Stock on Focus: Amdocs Limited (DOX)

Company Profile:

Amdocs Limited provides software and services solutions to the communications, entertainment, and media industry service providers worldwide. The Company develops, implements and manages software and services associated with business support systems (BSS), operational support systems (OSS) and network operations to enable service providers to introduce new products and services, process orders, monetize data, support new business models and enhance their understanding of their customers. The Company’s segment provides software products and services. Its services include strategic business consulting, systems integration and transformation, managed services and testing. Its managed services provide multi-year, flexible and tailored business processes and applications services, including application development and maintenance, information technology (IT) and infrastructure services, testing and professional services. The company was founded in 1988 and is headquartered in Chesterfield, Missouri.

Recent News:

For the quarter ended September 30, 2016, the company reported evenues of USD 940.66 million, net earnings of USD 95.71 million. Gross margins widened from 32.35% to 35.03% compared to the same period last year, operating (EBITDA) margins now 12.60% from 18.81%.

Amdocs Limited ( DOX ) began trading ex-dividend on December 28, 2016. A cash dividend payment of $0.195 per share is scheduled to be paid on January 13, 2017.

On Dec.14, 2016, NetLink Trust, Singapore’s nationwide telecommunications infrastructure provider, has selected Amdocs to deliver a next-generation business and operations support system (B/OSS) to transform its legacy systems and fully automate order management, service design and delivery processes and service assurance.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

DOX’s strengths can be seen in its better profitability and strong solvency compared with its peers. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI stands at 50.83 with positive bias. We rate Amdocs Limited (DOX) a STRONG BUY.

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