SS&C TECHNOLOGIES HOLDINGS (SSNC)
US78467J1007 - Common Stock
SSNC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 84 industry peers in the IT Services industry. SSNC has an excellent profitability rating, but there are concerns on its financial health. SSNC is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
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 better Return On Assets (3.68%) than 64.29% of its industry peers.
The Return On Equity of SSNC (9.93%) is better than 65.48% of its industry peers.
The Return On Invested Capital of SSNC (6.39%) is better than 63.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SSNC is significantly below the industry average of 12.42%.
The last Return On Invested Capital (6.39%) for SSNC is above the 3 year average (6.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 9.93% | ||
| ROIC | 6.39% |
ROA(3y)3.96%
ROA(5y)3.68%
ROE(3y)11.1%
ROE(5y)10.56%
ROIC(3y)6.18%
ROIC(5y)5.7%
1.3 Margins
The Profit Margin of SSNC (11.46%) is better than 84.52% of its industry peers.
SSNC's Profit Margin has improved in the last couple of years.
SSNC has a Operating Margin of 22.63%. This is amongst the best in the industry. SSNC outperforms 97.62% of its industry peers.
In the last couple of years the Operating Margin of SSNC has grown nicely.
Looking at the Gross Margin, with a value of 35.77%, SSNC is in line with its industry, outperforming 54.76% of the companies in the same industry.
In the last couple of years the Gross Margin of SSNC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.63% | ||
| PM (TTM) | 11.46% | ||
| GM | 35.77% |
OM growth 3Y1.32%
OM growth 5Y7.36%
PM growth 3Y-6.26%
PM growth 5Y29.61%
GM growth 3Y2.42%
GM growth 5Y3.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SSNC is destroying value.
Compared to 1 year ago, SSNC has less shares outstanding
SSNC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SSNC has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that SSNC is in the distress zone and has some risk of bankruptcy.
SSNC has a Altman-Z score (1.71) which is in line with its industry peers.
SSNC has a debt to FCF ratio of 7.49. This is a slightly negative value and a sign of low solvency as SSNC would need 7.49 years to pay back of all of its debts.
SSNC has a Debt to FCF ratio (7.49) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that SSNC has dependencies on debt financing.
The Debt to Equity ratio of SSNC (1.02) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.63
WACC10.16%
2.3 Liquidity
A Current Ratio of 1.14 indicates that SSNC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, SSNC is not doing good in the industry: 69.05% of the companies in the same industry are doing better.
A Quick Ratio of 1.14 indicates that SSNC should not have too much problems paying its short term obligations.
The Quick ratio of SSNC (1.14) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
SSNC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.21%.
Measured over the past years, SSNC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.84% on average per year.
Looking at the last year, SSNC shows a small growth in Revenue. The Revenue has grown by 4.19% in the last year.
SSNC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.97% yearly.
EPS 1Y (TTM)6.21%
EPS 3Y2.42%
EPS 5Y9.84%
EPS growth Q2Q15.32%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y5.64%
Revenue growth 5Y9.97%
Revenue growth Q2Q5.25%
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 10.48% yearly.
SSNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.82% yearly.
EPS Next Y12.1%
EPS Next 2Y11.53%
EPS Next 3Y10.79%
EPS Next 5Y10.48%
Revenue Next Year4.79%
Revenue Next 2Y4.51%
Revenue Next 3Y4.23%
Revenue Next 5Y4.82%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.30, the valuation of SSNC can be described as correct.
SSNC's Price/Earnings ratio is rather cheap when compared to the industry. SSNC is cheaper than 80.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.60. SSNC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.09 indicates a reasonable valuation of SSNC.
SSNC's Price/Forward Earnings ratio is rather cheap when compared to the industry. SSNC is cheaper than 86.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SSNC to the average of the S&P500 Index (20.15), we can say SSNC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 11.09 |
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 69.05% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SSNC is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.77 | ||
| EV/EBITDA | 11.38 |
4.3 Compensation for Growth
SSNC's 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)1.1
PEG (5Y)1.35
EPS Next 2Y11.53%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.50%, SSNC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.83, SSNC pays a better dividend. On top of this SSNC pays more dividend than 84.52% of the companies listed in the same industry.
SSNC's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
On average, the dividend of SSNC grows each year by 23.46%, which is quite nice.
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)23.46%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
35.97% 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.
DP35.97%
EPS Next 2Y11.53%
EPS Next 3Y10.79%
SS&C TECHNOLOGIES HOLDINGS
NASDAQ:SSNC (5/17/2024, 7:00:01 PM)
After market: 63.72 0 (0%)63.72
-0.29 (-0.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 11.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.1
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 9.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.63% | ||
| PM (TTM) | 11.46% | ||
| GM | 35.77% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.21%
EPS 3Y2.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.19%
Revenue growth 3Y5.64%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y