Amdocs DOX
United StatesTechnology · Software - InfrastructureUSD
79.25 USD (+34.9%)
4 analysts
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Amdocs Limited is a provider of software and IT services for telecommunications operators, with a business model based on recurring long-term contracts to manage their operations, billing, and customer experience.
Key points
from its scores- ✓Attractive valuation8.9
- ✓Favourable backdrop8.6
- ✓Attractive dividend8.1
- ✕Poor share-price trend1.7
- ✕Weak growth2.5
AI analysis
bottom line, main risk, context and newsThe cheap valuation and solid balance sheet provide support, but the lack of growth and earnings decline limit the upside potential in the short term.
Amdocs trades at an attractive valuation (P/E 13.95, FCF yield 11.24%) with a solid balance sheet (ND/EBITDA 0.85), but growth is virtually nil (revenue +2.70%) and earnings have plunged -57.40%, explaining the poor momentum (-21.92%). It is a stable quality business with a moat (ROIC 19.10%) going through a stagnation phase, not a growth story.
The main risk is the persistence of stagnation: with revenue growing only 2.70% and earnings falling -57.40%, the company could continue to generate negative momentum and limited re-rating if it fails to reverse the trend.
Context and risks
Amdocs has no material exposure to current macro factors: its telecom software business does not depend on commodities, shipping routes, or interest rates significantly (ND/EBITDA of 0.85). The rise in long-term US rates could slightly affect its valuation of distant cash flows, but its P/E is already low (13.95) and its balance sheet is healthy, so the impact is negligible.
Is Amdocs stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 61% below the Technology median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 14.0 | 31.3 | −55% |
| EV / EBITDA | 6.8 | 20.4 | −67% |
| Price / book | 1.9 | 6.3 | −70% |
| Price / sales | 1.3 | 5.3 | −75% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.9 out of 10 (median for Technology: 5.3).
Average analyst target: 79.25 USD, +34.9% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 6.2 (sector 6.9), Growth 2.5 (sector 7.5).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 14.0
- Forward P/E
- 7.3
- EV / EBITDA
- 6.8
- Price / book
- 1.9
- Price / sales
- 1.3
- PEG
- 0.78
- Market cap
- 6.1B USD
- Enterprise value
- 7.1B USD
Profitability
- ROE
- 13.3%
- ROA
- 8.1%
- ROIC (approx.)
- 19.1%
- Gross margin
- 38.3%
- Operating margin
- 18.0%
- Net margin
- 9.8%
- Free cash flow
- 689.5M USD
- FCF yield
- 11.2%
- Cash conversion
- 67%
Solvency
- Total debt
- 1.1B USD
- Net debt
- 880.6M USD
- Cash
- 206.5M USD
- EBITDA
- 1.0B USD
- Net debt / EBITDA
- 0.85
- Debt / equity
- 32.67
- Current ratio
- 0.94
- Quick ratio
- 0.71
Growth
- Revenue growth
- +2.7%
- Earnings growth
- −57.4%
- EPS (TTM)
- 4.21 USD
- EPS (forward)
- 8.03 USD
Dividend
- Dividend yield
- 3.9%
- Payout
- 52.1%
Risk and market
- Beta
- 0.45
- Analyst consensus
- none (4)
- Target price
- 79.25 USD
- 52-week range
- 49.74 – 85.63
Recent news
All DOX news →Compare it with its sector
All 283 in Technology →Frequently asked questions about Amdocs
Is Amdocs stock cheap or expensive?
On P/E and EV / EBITDA, it trades 61% below the Technology median on average. Valuation score: 8.9 out of 10 (median for Technology: 5.3). Average analyst target: 79.25 USD, +34.9% versus the price. This is not investment advice.
What score does Amdocs get on MeridIAn Screener?
It scores 6.3 out of 10, rank 715 of 2,130 (better than 63% of the companies analysed). Its strongest category is Valuation (8.9) and its weakest, Momentum (1.7). Analysis of 08/10/2026.
What is Amdocs's P/E ratio?
Its P/E is 14.0: the share price equals 14.0 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 7.3.
How much is Amdocs worth on the stock market?
Its market capitalisation is 6.1B USD and its enterprise value, debt included, is 7.1B USD.
How much debt does Amdocs have?
Its net debt (debt minus cash) is 880.6M USD. That is 0.85 times its EBITDA; the Technology median is 0.20.
Does Amdocs pay a dividend?
Yes: its dividend yield is 3.88% and it pays out 52% of its earnings.
How has Amdocs stock performed over the last year?
It has fallen 24.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 49.74 and 85.63 USD. Past performance does not guarantee future results.
What do analysts think of Amdocs?
4 analysts cover it; their average recommendation is “none” and their average target is 79.25 USD (+34.9% versus the price). It is an estimate, not market data.