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  "docSlug": "778e2cbfbfaa",
  "documentTitle": "Amdocs Limited (DOX)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-01-23 00:00:00",
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  "pageNumber": 12,
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  "notes": "Includes a red arrow annotation on the chart to highlight the divergence between acquisition spend and OCF.",
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      "kind": "callout",
      "text": "Management has spent $1.6B on M&A since the financial crisis to grow operating cash flow from $519M to $557M in ten years, for an operating cash flow CAGR of less than 1%.",
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      "text": "Operating Cash Flow vs. Cumulative Acquisition Spending",
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      "text": "operating cash flow CAGR: <1%",
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      "text": "We observe that, despite spending $1.6bn on acquisitions since FY 2009, cash flow from operations has grown by only a marginal amount, demonstrating that earnings growth via M&A has not generated material value for shareholders, and affirming that much of the observed growth in sales and earnings appears to be attributed to aggressive accounting.",
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      "text": "Source: DOX financials",
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      "kind": "title",
      "text": "High Level Accounting Shenanigan Indicator #3: Acquisitions Not Translating Into Cash Flow Growth",
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