Amdocs Stock Buy Hold or Sell Recommendation

DOX
 Stock
  

USD 84.88  3.42  4.20%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Amdocs Limited is 'Strong Buy'. Macroaxis provides Amdocs buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Amdocs positions. The advice algorithm takes into account all of Amdocs' available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Amdocs' buy-and-hold perspective. Continue to Amdocs Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Amdocs and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Amdocs Limited.

Execute Amdocs Buy or Sell Advice

The Amdocs recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Amdocs Limited. Macroaxis does not own or have any residual interests in Amdocs Limited or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Amdocs' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell AmdocsBuy Amdocs
Strong Buy

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

UndervaluedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Amdocs Limited has a Risk Adjusted Performance of 0.073, Jensen Alpha of 0.1835, Total Risk Alpha of 0.2476, Sortino Ratio of 0.1691 and Treynor Ratio of 0.0996
Macroaxis provides advice on Amdocs Limited to complement and cross-verify current analyst consensus on Amdocs Limited. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Amdocs is not overpriced, please confirm all Amdocs Limited fundamentals, including its shares owned by institutions, debt to equity, working capital, as well as the relationship between the gross profit and price to earnings to growth . Given that Amdocs Limited has a price to earning of 14.71 X, we suggest you to validate Amdocs Limited market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Amdocs Trading Alerts and Improvement Suggestions

Over 96.0% of the company shares are held by institutions such as insurance companies
Latest headline from www.nasdaq.com: Has Amdocs Outpaced Other Computer and Technology Stocks This Year - Nasdaq

Amdocs Returns Distribution Density

The distribution of Amdocs' historical returns is an attempt to chart the future uncertainty of Amdocs' future price movements. The chart of the probability distribution of Amdocs stock daily returns describes the distribution of returns around its average expected value. We use Amdocs Limited price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Amdocs returns is essential to provide solid investment advice for Amdocs stock.
Mean Return0.08Value At Risk-2.18
Potential Upside2.34Standard Deviation1.64
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Amdocs historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Amdocs Stock 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 Limited 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.
Security TypeSharesValue
Fmr LlcCommon Shares15.5 M1.3 B
Janus Henderson Group PlcCommon SharesM571.7 M
Massachusetts Financial Services CoCommon Shares6.7 M554.7 M
Pzena Investment Management LlcCommon Shares6.5 M534.4 M
Allspring Global Investments Holdings LlcCommon Shares5.6 M461.2 M
Lsv Asset ManagementCommon Shares4.7 M386.8 M
Beutel Goodman Co LtdCommon Shares4.3 M357.3 M
Note, although Amdocs' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Amdocs Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(231.15 M)(128.09 M)(205.51 M)(210.44 M)(189.39 M)(204.35 M)
Depreciation Amortization and Accretion211.22 M205.77 M198.41 M208.83 M240.15 M235.36 M
Net Cash Flow or Change in Cash and Cash Equivalents(230.83 M)52.85 M511.56 M(274.12 M)(315.24 M)(323.54 M)
Net Cash Flow Business Acquisitions and Disposals(355.14 M)(60.57 M)(249.36 M)146.29 M168.24 M181.52 M
Issuance Purchase of Equity Shares(337.95 M)(356.57 M)(263.06 M)(590.94 M)(531.85 M)(573.83 M)
Issuance Repayment of Debt Securities(20 M)(200 M)743.92 M(100 M)(115 M)(118.03 M)
Payment of Dividends and Other Cash Distributions(134.29 M)(147.62 M)(164.06 M)(177.47 M)(159.72 M)(172.33 M)
Net Cash Flow from Financing(425.69 M)(516.77 M)315.14 M(870.93 M)(1 B)(1.03 B)
Net Cash Flow from Investing(362.39 M)(86.76 M)(461.73 M)(329 M)(296.1 M)(319.48 M)
Net Cash Flow Investment Acquisitions and Disposals227.05 M101.29 M(753 K)(258.77 M)(232.9 M)(239.02 M)
Net Cash Flow from Operations557.25 M656.38 M658.14 M925.81 M1.06 B942.25 M
Share Based Compensation47.48 M38.55 M42.43 M54.25 M62.39 M56.9 M

Amdocs Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Amdocs or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Amdocs stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Amdocs stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.18
β
Beta against DOW0.73
σ
Overall volatility
1.65
Ir
Information ratio 0.14

Amdocs Volatility Alert

Amdocs Limited has relatively low volatility with skewness of 1.53 and kurtosis of 6.88. However, we advise all investors to independently investigate Amdocs Limited to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Amdocs' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Amdocs' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Amdocs Implied Volatility

Amdocs' implied volatility exposes the market's sentiment of Amdocs Limited stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Amdocs' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Amdocs stock will not fluctuate a lot when Amdocs' options are near their expiration.

Amdocs Fundamentals Vs Peers

Comparing Amdocs' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Amdocs' direct or indirect competition across all of the common fundamentals between Amdocs and the related equities. This way, we can detect undervalued stocks with similar characteristics as Amdocs or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Amdocs' fundamental indicators could also be used in its relative valuation, which is a method of valuing Amdocs by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Amdocs to competition
FundamentalsAmdocsPeer Average
Return On Equity14.03 %(0.31) %
Return On Asset5.76 %(0.14) %
Profit Margin12.13 %(1.27) %
Operating Margin14.36 %(5.51) %
Current Valuation9.88 B16.62 B
Shares Outstanding124.62 M571.82 M
Shares Owned by Insiders0.05 %10.09 %
Shares Owned by Institutions95.97 %39.21 %
Number of Shares Shorted2.21 M4.71 M
Price to Earning14.71 X28.72 X
Price to Book2.72 X9.51 X
Price to Sales2.27 X11.42 X
Revenue4.31 B9.43 B
Gross Profit1.48 B27.38 B
EBITDA826.64 M3.9 B
Net Income522.34 M570.98 M
Cash and Equivalents868.84 M2.7 B
Cash per Share7.04 X5.01 X
Total Debt879.12 M5.32 B
Debt to Equity0.24 %48.70 %
Current Ratio1.50 X2.16 X
Book Value Per Share28.77 X1.93 K
Cash Flow from Operations713.44 M971.22 M
Short Ratio3.81 X4.00 X
Earnings Per Share5.32 X3.12 X
Price to Earnings To Growth1.24 X4.89 X
Number of Employees29 K18.84 K
Beta0.75-0.15
Market Capitalization9.76 B19.03 B
Total Asset5.33 B29.47 B
Retained Earnings5.04 B9.33 B
Working Capital734.38 M1.48 B
Current Asset2.1 B9.34 B

Amdocs Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Amdocs . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution36690.99
Daily Balance Of Power1.0721
Rate Of Daily Change1.04
Day Median Price83.57
Day Typical Price84.0
Market Facilitation Index0.0
Price Action Indicator3.02

About Amdocs Buy or Sell Advice

When is the right time to buy or sell Amdocs Limited? Buying financial instruments such as Amdocs Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Amdocs investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Accounts Payable110.14 M121.2 M139.38 M156.14 M
Receivables861.03 M866.82 M780.14 M737.36 M

Use Investing Ideas to Build Portfolios

In addition to having Amdocs in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Funds or Etfs that invest in companies involved in research, development, testing, or distribution of technologically based goods and services. The Tech Funds theme has 40 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Tech Funds Theme or any other thematic opportunities.
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Continue to Amdocs Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Amdocs Limited information on this page should be used as a complementary analysis to other Amdocs' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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Is Amdocs' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Amdocs. If investors know Amdocs will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Amdocs listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.41
Market Capitalization
10.4 B
Quarterly Revenue Growth YOY
0.092
Return On Assets
0.0601
Return On Equity
0.16
The market value of Amdocs Limited is measured differently than its book value, which is the value of Amdocs that is recorded on the company's balance sheet. Investors also form their own opinion of Amdocs' value that differs from its market value or its book value, called intrinsic value, which is Amdocs' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Amdocs' market value can be influenced by many factors that don't directly affect Amdocs' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Amdocs' value and its price as these two are different measures arrived at by different means. Investors typically determine Amdocs value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amdocs' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.