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  "documentTitle": "Amdocs Limited (DOX)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2019-01-23 00:00:00",
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  "notes": "Uses red boxes to highlight the shift in language from 'roughly half' to 'a portion' of free cash flow.",
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      "kind": "callout",
      "text": "Note that these disclosures discuss Amdocs' long-term capital allocation plans, not just its plans for the coming year. In just two years, management went from envisioning spending 50% of long-term free cash flow on M&A and other growth initiatives to planning to return nearly all long-term free cash flow to shareholders...",
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      "text": "Just as the Company reaches a size at which continued M&A-fueled growth would require even larger deals, management is communicating that it no longer has sufficient cash flow to consistently support M&A from FCF on top of its fairly consistent $450-550M return of cash to shareholders, and that any M&A would have to come out of buybacks / dividends (if not the balance sheet).",
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      "text": "As a general long-term guideline, we expect to retain a portion of our free cash flow to support the growth of our business, including possible mergers and acquisitions, with the majority returned to our shareholders through share repurchases and dividends.",
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      "text": "Management's own language in its discussions of capital allocation suggests that it questions its ability to support both M&A and share repurchases / dividends simultaneously.",
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      "text": "As a general long-term guideline, we expect to retain roughly half of our free cash flow to support the growth of our business, including possible mergers and acquisitions, and return the other half to our shareholders through share repurchases and dividends.",
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      "text": "As a general long-term guideline, we expect to retain roughly half of our free cash flow... to support the growth of our business... and return the other half to our shareholders through share repurchases and dividends. — FY 2015 20-F",
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