SS&C TECHNOLOGIES HOLDINGS (SSNC)
US78467J1007 - Common Stock
We assign a fundamental rating of 6 out of 10 to SSNC. SSNC was compared to 86 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
SSNC had positive earnings in the past year.
SSNC had a positive operating cash flow in the past year.
In the past 5 years SSNC has always been profitable.
Each year in the past 5 years SSNC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.67%, SSNC is doing good in the industry, outperforming 65.48% of the companies in the same industry.
SSNC's Return On Equity of 9.93% is fine compared to the rest of the industry. SSNC outperforms 66.67% of its industry peers.
SSNC's Return On Invested Capital of 6.39% is fine compared to the rest of the industry. SSNC outperforms 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 13.16%.
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 | 3.67% | ||
| 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
With an excellent Profit Margin value of 11.46%, SSNC belongs to the best of the industry, outperforming 84.52% of the companies in the same industry.
In the last couple of years the Profit Margin of SSNC has grown nicely.
With an excellent Operating Margin value of 22.63%, SSNC belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
SSNC's Operating Margin has improved in the last couple of years.
SSNC has a Gross Margin (35.77%) which is in line with its industry peers.
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.
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.
Compared to 1 year ago, SSNC has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of SSNC is 7.49, which is on the high side as it means it would take SSNC, 7.49 years of fcf income to pay off all of its debts.
SSNC's Debt to FCF ratio of 7.49 is in line compared to the rest of the industry. SSNC outperforms 47.62% of its industry peers.
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 | N/A |
ROIC/WACC0.62
WACC10.28%
2.3 Liquidity
SSNC has a Current Ratio of 1.14. 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 (1.14) is worse than 67.86% of its industry peers.
A Quick Ratio of 1.14 indicates that SSNC should not have too much problems paying its short term obligations.
SSNC has a Quick ratio of 1.14. This is in the lower half of the industry: SSNC underperforms 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%.
SSNC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.84% yearly.
SSNC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.19%.
Measured over the past years, SSNC shows a quite strong growth in Revenue. The Revenue has been growing by 9.97% on average per year.
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 Q2Q5.31%
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 11.52% yearly.
SSNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.04% yearly.
EPS Next Y12.1%
EPS Next 2Y11.53%
EPS Next 3Y10.79%
EPS Next 5Y11.52%
Revenue Next Year4.79%
Revenue Next 2Y4.51%
Revenue Next 3Y4.23%
Revenue Next 5Y3.04%
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.
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
The Price/Earnings ratio is 12.90, which indicates a correct valuation of SSNC.
Based on the Price/Earnings ratio, SSNC is valued cheaper than 80.95% of the companies in the same industry.
When comparing the Price/Earnings ratio of SSNC to the average of the S&P500 Index (28.28), we can say SSNC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.76, the valuation of SSNC can be described as reasonable.
86.90% of the companies in the same industry are more expensive than SSNC, based on the Price/Forward Earnings ratio.
SSNC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SSNC is valued a bit cheaper than 70.24% of the companies in the same industry.
73.81% 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 | 17.23 | ||
| EV/EBITDA | 11.1 |
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)1.07
PEG (5Y)1.31
EPS Next 2Y11.53%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
SSNC has a Yearly Dividend Yield of 1.56%.
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.
Compared to the average S&P500 Dividend Yield of 2.41, SSNC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of SSNC is nicely growing with an annual growth rate of 23.46%!
SSNC has been paying a dividend for at least 10 years, so it has a reliable track record.
SSNC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)23.46%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
SSNC pays out 35.99% of its income as dividend. This is a sustainable payout ratio.
The dividend of SSNC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.99%
EPS Next 2Y11.53%
EPS Next 3Y10.79%
SS&C TECHNOLOGIES HOLDINGS
NASDAQ:SSNC (5/3/2024, 7:19:53 PM)
After market: 61.81 0 (0%)61.81
+0.29 (+0.47%)
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 Cap15.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 10.76 | ||
| 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)1.07
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| 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