SS&C TECHNOLOGIES HOLDINGS (SSNC) Stock Fundamental Analysis
USA - NASDAQ:SSNC - US78467J1007 - Common Stock
87.12 USD
-0.81 (-0.92%)
87.12 USD
0 (0%)
Overall SSNC gets a fundamental rating of 6 out of 10. We evaluated SSNC against 87 industry peers in the IT Services industry. SSNC has an excellent profitability rating, but there are some minor concerns on its financial health. SSNC has a correct valuation and a medium 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.
In the past 5 years SSNC has always been profitable.
SSNC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SSNC's Return On Assets of 4.25% is fine compared to the rest of the industry. SSNC outperforms 67.82% of its industry peers.
SSNC has a Return On Equity of 11.63%. This is in the better half of the industry: SSNC outperforms 71.26% of its industry peers.
SSNC has a Return On Invested Capital of 7.27%. This is in the better half of the industry: SSNC outperforms 65.52% of its industry peers.
SSNC had an Average Return On Invested Capital over the past 3 years of 6.63%. This is significantly below the industry average of 21.81%.
The last Return On Invested Capital (7.27%) for SSNC is above the 3 year average (6.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 11.63% | ||
| ROIC | 7.27% |
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 13.34% is amongst the best of the industry. SSNC outperforms 89.66% of its industry peers.
SSNC's Profit Margin has improved in the last couple of years.
SSNC's Operating Margin of 22.91% is amongst the best of the industry. SSNC outperforms 96.55% of its industry peers.
SSNC's Operating Margin has improved in the last couple of years.
SSNC's Gross Margin of 48.66% is fine compared to the rest of the industry. SSNC outperforms 66.67% of its industry peers.
SSNC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.91% | ||
| PM (TTM) | 13.34% | ||
| GM | 48.66% |
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
Compared to 5 years ago, SSNC has less shares outstanding
Compared to 1 year ago, SSNC has an improved debt to assets ratio.
2.2 Solvency
SSNC has an Altman-Z score of 1.95. This is not the best score and indicates that SSNC is in the grey zone with still only limited risk for bankruptcy at the moment.
SSNC has a worse Altman-Z score (1.95) than 60.92% of its industry peers.
SSNC has a debt to FCF ratio of 5.72. This is a neutral value as SSNC would need 5.72 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.72, SSNC is in line with its industry, outperforming 52.87% of the companies in the same industry.
A Debt/Equity ratio of 0.98 indicates that SSNC is somewhat dependend on debt financing.
SSNC has a worse Debt to Equity ratio (0.98) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.79
WACC9.24%
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.
SSNC has a Current ratio of 1.14. This is in the lower half of the industry: SSNC underperforms 70.11% of its industry peers.
A Quick Ratio of 1.14 indicates that SSNC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.14, SSNC is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.66% over the past year.
The Earnings Per Share has been growing slightly by 7.19% on average over the past years.
Looking at the last year, SSNC shows a small growth in Revenue. The Revenue has grown by 6.75% in the last year.
SSNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.89% yearly.
EPS 1Y (TTM)15.66%
EPS 3Y2.59%
EPS 5Y7.19%
EPS Q2Q%14.17%
Revenue 1Y (TTM)6.75%
Revenue growth 3Y5.21%
Revenue growth 5Y4.89%
Sales Q2Q%5.88%
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 5.78% on average per year.
Based on estimates for the next years, SSNC will show a small growth in Revenue. The Revenue will grow by 4.80% on average per year.
EPS Next Y11.8%
EPS Next 2Y10.69%
EPS Next 3Y9.87%
EPS Next 5Y5.78%
Revenue Next Year6.41%
Revenue Next 2Y5.75%
Revenue Next 3Y5.39%
Revenue Next 5Y4.8%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.13, SSNC is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SSNC indicates a somewhat cheap valuation: SSNC is cheaper than 78.16% of the companies listed in the same industry.
SSNC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.12, the valuation of SSNC can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SSNC indicates a somewhat cheap valuation: SSNC is cheaper than 78.16% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.80. SSNC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 13.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SSNC is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SSNC indicates a somewhat cheap valuation: SSNC is cheaper than 74.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.83 | ||
| EV/EBITDA | 13.39 |
4.3 Compensation for Growth
SSNC's 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)1.28
PEG (5Y)2.1
EPS Next 2Y10.69%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
SSNC has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
SSNC's Dividend Yield is rather good when compared to the industry average which is at 2.38. SSNC pays more dividend than 82.76% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SSNC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
On average, the dividend of SSNC grows each year by 18.56%, which is quite nice.
SSNC has been paying a dividend for at least 10 years, so it has 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
30.70% of the earnings are spent on dividend by SSNC. This is a low number and sustainable payout ratio.
SSNC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.7%
EPS Next 2Y10.69%
EPS Next 3Y9.87%
87.12
-0.81 (-0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners86.2%
Inst Owner Change0.58%
Ins Owners14.39%
Ins Owner Change0.06%
Market Cap21.28B
Analysts82.5
Price Target100.77 (15.67%)
Short Float %1.94%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend1
Dividend Growth(5Y)18.56%
DP30.7%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.27%
Min EPS beat(2)0.42%
Max EPS beat(2)2.11%
EPS beat(4)4
Avg EPS beat(4)4.99%
Min EPS beat(4)0.42%
Max EPS beat(4)16.99%
EPS beat(8)6
Avg EPS beat(8)3.09%
EPS beat(12)6
Avg EPS beat(12)0.75%
EPS beat(16)8
Avg EPS beat(16)0.47%
Revenue beat(2)0
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-0.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)1.1%
Revenue beat(8)1
Avg Revenue beat(8)-0.67%
Revenue beat(12)1
Avg Revenue beat(12)-1.11%
Revenue beat(16)3
Avg Revenue beat(16)-1.04%
PT rev (1m)0.25%
PT rev (3m)5.92%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)0%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 13.12 | ||
| P/S | 3.52 | ||
| P/FCF | 17.83 | ||
| P/OCF | 14.49 | ||
| P/B | 3.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.39 |
EPS(TTM)5.76
EY6.61%
EPS(NY)6.64
Fwd EY7.62%
FCF(TTM)4.89
FCFY5.61%
OCF(TTM)6.01
OCFY6.9%
SpS24.76
BVpS28.39
TBVpS-25.45
PEG (NY)1.28
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 11.63% | ||
| ROCE | 9.31% | ||
| ROIC | 7.27% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 86.47% | ||
| OM | 22.91% | ||
| PM (TTM) | 13.34% | ||
| GM | 48.66% | ||
| FCFM | 19.73% |
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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.72 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 39.71% | ||
| Cap/Sales | 4.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.65% | ||
| Profit Quality | 147.97% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.95 |
F-Score6
WACC9.24%
ROIC/WACC0.79
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)15.66%
EPS 3Y2.59%
EPS 5Y7.19%
EPS Q2Q%14.17%
EPS Next Y11.8%
EPS Next 2Y10.69%
EPS Next 3Y9.87%
EPS Next 5Y5.78%
Revenue 1Y (TTM)6.75%
Revenue growth 3Y5.21%
Revenue growth 5Y4.89%
Sales Q2Q%5.88%
Revenue Next Year6.41%
Revenue Next 2Y5.75%
Revenue Next 3Y5.39%
Revenue Next 5Y4.8%
EBIT growth 1Y6.48%
EBIT growth 3Y2.64%
EBIT growth 5Y8%
EBIT Next Year11.4%
EBIT Next 3Y7.91%
EBIT Next 5Y6.59%
FCF growth 1Y16.16%
FCF growth 3Y-4.3%
FCF growth 5Y-1.11%
OCF growth 1Y15.52%
OCF growth 3Y-0.95%
OCF growth 5Y0.89%