85.09 USD
-0.4 (-0.47%)
Overall SSNC gets a fundamental rating of 6 out of 10. We evaluated SSNC against 88 industry peers in the IT Services industry. SSNC has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SSNC.
1. Profitability
1.1 Basic Checks
- In the past year SSNC was profitable.
- SSNC had a positive operating cash flow in the past year.
- In the past 5 years SSNC has always been profitable.
- In the past 5 years SSNC always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 4.37%, SSNC is doing good in the industry, outperforming 64.77% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.30%, SSNC is in the better half of the industry, outperforming 73.86% of the companies in the same industry.
- 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
- SSNC has a Profit Margin of 13.86%. This is amongst the best in the industry. SSNC outperforms 88.64% of its industry peers.
- 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 96.59% of its industry peers.
- 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.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SSNC is destroying value.
- SSNC has less shares outstanding than it did 1 year ago.
- 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
- An Altman-Z score of 1.88 indicates that SSNC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of SSNC (1.88) is comparable to the rest of the industry.
- 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's Debt to FCF ratio of 5.08 is in line compared to the rest of the industry. SSNC outperforms 53.41% of 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 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/WACC0.83
WACC9.15%
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.
- SSNC has a worse Current ratio (1.12) than 70.45% of its industry peers.
- SSNC has a Quick 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.
- SSNC has a Quick ratio of 1.12. This is in the lower half of the industry: SSNC underperforms 70.45% 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
- 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.
- SSNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.18% yearly.
EPS Next Y14.1%
EPS Next 2Y11.68%
EPS Next 3Y10.61%
EPS Next 5Y9.67%
Revenue Next Year6.97%
Revenue Next 2Y6.38%
Revenue Next 3Y5.77%
Revenue Next 5Y5.18%
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
- SSNC is valuated correctly with a Price/Earnings ratio of 14.09.
- SSNC's Price/Earnings ratio is rather cheap when compared to the industry. SSNC is cheaper than 80.68% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. SSNC is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 12.59, the valuation of SSNC can be described as correct.
- 81.82% of the companies in the same industry are more expensive than SSNC, based on the Price/Forward Earnings ratio.
- SSNC is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 12.59 |
4.2 Price Multiples
- 72.73% of the companies in the same industry are more expensive than SSNC, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SSNC indicates a somewhat cheap valuation: SSNC is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16 | ||
| EV/EBITDA | 12.75 |
4.3 Compensation for Growth
- SSNC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of SSNC may justify a higher PE ratio.
PEG (NY)1
PEG (5Y)1.96
EPS Next 2Y11.68%
EPS Next 3Y10.61%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.26%, SSNC has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.44, 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 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 2Y11.68%
EPS Next 3Y10.61%
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 7 / 10 to SS&C TECHNOLOGIES HOLDINGS (SSNC). This can be considered as Undervalued.
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 14.09 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.