Amdocs Profitability Analysis

DOX
 Stock
  

USD 88.95  1.36  1.55%   

For Amdocs profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Amdocs to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Amdocs Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Amdocs's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Amdocs Limited over time as well as its relative position and ranking within its peers. Continue to Investing Opportunities.
  
Price to Sales Ratio is likely to drop to 2.63 in 2022. Return on Sales is likely to drop to 0.19 in 2022. Accumulated Other Comprehensive Income is likely to rise to about 14.5 M in 2022, whereas Consolidated Income is likely to drop slightly above 673.8 M in 2022.

Amdocs Revenues

4.76 Billion

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
-0.089
Market Capitalization
10.9 B
Quarterly Revenue Growth YOY
0.088
Return On Assets
0.0605
Return On Equity
0.15
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.

Amdocs Limited Number of Shares Shorted vs. Current Liabilities Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Amdocs's current stock value. Our valuation model uses many indicators to compare Amdocs value to that of its competitors to determine the firm's financial worth.
Amdocs Limited is one of the top stocks in current liabilities category among related companies. It is one of the top stocks in number of shares shorted category among related companies . The ratio of Current Liabilities to Number of Shares Shorted for Amdocs Limited is about  904.64 . Amdocs Current Liabilities is fairly stable at the moment as compared to the past year. Amdocs reported Current Liabilities of 1.5 Billion in 2021. Comparative valuation analysis is a catch-all model that can be used if you cannot value Amdocs by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Amdocs' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Amdocs' earnings, one of the primary drivers of an investment's value.

Amdocs Number of Shares Shorted vs. Current Liabilities

Current Liabilities is the company's short term debt. This usually includes obligations that are due within the next 12 months or within one fiscal year. Current liabilities are very important in analyzing a company's financial health as it requires the company to convert some of its current assets into cash.
Amdocs 
Current Liabilities 
 = 
Payables 
Accrued Debt 
1.37 B
Current liabilities appear on the company's balance sheet and include all short term debt accounts, accounts and notes payable, accrued liabilities as well as current payments due on the long-term loans. One of the most useful applications of Current Liabilities is the current ratio which is defined as current assets divided by its current liabilities. High current ratios mean that current assets are more than sufficient to pay off current liabilities.
Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.
Amdocs 
Shares Shorted 
 = 
Shorted by Public 
by Institutions 
1.51 M
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.

Amdocs Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Amdocs, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Amdocs will eventually generate negative long term returns. The profitability progress is the general direction of Amdocs' change in net profit over the period of time. It can combine multiple indicators of Amdocs, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income13.4 M14.5 M
Consolidated Income791.6 M673.8 M
Net Income791.6 M673.8 M
Net Income Common Stock791.6 M673.8 M
Operating Income688.5 M653.5 M
Income Tax Expense144.8 M119.1 M
Net Income Per Employee22.8 K19.8 K
Amdocs Limited, through its subsidiaries, provides software and services worldwide. Amdocs Limited was founded in 1988 and is headquartered in Saint Louis, Missouri. Amdocs operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 31000 people.

Amdocs Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Amdocs. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Amdocs position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Amdocs' important profitability drivers and their relationship over time.

Amdocs Profitability Trends

Amdocs profitability trend refers to the progression of profit or loss within a business. An upward trend means that Amdocs' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Amdocs' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Amdocs Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Amdocs different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Amdocs in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Amdocs' future profitability.

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Our tools can tell you how much better you can do entering a position in Amdocs without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Continue to Investing Opportunities. 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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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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To fully project Amdocs' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Amdocs Limited at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Amdocs' income statement, its balance sheet, and the statement of cash flows.
Potential Amdocs investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Amdocs investors may work on each financial statement separately, they are all related. The changes in Amdocs's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Amdocs's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.