Core Thesis - Amdocs Limited (DOX) is viewed positively due to its strong market position, financial stability, and growth potential in the IT services sector [1][6][7] Company Overview - Amdocs Limited is a mid-cap IT services company that provides software and services for communications, media, and entertainment providers, with offerings in AI, cloud, 5G, and digital platforms [2] - The company has nearly 1,000 client relationships globally, which supports its operations and enhances digital experiences [3] Financial Performance - Amdocs has experienced mid-single-digit trailing revenue growth over the past five years, but has recently faced a revenue decline of -6.8% [4] - Gross margins are robust at 37.2%, with positive double-digit net profit margins, although these are below the S&P 500 benchmark [4] - Owners' earnings, which include EPS and dividend growth, have grown at a double-digit rate, reaching 26.2% when factoring in free cash flow [5] Capital Allocation and Shareholder Returns - The company has a disciplined approach to capital allocation, including a $1 billion share repurchase plan initiated in May 2025 [5] - A consistent dividend policy and strategic share repurchases highlight Amdocs' commitment to financial stability and shareholder-friendly management [6] Competitive Positioning - Amdocs benefits from a narrow economic moat due to sticky customer relationships, which foster recurring revenue and long-term engagement [3][6] - The company's cloud portfolio and high-margin services position it as a resilient player in the mid-cap technology services market [6]