Amdocs (DOX) AI Stock Analysis

• Market Cap: $9.07B
• Dividend Yield: 2.48%
• Average Volume (3M): 865.12K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.51
• Revenue Growth: -6.76%
• EPS Growth: 13.90%
• Country: US
• Employees: 29,058
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.72
• Shares Outstanding: 109,992,000
• 10 Day Avg. Volume: 963,831
• 30 Day Avg. Volume: 865,123
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 2.26
• Enterprise Value/Gross Profit: 6.06
• Enterprise Value/Ebitda: 12.30
• 1Y Price Target: $105.33
• Price Target Upside: 27.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $98.00 ▲(18.16% Upside)

Amdocs' strong financial performance and positive earnings call are the most significant factors contributing to its score. While technical analysis shows neutral signals, the company's reasonable valuation and strategic advancements in cloud services and AI support a positive outlook. Challenges in revenue growth and macroeconomic uncertainties are noted but do not overshadow the company's strengths.

Positive Factors

Strategic Advancements

Amdocs' focus on cloud services and AI positions it well for future growth. These advancements align with industry trends, enhancing its competitive edge and enabling it to capture new market opportunities.

Managed Services Growth

The growth in Managed Services reflects Amdocs' ability to secure long-term contracts and deliver value to clients, providing a stable revenue stream and reinforcing its market position.

Strong Cash Flow Management

Strong cash flow management allows Amdocs to reinvest in growth opportunities and return value to shareholders, supporting long-term financial health and strategic flexibility.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates potential challenges in maintaining momentum, which could impact future profitability and market share if not addressed.

Backlog Decline

A decline in backlog suggests potential future revenue pressure, indicating challenges in securing new contracts or renewals, which could affect long-term growth prospects.

Macroeconomic Uncertainty

Macroeconomic uncertainties can impact client budgets and spending, potentially affecting Amdocs' revenue and growth, necessitating strategic adjustments to mitigate risks.

Amdocs Business Overview & Revenue Model

Company Description

Amdocs Limited, through its subsidiaries, provides software and services worldwide. The company designs, develops, operates, implements, supports, and markets open and modular cloud portfolio. It provides CES21, a 5G and cloud-native microservices-based market-leading customer experience suite, that enables service providers to build, deliver, and monetize advanced services; the Commerce and Care suite for order capture, handling, and customer engagement; the Monetization suite for charging, billing, policy, and revenue management; Intelligent Networking suite with a set of modular, flexible, and open service lifecycle management capabilities for network automation journeys; MarketONE, a cloud-native business ecosystem; Digital Brands Suite, a pre-integrated digital business suite for digital telecom brands and small-scale service providers; and eSIM Cloud for service providers. It also offers AI-powered, cloud-native, and home operating systems; data intelligence solutions and applications; media services for media publishers, TV networks, and video streaming and service providers; end-to-end application development and maintenance services; and ongoing services. In addition, the company provides a line of services designed for various stages of a service provider's lifecycle includes design, delivery, quality engineering, operations, systems integration, mobile network services, consulting, and content services; managed services comprising application development, modernization and maintenance, IT and infrastructure services, testing and professional services that are designed to assist customers in the selection, implementation, operation, management, and maintenance of IT systems. It serves to the communications, cable and satellite, entertainment, and media industry service providers, as well as mobile virtual network operators and directory publishers. Amdocs Limited was founded in 1988 and is headquartered in Saint Louis, Missouri.

How the Company Makes Money

Amdocs generates revenue primarily through the sale of software licenses, maintenance and support services, and consulting and systems integration services. The company’s revenue model includes both recurring revenues from long-term contracts and project-based revenues from specific implementations. Key revenue streams come from its customer experience systems, billing solutions, and managed services. Amdocs has established significant partnerships with major telecommunications and media companies, which contribute to its earnings through long-term engagements and collaborations. Additionally, the company benefits from a strong demand for digital transformation services, as clients increasingly seek to modernize their operations and enhance customer engagement through advanced technology solutions.

Amdocs Financial Statement Overview

Summary

Amdocs presents a strong financial profile with solid profitability and a stable balance sheet. While the company faces challenges in revenue growth, its efficient cash flow management and low leverage provide a cushion against market fluctuations.

Income Statement

Amdocs shows strong profitability with a consistent gross profit margin around 35-37% and a net profit margin improving to 11.96% in TTM. However, recent revenue growth has turned negative at -2.22% in TTM, indicating potential challenges in maintaining growth momentum.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.24, indicating prudent financial leverage. Return on equity is robust at 16.01% in TTM, reflecting efficient use of equity capital. The equity ratio remains stable, supporting financial stability.

Cash Flow

Amdocs demonstrates solid cash flow management with a free cash flow to net income ratio of 0.86 in TTM, indicating strong cash conversion. However, the operating cash flow to net income ratio has decreased, suggesting potential pressure on operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.65B	5.00B	4.89B	4.58B	4.29B	4.17B
Gross Profit	1.73B	1.76B	1.73B	1.62B	1.48B	1.41B
EBITDA	852.98M	819.03M	855.15M	889.85M	1.04B	792.16M
Net Income	554.82M	493.20M	540.71M	549.50M	688.37M	497.84M
Balance Sheet
Total Assets	6.33B	6.39B	6.43B	6.39B	6.51B	6.34B
Cash, Cash Equivalents and Short-Term Investments	342.47M	514.33M	742.53M	817.98M	965.59M	983.94M
Total Debt	838.64M	789.74M	807.31M	826.83M	881.17M	1.03B
Total Liabilities	2.79B	2.89B	2.86B	2.83B	2.88B	2.68B
Stockholders Equity	3.50B	3.46B	3.52B	3.52B	3.59B	3.62B
Cash Flow
Free Cash Flow	638.63M	618.93M	698.27M	529.50M	715.37M	452.63M
Operating Cash Flow	737.18M	724.43M	822.63M	756.72M	925.81M	658.14M
Investing Cash Flow	-28.19M	-127.41M	-224.50M	-262.50M	-329.00M	-461.73M
Financing Cash Flow	-759.66M	-771.02M	-651.43M	-629.90M	-870.93M	315.14M

Amdocs Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 82.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOX, the sentiment is Neutral. The current price of 82.94 is above the 20-day moving average (MA) of 82.12, below the 50-day MA of 84.09, and below the 200-day MA of 86.41, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 50.66 is Neutral, neither overbought nor oversold. The STOCH value of 62.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DOX.

Amdocs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOX	74 Outperform	$9.07B	16.67	15.75%	2.48%	-6.76%	13.90%
FOUR	73 Outperform	$6.55B	27.38	19.00%	―	23.86%	79.35%
AKAM	72 Outperform	$10.46B	25.83	9.21%	―	3.98%	-31.18%
INFA	67 Neutral	$8.66B	5,259.57	-0.32%	―	1.16%	-104.62%
KVYO	62 Neutral	$7.13B	―	-6.42%	―	33.17%	82.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Amdocs Corporate Events

Amdocs Reports Decline in Q2 2025 Revenue

Amdocs Limited reported its financial results for the quarter ended June 30, 2025, showing a decline in revenue compared to the previous year. The company’s total assets slightly decreased from September 2024, while liabilities also saw a reduction. These financial results may impact Amdocs’ market positioning and stakeholder confidence, reflecting challenges in maintaining growth amidst changing market conditions.

Amdocs Reports Q3 2025 Results with Strong Revenue and Strategic Wins

On August 6, 2025, Amdocs Limited announced its financial results for the third quarter of fiscal 2025, reporting a revenue of $1.14 billion, which exceeded the midpoint of their guidance range. Despite an 8.4% year-over-year decline in reported revenue, the company achieved a 3.5% increase on a pro forma constant currency basis. Amdocs highlighted significant achievements, including record revenues in Europe and managed services, as well as strategic digital transformation projects with BT in the UK and Elisa in Finland. The company also secured several GenAI-related deals, enhancing its market positioning in emerging technologies. Amdocs reiterated its fiscal 2025 target for double-digit total shareholder returns, supported by enhanced profitability and robust earnings to cash conversion.