Amdocs Beneish M Score

DOX
 Stock
  

USD 82.96  1.49  1.76%   

This module uses fundamental data of Amdocs to approximate the value of its Beneish M Score. Amdocs M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to Amdocs Piotroski F Score and Amdocs Altman Z Score analysis.
  
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Amdocs Total Debt is fairly stable at the moment as compared to the past year. Amdocs reported Total Debt of 1.01 Billion in 2021. Debt Current is likely to rise to about 54.2 M in 2022, whereas Issuance Repayment of Debt Securities is likely to drop (118 M) in 2022. Amdocs Enterprise Value over EBITDA is fairly stable at the moment as compared to the past year. Amdocs reported Enterprise Value over EBITDA of 10.91 in 2021. Payout Ratio is likely to rise to 0.31 in 2022, whereas Calculated Tax Rate is likely to drop 13.17 in 2022.
At this time, it appears that Amdocs Limited is an unlikely manipulator. The earnings manipulation may begin if Amdocs' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Amdocs executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Amdocs' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.08
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.02Focus
Asset QualityN/AFocus
Expense Coverage1.03Focus
Gross Margin Strengs1.0Focus
Accruals Factor1.03Focus
Depreciation Resistance1.08Focus
Net Sales Growth0.96Focus
Financial Leverage Condition0.97Focus

Amdocs Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Amdocs' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues4.8 B4.9 B
Sufficiently Down
Increasing
Slightly volatile
Selling General and Administrative Expense557.8 M560.3 M
Slightly Down
Increasing
Slightly volatile
Net Cash Flow from Operations942.2 M1.1 B
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion235.4 M240.2 M
Fairly Down
Increasing
Slightly volatile
Total AssetsB7.5 B
Notably Down
Increasing
Slightly volatile
Property Plant and Equipment Net1.2 B1.1 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables984.3 M996.8 M
Fairly Down
Increasing
Slightly volatile
Total Liabilities2.9 B3.3 B
Fairly Down
Increasing
Slightly volatile
Current Assets1.9 B1.9 B
Slightly Down
Decreasing
Slightly volatile
Assets Non Current4.6 B5.1 B
Moderately Down
Increasing
Slightly volatile
Current Liabilities1.5 B1.5 B
Slightly Down
Increasing
Slightly volatile
Liabilities Non CurrentB1.8 B
Significantly Up
Increasing
Slightly volatile
Total Debt1.1 BB
Significantly Up
Increasing
Slightly volatile
Debt Current54.2 M52.8 M
Fairly Up
Decreasing
Slightly volatile
Debt Non Current746.8 M740.2 M
Slightly Up
Decreasing
Slightly volatile
Operating Income653.5 M688.5 M
Notably Down
Increasing
Slightly volatile
Gross Margin0.310.31
Steady
Decreasing
Slightly volatile

Amdocs Limited Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Amdocs' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Amdocs in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Amdocs' degree of accounting gimmicks and manipulations.

About Amdocs Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

997.35 Million

Share
Amdocs Operating Expenses is fairly stable at the moment as compared to the past year. Amdocs reported Operating Expenses of 1.01 Billion in 2021

Amdocs Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Amdocs. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues3.97 B4.09 B4.17 B4.29 B4.93 B4.76 B
Total Assets5.35 B5.29 B6.34 B6.51 B7.49 B7.04 B
Current Assets1.72 B1.68 B2.07 B2.07 B1.86 B1.85 B
Assets Non Current3.63 B3.62 B4.27 B4.44 B5.11 B4.59 B
Total Liabilities1.86 B1.75 B2.68 B2.88 B3.31 B2.86 B
Current Liabilities1.29 B1.21 B1.22 B1.3 B1.5 B1.49 B
Operating Income428.31 M569.75 M594.76 M598.69 M688.5 M653.52 M

About Amdocs Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Amdocs Limited's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Amdocs using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Amdocs Limited based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Amdocs Limited, through its subsidiaries, provides software and services worldwide. Amdocs Limited was founded in 1988 and is headquartered in Chesterfield, Missouri. Amdocs operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 29000 people.

Amdocs Investors Sentiment

The influence of Amdocs' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Amdocs. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Amdocs Implied Volatility

    
  33.35  
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.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Amdocs in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Amdocs' short interest history, or implied volatility extrapolated from Amdocs options trading.

Current Sentiment - DOX

Amdocs Limited Investor Sentiment

Greater number of Macroaxis users are currently bullish on Amdocs Limited. What is your sentiment towards investing in Amdocs Limited? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

Pair Trading with Amdocs

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Amdocs position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amdocs will appreciate offsetting losses from the drop in the long position's value.

Amdocs Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Amdocs could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Amdocs when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Amdocs - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Amdocs Limited to buy it.
The correlation of Amdocs is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Amdocs moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Amdocs Limited moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Amdocs can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Amdocs Piotroski F Score and Amdocs Altman Z Score analysis. 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Complementary Tools for Amdocs Stock analysis

When running Amdocs Limited 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 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.
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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.
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.