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. While SSNC belongs to the best of the industry regarding profitability, there are some minor 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.
- 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
- Looking at the Return On Assets, with a value of 4.37%, SSNC is in the better half of the industry, outperforming 64.77% of the companies in the same industry.
- SSNC's Return On Equity of 12.30% is fine compared to the rest of the industry. SSNC outperforms 73.86% of its industry peers.
- With a decent Return On Invested Capital value of 7.56%, SSNC is doing good in the industry, outperforming 69.32% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for SSNC 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
- The Profit Margin of SSNC (13.86%) is better than 88.64% of its industry peers.
- In the last couple of years the Profit Margin of SSNC has grown nicely.
- Looking at the Operating Margin, with a value of 23.19%, SSNC belongs to the top of the industry, outperforming 96.59% of the companies in the same industry.
- SSNC's Operating Margin has improved in the last couple of years.
- SSNC's Gross Margin of 48.56% is fine compared to the rest of the industry. SSNC outperforms 68.18% of its industry peers.
- In the last couple of years the Gross Margin of SSNC has grown nicely.
| 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.
- Compared to 5 years ago, SSNC has less shares outstanding
- The debt/assets ratio for SSNC has been reduced compared to a year ago.
2.2 Solvency
- SSNC has an Altman-Z score of 1.88. 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's Altman-Z score of 1.88 is in line compared to the rest of the industry. SSNC outperforms 40.91% of its industry peers.
- SSNC has a debt to FCF ratio of 5.08. This is a neutral value as SSNC would need 5.08 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 5.08, SSNC perfoms like the industry average, 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 has a Debt to Equity ratio of 0.95. This is in the lower half of the industry: SSNC underperforms 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
- 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.
- With a Current ratio value of 1.12, SSNC is not doing good in the industry: 70.45% 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's Quick ratio of 1.12 is on the low side compared to the rest of the industry. SSNC is outperformed by 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.
- 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
- 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.
- Based on estimates for the next years, SSNC will show a small growth in Revenue. The Revenue will grow by 5.18% on average per year.
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
- With a Price/Earnings ratio of 14.12, SSNC is valued correctly.
- Based on the Price/Earnings ratio, SSNC is valued a bit cheaper than the industry average as 78.41% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. SSNC is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 12.60, which indicates a correct valuation of SSNC.
- Based on the Price/Forward Earnings ratio, SSNC is valued cheaply inside the industry as 80.68% of the companies are valued more expensively.
- SSNC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| 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.
- Based on the Price/Free Cash Flow ratio, SSNC is valued a bit cheaper than 71.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.04 | ||
| EV/EBITDA | 12.79 |
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
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.
- Compared to the average S&P500 Dividend Yield of 1.82, SSNC is paying slightly less dividend.
| 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 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
- 29.40% 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.
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.