Amdocs Limited Ordinary Shares (DOX)

FairStock Score: 70/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, Amdocs traded at $59.02, giving a market value of $6.8B. It sells software and services to communications, entertainment and media firms, work that tends to be sticky because billing, customer experience and network operations are not easy to rip out. Yet the financials are not those of a wide-moat compounder: FairStock calculations show ROE of 13.31% and ROCE of 8.12%, decent but not exceptional, and a Piotroski F-Score of 5/9, a middling health check. Debt-to-equity of 0.33 is manageable, but an Altman Z-Score of 1.60 deserves watching. Cash generation is the best feature: trailing free cash flow of $638.8M against a $6.8B market cap gives a 9.4% FCF yield, and the dividend yield is 3.84%. In the latest quarter, fiscal Q2 2026, revenue was $1.2B and net income $62.2M, a 5.29% net margin - thin for software. Valuation is not demanding: FairStock's P/E is 14.02, P/B is 1.87, and EV/EBITDA is 9.17. But its Graham Number is $54.61, so at $59.02 the margin of safety is -8.08%, meaning the price is slightly above that conservative asset-and-earnings yardstick. A beta of 0.43 and a 52-week range of $49.74-$85.63 suggest the market has already marked it down. The supplied Lynch category is none because only zero years of filed results are available under that rule. I would call this a fair-to-slightly-cheap cash-generating business, not a bargain, and I would want evidence that net income is stabilizing before getting excited.

In plain English: Amdocs makes software and services for phone, entertainment, and media companies. It is profitable and produces plenty of cash, but sales are growing slowly, profits recently fell, and the stock looks roughly fair versus its earnings and assets rather than clearly cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer