(DOX) Amdocs - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 6.517m USD | Total Return: -30% in 12m
Industry Rotation: +12.5
Avg Turnover: 67.1M
EPS Trend: 90.6%
Qual. Beats: -1
Rev. Trend: -34.2%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Amdocs Limited (DOX) provides cloud-based software and managed services primarily to the global communications and media industries. The company utilizes a Software-as-a-Service (SaaS) and professional services model to manage mission-critical functions including customer relationship management (CRM), billing, and network orchestration. Its current product strategy centers on CES25, a telco-native suite integrating Generative AI (GenAI) to automate customer engagement and operational workflows.
The company operates within the IT consulting and services sector, where long-term managed services contracts often provide high revenue visibility and deep integration with client infrastructure. As telecommunications providers transition to 5G and cloud-native architectures, Amdocs facilitates this migration through its modular suites for eSIM management, digital monetization, and intelligent networking. Investors may find ValueRay useful for evaluating how these recurring service models impact long-term valuation.
Founded in 1982 and headquartered in Saint Louis, Missouri, Amdocs supports service providers through the entire lifecycle of digital transformation. Its portfolio extends to quality engineering, system integration, and data analytics, positioning the firm as a comprehensive technology partner for large-scale network operators worldwide.
- Cloud migration and modernization projects drive long-term recurring service revenue growth
- North American carrier capital expenditure cycles dictate short-term contract booking velocity
- GenAI-led software suite adoption expands operating margins through automation efficiency
- Managed services contract renewals provide stable cash flow amid macroeconomic volatility
- Consolidation among major telecommunication providers reduces the total addressable customer base
| Net Income: 546.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 0.96 > 1.0 |
| NWC/Revenue: -0.65% < 20% (prev 4.64%; Δ -5.30% < -1%) |
| CFO/TA 0.12 > 3% & CFO 792.8m > Net Income 546.5m |
| Net Debt (853.3m) to EBITDA (952.0m): 0.90 < 3 |
| Current Ratio: 0.98 > 1.5 & < 3 |
| Outstanding Shares: last quarter (107.5m) vs 12m ago -4.48% < -2% |
| Gross Margin: 37.33% > 18% (prev 0.37%; Δ 3.70k% > 0.5%) |
| Asset Turnover: 73.56% > 50% (prev 76.59%; Δ -3.03% > 0%) |
| Interest Coverage Ratio: 18.29 > 6 (EBITDA TTM 952.0m / Interest Expense TTM 40.8m) |
| A: -0.00 (Total Current Assets 1.52b - Total Current Liabilities 1.55b) / Total Assets 6.36b |
| B: 1.13 (Retained Earnings 7.16b / Total Assets 6.36b) |
| C: 0.12 (EBIT TTM 745.6m / Avg Total Assets 6.28b) |
| D: 2.45 (Book Value of Equity 7.19b / Total Liabilities 2.94b) |
| Altman-Z'' Score: 7.00 = AAA |
| DSRI: 1.01 (Receivables 938.2m/957.9m, Revenue 4.62b/4.75b) |
| GMI: 0.98 (GM 37.33% / 36.55%) |
| AQI: 1.02 (AQ_t 0.62 / AQ_t-1 0.61) |
| SGI: 0.97 (Revenue 4.62b / 4.75b) |
| TATA: -0.04 (NI 546.5m - CFO 792.8m) / TA 6.36b) |
| Beneish M-Score: -3.09 (Cap -4..+1) = AA |
Over the past week, the price has changed by -0.40%, over one month by -7.27%, over three months by -10.28% and over the past year by -30.03%.
- StrongBuy: 5
- Buy: 2
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 81.2 | 30.8% |
P/E Forward = 8.4674
P/S = 1.4097
P/B = 2.0042
P/EG = 0.9411
Revenue TTM = 4.62b USD
EBIT TTM = 745.6m USD
EBITDA TTM = 952.0m USD
Long Term Debt = 646.9m USD (from longTermDebt, last fiscal year)
Short Term Debt = 286.0m USD (from shortTermDebt, last quarter)
Debt = 1.07b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 853.3m USD (from netDebt column, last quarter)
Enterprise Value = 7.37b USD (6.52b + Debt 1.07b - CCE 214.5m)
Interest Coverage Ratio = 18.29 (Ebit TTM 745.6m / Interest Expense TTM 40.8m)
EV/FCF = 10.86x (Enterprise Value 7.37b / FCF TTM 678.7m)
FCF Yield = 9.21% (FCF TTM 678.7m / Enterprise Value 7.37b)
FCF Margin = 14.68% (FCF TTM 678.7m / Revenue TTM 4.62b)
Net Margin = 11.82% (Net Income TTM 546.5m / Revenue TTM 4.62b)
Gross Margin = 37.33% ((Revenue TTM 4.62b - Cost of Revenue TTM 2.90b) / Revenue TTM)
Gross Margin QoQ = 37.04% (prev 37.04%)
Tobins Q-Ratio = 1.16 (Enterprise Value 7.37b / Total Assets 6.36b)
Interest Expense / Debt = 0.56% (Interest Expense 5.96m / Debt 1.07b)
Taxrate = 21.55% (38.1m / 176.9m)
NOPAT = 584.9m (EBIT 745.6m * (1 - 21.55%))
Current Ratio = 0.98 (Total Current Assets 1.52b / Total Current Liabilities 1.55b)
Debt / Equity = 0.32 (Debt 1.07b / totalStockholderEquity, last quarter 3.38b)
Debt / EBITDA = 0.90 (Net Debt 853.3m / EBITDA 952.0m)
Debt / FCF = 1.26 (Net Debt 853.3m / FCF TTM 678.7m)
Total Stockholder Equity = 3.43b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.70% (Net Income 546.5m / Total Assets 6.36b)
RoE = 15.91% (Net Income TTM 546.5m / Total Stockholder Equity 3.43b)
RoCE = 18.27% (EBIT 745.6m / Capital Employed (Equity 3.43b + L.T.Debt 646.9m))
RoIC = 14.12% (NOPAT 584.9m / Invested Capital 4.14b)
WACC = 6.82% (E(6.52b)/V(7.58b) * Re(7.86%) + D(1.07b)/V(7.58b) * Rd(0.56%) * (1-Tc(0.22)))
Discount Rate = 7.86% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares (quarterly) Correlation: -85.40 | Cagr: -3.12%
[DCF] Terminal Value 84.10% ; FCFF base≈648.0m ; Y1≈712.2m ; Y5≈912.6m
[DCF] Fair Price = 187.9 (EV 21.07b - Net Debt 853.3m = Equity 20.22b / Shares 107.6m; r=6.82% [WACC]; 5y FCF grow 11.34% → 3.0% )
EPS Correlation: 90.64 | EPS CAGR: 9.42% | SUE: -1.37 | # QB: -1
Revenue Correlation: -34.16 | Revenue CAGR: 0.27% | SUE: 0.95 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.84 | Chg30d=-2.09% | Revisions=+14% | Analysts=4
EPS current Year (2026-09-30): EPS=7.43 | Chg30d=-0.41% | Revisions=+20% | GrowthEPS=+6.3% | GrowthRev=+3.4%
EPS next Year (2027-09-30): EPS=8.09 | Chg30d=-0.04% | Revisions=-20% | GrowthEPS=+8.9% | GrowthRev=+3.4%
[Analyst] Revisions Ratio: +20%