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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Ss&C Technologies Holdings, Inc. (XNAS:SSNC) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
SSNC
Name:
SS&C TECHNOLOGIES HOLDINGS, INC. (XNAS:SSNC)
Sector:
147.90M
Industry:
Software�Application
CEO:
Mr. William Stone
Total Employees:
24,900
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -86.45% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF SS&C TECHNOLOGIES HOLDINGS, INC.(SSNC) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND SOFTWARE�APPLICATION INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
55.52
One Month Price Target:
$55.97
Six Month Price Target :
$58.25
Likely Price in One Year's Time:
Ticker:
$60.97
Likely Trading Range Today Under (Normal Volatility)
$55.33
Price Upper limit ($) :
$55.73
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$53.14
This week:
$50.19
This month :
$44.86
Other Primary facts
Market Cap:
14.16B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
255.03M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
11.09%
-14.83%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$66.58
$61.54
$44.46
$49.50
Medium risk (<10%) entry points
Buy Call
Sell Call
$59.89
Buy Put:
Sell Put:
$58.82
$51.13
$52.22
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
SSNC
Sharpe Ratio:
0.26%
Comparison:
SSNC, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -72.61% lower than the industry
& is -88.41% lower than the market/S&P 500 average
Average Returns/Yield of
SSNC
Daily returns:
0.01%
Weekly returns:
0.07%
Monthly returns:
0.29%
Yearly returns:
9.94%
Comparison of returns:
Average annual returns/yield (last 3 years) is -65.26% below industry average
Classification:
SSNC, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.79
Statistical test of Returns:
SSNC has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.10%
Weekly Volatility:
4.69%
Monthly Volatility:
9.38%
Yearly Volatility:
32.49%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.68%
Volatility in last five trading days has been -67.49% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.29%
Weekly VaR:
-9.60%
Monthly VaR:
-19.20%
How Much Can the price of
SSNC
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-17%
Worst case (decline):
-66.50%
This translates to price declining to:
$46.18
This translates to price declining to:
$18.60
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
SSNC is a 35.49% riskier investment compared to the market/S&P 500 & is 16.08% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -41.66% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
SSNC
Beta in relation to market/S&P 500--1.46
Expected beta in 1 year's time:
0.844
Expected beta in 3 year's time:
1.194
Unlevered (debt free) Beta:
0.752
Beta in relation to Nasdaq (XNAS):
0.604
Beta in relation to all global stocks::
0.758
Beta Comparison & Analysis
Beta of competitors/peers::
1.547
Beta is -5.50% lower than peers
Average Industry Beta:
1.335
Beta is 9.45% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
9.56%
Sustainable growth rate is -69.25% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.097
Alpha is 311.27% above industry average alpha yield
Alpha is -618% below the market average
Analysis of Cost of Capital of
SSNC
Equity cost of capital:
0.132
Equity cost of capital is 7.03% above industry mean WACC
Unlevered (without debt) cost of capital:
6.77%
Before-tax cost of debt:
2.56%
After-tax cost of debt:
2.02%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
2.02%
WACC is -5.29% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$20.05
Revenue growth rate per share of (3Y):
2.27
Annual revenue growth rate is -71.96% below industry average
EPS:
$2.98
Expected Annual growth rate of EPS (3Y):
20.01%
Expected future EPS growth rate is -26.86% lower than the Software�Application industry
Free cash flow (FCF) per share:
$4.98
Balance sheet equity growth per share: 122.54%
Equity growth rate per share is 7915.00% higher than the industry
Debt per share
$29.96
EBITDA per share
$7.45
Valuation Analysis Today of
SSNC
P/E Ratio:
20.61
P/E Ratio of Competitors/Peers:
276.53
P/E ratio is -92.55% lower than main peers & is -88.39% lower than the industry
Stock price/value with industry average P/E ratio: $529.24
SSNC is -89.51% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $77.35
Present value of the expected future dividends only: $10.84
P/S (Price to Sales ratio):
2.77
Price to sales ratio is -75.86% below the industry mean
P/B (Price to book value ratio):
2.27
Price to free cash flow: 11.15
Price to free cash flow ratio is -84.55% lower than the industry
Net income growth rate (3Y):
602.94%
Net income growth rate is 146.93% higher than the average industry net income growth rate
Dividend Analysis
Dividend payout rate: 6.41%
Dividend yeild: 1.52%
Previous Dividend: $0.20
Previous adjusted dividend: $0.20
Previous Dividend: $0.84
Expected next dividend best case: $0.23
Expected next dividend worst case: $0.17
Average dividend payment (long-term): $0.17
Average dividend increase/decrease (growth rate) % per period: 5.00%
Expected next dividend payment date: 13/09/2022
Expected next dividend record date: 30/08/2022
-
Previous dividend payment date: 15/06/2022
Previous dividend record date: 06/01/2022
-
Dividend History:
2022-05-31--$0.20
2021-12-15--$0.24
2021-08-31--$0.16
2022-02-28--$0.20
2021-11-30--$0.20
2021-05-28--$0.16
Dividend growth rate is -150.78% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
122.58%
Net debt to equity ratio:
115.98%
Debt to assets ratio:
40.44%
Net debt to assets ratio:
38.26%
Debt-to-asset ratio is -26.29% below industry average
Ability to repay debt:
Interest coverage ratio:
9.52
Interest coverage ratio is -82.08% less than industry average
Looking forward:
Debt growth rate:
-3.50%
Annual debt growth is -100% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.63%
Analysis of Key Statistics
Correlation of price movement with the market:
0.592
Statistical significance of correlation:
SSNC has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.503
Stock price is 17.72% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.503
Correlation of price movement with Nasdaq (^IXIC):
-0.022
Covariance of price movement with the market:
-0.027
Kurtosis
9.189
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.549
Returns are left (negative) skewed; mean returns are lower than median and mode returns
Fundamental Analysis & Dupont Analysis of
SSNC
Gross Profit Margin Ratio:
147%
Operating Profit Margin Ratio:
24.74%
Operating profit margin is -229.13% lower than the industry
Net Profit Margin Ratio:
147%
Effective Tax Rate:
23.08%
Effective tax rate is -12.51% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
12.79%
Return on equity (ROE) is -197.80% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
4.22%
Return on assets (ROA) is -209.88% lower than the industry
Financial Leverage:
1.7x
Current Ratio:
1.08
Current ratio is -63.80% below industry average
Cash Conversion Cycle (days):
47.7
Cash conversion cycle is -49.71% below industry average
The remaining useful life of property plant & equipment is: 2.1 years
Stock based compensation to net income ratio:
5.01%
In-depth Efficiency Analysis
Revenue generated per employee:
205.3K
Each employee generates -41% less revenue than industry average revenue per employee
EBITDA generated per employee:
76.3K
Each employee generates 610% more EBITDA than industry average revenue per employee
Profit generated per employee:
32.0K
Each employee generates -284% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
5.9K
Each employee generates -176% less free cash flow than industry average revenue per employee
Assets/Capital per employee
592.9K
Each employee generates -176% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 3.88%
Growth rate in R&D investment/expenditure is 153.83% higher than the industry
Competitors/Peer firms of
SSNC
ZoomInfo Technologies Inc (XNAS:ZI)
WESTERN DIGITAL CORPORATION (XNAS:WDC)
NETAPP, INC. (XNAS:NTAP)
TRIMBLE INC. (XNAS:TRMB)
Affirm Holdings Inc (XNAS:AFRM)
ENPHASE ENERGY, INC. (XNAS:ENPH)
SPLUNK INC. (XNAS:SPLK)
NICE LTD (XNAS:NICE)
AKAMAI TECHNOLOGIES, INC. (XNAS:AKAM)
Current Analyst Ratings
Strong buy�13%
Buy�33%
Hold�4%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
5.11B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
3.24B
1.87B
412.80M
379.20M
792.20M
413.00M
-
1.21B
4.00M
199.50M
663.50M
1.90B
1.27B
797.20M
1.04B
239.10M
797.20M
Statement of Cash Flow
Date:
Period:
165.60M
Differed Income Tax :
- 33300.00K
Stock Based Compensation :
39.90M
Change in Working Capital :
- 79500.00K
Accounts Receivables:
- 32400.00K
Other Working Capital:
321.60M
Other Non-Cash Items:
- 81300.00K
Net Cash Provided by Operating Activities:
183.50M
Investments in PP&E:
- 10800.00K
Net Acquisitions:
- 1553100.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
558.10M
-
558.10M
3.34B
-
228.10M
4.13B
647.70M
9.06B
-
173.60M
-
4.89B
14.76B
-
18.89B
46.90M
146.70M
50.30M
487.40M
3.13B
3.81B
7.64B
261.50M
8.84B
-
12.65B
-
2.52B
-
3.72B
March 31, 2022 at 6:00:00 AM
4.44B
6.23B
18.88B
-
7.79B
7.2B
2.50M
- 22100.00K
- 1583500.00K
- 48200.00K
-
- 170900.00K
- 51100.00K
1.51B
1.24B
- 4500.00K
- 163600.00K
3.01B
3.17B
183.50M
- 35600.00K
147.90M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
SSNC
2023
2024
2025
2026
2027
$61.27
$333.61
$366.38
$402.37
$441.89