DOXAmdocs Limited
Is the business good?
The checks split: earnings fully cash-backed (1.4×), but margins compressing.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 14% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is DOX?
Amdocs Limited earns 14% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 4.8 points above what the capital costs: growth creates value
- Operating margin
- 13%
Operating margin · Software - Infrastructure median 5.8% · fiscal year to FY2024
- Cash conversion
- 1.37×
Cash conversion · 1.47× a year ago · operating cash flow covers the operating profit after tax
- R&D as % of revenue
- 7.2%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2019 | 14% |
| FY2020 | 14% |
| FY2021 | 14% |
| FY2022 | 15% |
| FY2023 | 13% |
| FY2024 | 13% |
Details›
- Gross marginfiscal year to FY2024
- 35%
- Operating marginfiscal year to FY2024
- 13%
- Net marginfiscal year to FY2024
- 9.8%
- Free cash flow margin
- 12%
- R&D as % of revenue
- 7.2%
- Revenue, trailing twelve months
- $5.00B
- Free cash flow, trailing twelve months
- $619M
- Net income, trailing twelve months
- $493M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 14%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #7 of 80 by RyuScore