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 82 industry peers in the IT Services industry. While SSNC has a great profitability rating, there are quite some concerns on its financial health. SSNC has a decent growth rate and is not valued too expensively.
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.
SSNC had positive earnings in each of the past 5 years.
Each year in the past 5 years SSNC had a positive operating cash flow.
1.2 Ratios
SSNC has a Return On Assets of 3.99%. This is in the better half of the industry: SSNC outperforms 60.26% of its industry peers.
Looking at the Return On Equity, with a value of 11.64%, SSNC is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
SSNC's Return On Invested Capital of 7.14% is fine compared to the rest of the industry. SSNC outperforms 64.10% of its industry peers.
SSNC had an Average Return On Invested Capital over the past 3 years of 6.63%. This is below the industry average of 10.27%.
The last Return On Invested Capital (7.14%) for SSNC is above the 3 year average (6.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 11.64% | ||
| ROIC | 7.14% |
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 12.93%. This is amongst the best in the industry. SSNC outperforms 91.03% of its industry peers.
In the last couple of years the Profit Margin of SSNC has grown nicely.
With an excellent Operating Margin value of 22.84%, SSNC belongs to the best of the industry, outperforming 97.44% of the companies in the same industry.
SSNC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.68%, SSNC is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
SSNC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.84% | ||
| PM (TTM) | 12.93% | ||
| GM | 48.68% |
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 increased compared to 1 year ago.
SSNC has less shares outstanding than it did 5 years ago.
SSNC has a better debt/assets ratio than last year.
2.2 Solvency
SSNC has a debt to FCF ratio of 6.19. This is a slightly negative value and a sign of low solvency as SSNC would need 6.19 years to pay back of all of its debts.
SSNC has a Debt to FCF ratio (6.19) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.07 is on the high side and indicates that SSNC has dependencies on debt financing.
SSNC has a Debt to Equity ratio of 1.07. This is in the lower half of the industry: SSNC underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.19 | ||
| Altman-Z | N/A |
ROIC/WACC0.68
WACC10.53%
2.3 Liquidity
SSNC has a Current 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.
Looking at the Current ratio, with a value of 1.12, SSNC is doing worse than 70.51% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that SSNC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, SSNC is doing worse than 69.23% of the companies in the same industry.
| 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 17.32% over the past year.
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 6.89%.
SSNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.89% yearly.
EPS 1Y (TTM)17.32%
EPS 3Y2.59%
EPS 5Y7.19%
EPS Q2Q%25.4%
Revenue 1Y (TTM)6.89%
Revenue growth 3Y5.21%
Revenue growth 5Y4.89%
Sales Q2Q%8.37%
3.2 Future
SSNC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.39% yearly.
SSNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.69% yearly.
EPS Next Y10.15%
EPS Next 2Y10.44%
EPS Next 3Y9.51%
EPS Next 5Y9.39%
Revenue Next Year6.03%
Revenue Next 2Y5.54%
Revenue Next 3Y4.96%
Revenue Next 5Y5.69%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 16.27, SSNC is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SSNC indicates a somewhat cheap valuation: SSNC is cheaper than 79.49% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SSNC to the average of the S&P500 Index (29.36), we can say SSNC is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.78 indicates a correct valuation of SSNC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SSNC indicates a somewhat cheap valuation: SSNC is cheaper than 79.49% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.65. SSNC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.27 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SSNC is valued a bit cheaper than the industry average as 71.79% of the companies are valued more expensively.
73.08% 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 | 19.29 | ||
| EV/EBITDA | 14 |
4.3 Compensation for Growth
The 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)1.6
PEG (5Y)2.26
EPS Next 2Y10.44%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.12%, 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 2.94. SSNC pays more dividend than 80.77% of the companies in the same industry.
With a Dividend Yield of 1.12, SSNC pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
The dividend of SSNC is nicely growing with an annual growth rate of 18.41%!
SSNC has paid a dividend for at least 10 years, which is a reliable track record.
As SSNC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)18.41%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
SSNC pays out 32.20% of its income as dividend. This is a sustainable payout ratio.
The dividend of SSNC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.2%
EPS Next 2Y10.44%
EPS Next 3Y9.51%
NASDAQ:SSNC (2/27/2025, 3:26:06 PM)
88.21
-0.13 (-0.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners84.9%
Inst Owner Change1.91%
Ins Owners13.19%
Ins Owner Change-0.2%
Market Cap21.85B
Analysts82.35
Price Target97.1 (10.08%)
Short Float %1.53%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend0.99
Dividend Growth(5Y)18.41%
DP32.2%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.71%
Min EPS beat(2)0.43%
Max EPS beat(2)16.99%
EPS beat(4)4
Avg EPS beat(4)6.31%
Min EPS beat(4)0.43%
Max EPS beat(4)16.99%
EPS beat(8)4
Avg EPS beat(8)1.57%
EPS beat(12)4
Avg EPS beat(12)-0.43%
EPS beat(16)8
Avg EPS beat(16)1.05%
Revenue beat(2)1
Avg Revenue beat(2)0.38%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)1.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-0.65%
Max Revenue beat(4)1.1%
Revenue beat(8)1
Avg Revenue beat(8)-0.78%
Revenue beat(12)1
Avg Revenue beat(12)-1.34%
Revenue beat(16)5
Avg Revenue beat(16)-0.69%
PT rev (1m)12.92%
PT rev (3m)13.15%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)2.61%
EPS NY rev (1m)1.72%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)-1.54%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.27 | ||
| Fwd PE | 14.78 | ||
| P/S | 3.71 | ||
| P/FCF | 19.29 | ||
| P/OCF | 15.73 | ||
| P/B | 3.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14 |
EPS(TTM)5.42
EY6.14%
EPS(NY)5.97
Fwd EY6.77%
FCF(TTM)4.57
FCFY5.19%
OCF(TTM)5.61
OCFY6.36%
SpS23.75
BVpS26.38
TBVpS-26.41
PEG (NY)1.6
PEG (5Y)2.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 11.64% | ||
| ROCE | 9.15% | ||
| ROIC | 7.14% | ||
| ROICexc | 7.43% | ||
| ROICexgc | 100.19% | ||
| OM | 22.84% | ||
| PM (TTM) | 12.93% | ||
| GM | 48.68% | ||
| FCFM | 19.26% |
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-Score9
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.19 | ||
| Debt/EBITDA | 3.45 | ||
| Cap/Depr | 37.6% | ||
| Cap/Sales | 4.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.62% | ||
| Profit Quality | 148.97% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | N/A |
F-Score9
WACC10.53%
ROIC/WACC0.68
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)17.32%
EPS 3Y2.59%
EPS 5Y7.19%
EPS Q2Q%25.4%
EPS Next Y10.15%
EPS Next 2Y10.44%
EPS Next 3Y9.51%
EPS Next 5Y9.39%
Revenue 1Y (TTM)6.89%
Revenue growth 3Y5.21%
Revenue growth 5Y4.89%
Sales Q2Q%8.37%
Revenue Next Year6.03%
Revenue Next 2Y5.54%
Revenue Next 3Y4.96%
Revenue Next 5Y5.69%
EBIT growth 1Y11.13%
EBIT growth 3Y2.64%
EBIT growth 5Y8%
EBIT Next Year11.35%
EBIT Next 3Y7.98%
EBIT Next 5Y8.23%
FCF growth 1Y17.57%
FCF growth 3Y-4.3%
FCF growth 5Y-1.11%
OCF growth 1Y14.28%
OCF growth 3Y-0.95%
OCF growth 5Y0.89%