2017-12-31 3,627.89 0.00 965.94
2017-09-30 3,574.07 0.00 979.61
2017-06-30 3,581.69 0.00 963.04
2017-03-31 3,552.92 200.00 1,149.45
2016-12-31 3,470.49 0.00 940.32
2016-09-30 3,453.56 200.00 1,095.72
2016-06-30 3,433.78 0.00 1,124.94
2016-03-31 3,474.98 0.00 1,150.09
2015-12-31 3,426.58 0.00 1,185.86
2015-09-30 3,406.84 220.00 1,354.01
2015-06-30 3,516.30 0.00 1,401.71
2015-03-31 3,453.32 0.00 1,292.49
2014-12-31 3,418.90 0.00 1,268.57
2014-09-30 3,395.84 210.60 1,424.47
2014-06-30 3,429.46 0.00 1,174.61
2014-03-31 3,409.76 0.00 1,108.69
2013-12-31 3,333.01 0.00 1,211.56
2013-09-30 3,274.78 201.02 1,326.38
2013-06-30 3,239.80 0.00 1,090.70
2013-03-31 3,149.57 0.00 978.16
2012-12-31 3,094.45 0.00 961.32
2012-09-30 3,033.20 201.02 1,118.18
2012-06-30 3,013.86 0.00 894.11
  • Amdocs has no debt.
  • Amdocs had no debt 5 years ago.
  • Amdocs has no debt, it does not need to be covered by operating cash flow.
  • Amdocs has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Amdocs's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Amdocs has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DOX Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.86%
Current annual income from Amdocs dividends. Estimated to be 1.93% next year.
If you bought $2,000 of Amdocs shares you are expected to receive $37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Amdocs's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Amdocs's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment

Purchase Amdocs before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:DOX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:DOX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-09-30 1.37 1.00
2020-09-30 1.19 2.00
2019-09-30 1.09 2.00
NasdaqGS:DOX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-28 1.140 1.884
2019-05-14 1.140 1.905
2018-11-08 1.140 1.993
2018-05-10 1.000 1.518
2017-11-08 1.000 1.506
2017-05-09 0.880 1.362
2017-02-01 0.880 1.445
2016-12-12 0.880 1.491
2016-11-08 0.880 1.496
2016-08-08 0.780 1.319
2016-07-26 0.780 1.328
2016-05-17 0.780 1.362
2016-05-04 0.780 1.360
2015-12-16 0.780 1.385
2015-12-10 0.780 1.408
2015-11-10 0.780 1.388
2015-08-10 0.680 1.165
2015-07-29 0.680 1.170
2015-05-11 0.680 1.224
2015-04-29 0.680 1.252
2015-02-09 0.680 1.282
2015-01-27 0.680 1.393
2014-12-08 0.680 1.445
2014-11-04 0.680 1.420
2014-07-29 0.620 1.340
2014-04-30 0.620 1.304
2014-01-29 0.620 1.378
2013-07-31 0.520 1.332
2013-04-30 0.520 1.417
2013-01-30 0.520 1.458
2012-11-06 0.520 1.532
2012-08-01 0.520 1.600

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Amdocs has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Amdocs only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Amdocs's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).
X
Income/ dividend checks
We assess Amdocs's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Amdocs afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Amdocs has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DOX Management

 What is the CEO of Amdocs's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Shuky Sheffer
AGE 58
TENURE AS CEO 4.7 years
CEO Bio

Mr. Joshua Sheffer, also known as Shuky, has been President & Chief Executive Officer of Amdocs Management Ltd. since October 1, 2018. Mr. Sheffer served as President of Amdocs Global Business at Amdocs Ltd. since 2018. Mr. Sheffer served as the President of Customer Business Group and Senior Vice President of Amdocs Management Limited at Amdocs Limited since October 2013 until 2018. Mr. Sheffer has over 25 years of broad experience and a proven track record in software development and IT services. He has extensive experience in laying down strategy and managing sales and the delivery of complex, mission critical software projects to some of the world's most demanding customers. He also has wealth of global experience and business best practices, having served in Europe, USA and the Emerging Markets. He served as the Chief Executive Officer of Retalix Ltd., from 2009 to September 29, 2013 and served as its General Manager until September 2013. He served as the President of the Emerging Markets Division and a Member of the Executive Management at Amdocs Limited. From 1986 to 2009, he served at various managerial positions at Amdocs. He holds a B.A. in Mathematics and Computer Sciences from Tel Aviv University.

CEO Compensation
  • Insufficient data for Shuky to compare compensation growth.
  • Insufficient data for Shuky to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team

Shuky Sheffer

TITLE
President & CEO
AGE
58
TENURE
4.7 yrs

Tamar Rapaport-Dagim

TITLE
CFO & COO
AGE
47

Matt Smith

TITLE
Secretary & Head of Investor Relations
AGE
46

Gary Miles

TITLE
Chief Marketing Officer

Darcy Antonellis

TITLE
Head of Amdocs Media

Oren Marmur

TITLE
Head of NFV - Amdocs Open Network

Rajat Raheja

TITLE
Division President of Amdocs Development Center India Pvt. Ltd
AGE
49
TENURE
3.3 yrs

Anthony Goonetilleke

TITLE
Group President of Media
Board of Directors Tenure

Average tenure and age of the Amdocs board of directors in years:

13.4
Average Tenure
68
Average Age
  • The average tenure for the Amdocs board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Rob Minicucci

TITLE
Chairman
AGE
66
TENURE
7.7 yrs

Jim Kahan

TITLE
Director
AGE
71
TENURE
21.2 yrs

Adrian David Gardner

TITLE
Director
AGE
55
TENURE
21.2 yrs

John McLennan

TITLE
Director
AGE
73
TENURE
19.6 yrs

Zohar Zisapel

TITLE
Director
AGE
69
TENURE
10.9 yrs

Eli Gelman

TITLE
Director
AGE
60
TENURE
16.9 yrs

Julian Brodsky

TITLE
Director
AGE
84
TENURE
15.9 yrs

Giora Yaron

TITLE
Director
AGE
70
TENURE
9.9 yrs

Dick LeFave

TITLE
Director
AGE
66
TENURE
7.6 yrs

Baroness De Rothschild

TITLE
Director
AGE
67
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Amdocs's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Amdocs has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DOX News

Simply Wall St News

A Closer Look At Amdocs Limited's (NASDAQ:DOX) Uninspiring ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Amdocs: 10% = US$362m ÷ US$3.5b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Combining Amdocs's Debt And Its 10% Return On Equity Amdocs is free of net debt, which is a positive for shareholders.

Simply Wall St -

Do You Know What Amdocs Limited's (NASDAQ:DOX) P/E Ratio Means?

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Amdocs: P/E of 23.19 = $59.87 ÷ $2.58 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios If earnings fall then in the future the 'E' will be lower.

Simply Wall St -

Why We Like Amdocs Limited’s (NASDAQ:DOX) 13% Return On Capital Employed

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Amdocs: 0.13 = US$543m ÷ (US$5.2b - US$1.2b) (Based on the trailing twelve months to March 2019.) So, Amdocs has an ROCE of 13%.

Simply Wall St -

A Look At The Intrinsic Value Of Amdocs Limited (NASDAQ:DOX)

by estimating the company's future cash flows and discounting them to their present value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Should You Buy Amdocs Limited (NASDAQ:DOX) For Its Dividend?

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Historically, Amdocs Limited (NASDAQ:DOX) has paid dividends to shareholders, and these days it yields 2.1%. … Let's dig deeper into whether Amdocs should have a place in your portfolio.

Simply Wall St -

Amdocs Limited (NASDAQ:DOX): Ex-Dividend Is In 4 Days

To qualify for the dividend check of US$0.28 per share, investors must have owned the shares prior to 28 March 2019, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Below, I will explain how holding Amdocs can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?

Simply Wall St -

Did You Miss Amdocs's 24% Share Price Gain?

It hasn't been the best quarter for Amdocs Limited (NASDAQ:DOX) shareholders, since the share price has fallen 12% in that time. … While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … Amdocs's earnings per share are down 1.4% per year, despite strong share price performance over five years.

Simply Wall St -

How Should You Value Amdocs Limited's (NASDAQ:DOX)?

Choosing the right financial tool to evaluate a company can be a daunting task, especially when different models are giving you drastically different conclusions. … A prime example of conflicts between valuation models is Amdocs Limited's (NASDAQ:DOX). … While my discounted cash flow (DCF) model tells me that it is overvalued by 11.46%, my relative valuation model says it is undervalued by 64.39%.

Simply Wall St -

What You Must Know About Amdocs Limited's (NASDAQ:DOX) Financial Health

This article will examine DOX’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself. … Participate in a short research study and receive a subscription valued at $60

Simply Wall St -

Is Amdocs Limited’s (NASDAQ:DOX) Cash Outlook Optimistic?

If you are currently a shareholder in Amdocs Limited (NASDAQ:DOX), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … This will help you think about the company from a cash perspective, which is a crucial factor to investing. … Free cash flow (FCF) is the amount of cash Amdocs has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.

Simply Wall St -

DOX Company Info

Description

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, service-driven network, and services and agile operation solutions. It also provides managed, quality engineering, data and intelligence, cloud enablement, digital business operation, autonomous network service assurance, and advisory services. In addition, the company offers mobile financial services, which enable service providers and financial institutions to serve financially underserved customer segments; revenue guard services designed to detect and resolve revenue leakage, fraud, and cyber fraud; and the BriteBill, a multi-channel bill presentment platform focused on contextual and personalized customer engagements. Further, it provides advertising and media services for media publishers, TV networks, video streaming providers, advertising agencies, and service providers. Amdocs Limited has a partnership agreement with Capita Business Services to provide various technology, testing, and professional services. The company was founded in 1988 and is headquartered in Chesterfield, Missouri.

Details
Name: Amdocs Limited
DOX
Exchange: NasdaqGS
Founded: 1988
$8,425,328,640
137,131,000
Website: http://www.amdocs.com
Address: Amdocs Limited
1390 Timberlake Manor Parkway,
Chesterfield,
Missouri, 63017,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS DOX Voting Ordinary Shares Nasdaq Global Select US USD 19. Jun 1998
DB AOS Voting Ordinary Shares Deutsche Boerse AG DE EUR 19. Jun 1998
Number of employees
Current staff
Staff numbers
24,381
Amdocs employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 23:49
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/05/15
Last earnings filing: 2019/05/28
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.