SS&C TECHNOLOGIES HOLDINGS (SSNC) Stock Fundamental Analysis
USA - NASDAQ:SSNC - US78467J1007 - Common Stock
84.92 USD
+1.28 (+1.53%)
84.92 USD
0 (0%)
Taking everything into account, SSNC scores 5 out of 10 in our fundamental rating. SSNC was compared to 85 industry peers in the IT Services industry. SSNC scores excellent on profitability, but there are 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
SSNC had positive earnings in the past year.
SSNC had a positive operating cash flow in the past year.
Each year in the past 5 years SSNC has 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 68.24% of its industry peers.
The Return On Equity of SSNC (12.29%) is better than 74.12% of its industry peers.
The Return On Invested Capital of SSNC (7.56%) is better than 65.88% 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 27.90%.
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 | 12.29% | ||
| 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
Looking at the Profit Margin, with a value of 13.86%, SSNC belongs to the top of the industry, outperforming 89.41% of the companies in the same industry.
In the last couple of years the Profit Margin of SSNC has grown nicely.
SSNC's Operating Margin of 23.19% is amongst the best of the industry. SSNC outperforms 96.47% of its industry peers.
SSNC's Operating Margin has improved in the last couple of years.
SSNC has a better Gross Margin (48.56%) than 64.71% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SSNC is destroying value.
Compared to 1 year ago, SSNC has less shares outstanding
The number of shares outstanding for SSNC has been reduced compared to 5 years ago.
Compared to 1 year ago, SSNC has an improved debt to assets ratio.
2.2 Solvency
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.
Looking at the Debt to FCF ratio, with a value of 5.08, SSNC is in line with its industry, outperforming 58.82% of the companies in the same industry.
SSNC has a Debt/Equity ratio of 0.95. This is a neutral value indicating SSNC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.95, SSNC is not doing good in the industry: 65.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | N/A |
ROIC/WACC0.83
WACC9.13%
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: 70.59% 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.
The Quick ratio of SSNC (1.12) is worse than 69.41% 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.
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.
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 small growth in Earnings Per Share. The EPS will grow by 5.78% on average per year.
SSNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.80% yearly.
EPS Next Y11.89%
EPS Next 2Y10.73%
EPS Next 3Y9.94%
EPS Next 5Y5.78%
Revenue Next Year6.48%
Revenue Next 2Y5.89%
Revenue Next 3Y5.5%
Revenue Next 5Y4.8%
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.
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
SSNC is valuated correctly with a Price/Earnings ratio of 14.06.
81.18% of the companies in the same industry are more expensive than SSNC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SSNC to the average of the S&P500 Index (26.10), we can say SSNC is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.78, the valuation of SSNC can be described as correct.
Based on the Price/Forward Earnings ratio, SSNC is valued a bit cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.52. SSNC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 12.78 |
4.2 Price Multiples
68.24% 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 the industry average as 71.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.98 | ||
| EV/EBITDA | 12.54 |
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)1.18
PEG (5Y)1.96
EPS Next 2Y10.73%
EPS Next 3Y9.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.29%, SSNC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.50, SSNC pays a better dividend. On top of this SSNC pays more dividend than 81.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, SSNC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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 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
SSNC pays out 29.41% 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.
DP29.41%
EPS Next 2Y10.73%
EPS Next 3Y9.94%
84.92
+1.28 (+1.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners85.85%
Inst Owner Change-0.06%
Ins Owners14.55%
Ins Owner Change1.33%
Market Cap20.74B
Revenue(TTM)6.15B
Net Income(TTM)852.00M
Analysts82.5
Price Target104.59 (23.16%)
Short Float %1.56%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend1
Dividend Growth(5Y)18.56%
DP29.41%
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)0%
PT rev (3m)5.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)0%
EPS NY rev (3m)1.49%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 12.78 | ||
| P/S | 3.37 | ||
| P/FCF | 15.98 | ||
| P/OCF | 13.06 | ||
| P/B | 2.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.54 |
EPS(TTM)6.04
EY7.11%
EPS(NY)6.65
Fwd EY7.83%
FCF(TTM)5.31
FCFY6.26%
OCF(TTM)6.5
OCFY7.66%
SpS25.18
BVpS28.38
TBVpS-24.77
PEG (NY)1.18
PEG (5Y)1.96
Graham Number62.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.37% | ||
| ROE | 12.29% | ||
| 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 | 152.32% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | N/A |
F-Score7
WACC9.13%
ROIC/WACC0.83
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 Y11.89%
EPS Next 2Y10.73%
EPS Next 3Y9.94%
EPS Next 5Y5.78%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y5.21%
Revenue growth 5Y4.89%
Sales Q2Q%6.97%
Revenue Next Year6.48%
Revenue Next 2Y5.89%
Revenue Next 3Y5.5%
Revenue Next 5Y4.8%
EBIT growth 1Y8.05%
EBIT growth 3Y2.64%
EBIT growth 5Y8%
EBIT Next Year11.4%
EBIT Next 3Y7.91%
EBIT Next 5Y6.59%
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 5 / 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 14.06 and the Price/Book (PB) ratio is 2.99.
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 11.89% in the next year.