85.31 USD
-0.52 (-0.61%)
85.31 USD
0 (0%)
SSNC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. SSNC has an excellent profitability rating, but there are some minor concerns on its financial health. SSNC has a decent growth rate and is not valued too expensively.
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.
- Each year in the past 5 years SSNC has been profitable.
- In the past 5 years SSNC always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 4.37%, SSNC is doing good in the industry, outperforming 64.77% of the companies in the same industry.
- The Return On Equity of SSNC (12.30%) is better than 73.86% of its industry peers.
- SSNC has a Return On Invested Capital of 7.56%. This is in the better half of the industry: SSNC outperforms 69.32% 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 29.06%.
- The 3 year average ROIC (6.63%) for SSNC is below the current ROIC(7.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.37% | ||
| ROE | 12.3% | ||
| ROIC | 7.56% |
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
- SSNC has a Profit Margin of 13.86%. This is amongst the best in the industry. SSNC outperforms 88.64% of its industry peers.
- SSNC's Profit Margin has improved in the last couple of years.
- SSNC has a Operating Margin of 23.19%. This is amongst the best in the industry. SSNC outperforms 96.59% of its industry peers.
- SSNC's Operating Margin has improved in the last couple of years.
- The Gross Margin of SSNC (48.56%) is better than 68.18% of its industry peers.
- SSNC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.19% | ||
| PM (TTM) | 13.86% | ||
| GM | 48.56% |
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
- SSNC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, SSNC has less shares outstanding
- The number of shares outstanding for SSNC has been reduced compared to 5 years ago.
- SSNC has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.88 indicates that SSNC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 1.88, SSNC is in line with its industry, outperforming 40.91% of the companies in the same industry.
- The Debt to FCF ratio of SSNC is 5.08, which is a neutral value as it means it would take SSNC, 5.08 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.08, SSNC is in line with its industry, outperforming 53.41% of the companies in the same industry.
- A Debt/Equity ratio of 0.95 indicates that SSNC is somewhat dependend on debt financing.
- SSNC's Debt to Equity ratio of 0.95 is on the low side compared to the rest of the industry. SSNC is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.84
WACC9.02%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that SSNC should not have too much problems paying its short term obligations.
- SSNC has a worse Current ratio (1.12) than 70.45% of its industry peers.
- SSNC has a Quick Ratio of 1.12. This is a normal value and indicates that SSNC is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of SSNC (1.12) is worse than 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 18.43% over the past year.
- SSNC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.19% yearly.
- Looking at the last year, SSNC shows a small growth in Revenue. The Revenue has grown by 6.67% 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)18.43%
EPS 3Y2.59%
EPS 5Y7.19%
EPS Q2Q%21.71%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y5.21%
Revenue growth 5Y4.89%
Sales Q2Q%6.97%
3.2 Future
- Based on estimates for the next years, SSNC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.67% on average per year.
- The Revenue is expected to grow by 5.18% on average over the next years.
EPS Next Y14.1%
EPS Next 2Y11.77%
EPS Next 3Y10.69%
EPS Next 5Y9.67%
Revenue Next Year6.95%
Revenue Next 2Y6.4%
Revenue Next 3Y5.78%
Revenue Next 5Y5.18%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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 14.12, the valuation of SSNC can be described as correct.
- SSNC's Price/Earnings ratio is a bit cheaper when compared to the industry. SSNC is cheaper than 78.41% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. SSNC is valued slightly cheaper when compared to this.
- SSNC is valuated correctly with a Price/Forward Earnings ratio of 12.60.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SSNC indicates a rather cheap valuation: SSNC is cheaper than 80.68% of the companies listed in the same industry.
- SSNC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 12.6 |
4.2 Price Multiples
- 71.59% of the companies in the same industry are more expensive than SSNC, based on the Enterprise Value to EBITDA ratio.
- 71.59% 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 | 16.04 | ||
| EV/EBITDA | 12.79 |
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
PEG (5Y)1.96
EPS Next 2Y11.77%
EPS Next 3Y10.69%
5. Dividend
5.1 Amount
- SSNC has a Yearly Dividend Yield of 1.26%.
- Compared to an average industry Dividend Yield of 0.43, SSNC pays a better dividend. On top of this SSNC pays more dividend than 84.09% of the companies listed in the same industry.
- SSNC's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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
- 29.40% of the earnings are spent on dividend by SSNC. This is a low number and sustainable payout ratio.
- The dividend of SSNC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.4%
EPS Next 2Y11.77%
EPS Next 3Y10.69%
SS&C TECHNOLOGIES HOLDINGS / SSNC FAQ
What is the fundamental rating for SSNC stock?
ChartMill assigns a fundamental rating of 6 / 10 to SSNC.
Can you provide the valuation status for SS&C TECHNOLOGIES HOLDINGS?
ChartMill assigns a valuation rating of 6 / 10 to SS&C TECHNOLOGIES HOLDINGS (SSNC). This can be considered as Fairly Valued.
How profitable is SS&C TECHNOLOGIES HOLDINGS (SSNC) stock?
SS&C TECHNOLOGIES HOLDINGS (SSNC) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for SSNC stock?
The Price/Earnings (PE) ratio for SS&C TECHNOLOGIES HOLDINGS (SSNC) is 14.12 and the Price/Book (PB) ratio is 3.
How financially healthy is SS&C TECHNOLOGIES HOLDINGS?
The financial health rating of SS&C TECHNOLOGIES HOLDINGS (SSNC) is 4 / 10.