Amdocs (NASDAQ: DOX)
QVI Research Report | Updated Coverage | December 2023
Summary
Amdocs has close to 1,000 customer relationships, providing various B2B technology products and services in 5G, automation, cloud, and digital in the IT services space.
The company’s current wealth analysis uncovers bullish ratings in its value proposition, returns on management, and enterprise downside risks.
The stock price’s present value suggests its shares are trading at reasonable, if not value, prices.
QVI maintains its Expanded Portfolio coverage rating of Amdocs in this updated research report.
In memory of the late Charlie Munger (January 1, 1924, to November 28, 2023), a lifetime advocate for owning concentrated portfolios of quality companies whose shares are purchased at value prices.
Access your Quality Value Investing (QVI) Glossary of Investing Terms and Metric Targets when referencing this research report. Unless noted, all data presented is sourced from Seeking Alpha Premium as of the market close on November 28, 2023, and intended for illustration only.
The stock picks in the QVI Real-Time Portfolios have achieved alpha for 14 years by focusing research and analysis solely on a company’s current wealth and its share price’s present value. In other words, just the facts without unreliable predictive analysis typical of the buy-side or the business modeling overkill of the sell-side on Wall Street.
In this updated QVI Research Report, we’ll look at the Expanded Stock Picks Real-Time Portfolio technology sector holding Amdocs Limited to see if it continues to meet Quality Value Investing’s active portfolio inclusion criteria based on our checklist analysis of the business’s current wealth and its stock’s present value.
Amdocs: Company Current Wealth
To uncover the current wealth of the company, QVI defines the value proposition, measures select returns on management, and assesses enterprise downside risks.
Value Proposition
QVI Research Report’s value proposition section provides a brief synopsis of the company’s business model, major-exchange listing, stock symbol, market capitalization, and dividend-paying status. In addition, it defines the competitive advantages of a company’s products or services to its customers compared to the industry, including the stock’s historical performance vs. the sector and market.
Amdocs Limited DOX 0.00%↑ is a dividend-paying mid-cap stock in the IT services industry of the information technology sector. DOX was added to the QVI Portfolios on November 4, 2022, at a split and dividend-adjusted $80.09 a share.
Amdocs Limited, through its subsidiaries, provides software and services worldwide. It designs, develops, operates, implements, supports, and markets open and modular cloud portfolios.
The company provides CES21, a 5G and cloud-native microservices-based market-leading customer experience suite, that enables service providers to build, deliver, and monetize advanced services; the Commerce and Care Suite for order capture, handling, and customer engagement; the Monetization Suite for charging, billing, policy, and revenue management; Intelligent Networking Suite with a set of modular, flexible, and open service lifecycle management capabilities for network automation journeys; MarketONE, a cloud-native business ecosystem; Digital Brands Suite, a pre-integrated digital business suite for digital telecom brands and small-scale service providers; and eSIM Cloud for service providers. It also offers AI-powered, cloud-native, and home operating systems; data intelligence solutions and applications; media services for media publishers, TV networks, and video streaming and service providers; end-to-end application development and maintenance services; and ongoing services.
The company serves the communications, cable and satellite, entertainment, and media industry service providers, as well as mobile virtual network operators and directory publishers.
Amdocs Limited, with origins in Israel in 1982, registers in the Island of Guernsey (Channel Islands), and is headquartered in Chesterfield (Saint Louis), Missouri, USA.
QVI’s value proposition elevator pitch for Amdocs:
Amdocs has close to 1,000 relationships with loyal major content producers, communications services, and media providers worldwide, providing an array of B2B technology products and services in 5G, automation, cloud, and digital.
Due Diligence Resources
For a more in-depth analysis of the all-important value proposition, visit Amdocs’s investor relations webpage and its most recent Form 20-F Annual Report submitted as a foreign private issuer to the US Securities and Exchange Commission or SEC.
Performance vs. Sector and Market
The chart below illustrates Amdocs’s performance against the information technology Select Sector SPDR® Fund ETF (NYSE: XLK) and the SPDR® S&P 500 ETF Trust (NYSE: SPY) since being added to the QVI Portfolios on November 4, 2022. Despite keeping pace for several months from initiation, DOX has since underperformed the sector and broader market.
QVI’s value proposition rating for Amdocs: Bullish.
Next, we’ll look at the company’s returns on management and enterprise downsize risks, the share price’s present value, and the investment thesis.