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Fundamental analysis: Amdocs Limited (DOX)

Awarener score: 7.4

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.5

• Business has been shrinking. It's been weak when measured against peer companies.
• Amdocs Limited business trend is extremely stable, which is best. It looks top-notch against rivals.

Margins score: 7.5

• DOX profit margins -on goods and services sold- are usually sufficient. They stand worse than most rival companies.
• Business profit on sales tends to be very good. It's great when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually good. They remain in good shape compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still better than most similar companies.
• Profits -before income taxes- are usually very good considering total sales, and remain great when measured against rivals.
• Total net profit tends to be very good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 4.0

• Amdocs Limited profit growth -on goods and services sold- has been almost stagnant. It's been in a weak position compared to competitors.
• In recent years, earnings -on operations- have been growing at a very low step, which has been somewhat worse than comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares below average when measured against peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at a very low tempo. It turns to be in a weak position compared to similar stocks.
• In past years, profits -before income taxes- grew at a very low speed. It was somewhat worse than rivals.
• In the previous years, growth on total net profit has been very low, and below average when measured against peer companies.
• Earnings per share have grown at a low rhythm in past years. It's been close to average when compared to industry peers.

Miscellaneous score: 7.0

• DOX managed to pay little to no income taxes on profits made in the past years. It's been slightly better than peers.
• Research and development expenses consume a sparse portion of revenues. It's top tier when measured against competitors.
• The company grows sparsely in relation to research and development efforts. It stands lacking compared to rival companies.

Profitability score: 9.0

• Amdocs Limited usually gets excellent returns on the resources it controls. It proves great when measured against peer firms.
• The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
• There's usually excellent profitability -in relation to owned resources-. It ranks great when measured against competitors.
• In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 6.1

• DOX usually uses a portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is rather normal. It stands top tier when measured against rival firms.
• The company is usually replacing the property, plant, and equipment that gets old, keeping its operating capabilities up to date, which is encouraging in relation to industry peers.
• In the past twelve months it paid somewhat low dividends, considering the current stock price. It came slightly worse than competitors.
• Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved rather normal in relation to similar firms.
• Dividend payments usually represent a modest portion of genuine funds generation and shouldn't be at risk. Sustainability looks slightly worse than comparable companies.
• The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands impressive in relation to rivals.
• The company uses somewhat more funds to reward investors than it can genuinely generate, so some part of them is paid out of existing cash or by borrowing money, both of which will eventually reach a limit. Either business somewhat improves, or rewards will probably not be sustained at this pace. It still looks weak when measured against competitors.

Balance Sheet score: 6.1

• Amdocs Limited intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
• The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be rather normal in relation to similar firms.
• Roughly a tenth of resources controlled were provided for with financial debt. Creditors have minor claims on the company, and financial position is safe. It remains slightly better than rival firms.
• Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks weak when measured against rivals.
• For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's rather normal in relation to peer firms.
• For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is somewhat worse than similar enterprises.
• Usually, sales are on somewhat less than three months credit. It still ranks below average when measured against peers.
• Normally has no inventories. It comes up as impressive in relation to competitors.
• On average, it takes higher than three months from the purchase to charging customers. It happens to be slightly worse than peers.
• On average pays suppliers approximately four months or higher after the purchase. It ranks great when measured against industry peers.
• The company charges its customers before it must pay its suppliers, so the more it sales, the more free funds it gets. It's excellent in relation to similar companies.
• Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands better than most rival firms.
• Business earnings have usually been excellent when measured against loans taken. It could take less than two years to repay the obligations with current profitability. It ranks great when measured against comparable enterprises.
• Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a weak position compared to similar firms.
• Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 6.0

• Amdocs Limited looks somewhat expensive in relation to profits and financial position. It happens to be great when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains lacking compared to peers.
• In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands well ranked against similar companies.
• The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still great when measured against industry firms.
• In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
• The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks slightly worse than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation is somewhat high. Improvement expectations are already in the stock price, which presents some risks. It ranks more than average in relation to peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a slight improvement compared to rival firms.
• The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly better than peer firms.
• In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still impressive in relation to peer companies.

Total score: 6.5

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Awarener score: 7.4

Conclusion

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