Is Amdocs Stock a Good Investment?
Amdocs Investment Advice | DOX |
- Examine Amdocs' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Amdocs' leadership team and their track record. Good management can help Amdocs navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the IT Consulting & Other Services space and any emerging trends that could impact Amdocs' business and its evolving consumer preferences.
- Compare Amdocs' performance and market position to its competitors. Analyze how Amdocs is positioned in terms of product offerings, innovation, and market share.
- Check if Amdocs pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Amdocs' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Amdocs stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Amdocs is a good investment.
Sell | Buy |
Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Amdocs Stock
Researching Amdocs' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are held by institutions such as insurance companies. The book value of Amdocs was currently reported as 30.39. The company has Price/Earnings To Growth (PEG) ratio of 1.12. Amdocs last dividend was issued on the 31st of December 2024. The entity had 1:4 split on the December 1, 2003.
To determine if Amdocs is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Amdocs' research are outlined below:
| Over 98.0% of the company shares are held by institutions such as insurance companies | |
| On 25th of October 2024 Amdocs paid $ 0.479 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: We Think You Can Look Beyond Amdocs Lackluster Earnings |
Amdocs Quarterly Gross Profit |
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Amdocs uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Amdocs. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Amdocs' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 8th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 5th of November 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 30th of September 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Amdocs' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Amdocs' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1999-01-25 | 1998-12-31 | 0.09 | 0.1 | 0.01 | 11 | ||
1998-11-11 | 1998-09-30 | 0.05 | 0.06 | 0.01 | 20 | ||
2003-01-22 | 2002-12-31 | 0.18 | 0.2 | 0.02 | 11 | ||
2002-11-06 | 2002-09-30 | 0.17 | 0.19 | 0.02 | 11 | ||
2000-04-18 | 2000-03-31 | 0.19 | 0.21 | 0.02 | 10 | ||
1999-04-27 | 1999-03-31 | 0.1 | 0.12 | 0.02 | 20 | ||
2003-04-15 | 2003-03-31 | 0.19 | 0.22 | 0.03 | 15 | ||
2000-01-25 | 1999-12-31 | 0.15 | 0.18 | 0.03 | 20 |
Know Amdocs' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Amdocs is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Amdocs backward and forwards among themselves. Amdocs' institutional investor refers to the entity that pools money to purchase Amdocs' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Amvescap Plc. | 2024-06-30 | 2.1 M | Wellington Management Company Llp | 2024-06-30 | 2.1 M | American Century Companies Inc | 2024-09-30 | 2 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 2 M | State Street Corp | 2024-06-30 | 1.7 M | Pacer Advisors, Inc. | 2024-06-30 | 1.7 M | Geode Capital Management, Llc | 2024-09-30 | 1.6 M | Nordea Investment Mgmt Bank Demark A/s | 2024-09-30 | 1.5 M | Principal Financial Group Inc | 2024-09-30 | 1 M | Fmr Inc | 2024-09-30 | 16.9 M | Hhg Plc | 2024-06-30 | 6.5 M |
Amdocs' market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 9.85 B.Market Cap |
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Amdocs' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.14 | 0.10 | |
| Return On Capital Employed | 0.15 | 0.14 | |
| Return On Assets | 0.08 | 0.06 | |
| Return On Equity | 0.14 | 0.07 |
Determining Amdocs' profitability involves analyzing its financial statements and using various financial metrics to determine if Amdocs is a good buy. For example, gross profit margin measures Amdocs' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Amdocs' profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Amdocs' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Amdocs. Check Amdocs' Beneish M Score to see the likelihood of Amdocs' management manipulating its earnings.
Evaluate Amdocs' management efficiency
Amdocs has Return on Asset of 0.0738 % which means that on every $100 spent on assets, it made $0.0738 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1405 %, implying that it generated $0.1405 on every 100 dollars invested. Amdocs' management efficiency ratios could be used to measure how well Amdocs manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to 0.10 in 2024. Return On Capital Employed is likely to drop to 0.14 in 2024. At this time, Amdocs' Non Currrent Assets Other are fairly stable compared to the past year. Other Current Assets is likely to rise to about 307 M in 2024, whereas Total Assets are likely to drop slightly above 4.5 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 27.28 | 28.65 | |
| Tangible Book Value Per Share | 4.87 | 3.80 | |
| Enterprise Value Over EBITDA | 13.75 | 15.40 | |
| Price Book Value Ratio | 2.54 | 1.38 | |
| Enterprise Value Multiple | 13.75 | 15.40 | |
| Price Fair Value | 2.54 | 1.38 | |
| Enterprise Value | 7.9 B | 6.6 B |
The management team at Amdocs has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Dividend Yield 0.0224 | Forward Dividend Yield 0.0224 | Forward Dividend Rate 1.92 | Beta 0.747 |
Basic technical analysis of Amdocs Stock
As of the 25th of November, Amdocs shows the mean deviation of 0.7646, and Risk Adjusted Performance of 0.0242. Amdocs technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Amdocs' Outstanding Corporate Bonds
Amdocs issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Amdocs uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Amdocs bonds can be classified according to their maturity, which is the date when Amdocs has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 4875 Corp BondUS55336VAG59 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| International Game Technology Corp BondUS460599AD57 | View |
Understand Amdocs' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Amdocs' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0242 | |||
| Market Risk Adjusted Performance | 0.0373 | |||
| Mean Deviation | 0.7646 | |||
| Semi Deviation | 1.34 | |||
| Downside Deviation | 1.43 | |||
| Coefficient Of Variation | 3653.01 | |||
| Standard Deviation | 1.12 | |||
| Variance | 1.26 | |||
| Information Ratio | (0.09) | |||
| Jensen Alpha | (0.07) | |||
| Total Risk Alpha | (0.16) | |||
| Sortino Ratio | (0.07) | |||
| Treynor Ratio | 0.0273 | |||
| Maximum Drawdown | 7.31 | |||
| Value At Risk | (1.55) | |||
| Potential Upside | 1.69 | |||
| Downside Variance | 2.05 | |||
| Semi Variance | 1.8 | |||
| Expected Short fall | (0.69) | |||
| Skewness | (1.71) | |||
| Kurtosis | 7.18 |
| Risk Adjusted Performance | 0.0242 | |||
| Market Risk Adjusted Performance | 0.0373 | |||
| Mean Deviation | 0.7646 | |||
| Semi Deviation | 1.34 | |||
| Downside Deviation | 1.43 | |||
| Coefficient Of Variation | 3653.01 | |||
| Standard Deviation | 1.12 | |||
| Variance | 1.26 | |||
| Information Ratio | (0.09) | |||
| Jensen Alpha | (0.07) | |||
| Total Risk Alpha | (0.16) | |||
| Sortino Ratio | (0.07) | |||
| Treynor Ratio | 0.0273 | |||
| Maximum Drawdown | 7.31 | |||
| Value At Risk | (1.55) | |||
| Potential Upside | 1.69 | |||
| Downside Variance | 2.05 | |||
| Semi Variance | 1.8 | |||
| Expected Short fall | (0.69) | |||
| Skewness | (1.71) | |||
| Kurtosis | 7.18 |
Consider Amdocs' intraday indicators
Amdocs intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Amdocs stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Amdocs Corporate Filings
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
6K | 13th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 21st of October 2024 Other Reports | ViewVerify |
Amdocs Stock media impact
Far too much social signal, news, headlines, and media speculation about Amdocs that are available to investors today. That information is available publicly through Amdocs media outlets and privately through word of mouth or via Amdocs internal channels. However, regardless of the origin, that massive amount of Amdocs data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Amdocs news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Amdocs relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Amdocs' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Amdocs alpha.
Amdocs Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Amdocs can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Amdocs Corporate Management
| Darcy Antonellis | Head Media | Profile | |
| Oren Marmur | Head Network | Profile | |
| Gary Miles | Chief Officer | Profile | |
| Matthew Smith | Corporate Secretary | Profile | |
| Mustafa Oyumi | Head Strategy | Profile |
Additional Tools for Amdocs Stock Analysis
When running Amdocs' price analysis, check to measure Amdocs' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Amdocs is operating at the current time. Most of Amdocs' value examination focuses on studying past and present price action to predict the probability of Amdocs' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Amdocs' price. Additionally, you may evaluate how the addition of Amdocs to your portfolios can decrease your overall portfolio volatility.