- Amdocs provides software solutions to more than 300 telcos and media companies in 80 different countries.
- It is particularly strong in supporting CSPs to make the transition from operating in the traditional data center environment to being cloud-ready.
- The company can rely on backlogs to power its growth, but high wages are eating into profits.
- Exposure to the hybrid cloud and 5G markets are great positives, and the company expects to grow earnings in 2022 with respect to 2021.
- However, given that Amdocs has a high level of debt and its free cash flow margins are less than 10%, it is better to wait for some improvement before investing.
For further details see:
Amdocs: Strength In Cloud And 5G But A Hold After The Upside