SS&C TECHNOLOGIES HOLDINGS (SSNC) Stock Fundamental Analysis
USA - NASDAQ:SSNC - US78467J1007 - Common Stock
81.34 USD
+0.18 (+0.22%)
81.34 USD
0 (0%)
SSNC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. SSNC has an excellent profitability rating, but 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 64.71% 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 72.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.56%, SSNC is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
SSNC had an Average Return On Invested Capital over the past 3 years of 6.63%. This is significantly below the industry average of 30.25%.
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's Profit Margin of 13.86% is amongst the best of the industry. SSNC outperforms 89.41% of its industry peers.
In the last couple of years the Profit Margin of SSNC has grown nicely.
The Operating Margin of SSNC (23.19%) is better than 96.47% of its industry peers.
SSNC's Operating Margin has improved in the last couple of years.
SSNC has a Gross Margin of 48.56%. This is in the better half of the industry: SSNC outperforms 67.06% 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
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
The number of shares outstanding for SSNC has been reduced compared to 5 years ago.
SSNC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.83 indicates that SSNC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.83, SSNC is doing worse than 60.00% of the companies in the same 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.
With a Debt to FCF ratio value of 5.08, SSNC perfoms like the industry average, outperforming 52.94% 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.
The Debt to Equity ratio of SSNC (0.95) is worse than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.88
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.12 indicates that SSNC should not have too much problems paying its short term obligations.
SSNC's Current ratio of 1.12 is on the low side compared to the rest of the industry. SSNC is outperformed by 68.24% of its industry peers.
A Quick Ratio of 1.12 indicates that SSNC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, SSNC is doing worse than 68.24% of the companies in the same industry.
| 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.
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%.
SSNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.89% yearly.
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
The Earnings Per Share is expected to grow by 10.03% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.21% on average over the next years.
EPS Next Y14.1%
EPS Next 2Y11.77%
EPS Next 3Y10.69%
EPS Next 5Y10.03%
Revenue Next Year6.93%
Revenue Next 2Y6.39%
Revenue Next 3Y5.79%
Revenue Next 5Y5.21%
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
Based on the Price/Earnings ratio of 13.47, the valuation of SSNC can be described as correct.
Based on the Price/Earnings ratio, SSNC is valued a bit cheaper than the industry average as 78.82% of the companies are valued more expensively.
SSNC is valuated rather cheaply when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.01 indicates a correct valuation of SSNC.
SSNC's Price/Forward Earnings ratio is rather cheap when compared to the industry. SSNC is cheaper than 82.35% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, SSNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 12.01 |
4.2 Price Multiples
69.41% of the companies in the same industry are more expensive than SSNC, based on the Enterprise Value to EBITDA ratio.
70.59% of the companies in the same industry are more expensive than SSNC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.31 | ||
| EV/EBITDA | 12.26 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SSNC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.96
PEG (5Y)1.87
EPS Next 2Y11.77%
EPS Next 3Y10.69%
5. Dividend
5.1 Amount
SSNC has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.00, SSNC pays a better dividend. On top of this SSNC pays more dividend than 82.35% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SSNC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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 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
SSNC pays out 29.40% 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.
DP29.4%
EPS Next 2Y11.77%
EPS Next 3Y10.69%
81.34
+0.18 (+0.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners85.85%
Inst Owner Change0.5%
Ins Owners14.55%
Ins Owner Change1.4%
Market Cap19.86B
Revenue(TTM)6.15B
Net Income(TTM)852.40M
Analysts82.5
Price Target104.59 (28.58%)
Short Float %1.56%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend1
Dividend Growth(5Y)18.56%
DP29.4%
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)3.8%
PT rev (3m)4.06%
EPS NQ rev (1m)1.6%
EPS NQ rev (3m)1.39%
EPS NY rev (1m)1.98%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)1.65%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 12.01 | ||
| P/S | 3.23 | ||
| P/FCF | 15.31 | ||
| P/OCF | 12.51 | ||
| P/B | 2.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.26 |
EPS(TTM)6.04
EY7.43%
EPS(NY)6.77
Fwd EY8.32%
FCF(TTM)5.31
FCFY6.53%
OCF(TTM)6.5
OCFY7.99%
SpS25.18
BVpS28.38
TBVpS-24.77
PEG (NY)0.96
PEG (5Y)1.87
Graham Number62.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.37% | ||
| ROE | 12.3% | ||
| 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 | 152.25% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 1.83 |
F-Score7
WACC8.64%
ROIC/WACC0.88
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 Y14.1%
EPS Next 2Y11.77%
EPS Next 3Y10.69%
EPS Next 5Y10.03%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y5.21%
Revenue growth 5Y4.89%
Sales Q2Q%6.97%
Revenue Next Year6.93%
Revenue Next 2Y6.39%
Revenue Next 3Y5.79%
Revenue Next 5Y5.21%
EBIT growth 1Y8.05%
EBIT growth 3Y2.64%
EBIT growth 5Y8%
EBIT Next Year11.4%
EBIT Next 3Y7.91%
EBIT Next 5Y7.3%
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 6 / 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 13.47 and the Price/Book (PB) ratio is 2.87.
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 14.1% in the next year.