SS&C TECHNOLOGIES HOLDINGS (SSNC) Stock Fundamental Analysis
NASDAQ:SSNC - Nasdaq - US78467J1007 - Common Stock - Currency: USD
Taking everything into account, SSNC scores 5 out of 10 in our fundamental rating. SSNC was compared to 81 industry peers in the IT Services industry. While SSNC has a great profitability rating, there are quite some concerns on its financial health. SSNC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SSNC was profitable.
SSNC had a positive operating cash flow in the past year.
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's Return On Assets of 4.00% is fine compared to the rest of the industry. SSNC outperforms 61.73% of its industry peers.
SSNC's Return On Equity of 12.02% is fine compared to the rest of the industry. SSNC outperforms 69.14% of its industry peers.
SSNC's Return On Invested Capital of 7.24% is fine compared to the rest of the industry. SSNC outperforms 62.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SSNC is significantly below the industry average of 21.85%.
The 3 year average ROIC (6.63%) for SSNC is below the current ROIC(7.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 12.02% | ||
| ROIC | 7.24% |
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 13.69%, SSNC belongs to the top of the industry, outperforming 90.12% of the companies in the same industry.
SSNC's Profit Margin has improved in the last couple of years.
The Operating Margin of SSNC (22.96%) is better than 96.30% of its industry peers.
In the last couple of years the Operating Margin of SSNC has grown nicely.
Looking at the Gross Margin, with a value of 48.71%, SSNC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SSNC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.96% | ||
| PM (TTM) | 13.69% | ||
| GM | 48.71% |
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.
The number of shares outstanding for SSNC has been reduced compared to 1 year ago.
Compared to 5 years ago, SSNC has less shares outstanding
SSNC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that SSNC is in the distress zone and has some risk of bankruptcy.
SSNC has a Altman-Z score of 1.72. This is in the lower half of the industry: SSNC underperforms 69.14% of its industry peers.
SSNC has a debt to FCF ratio of 5.62. This is a neutral value as SSNC would need 5.62 years to pay back of all of its debts.
SSNC has a Debt to FCF ratio of 5.62. This is comparable to the rest of the industry: SSNC outperforms 53.09% of its industry peers.
SSNC has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
SSNC's Debt to Equity ratio of 1.01 is on the low side compared to the rest of the industry. SSNC is outperformed by 69.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.76
WACC9.51%
2.3 Liquidity
A Current Ratio of 1.11 indicates that SSNC should not have too much problems paying its short term obligations.
SSNC's Current ratio of 1.11 is on the low side compared to the rest of the industry. SSNC is outperformed by 71.60% of its industry peers.
A Quick Ratio of 1.11 indicates that SSNC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.11, SSNC is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.49% over the past year.
Measured over the past 5 years, SSNC shows a small growth in Earnings Per Share. The EPS has been growing by 7.19% on average per year.
Looking at the last year, SSNC shows a small growth in Revenue. The Revenue has grown by 6.92% in the last year.
The Revenue has been growing slightly by 4.89% on average over the past years.
EPS 1Y (TTM)16.49%
EPS 3Y2.59%
EPS 5Y7.19%
EPS Q2Q%12.5%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y5.21%
Revenue growth 5Y4.89%
Sales Q2Q%5.5%
3.2 Future
Based on estimates for the next years, SSNC will show a small growth in Earnings Per Share. The EPS will grow by 5.64% on average per year.
Based on estimates for the next years, SSNC will show a small growth in Revenue. The Revenue will grow by 5.28% on average per year.
EPS Next Y10.25%
EPS Next 2Y10.23%
EPS Next 3Y9.31%
EPS Next 5Y5.64%
Revenue Next Year5.98%
Revenue Next 2Y5.47%
Revenue Next 3Y5%
Revenue Next 5Y5.28%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.96, 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 76.54% of the companies in the same industry.
SSNC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 12.68, which indicates a correct valuation of SSNC.
Based on the Price/Forward Earnings ratio, SSNC is valued cheaply inside the industry as 82.72% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.90. SSNC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
70.37% of the companies in the same industry are more expensive than SSNC, based on the Enterprise Value to EBITDA ratio.
SSNC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SSNC is cheaper than 85.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.87 | ||
| EV/EBITDA | 13.12 |
4.3 Compensation for Growth
SSNC's 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)1.46
PEG (5Y)2.08
EPS Next 2Y10.23%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.20%, SSNC has a reasonable but not impressive dividend return.
SSNC's Dividend Yield is rather good when compared to the industry average which is at 2.56. SSNC pays more dividend than 81.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SSNC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
On average, the dividend of SSNC grows each year by 18.56%, 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 for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)18.56%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
30.25% 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.
DP30.25%
EPS Next 2Y10.23%
EPS Next 3Y9.31%
83.5
+0.48 (+0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners85.2%
Inst Owner Change-43.54%
Ins Owners14.39%
Ins Owner Change0.29%
Market Cap20.60B
Analysts83.53
Price Target95.14 (13.94%)
Short Float %2.02%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Yearly Dividend1
Dividend Growth(5Y)18.56%
DP30.25%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.71%
Min EPS beat(2)0.42%
Max EPS beat(2)16.99%
EPS beat(4)4
Avg EPS beat(4)5.48%
Min EPS beat(4)0.42%
Max EPS beat(4)16.99%
EPS beat(8)5
Avg EPS beat(8)2.15%
EPS beat(12)5
Avg EPS beat(12)-0.23%
EPS beat(16)8
Avg EPS beat(16)0.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)1.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.3%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)1.1%
Revenue beat(8)1
Avg Revenue beat(8)-0.82%
Revenue beat(12)1
Avg Revenue beat(12)-1.35%
Revenue beat(16)4
Avg Revenue beat(16)-0.89%
PT rev (1m)-0.29%
PT rev (3m)-3.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.18%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 12.68 | ||
| P/S | 3.46 | ||
| P/FCF | 16.87 | ||
| P/OCF | 13.91 | ||
| P/B | 3.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.12 |
EPS(TTM)5.58
EY6.68%
EPS(NY)6.59
Fwd EY7.89%
FCF(TTM)4.95
FCFY5.93%
OCF(TTM)6
OCFY7.19%
SpS24.17
BVpS27.51
TBVpS-25.42
PEG (NY)1.46
PEG (5Y)2.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 12.02% | ||
| ROCE | 9.27% | ||
| ROIC | 7.24% | ||
| ROICexc | 7.5% | ||
| ROICexgc | 89.27% | ||
| OM | 22.96% | ||
| PM (TTM) | 13.69% | ||
| GM | 48.71% | ||
| FCFM | 20.48% |
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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 5.62 | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 37.88% | ||
| Cap/Sales | 4.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.07% | ||
| Profit Quality | 149.61% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 1.72 |
F-Score6
WACC9.51%
ROIC/WACC0.76
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)16.49%
EPS 3Y2.59%
EPS 5Y7.19%
EPS Q2Q%12.5%
EPS Next Y10.25%
EPS Next 2Y10.23%
EPS Next 3Y9.31%
EPS Next 5Y5.64%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y5.21%
Revenue growth 5Y4.89%
Sales Q2Q%5.5%
Revenue Next Year5.98%
Revenue Next 2Y5.47%
Revenue Next 3Y5%
Revenue Next 5Y5.28%
EBIT growth 1Y8.46%
EBIT growth 3Y2.64%
EBIT growth 5Y8%
EBIT Next Year10.33%
EBIT Next 3Y7.55%
EBIT Next 5Y6.97%
FCF growth 1Y24.59%
FCF growth 3Y-4.3%
FCF growth 5Y-1.11%
OCF growth 1Y22.79%
OCF growth 3Y-0.95%
OCF growth 5Y0.89%