Amdocs Ltd. (DOX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fortinet, Inc.

Workday, Inc.

Broadridge Financial Solutions, Inc.

Nu Holdings Ltd.

Cognizant Technology Solutions Corp.

Amdocs Ltd.

EPAM Systems, Inc.

Block, Inc.

Cloudflare, Inc.

CDW Corp.

SS&C Technologies Holdings, Inc.

Why is Amdocs Ltd. ?

High Management Efficiency with a high ROE of 16.89%

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 1.68% and Operating profit at 7.31% over the last 5 years

Flat results in Dec 25

INTEREST(HY) At USD 22.27 MM has Grown at 42.32%
DEBT-EQUITY RATIO (HY) Highest at 20.58 %
RAW MATERIAL COST(Y) Grown by 5.3% (YoY)

With ROE of 18.01%, it has a very attractive valuation with a 6.30 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -23.46%, its profits have risen by 7.1% ; the PEG ratio of the company is 3.1

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -23.46% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Amdocs Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Amdocs Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Amdocs Ltd.

-23.41%

-0.54

25.06%

S&P 500

20.12%

0.99

19.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.68%

EBIT Growth (5y)

7.31%

EBIT to Interest (avg)

45.77

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

1.15

Tax Ratio

16.83%

Dividend Payout Ratio

40.77%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

19.36%

ROE (avg)

16.89%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.30

EV to EBIT

27.90

EV to EBITDA

22.52

EV to Capital Employed

5.83

EV to Sales

4.82

PEG Ratio

3.10

Dividend Yield

0.02%

ROCE (Latest)

20.88%

ROE (Latest)

18.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

ROCE(HY)

Highest at 16.36%

DIVIDEND PER SHARE(HY)

Highest at USD 4.69

NET SALES(Q)

Highest at USD 1,156.5 MM

OPERATING PROFIT(Q)

Highest at USD 255.62 MM

PRE-TAX PROFIT(Q)

Highest at USD 204.09 MM

EPS(Q)

Highest at USD 1.45

-8What is not working for the Company

INTEREST(HY)

At USD 22.27 MM has Grown at 42.32%

DEBT-EQUITY RATIO (HY)

Highest at 20.58 %

RAW MATERIAL COST(Y)

Grown by 5.3% (YoY

CASH AND EQV(HY)

Lowest at USD 572.87 MM

Here's what is working for Amdocs Ltd.

Net Sales

Highest at USD 1,156.5 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Dividend per share

Highest at USD 4.69 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit

Highest at USD 255.62 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 204.09 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

EPS

Highest at USD 1.45

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Here's what is not working for Amdocs Ltd.

Interest

At USD 22.27 MM has Grown at 42.32%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 20.58 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Cash and Eqv

Lowest at USD 572.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 5.3% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales