SS&C TECHNOLOGIES HOLDINGS (SSNC) Stock Fundamental Analysis
USA - NASDAQ:SSNC - US78467J1007 - Common Stock
89.25 USD
+0.42 (+0.47%)
89.25 USD
0 (0%)
Overall SSNC gets a fundamental rating of 6 out of 10. We evaluated SSNC against 86 industry peers in the IT Services industry. SSNC scores excellent on profitability, but there are some minor concerns on its financial health. SSNC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SSNC was profitable.
In the past year SSNC had a positive cash flow from operations.
In the past 5 years SSNC has always been profitable.
Each year in the past 5 years SSNC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.25%, SSNC is in the better half of the industry, outperforming 67.44% of the companies in the same industry.
SSNC has a better Return On Equity (11.63%) than 70.93% of its industry peers.
The Return On Invested Capital of SSNC (7.27%) is better than 65.12% of its industry peers.
SSNC had an Average Return On Invested Capital over the past 3 years of 6.63%. This is significantly below the industry average of 21.82%.
The last Return On Invested Capital (7.27%) for SSNC is above the 3 year average (6.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 11.63% | ||
| ROIC | 7.27% |
ROA(3y)3.75%
ROA(5y)3.96%
ROE(3y)10.66%
ROE(5y)11.18%
ROIC(3y)6.63%
ROIC(5y)6.55%
1.3 Margins
Looking at the Profit Margin, with a value of 13.34%, SSNC belongs to the top of the industry, outperforming 89.53% of the companies in the same industry.
In the last couple of years the Profit Margin of SSNC has grown nicely.
The Operating Margin of SSNC (22.91%) is better than 96.51% of its industry peers.
SSNC's Operating Margin has improved in the last couple of years.
SSNC's Gross Margin of 48.66% is fine compared to the rest of the industry. SSNC outperforms 66.28% of its industry peers.
SSNC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.91% | ||
| PM (TTM) | 13.34% | ||
| GM | 48.66% |
OM growth 3Y-2.44%
OM growth 5Y2.96%
PM growth 3Y-6.54%
PM growth 5Y6.44%
GM growth 3Y0.68%
GM growth 5Y2.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SSNC is destroying value.
SSNC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SSNC has been reduced compared to 5 years ago.
The debt/assets ratio for SSNC has been reduced compared to a year ago.
2.2 Solvency
SSNC has an Altman-Z score of 1.97. This is not the best score and indicates that SSNC is in the grey zone with still only limited risk for bankruptcy at the moment.
SSNC has a Altman-Z score of 1.97. This is in the lower half of the industry: SSNC underperforms 61.63% of its industry peers.
SSNC has a debt to FCF ratio of 5.72. This is a neutral value as SSNC would need 5.72 years to pay back of all of its debts.
SSNC has a Debt to FCF ratio (5.72) which is comparable to the rest of the industry.
SSNC has a Debt/Equity ratio of 0.98. This is a neutral value indicating SSNC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, SSNC is not doing good in the industry: 67.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.8
WACC9.12%
2.3 Liquidity
SSNC has a Current Ratio of 1.14. This is a normal value and indicates that SSNC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SSNC (1.14) is worse than 70.93% of its industry peers.
A Quick Ratio of 1.14 indicates that SSNC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.14, SSNC is doing worse than 69.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
SSNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.66%, which is quite good.
The Earnings Per Share has been growing slightly by 7.19% on average over the past years.
Looking at the last year, SSNC shows a small growth in Revenue. The Revenue has grown by 6.75% in the last year.
SSNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.89% yearly.
EPS 1Y (TTM)15.66%
EPS 3Y2.59%
EPS 5Y7.19%
EPS Q2Q%14.17%
Revenue 1Y (TTM)6.75%
Revenue growth 3Y5.21%
Revenue growth 5Y4.89%
Sales Q2Q%5.88%
3.2 Future
SSNC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.78% yearly.
Based on estimates for the next years, SSNC will show a small growth in Revenue. The Revenue will grow by 4.80% on average per year.
EPS Next Y11.8%
EPS Next 2Y10.69%
EPS Next 3Y9.87%
EPS Next 5Y5.78%
Revenue Next Year6.41%
Revenue Next 2Y5.75%
Revenue Next 3Y5.39%
Revenue Next 5Y4.8%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.49, the valuation of SSNC can be described as correct.
77.91% of the companies in the same industry are more expensive than SSNC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.41. SSNC is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.44, SSNC is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SSNC indicates a somewhat cheap valuation: SSNC is cheaper than 76.74% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SSNC to the average of the S&P500 Index (22.88), we can say SSNC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 13.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SSNC is valued a bit cheaper than the industry average as 66.28% of the companies are valued more expensively.
75.58% of the companies in the same industry are more expensive than SSNC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.27 | ||
| EV/EBITDA | 13.54 |
4.3 Compensation for Growth
SSNC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of SSNC may justify a higher PE ratio.
PEG (NY)1.31
PEG (5Y)2.15
EPS Next 2Y10.69%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
SSNC has a Yearly Dividend Yield of 1.20%. Purely for dividend investing, there may be better candidates out there.
SSNC's Dividend Yield is rather good when compared to the industry average which is at 2.36. SSNC pays more dividend than 83.72% of the companies in the same industry.
With a Dividend Yield of 1.20, SSNC pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
The dividend of SSNC is nicely growing with an annual growth rate of 18.56%!
SSNC has been paying a dividend for at least 10 years, so it has a reliable track record.
SSNC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)18.56%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
30.70% of the earnings are spent on dividend by SSNC. This is a low number and sustainable payout ratio.
SSNC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.7%
EPS Next 2Y10.69%
EPS Next 3Y9.87%
89.25
+0.42 (+0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners86.2%
Inst Owner Change0.58%
Ins Owners14.39%
Ins Owner Change0.09%
Market Cap21.80B
Analysts82.5
Price Target100.77 (12.91%)
Short Float %1.94%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Yearly Dividend1
Dividend Growth(5Y)18.56%
DP30.7%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.27%
Min EPS beat(2)0.42%
Max EPS beat(2)2.11%
EPS beat(4)4
Avg EPS beat(4)4.99%
Min EPS beat(4)0.42%
Max EPS beat(4)16.99%
EPS beat(8)6
Avg EPS beat(8)3.09%
EPS beat(12)6
Avg EPS beat(12)0.75%
EPS beat(16)8
Avg EPS beat(16)0.47%
Revenue beat(2)0
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-0.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)1.1%
Revenue beat(8)1
Avg Revenue beat(8)-0.67%
Revenue beat(12)1
Avg Revenue beat(12)-1.11%
Revenue beat(16)3
Avg Revenue beat(16)-1.04%
PT rev (1m)0.25%
PT rev (3m)5.92%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)1.4%
EPS NY rev (3m)1.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 13.44 | ||
| P/S | 3.61 | ||
| P/FCF | 18.27 | ||
| P/OCF | 14.84 | ||
| P/B | 3.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.54 |
EPS(TTM)5.76
EY6.45%
EPS(NY)6.64
Fwd EY7.44%
FCF(TTM)4.89
FCFY5.47%
OCF(TTM)6.01
OCFY6.74%
SpS24.76
BVpS28.39
TBVpS-25.45
PEG (NY)1.31
PEG (5Y)2.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 11.63% | ||
| ROCE | 9.31% | ||
| ROIC | 7.27% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 86.47% | ||
| OM | 22.91% | ||
| PM (TTM) | 13.34% | ||
| GM | 48.66% | ||
| FCFM | 19.73% |
ROA(3y)3.75%
ROA(5y)3.96%
ROE(3y)10.66%
ROE(5y)11.18%
ROIC(3y)6.63%
ROIC(5y)6.55%
ROICexc(3y)6.86%
ROICexc(5y)6.77%
ROICexgc(3y)94.96%
ROICexgc(5y)89.67%
ROCE(3y)8.49%
ROCE(5y)8.39%
ROICexcg growth 3Y3.29%
ROICexcg growth 5Y10.46%
ROICexc growth 3Y-0.36%
ROICexc growth 5Y7.52%
OM growth 3Y-2.44%
OM growth 5Y2.96%
PM growth 3Y-6.54%
PM growth 5Y6.44%
GM growth 3Y0.68%
GM growth 5Y2.22%
F-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.72 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 39.71% | ||
| Cap/Sales | 4.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.65% | ||
| Profit Quality | 147.97% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.97 |
F-Score6
WACC9.12%
ROIC/WACC0.8
Cap/Depr(3y)35.38%
Cap/Depr(5y)28.25%
Cap/Sales(3y)4.29%
Cap/Sales(5y)3.57%
Profit Quality(3y)150.04%
Profit Quality(5y)156.83%
High Growth Momentum
Growth
EPS 1Y (TTM)15.66%
EPS 3Y2.59%
EPS 5Y7.19%
EPS Q2Q%14.17%
EPS Next Y11.8%
EPS Next 2Y10.69%
EPS Next 3Y9.87%
EPS Next 5Y5.78%
Revenue 1Y (TTM)6.75%
Revenue growth 3Y5.21%
Revenue growth 5Y4.89%
Sales Q2Q%5.88%
Revenue Next Year6.41%
Revenue Next 2Y5.75%
Revenue Next 3Y5.39%
Revenue Next 5Y4.8%
EBIT growth 1Y6.48%
EBIT growth 3Y2.64%
EBIT growth 5Y8%
EBIT Next Year11.4%
EBIT Next 3Y7.91%
EBIT Next 5Y6.59%
FCF growth 1Y16.16%
FCF growth 3Y-4.3%
FCF growth 5Y-1.11%
OCF growth 1Y15.52%
OCF growth 3Y-0.95%
OCF growth 5Y0.89%