SS&C TECHNOLOGIES HOLDINGS (SSNC) Stock Fundamental Analysis
USA - NASDAQ:SSNC - US78467J1007 - Common Stock
83.49 USD
-1.14 (-1.35%)
83.43 USD
-0.06 (-0.07%)
Taking everything into account, SSNC scores 6 out of 10 in our fundamental rating. SSNC was compared to 84 industry peers in the IT Services industry. While SSNC belongs to the best of the industry regarding profitability, 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
SSNC has a Return On Assets of 4.37%. This is in the better half of the industry: SSNC outperforms 64.29% of its industry peers.
Looking at the Return On Equity, with a value of 12.30%, SSNC is in the better half of the industry, outperforming 72.62% of the companies in the same industry.
SSNC's Return On Invested Capital of 7.56% is fine compared to the rest of the industry. SSNC outperforms 64.29% 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 28.67%.
The last Return On Invested Capital (7.56%) for SSNC is above the 3 year average (6.63%), which is a sign of increasing profitability.
| 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's Profit Margin of 13.86% is amongst the best of the industry. SSNC outperforms 90.48% of its industry peers.
SSNC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.19%, SSNC belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
In the last couple of years the Operating Margin of SSNC has grown nicely.
With a decent Gross Margin value of 48.56%, SSNC is doing good in the industry, outperforming 65.48% of the companies in the same industry.
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.
The number of shares outstanding for SSNC has been reduced compared to 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 1.87. 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 1.87. This is in the lower half of the industry: SSNC underperforms 60.71% of its industry peers.
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.
SSNC has a Debt to FCF ratio (5.08) which is in line with its industry peers.
SSNC has a Debt/Equity ratio of 0.95. This is a neutral value indicating SSNC is somewhat dependend on debt financing.
SSNC has a worse Debt to Equity ratio (0.95) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.86
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.12 indicates that SSNC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.12, SSNC is not doing good in the industry: 69.05% of the companies in the same industry are doing better.
A Quick Ratio of 1.12 indicates that SSNC should not have too much problems paying its short term obligations.
SSNC has a worse Quick ratio (1.12) than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
SSNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.43%, which is quite good.
The Earnings Per Share has been growing slightly by 7.19% on average over the past years.
SSNC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.67%.
Measured over the past years, SSNC shows a small growth in Revenue. The Revenue has been growing by 4.89% on average per year.
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
The Earnings Per Share is expected to grow by 10.03% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.21% on average over the next years.
EPS Next Y14.1%
EPS Next 2Y11.77%
EPS Next 3Y10.69%
EPS Next 5Y10.03%
Revenue Next Year6.93%
Revenue Next 2Y6.39%
Revenue Next 3Y5.79%
Revenue Next 5Y5.21%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 13.82, which indicates a correct valuation of SSNC.
78.57% of the companies in the same industry are more expensive than SSNC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.89, SSNC is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.33, which indicates a correct valuation of SSNC.
80.95% of the companies in the same industry are more expensive than SSNC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, SSNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 12.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SSNC is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SSNC is valued a bit cheaper than 70.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.71 | ||
| EV/EBITDA | 12.66 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SSNC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.98
PEG (5Y)1.92
EPS Next 2Y11.77%
EPS Next 3Y10.69%
5. Dividend
5.1 Amount
SSNC has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.02, SSNC pays a better dividend. On top of this SSNC pays more dividend than 82.14% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SSNC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
On average, the dividend of SSNC grows each year by 18.56%, which is quite nice.
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%
83.49
-1.14 (-1.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners85.85%
Inst Owner Change-0.7%
Ins Owners14.55%
Ins Owner Change1.36%
Market Cap20.39B
Revenue(TTM)6.15B
Net Income(TTM)852.40M
Analysts82.5
Price Target104.59 (25.27%)
Short Float %1.56%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend1
Dividend Growth(5Y)18.56%
DP29.4%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.31%
Min EPS beat(2)2.11%
Max EPS beat(2)4.5%
EPS beat(4)4
Avg EPS beat(4)6.01%
Min EPS beat(4)0.42%
Max EPS beat(4)16.99%
EPS beat(8)7
Avg EPS beat(8)3.94%
EPS beat(12)7
Avg EPS beat(12)1.5%
EPS beat(16)8
Avg EPS beat(16)0.24%
Revenue beat(2)0
Avg Revenue beat(2)-0.74%
Min Revenue beat(2)-0.95%
Max Revenue beat(2)-0.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)1.1%
Revenue beat(8)1
Avg Revenue beat(8)-0.44%
Revenue beat(12)1
Avg Revenue beat(12)-0.86%
Revenue beat(16)2
Avg Revenue beat(16)-1.14%
PT rev (1m)3.8%
PT rev (3m)4.06%
EPS NQ rev (1m)1.6%
EPS NQ rev (3m)1.39%
EPS NY rev (1m)1.98%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)1.65%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 12.33 | ||
| P/S | 3.32 | ||
| P/FCF | 15.71 | ||
| P/OCF | 12.84 | ||
| P/B | 2.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.66 |
EPS(TTM)6.04
EY7.23%
EPS(NY)6.77
Fwd EY8.11%
FCF(TTM)5.31
FCFY6.36%
OCF(TTM)6.5
OCFY7.79%
SpS25.18
BVpS28.38
TBVpS-24.77
PEG (NY)0.98
PEG (5Y)1.92
Graham Number62.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.37% | ||
| ROE | 12.3% | ||
| ROCE | 9.69% | ||
| ROIC | 7.56% | ||
| ROICexc | 7.77% | ||
| ROICexgc | 82.17% | ||
| OM | 23.19% | ||
| PM (TTM) | 13.86% | ||
| GM | 48.56% | ||
| FCFM | 21.11% |
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%
ROICexgc growth 3Y3.29%
ROICexgc 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-Score7
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 5.08 | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 41.63% | ||
| Cap/Sales | 4.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.8% | ||
| Profit Quality | 152.25% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 1.87 |
F-Score7
WACC8.78%
ROIC/WACC0.86
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)18.43%
EPS 3Y2.59%
EPS 5Y7.19%
EPS Q2Q%21.71%
EPS Next Y14.1%
EPS Next 2Y11.77%
EPS Next 3Y10.69%
EPS Next 5Y10.03%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y5.21%
Revenue growth 5Y4.89%
Sales Q2Q%6.97%
Revenue Next Year6.93%
Revenue Next 2Y6.39%
Revenue Next 3Y5.79%
Revenue Next 5Y5.21%
EBIT growth 1Y8.05%
EBIT growth 3Y2.64%
EBIT growth 5Y8%
EBIT Next Year11.4%
EBIT Next 3Y7.91%
EBIT Next 5Y7.3%
FCF growth 1Y34.07%
FCF growth 3Y-4.3%
FCF growth 5Y-1.11%
OCF growth 1Y32.72%
OCF growth 3Y-0.95%
OCF growth 5Y0.89%
SS&C TECHNOLOGIES HOLDINGS / SSNC FAQ
What is the fundamental rating for SSNC stock?
ChartMill assigns a fundamental rating of 6 / 10 to SSNC.
What is the valuation status of SS&C TECHNOLOGIES HOLDINGS (SSNC) stock?
ChartMill assigns a valuation rating of 6 / 10 to SS&C TECHNOLOGIES HOLDINGS (SSNC). This can be considered as Fairly Valued.
Can you provide the profitability details for SS&C TECHNOLOGIES HOLDINGS?
SS&C TECHNOLOGIES HOLDINGS (SSNC) has a profitability rating of 8 / 10.
What are the PE and PB ratios of SS&C TECHNOLOGIES HOLDINGS (SSNC) stock?
The Price/Earnings (PE) ratio for SS&C TECHNOLOGIES HOLDINGS (SSNC) is 13.82 and the Price/Book (PB) ratio is 2.94.
What is the expected EPS growth for SS&C TECHNOLOGIES HOLDINGS (SSNC) stock?
The Earnings per Share (EPS) of SS&C TECHNOLOGIES HOLDINGS (SSNC) is expected to grow by 14.1% in the next year.