SS&C TECHNOLOGIES HOLDINGS (SSNC) Stock Fundamental Analysis
NASDAQ:SSNC - US78467J1007 - Common Stock
87.19 USD
-0.33 (-0.38%)
87.19 USD
0 (0%)
Taking everything into account, SSNC scores 6 out of 10 in our fundamental rating. SSNC was compared to 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
SSNC had positive earnings in the past year.
In the past year SSNC had a positive cash flow from operations.
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 has a Return On Assets of 4.25%. This is in the better half of the industry: SSNC outperforms 67.06% of its industry peers.
SSNC has a Return On Equity of 11.63%. This is in the better half of the industry: SSNC outperforms 70.59% of its industry peers.
The Return On Invested Capital of SSNC (7.27%) is better than 64.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SSNC is significantly below the industry average of 21.77%.
The 3 year average ROIC (6.63%) for SSNC is below the current ROIC(7.27%), indicating increased profibility in the last year.
| 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 89.41% of its industry peers.
SSNC's Profit Margin has improved in the last couple of years.
SSNC has a better Operating Margin (22.91%) than 96.47% of its industry peers.
SSNC's Operating Margin has improved in the last couple of years.
SSNC has a better Gross Margin (48.66%) than 65.88% 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
SSNC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
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.
The Altman-Z score of SSNC (1.95) is worse than 60.00% 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.
SSNC has a Debt to FCF ratio of 5.72. This is comparable to the rest of the industry: SSNC outperforms 51.76% of its industry peers.
SSNC has a Debt/Equity ratio of 0.98. This is a neutral value indicating SSNC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.98, SSNC is doing worse than 68.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.81
WACC8.96%
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: 71.76% of the companies in the same industry are doing better.
SSNC has a Quick 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 worse Quick ratio (1.14) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
SSNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.66%, which is quite good.
SSNC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.19% yearly.
The Revenue has been growing slightly by 6.75% in the past 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.
The Revenue is expected to grow by 4.80% on average over the next years.
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
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.
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 15.14, SSNC is valued correctly.
Based on the Price/Earnings ratio, SSNC is valued a bit cheaper than 76.47% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. SSNC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.13, 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 77.65% of the companies listed in the same industry.
SSNC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.48, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 13.13 |
4.2 Price Multiples
65.88% of the companies in the same industry are more expensive than SSNC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SSNC is valued a bit cheaper than the industry average as 71.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.85 | ||
| EV/EBITDA | 13.34 |
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)1.28
PEG (5Y)2.1
EPS Next 2Y10.69%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
SSNC has a Yearly Dividend Yield of 1.22%.
SSNC's Dividend Yield is rather good when compared to the industry average which is at 2.38. SSNC pays more dividend than 83.53% of the companies in the same industry.
With a Dividend Yield of 1.22, SSNC pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
The dividend of SSNC is nicely growing with an annual growth rate of 18.56%!
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%
87.19
-0.33 (-0.38%)
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 Change0.19%
Market Cap21.29B
Analysts82.5
Price Target100.51 (15.28%)
Short Float %1.96%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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)5.15%
PT rev (3m)5.34%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)1.4%
EPS NY rev (3m)1.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 13.13 | ||
| P/S | 3.52 | ||
| P/FCF | 17.85 | ||
| P/OCF | 14.5 | ||
| P/B | 3.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.34 |
EPS(TTM)5.76
EY6.61%
EPS(NY)6.64
Fwd EY7.62%
FCF(TTM)4.89
FCFY5.6%
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
WACC8.96%
ROIC/WACC0.81
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%