SS&C Technologies Holdings, Inc. Fundamental Analysis (NASDAQ: SSNC)
SS&C Technologies Holdings, Inc. Fundamental Analysis (NASDAQ: SSNC)
SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) shows moderate financial fundamentals with a PE ratio of 22.11, profit margin of 13.16%, and ROE of 12.66%. The company generates $6.4B in annual revenue with moderate year-over-year growth of 6.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SSNC's fundamental strength across five key dimensions:
Efficiency Score
WeakSSNC struggles to generate sufficient returns from assets.
Valuation Score
ModerateSSNC shows balanced valuation metrics.
Growth Score
ModerateSSNC shows steady but slowing expansion.
Financial Health Score
ModerateSSNC shows balanced financial health with some risks.
Profitability Score
WeakSSNC struggles to sustain strong margins.
Key Financial Metrics
Is SSNC Expensive or Cheap?
P/E Ratio
SSNC trades at 22.11 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SSNC's PEG of 2.51 indicates potential overvaluation.
Price to Book
The market values SS&C Technologies Holdings, Inc. at 2.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.05 times EBITDA. This is generally considered low.
How Well Does SSNC Make Money?
Net Profit Margin
For every $100 in sales, SS&C Technologies Holdings, Inc. keeps $13.16 as profit after all expenses.
Operating Margin
Core operations generate 23.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.66 in profit for every $100 of shareholder equity.
ROA
SS&C Technologies Holdings, Inc. generates $4.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SS&C Technologies Holdings, Inc. generates strong operating cash flow of $1.79B, reflecting robust business health.
Free Cash Flow
SS&C Technologies Holdings, Inc. generates strong free cash flow of $1.73B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.35 in free cash annually.
FCF Yield
SSNC converts 9.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How SSNC Stacks Against Its Sector Peers
| Metric | SSNC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.11 | 36.46 | Better (Cheaper) |
| ROE | 12.66% | 679.00% | Weak |
| Net Margin | 13.16% | -129239.00% (disorted) | Strong |
| Debt/Equity | 1.17 | 0.43 | Weak (High Leverage) |
| Current Ratio | 1.06 | 5.89 | Neutral |
| ROA | 4.19% | 237.00% | Weak |
SSNC outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SS&C Technologies Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.02%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
33.78%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
54.57%
Industry Style: Growth, Innovation, High Beta
High Growth