SS&C TECHNOLOGIES HOLDINGS (SSNC) Stock Fundamental Analysis
NASDAQ:SSNC - Nasdaq - US78467J1007 - Common Stock - Currency: USD
Overall SSNC gets a fundamental rating of 6 out of 10. We evaluated SSNC against 82 industry peers in the IT Services industry. SSNC scores excellent on profitability, but there are concerns on its financial health. SSNC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SSNC had positive earnings in the past year.
In the past year SSNC had a positive cash flow from operations.
In the past 5 years SSNC has always been profitable.
SSNC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SSNC has a Return On Assets of 3.83%. This is in the better half of the industry: SSNC outperforms 60.76% of its industry peers.
The Return On Equity of SSNC (10.37%) is better than 67.09% of its industry peers.
With a decent Return On Invested Capital value of 6.29%, SSNC is doing good in the industry, outperforming 63.29% of the companies in the same industry.
SSNC had an Average Return On Invested Capital over the past 3 years of 6.18%. This is below the industry average of 9.86%.
The 3 year average ROIC (6.18%) for SSNC is below the current ROIC(6.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.83% | ||
| ROE | 10.37% | ||
| ROIC | 6.29% |
ROA(3y)3.96%
ROA(5y)3.68%
ROE(3y)11.1%
ROE(5y)10.56%
ROIC(3y)6.18%
ROIC(5y)5.7%
1.3 Margins
With an excellent Profit Margin value of 12.26%, SSNC belongs to the best of the industry, outperforming 87.34% of the companies in the same industry.
SSNC's Profit Margin has improved in the last couple of years.
SSNC has a better Operating Margin (22.90%) than 97.47% of its industry peers.
In the last couple of years the Operating Margin of SSNC has grown nicely.
SSNC's Gross Margin of 49.08% is fine compared to the rest of the industry. SSNC outperforms 70.89% of its industry peers.
In the last couple of years the Gross Margin of SSNC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.9% | ||
| PM (TTM) | 12.26% | ||
| GM | 49.08% |
OM growth 3Y1.32%
OM growth 5Y7.36%
PM growth 3Y-6.26%
PM growth 5Y29.61%
GM growth 3Y2.42%
GM growth 5Y3.77%
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.
SSNC has less shares outstanding than it did 1 year ago.
SSNC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SSNC has an improved debt to assets ratio.
2.2 Solvency
SSNC has an Altman-Z score of 1.88. 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 worse Altman-Z score (1.88) than 62.03% of its industry peers.
The Debt to FCF ratio of SSNC is 7.00, which is on the high side as it means it would take SSNC, 7.00 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SSNC (7.00) is comparable to the rest of the industry.
SSNC has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
SSNC's Debt to Equity ratio of 1.05 is on the low side compared to the rest of the industry. SSNC is outperformed by 67.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 7 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.59
WACC10.75%
2.3 Liquidity
A Current Ratio of 1.21 indicates that SSNC should not have too much problems paying its short term obligations.
SSNC's Current ratio of 1.21 is on the low side compared to the rest of the industry. SSNC is outperformed by 68.35% of its industry peers.
SSNC has a Quick Ratio of 1.21. This is a normal value and indicates that SSNC is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.21, SSNC is not doing good in the industry: 67.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.83% over the past year.
SSNC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.84% yearly.
Looking at the last year, SSNC shows a small growth in Revenue. The Revenue has grown by 6.16% in the last year.
SSNC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.97% yearly.
EPS 1Y (TTM)12.83%
EPS 3Y2.42%
EPS 5Y9.84%
EPS Q2Q%10.26%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y5.64%
Revenue growth 5Y9.97%
Sales Q2Q%7.31%
3.2 Future
The Earnings Per Share is expected to grow by 10.94% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.84% on average over the next years.
EPS Next Y13.91%
EPS Next 2Y12.71%
EPS Next 3Y11.96%
EPS Next 5Y10.94%
Revenue Next Year6.41%
Revenue Next 2Y5.98%
Revenue Next 3Y5.43%
Revenue Next 5Y5.84%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.68, the valuation of SSNC can be described as correct.
Based on the Price/Earnings ratio, SSNC is valued cheaper than 81.01% of the companies in the same industry.
When comparing the Price/Earnings ratio of SSNC to the average of the S&P500 Index (28.58), we can say SSNC is valued slightly cheaper.
SSNC is valuated correctly with a Price/Forward Earnings ratio of 13.63.
84.81% of the companies in the same industry are more expensive than SSNC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.47. SSNC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 13.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SSNC indicates a somewhat cheap valuation: SSNC is cheaper than 74.68% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SSNC is valued a bit cheaper than the industry average as 79.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.25 | ||
| EV/EBITDA | 13.2 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SSNC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.13
PEG (5Y)1.59
EPS Next 2Y12.71%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
SSNC has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.96, SSNC pays a better dividend. On top of this SSNC pays more dividend than 81.01% of the companies listed in the same industry.
With a Dividend Yield of 1.26, SSNC pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
On average, the dividend of SSNC grows each year by 23.46%, which is quite nice.
SSNC has paid a dividend for at least 10 years, which is a reliable track record.
SSNC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)23.46%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
SSNC pays out 34.33% of its income as dividend. This is a sustainable payout ratio.
SSNC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.33%
EPS Next 2Y12.71%
EPS Next 3Y11.96%
SS&C TECHNOLOGIES HOLDINGS
NASDAQ:SSNC (1/24/2025, 8:09:01 PM)
After market: 79.98 0 (0%)79.98
+0.42 (+0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners84.6%
Inst Owner Change0.51%
Ins Owners13.36%
Ins Owner Change-0.13%
Market Cap19.81B
Analysts82.35
Price Target86 (7.53%)
Short Float %1.48%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend0.89
Dividend Growth(5Y)23.46%
DP34.33%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.26%
Min EPS beat(2)0.43%
Max EPS beat(2)4.09%
EPS beat(4)3
Avg EPS beat(4)1.88%
Min EPS beat(4)-0.73%
Max EPS beat(4)4.09%
EPS beat(8)3
Avg EPS beat(8)-0.76%
EPS beat(12)4
Avg EPS beat(12)-1.69%
EPS beat(16)8
Avg EPS beat(16)0.33%
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-0.65%
Max Revenue beat(2)-0.35%
Revenue beat(4)0
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-0.65%
Max Revenue beat(4)-0.35%
Revenue beat(8)0
Avg Revenue beat(8)-1.08%
Revenue beat(12)1
Avg Revenue beat(12)-1.38%
Revenue beat(16)5
Avg Revenue beat(16)-0.65%
PT rev (1m)0%
PT rev (3m)2.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 13.63 | ||
| P/S | 3.44 | ||
| P/FCF | 19.25 | ||
| P/OCF | 15.35 | ||
| P/B | 2.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.2 |
EPS(TTM)5.1
EY6.38%
EPS(NY)5.87
Fwd EY7.34%
FCF(TTM)4.15
FCFY5.19%
OCF(TTM)5.21
OCFY6.51%
SpS23.27
BVpS27.51
TBVpS-26.66
PEG (NY)1.13
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.83% | ||
| ROE | 10.37% | ||
| ROCE | 8.67% | ||
| ROIC | 6.29% | ||
| ROICexc | 6.59% | ||
| ROICexgc | 86.46% | ||
| OM | 22.9% | ||
| PM (TTM) | 12.26% | ||
| GM | 49.08% | ||
| FCFM | 17.85% |
ROA(3y)3.96%
ROA(5y)3.68%
ROE(3y)11.1%
ROE(5y)10.56%
ROIC(3y)6.18%
ROIC(5y)5.7%
ROICexc(3y)6.4%
ROICexc(5y)5.86%
ROICexgc(3y)85.31%
ROICexgc(5y)75.98%
ROCE(3y)8.52%
ROCE(5y)7.87%
ROICexcg growth 3Y8.68%
ROICexcg growth 5Y17.25%
ROICexc growth 3Y5.83%
ROICexc growth 5Y18.27%
OM growth 3Y1.32%
OM growth 5Y7.36%
PM growth 3Y-6.26%
PM growth 5Y29.61%
GM growth 3Y2.42%
GM growth 5Y3.77%
F-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 7 | ||
| Debt/EBITDA | 3.59 | ||
| Cap/Depr | 38.75% | ||
| Cap/Sales | 4.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.71% | ||
| Profit Quality | 145.62% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 1.88 |
F-Score7
WACC10.75%
ROIC/WACC0.59
Cap/Depr(3y)29.67%
Cap/Depr(5y)24.1%
Cap/Sales(3y)3.74%
Cap/Sales(5y)3.26%
Profit Quality(3y)154.23%
Profit Quality(5y)181.67%
High Growth Momentum
Growth
EPS 1Y (TTM)12.83%
EPS 3Y2.42%
EPS 5Y9.84%
EPS Q2Q%10.26%
EPS Next Y13.91%
EPS Next 2Y12.71%
EPS Next 3Y11.96%
EPS Next 5Y10.94%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y5.64%
Revenue growth 5Y9.97%
Sales Q2Q%7.31%
Revenue Next Year6.41%
Revenue Next 2Y5.98%
Revenue Next 3Y5.43%
Revenue Next 5Y5.84%
EBIT growth 1Y12.23%
EBIT growth 3Y7.04%
EBIT growth 5Y18.07%
EBIT Next Year11.45%
EBIT Next 3Y8.25%
EBIT Next 5Y8.19%
FCF growth 1Y-1.69%
FCF growth 3Y-3.68%
FCF growth 5Y11.83%
OCF growth 1Y3.34%
OCF growth 3Y0.85%
OCF growth 5Y13.68%