Education
About Us
Working with TipRanks
Follow Us
Amdocs (DOX)
NASDAQ:DOX
Top Page
Amdocs
(NASDAQ:DOX)73Outperform
Positive Factors
Cloud Growth
Cloud initiatives continue to generate most of the growth, with cloud accounting for over 25% of revenues and growing at a double-digit rate.
Dividend Increase
DOX's board approved a 10% increase in its quarterly cash dividend.
Negative Factors
Revenue Headwind
The company announced they are phasing out multiple low-quality parts of their business, leading to a ~$600mn headwind in revenue for FY25.
Amdocs (DOX) vs. S&P 500 (SPY)
Market Cap
$9.70B
Dividend Yield2.21%
Average Volume (3M)724.55K
Price to Earnings (P/E)19.9
Beta (1Y)0.60
Revenue Growth-1.55%
EPS Growth-7.26%
CountryUS
Employees29,058
SectorTechnology
Sector Strength48
IndustrySoftware
Share Statistics
EPS (TTM)4.34
Shares Outstanding112,163,000
10 Day Avg. Volume700,684
30 Day Avg. Volume724,549
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.96
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$103.67Price Target Upside18.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Amdocs Business Overview & Revenue Model
Company DescriptionAmdocs provides software and services for communications and media industry service providers. The company’s software and services enable service providers to migrate to the cloud, enhance their offerings, manage and monetize next-generation networks and transform into digital service providers.
How the Company Makes MoneyAmdocs makes money primarily through the sale of software products, professional services, and managed services. The company's revenue streams include licensing fees for its software solutions, which are designed to optimize customer experience and operational efficiency for service providers. Additionally, Amdocs generates significant revenue from consulting and implementation services that help clients integrate and leverage its technology. Managed services, which include long-term contracts for the operation and maintenance of clients’ IT and network infrastructure, also contribute to the company's earnings. Amdocs partners with leading technology firms and telecom operators to enhance its service offerings and expand its market reach, further driving its revenue growth.
Amdocs Financial Statement Overview
Summary
Amdocs maintains a strong financial position with a solid income statement, balance sheet, and cash flow metrics. Although there's a slight decline in revenue growth, profitability and cash flow management are robust, supporting operational stability.Income Statement
Amdocs shows a robust financial performance with a consistent increase in revenue over the years. The TTM Gross Profit Margin of 35.64% and Net Profit Margin of 10.19% reflect efficient cost management and profitability. However, there is a slight decline in revenue from the previous year, indicating potential challenges in maintaining growth momentum.78
Positive
Balance Sheet
The company's balance sheet remains solid with a Debt-to-Equity Ratio of 0.23, indicating low leverage and financial stability. The Equity Ratio of 55.05% signifies a strong equity position. A slight decrease in equity from the previous year suggests some caution in asset management or external liabilities impact.72
Positive
Cash Flow
Amdocs demonstrates strong cash flow metrics with a Free Cash Flow to Net Income Ratio of 1.12, indicating efficient conversion of income to free cash flow. Despite a decrease in free cash flow growth, the Operating Cash Flow to Net Income Ratio of 1.30 shows solid cash generation capacity.75
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.50B | 5.00B | 4.89B | 4.58B | 4.29B | 4.17B | Gross Profit |
| 1.58B | 1.76B | 1.73B | 1.62B | 1.48B | 1.41B | EBIT |
| 647.44M | 628.61M | 653.99M | 664.80M | 372.28M | 594.76M | EBITDA |
| 889.23M | 819.03M | 855.15M | 889.85M | 1.04B | 792.16M | Net Income Common Stockholders |
| 544.09M | 493.20M | 540.71M | 549.50M | 688.37M | 497.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 349.01M | 514.33M | 742.53M | 817.98M | 965.59M | 983.94M | Total Assets |
| 6.29B | 6.39B | 6.43B | 6.39B | 6.51B | 6.34B | Total Debt |
| 793.79M | 789.74M | 807.31M | 826.83M | 881.17M | 1.03B | Net Debt |
| 579.96M | 443.65M | 287.23M | 253.45M | 172.11M | 50.01M | Total Liabilities |
| 2.79B | 2.89B | 2.86B | 2.83B | 2.88B | 2.68B | Stockholders Equity |
| 3.46B | 3.46B | 3.52B | 3.52B | 3.59B | 3.62B |
| Cash Flow | Free Cash Flow | ||||
| 533.24M | 618.93M | 698.27M | 529.50M | 715.37M | 452.63M | Operating Cash Flow |
| 739.51M | 724.43M | 822.63M | 756.72M | 925.81M | 658.14M | Investing Cash Flow |
| -340.96M | -127.41M | -224.50M | -262.50M | -329.00M | -461.73M | Financing Cash Flow |
| -654.09M | -771.02M | -651.43M | -629.90M | -870.93M | 315.14M |
Amdocs Technical Analysis
Positive
87.84
Price Trends
86.25
Positive
86.88
Positive
84.26
Positive
Market Momentum
0.30
Positive
53.29
Neutral
24.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOX, the sentiment is Positive. The current price of 87.84 is above the 20-day moving average (MA) of 87.57, above the 50-day MA of 86.25, and above the 200-day MA of 84.26, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 53.29 is Neutral, neither overbought nor oversold. The STOCH value of 24.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOX.
Amdocs Risk Analysis
Amdocs disclosed 29 risk factors in its most recent earnings report. Amdocs reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Amdocs Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $41.42B | 18.58 | 16.21% | 1.44% | 1.98% | 7.16% | |
76 Outperform | $216.28B | 28.99 | 27.10% | 1.60% | 2.75% | 10.53% | |
75 Outperform | $80.41B | 24.69 | 29.99% | 2.10% | 3.08% | 11.92% | |
73 Outperform | $9.70B | 19.93 | 14.33% | 2.21% | -1.55% | -7.26% | |
68 Neutral | $33.55B | 30.07 | 14.73% | 1.91% | -3.41% | 67.87% | |
67 Neutral | $234.79B | 39.40 | 24.14% | 2.64% | 1.45% | -20.56% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
DOX
Amdocs
87.84
-3.61
-3.95%
ACN
Accenture
348.26
-32.30
-8.49%
CTSH
Cognizant
84.28
8.02
10.52%
INFY
Infosys
20.06
1.20
6.36%
IBM
International Business Machines
251.35
61.21
32.19%
WIT
Wipro
3.32
0.28
9.21%
Amdocs Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: 1.13% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call highlighted solid financial performance with increased profitability and a strong 12-month backlog, driven by growth in cloud services and strategic initiatives in AI. However, challenges such as geopolitical uncertainties and negative currency impacts were noted. The overall sentiment of the call is slightly positive, with optimism about future growth and expansion.Highlights
Financial Performance and Growth
First quarter revenue was $1.11 billion, slightly above the midpoint of guidance. Profitability jumped by 310 basis points year-over-year and 250 basis points sequentially. Non-GAAP earnings per share was $1.66, exceeding the midpoint of guidance. 12-month backlog increased by approximately 2.7% from a year ago on a pro forma basis.
Expansion in Cloud and Managed Services
Amdocs expanded activities in North America with AT&T and internationally with VodafoneZiggo and CT Montenegro, securing new deals in cloud operations and modernization. Managed services revenue was $729 million, and the company maintained a renewal rate of close to 100%.
Strategic Initiatives in Generative AI
Amdocs introduced additional copilot capabilities and unveiled enhanced generative AI capabilities. They completed the acquisition of PROFINET, enhancing their data and GenAI services capabilities.
Recognition in Sustainability
Amdocs was included in the 2024 S&P Dow Jones Sustainability Index North America for the sixth year in a row, highlighting their focus on ESG principles.
Lowlights
Geopolitical and Macroeconomic Challenges
The operating environment remained challenging with elevated macroeconomic, geopolitical, and business uncertainties.
Currency Impact on Financials
Revenue was affected by negative foreign currency movements, impacting the company's financial results and growth metrics.
Slower Growth in Europe
Europe showed weaker performance due to timing differences between the natural roll-off of completed projects and the gradual ramp-up of new deal awards.
Company Guidance
During the Amdocs First Quarter 2025 Earnings Conference Call, the company reported a solid start to the fiscal year with first-quarter revenue reaching $1.11 billion, slightly above the midpoint of their guidance. Profitability improved significantly, with a year-over-year jump of 310 basis points and a sequential increase of 250 basis points, reflecting the phase-out of certain non-core low-margin business activities. Non-GAAP earnings per share exceeded expectations at $1.66, and the company closed Q1 with a healthy 12-month backlog of $4.14 billion, marking an $80 million sequential increase and a 2.7% year-over-year rise on a pro forma basis. Amdocs reiterated its full-year revenue growth guidance of 1% to 4.5% on a pro forma constant currency basis and aims for another year of double-digit growth in cloud services, with a strong sales pipeline and continued investment in generative AI and cloud solutions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.