Amdocs Limited
Amdocs Limited Fundamental Analysis
Amdocs Limited (DOX) shows moderate financial fundamentals with a PE ratio of 13.29, profit margin of 12.49%, and ROE of 16.56%. The company generates $4.6B in annual revenue with weak year-over-year growth of -9.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DOX's fundamental strength across five key dimensions:
Efficiency Score
WeakDOX struggles to generate sufficient returns from assets.
Valuation Score
ModerateDOX shows balanced valuation metrics.
Growth Score
ModerateDOX shows steady but slowing expansion.
Financial Health Score
ExcellentDOX maintains a strong and stable balance sheet.
Profitability Score
ModerateDOX maintains healthy but balanced margins.
Key Financial Metrics
Is DOX Expensive or Cheap?
P/E Ratio
DOX trades at 13.29 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DOX's PEG of 5.63 indicates potential overvaluation.
Price to Book
The market values Amdocs Limited at 2.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.35 times EBITDA. This is generally considered low.
How Well Does DOX Make Money?
Net Profit Margin
For every $100 in sales, Amdocs Limited keeps $12.49 as profit after all expenses.
Operating Margin
Core operations generate 17.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.56 in profit for every $100 of shareholder equity.
ROA
Amdocs Limited generates $9.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Amdocs Limited produces operating cash flow of $874.26M, showing steady but balanced cash generation.
Free Cash Flow
Amdocs Limited generates strong free cash flow of $764.10M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.95 in free cash annually.
FCF Yield
DOX converts 9.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How DOX Stacks Against Its Sector Peers
| Metric | DOX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.29 | 35.19 | Better (Cheaper) |
| ROE | 16.56% | 1155.00% | Weak |
| Net Margin | 12.49% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.28 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 1.06 | 4.71 | Neutral |
| ROA | 9.02% | -314918.00% (disorted) | Weak |
DOX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Amdocs Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.72%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
36.07%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
35.80%
Industry Style: Growth, Innovation, High Beta
High Growth