SS&C TECHNOLOGIES HOLDINGS (SSNC) Stock Fundamental Analysis
NASDAQ:SSNC - Nasdaq - US78467J1007 - Common Stock - Currency: USD
SSNC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
In the past year SSNC was profitable.
In the past year SSNC had a positive cash flow from operations.
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's Return On Assets of 4.00% is fine compared to the rest of the industry. SSNC outperforms 62.20% of its industry peers.
Looking at the Return On Equity, with a value of 12.02%, SSNC is in the better half of the industry, outperforming 69.51% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.24%, SSNC is doing good in the industry, outperforming 62.20% 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 21.64%.
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
SSNC has a Profit Margin of 13.69%. This is amongst the best in the industry. SSNC outperforms 90.24% of its industry peers.
In the last couple of years the Profit Margin of SSNC has grown nicely.
SSNC has a better Operating Margin (22.96%) than 96.34% of its industry peers.
SSNC's Operating Margin has improved in the last couple of years.
The Gross Margin of SSNC (48.71%) is better than 67.07% of its industry peers.
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.
SSNC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SSNC has been reduced compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 1.72, SSNC is doing worse than 68.29% of the companies in the same industry.
The Debt to FCF ratio of SSNC is 5.62, which is a neutral value as it means it would take SSNC, 5.62 years of fcf income to pay off 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 52.44% of its industry peers.
A Debt/Equity ratio of 1.01 is on the high side and indicates that SSNC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.01, SSNC is not doing good in the industry: 69.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.76
WACC9.5%
2.3 Liquidity
SSNC has a Current Ratio of 1.11. This is a normal value and indicates that SSNC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SSNC (1.11) is worse than 71.95% 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: 70.73% 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.
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 6.92%.
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)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.
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
SSNC is valuated correctly with a Price/Earnings ratio of 14.97.
Based on the Price/Earnings ratio, SSNC is valued a bit cheaper than the industry average as 76.83% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SSNC to the average of the S&P500 Index (27.29), we can say SSNC is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.68, SSNC is valued correctly.
Based on the Price/Forward Earnings ratio, SSNC is valued cheaply inside the industry as 81.71% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.74. SSNC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SSNC indicates a somewhat cheap valuation: SSNC is cheaper than 70.73% of the companies listed in the same industry.
SSNC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SSNC is cheaper than 84.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.88 | ||
| EV/EBITDA | 13.12 |
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)1.46
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 2.48. SSNC pays more dividend than 80.49% of the companies in the same industry.
With a Dividend Yield of 1.20, SSNC pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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
30.25% 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.
DP30.25%
EPS Next 2Y10.23%
EPS Next 3Y9.31%
83.54
+0.04 (+0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners85.2%
Inst Owner Change0.12%
Ins Owners14.39%
Ins Owner Change0.29%
Market Cap20.61B
Analysts83.53
Price Target95.14 (13.89%)
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 | 14.97 | ||
| Fwd PE | 12.68 | ||
| P/S | 3.46 | ||
| P/FCF | 16.88 | ||
| P/OCF | 13.92 | ||
| P/B | 3.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.12 |
EPS(TTM)5.58
EY6.68%
EPS(NY)6.59
Fwd EY7.88%
FCF(TTM)4.95
FCFY5.92%
OCF(TTM)6
OCFY7.18%
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
WACC9.5%
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%