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  "docSlug": "778e2cbfbfaa",
  "documentTitle": "Amdocs Limited (DOX)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "presentationDate": "2019-01-23 00:00:00",
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  "pageNumber": 14,
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  "notes": "The slide uses a 'Spruce Point Adj Estimates' column to contrast against 'Street and DOX Figures', illustrating the firm's thesis on inflated earnings and hidden debt.",
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      "text": "As a result, we attempt to adjust Street estimates for these factors that appear to be inflating DOX's results.",
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      "kind": "metric",
      "text": "EV / EBITDA: 10.5x",
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      "text": "Analysts expectations are for moderate top-line organic growth, sustainable margins, and mid-single digit EPS growth. Based on our research, Spruce Point believes that DOX has at best no organic growth, and at worst declining growth. Furthermore, we believe aggressive PoC, software development cost capitalization, and unusual net tax benefit accounting appear to be inflating margins and earnings. DOX's free cash is being aided by asset sales obfuscated by DOX's reporting of \"net capex\", recent A/R factoring, and a JV loan. As a result, we attempt to adjust Street estimates for these factors that appear to be inflating DOX's results.",
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      "text": "1) We assume the full capital inflow from the noncontrolling interests represents a loan as a result of DOX obfuscating its source\n2) DOX organic revenue guidance 2%-6% per investor day presentation",
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      "text": "Source: Company financials, Bloomberg consensus and Spruce Point adjusted financials and estimates",
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      "text": "Capital Structure And Valuation",
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