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

Fundamentals

Flawless balance sheet with proven track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

DOX

0.3%

US IT

-0.2%

US Market


1 Year Return

5.8%

DOX

33.5%

US IT

16.1%

US Market

Return vs Industry: DOX underperformed the US IT industry which returned 33.5% over the past year.

Return vs Market: DOX underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

DOXIndustryMarket
7 Day-0.3%0.3%-0.2%
30 Day5.6%6.6%3.7%
90 Day7.4%2.3%8.5%
1 Year7.8%5.8%34.9%33.5%18.7%16.1%
3 Year19.3%13.8%96.0%87.7%46.9%37.4%
5 Year51.0%40.4%132.1%111.5%61.8%44.0%

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?

13.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DOX ($68.45) is trading below our estimate of fair value ($78.81)

Significantly Below Fair Value: DOX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DOX is good value based on its PE Ratio (19.6x) compared to the IT industry average (31x).

PE vs Market: DOX is poor value based on its PE Ratio (19.6x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: DOX is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: DOX is good value based on its PB Ratio (2.6x) compared to the US IT industry average (3.9x).


Next Steps

Future Growth

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

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DOX's forecast earnings growth (4.1% per year) is above the savings rate (2.7%).

Earnings vs Market: DOX's earnings (4.1% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: DOX's revenue (3.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: DOX's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DOX's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

How has Amdocs performed over the past 5 years?

-2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DOX has high quality earnings.

Growing Profit Margin: DOX's current net profit margins (11.7%) are higher than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: DOX's earnings have declined by -2% per year over the past 5 years.

Accelerating Growth: DOX's earnings growth over the past year (35.3%) exceeds its 5-year average (-2% per year).

Earnings vs Industry: DOX earnings growth over the past year (35.3%) exceeded the IT industry 17%.


Return on Equity

High ROE: DOX's Return on Equity (13.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Amdocs's financial position?


Financial Position Analysis

Short Term Liabilities: DOX's short term assets ($1.7B) exceeds its short term liabilities ($1.2B)

Long Term Liabilities: DOX's short term assets ($1.7B) exceeds its long term liabilities (542.4M)


Debt to Equity History and Analysis

Debt Level: DOX is debt free.

Reducing Debt: DOX has no debt compared to 5 years ago when its debt to equity ratio was 6.1%.

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?

1.91%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: DOX's dividend (1.91%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: DOX's dividend (1.91%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.7%), 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

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

10.3yrs

Average board tenure


CEO

Shuky Sheffer (59yo)

5.1yrs

Tenure

0

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 ...


Board Age and Tenure

10.3yrs

Average Tenure

67yo

Average Age

Experienced Board: DOX's board of directors are seasoned and experienced ( 10.3 years average tenure).


Insider Trading

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.


Management Team

  • Oren Marmur

    Head of NFV - Amdocs Open Network

    • Tenure: 0yrs
  • Gary Miles

    Chief Marketing Officer

    • Tenure: 0yrs
  • Tamar Rapaport-Dagim (48yo)

    CFO & COO

    • Tenure: 0yrs
  • Matt Smith (47yo)

    Secretary & Head of Investor Relations

    • Tenure: 0yrs
  • Shuky Sheffer (59yo)

    President

    • Tenure: 5.1yrs
  • Rajat Raheja (50yo)

    Division President of Amdocs Development Center India Pvt. Ltd

    • Tenure: 3.8yrs
  • Darcy Antonellis

    Head of Amdocs Media

    • Tenure: 0yrs
  • Anthony Goonetilleke

    Group President of Media

    • Tenure: 0yrs

Board Members

  • Rob Minicucci (67yo)

    Chairman

    • Tenure: 8.1yrs
  • Julian Brodsky (85yo)

    Independent Director

    • Tenure: 16.3yrs
  • Jim Kahan (72yo)

    Independent Director

    • Tenure: 21.6yrs
  • Dick LeFave (67yo)

    Independent Director

    • Tenure: 8yrs
  • Giora Yaron (71yo)

    Director

    • Tenure: 10.3yrs
  • Adrian David Gardner (56yo)

    Independent Director

    • Tenure: 21.6yrs
  • Eli Gelman (61yo)

    Director

    • Tenure: 17.3yrs
  • Shuky Sheffer (59yo)

    President

    • Tenure: 5.1yrs
  • Baroness De Rothschild (67yo)

    Independent Director

    • Tenure: 1.8yrs
  • Rafael de la Vega (67yo)

    Director

    • Tenure: 1.8yrs

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$9.288b
  • Shares outstanding: 135.89m
  • 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

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 23:47
End of Day Share Price2019/11/22 00:00
Earnings2019/09/30
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.