SS&C TECHNOLOGIES HOLDINGS (SSNC) Stock Fundamental Analysis
NASDAQ:SSNC - Nasdaq - US78467J1007 - Common Stock - Currency: USD
Overall SSNC gets a fundamental rating of 5 out of 10. We evaluated SSNC against 82 industry peers in the IT Services industry. SSNC has an excellent profitability rating, but there are 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.
Each year in the past 5 years SSNC has been profitable.
SSNC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SSNC has a Return On Assets of 4.00%. This is in the better half of the industry: SSNC outperforms 60.98% of its industry peers.
With a decent Return On Equity value of 12.02%, SSNC is doing good in the industry, outperforming 67.07% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.24%, SSNC is doing good in the industry, outperforming 63.41% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SSNC is significantly below the industry average of 22.63%.
The last Return On Invested Capital (7.24%) for SSNC is above the 3 year average (6.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 12.02% | ||
| ROIC | 7.24% |
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 better Profit Margin (13.69%) than 89.02% of its industry peers.
In the last couple of years the Profit Margin of SSNC has grown nicely.
SSNC has a Operating Margin of 22.96%. This is amongst the best in the industry. SSNC outperforms 96.34% of its industry peers.
In the last couple of years the Operating Margin of SSNC has grown nicely.
SSNC's Gross Margin of 48.71% is fine compared to the rest of the industry. SSNC outperforms 67.07% of its industry peers.
SSNC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.96% | ||
| PM (TTM) | 13.69% | ||
| GM | 48.71% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SSNC is destroying value.
Compared to 1 year ago, SSNC has less shares outstanding
Compared to 5 years ago, SSNC has less shares outstanding
The debt/assets ratio for SSNC has been reduced compared to a year ago.
2.2 Solvency
SSNC has an Altman-Z score of 1.68. This is a bad value and indicates that SSNC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.68, SSNC is doing worse than 64.63% of the companies in the same industry.
The Debt to FCF ratio of SSNC is 5.62, which is a neutral value as it means it would take SSNC, 5.62 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.62, SSNC is in line with its industry, outperforming 50.00% of the companies in the same industry.
SSNC has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SSNC (1.01) is worse than 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.77
WACC9.44%
2.3 Liquidity
A Current Ratio of 1.11 indicates that SSNC should not have too much problems paying its short term obligations.
The Current ratio of SSNC (1.11) is worse than 69.51% of its industry peers.
A Quick Ratio of 1.11 indicates that SSNC should not have too much problems paying its short term obligations.
SSNC has a Quick ratio of 1.11. This is in the lower half of the industry: SSNC underperforms 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.49% over the past year.
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 6.92%.
The Revenue has been growing slightly by 4.89% on average over the past years.
EPS 1Y (TTM)16.49%
EPS 3Y2.59%
EPS 5Y7.19%
EPS Q2Q%12.5%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y5.21%
Revenue growth 5Y4.89%
Sales Q2Q%5.5%
3.2 Future
The Earnings Per Share is expected to grow by 3.71% on average over the next years.
Based on estimates for the next years, SSNC will show a small growth in Revenue. The Revenue will grow by 5.81% on average per year.
EPS Next Y10.13%
EPS Next 2Y10.17%
EPS Next 3Y9.1%
EPS Next 5Y3.71%
Revenue Next Year5.98%
Revenue Next 2Y5.48%
Revenue Next 3Y5.01%
Revenue Next 5Y5.81%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 14.30 indicates a correct valuation of SSNC.
Based on the Price/Earnings ratio, SSNC is valued a bit cheaper than 79.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, SSNC is valued a bit cheaper.
SSNC is valuated correctly with a Price/Forward Earnings ratio of 12.13.
82.93% 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 12.13 |
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 70.73% of the companies listed in the same industry.
SSNC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SSNC is cheaper than 81.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.12 | ||
| EV/EBITDA | 12.67 |
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)1.41
PEG (5Y)1.99
EPS Next 2Y10.17%
EPS Next 3Y9.1%
5. Dividend
5.1 Amount
SSNC has a Yearly Dividend Yield of 1.27%. 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 2.37. SSNC pays more dividend than 81.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, SSNC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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 its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)18.56%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
30.25% 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.
DP30.25%
EPS Next 2Y10.17%
EPS Next 3Y9.1%
79.79
+0.89 (+1.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners84.9%
Inst Owner Change0.01%
Ins Owners13.19%
Ins Owner Change-0.13%
Market Cap19.68B
Analysts83.53
Price Target95.41 (19.58%)
Short Float %1.59%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend1
Dividend Growth(5Y)18.56%
DP30.25%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.71%
Min EPS beat(2)0.42%
Max EPS beat(2)16.99%
EPS beat(4)4
Avg EPS beat(4)5.48%
Min EPS beat(4)0.42%
Max EPS beat(4)16.99%
EPS beat(8)5
Avg EPS beat(8)2.15%
EPS beat(12)5
Avg EPS beat(12)-0.23%
EPS beat(16)8
Avg EPS beat(16)0.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)1.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.3%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)1.1%
Revenue beat(8)1
Avg Revenue beat(8)-0.82%
Revenue beat(12)1
Avg Revenue beat(12)-1.35%
Revenue beat(16)4
Avg Revenue beat(16)-0.89%
PT rev (1m)-3%
PT rev (3m)-1.74%
EPS NQ rev (1m)-2.64%
EPS NQ rev (3m)-2.57%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-1.28%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 12.13 | ||
| P/S | 3.3 | ||
| P/FCF | 16.12 | ||
| P/OCF | 13.3 | ||
| P/B | 2.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.67 |
EPS(TTM)5.58
EY6.99%
EPS(NY)6.58
Fwd EY8.25%
FCF(TTM)4.95
FCFY6.2%
OCF(TTM)6
OCFY7.52%
SpS24.17
BVpS27.51
TBVpS-25.42
PEG (NY)1.41
PEG (5Y)1.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 12.02% | ||
| ROCE | 9.27% | ||
| ROIC | 7.24% | ||
| ROICexc | 7.5% | ||
| ROICexgc | 89.27% | ||
| OM | 22.96% | ||
| PM (TTM) | 13.69% | ||
| GM | 48.71% | ||
| FCFM | 20.48% |
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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 5.62 | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 37.88% | ||
| Cap/Sales | 4.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.07% | ||
| Profit Quality | 149.61% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 1.68 |
F-Score6
WACC9.44%
ROIC/WACC0.77
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)16.49%
EPS 3Y2.59%
EPS 5Y7.19%
EPS Q2Q%12.5%
EPS Next Y10.13%
EPS Next 2Y10.17%
EPS Next 3Y9.1%
EPS Next 5Y3.71%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y5.21%
Revenue growth 5Y4.89%
Sales Q2Q%5.5%
Revenue Next Year5.98%
Revenue Next 2Y5.48%
Revenue Next 3Y5.01%
Revenue Next 5Y5.81%
EBIT growth 1Y8.46%
EBIT growth 3Y2.64%
EBIT growth 5Y8%
EBIT Next Year10.33%
EBIT Next 3Y7.55%
EBIT Next 5Y7.83%
FCF growth 1Y24.59%
FCF growth 3Y-4.3%
FCF growth 5Y-1.11%
OCF growth 1Y22.79%
OCF growth 3Y-0.95%
OCF growth 5Y0.89%