DB:WGSA

Stock Analysis Report

SS&C Technologies Holdings

Executive Summary

SS&C Technologies Holdings, Inc. provides software products and software-enabled services to financial services and healthcare industries in the United States, Canada, rest of the Americas, Europe, the Asia Pacific, and Japan.

Rewards

Trading at 29.2% below its fair value

Earnings are forecast to grow 13.71% per year

Earnings grew by 324.9% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

How has SS&C Technologies Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WGSA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

WGSA

2.4%

DE Software

0.2%

DE Market


1 Year Return

12.8%

WGSA

38.0%

DE Software

14.4%

DE Market

Return vs Industry: WGSA underperformed the German Software industry which returned 38% over the past year.

Return vs Market: WGSA underperformed the German Market which returned 14.4% over the past year.


Shareholder returns

WGSAIndustryMarket
7 Day1.7%2.4%0.2%
30 Day5.3%3.3%0.9%
90 Day12.2%7.1%4.6%
1 Year13.7%12.8%39.9%38.0%17.9%14.4%
3 Year82.0%78.3%57.4%51.1%15.7%5.6%
5 Year128.9%120.7%133.6%117.0%23.4%6.5%

Price Volatility Vs. Market

How volatile is SS&C Technologies Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SS&C Technologies Holdings undervalued compared to its fair value and its price relative to the market?

29.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WGSA (€60) is trading below our estimate of fair value (€84.69)

Significantly Below Fair Value: WGSA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WGSA is good value based on its PE Ratio (37.3x) compared to the Software industry average (45.5x).

PE vs Market: WGSA is poor value based on its PE Ratio (37.3x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: WGSA is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: WGSA is good value based on its PB Ratio (3.2x) compared to the DE Software industry average (3.2x).


Next Steps

Future Growth

How is SS&C Technologies Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WGSA's forecast earnings growth (13.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: WGSA's earnings (13.7% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: WGSA's earnings are forecast to grow, but not significantly.

Revenue vs Market: WGSA's revenue (3.5% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: WGSA's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WGSA's Return on Equity is forecast to be low in 3 years time (17.7%).


Next Steps

Past Performance

How has SS&C Technologies Holdings performed over the past 5 years?

29.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WGSA has high quality earnings.

Growing Profit Margin: WGSA's current net profit margins (9.5%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: WGSA's earnings have grown significantly by 29.5% per year over the past 5 years.

Accelerating Growth: WGSA's earnings growth over the past year (324.9%) exceeds its 5-year average (29.5% per year).

Earnings vs Industry: WGSA earnings growth over the past year (324.9%) exceeded the Software industry 14.6%.


Return on Equity

High ROE: WGSA's Return on Equity (8.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SS&C Technologies Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: WGSA's short term assets ($2.8B) exceed its short term liabilities ($2.8B).

Long Term Liabilities: WGSA's short term assets ($2.8B) do not cover its long term liabilities ($8.8B).


Debt to Equity History and Analysis

Debt Level: WGSA's debt to equity ratio (138.8%) is considered high.

Reducing Debt: WGSA's debt to equity ratio has increased from 46% to 138.8% over the past 5 years.

Debt Coverage: WGSA's debt is not well covered by operating cash flow (18.7%).

Interest Coverage: WGSA's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

Inventory Level: WGSA has a low level of unsold assets or inventory.

Debt Coverage by Assets: WGSA's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is SS&C Technologies Holdings's current dividend yield, its reliability and sustainability?

0.77%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.3%markettop25%3.6%industryaverage1.1%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: WGSA's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: WGSA's dividend (0.77%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WGSA has been paying a dividend for less than 10 years.

Growing Dividend: WGSA's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.5%), WGSA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WGSA's dividends in 3 years are forecast to be thoroughly covered by earnings (11.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Bill Stone (64yo)

34.1yrs

Tenure

US$15,862,121

Compensation

Mr. William C. Stone, also known as Bill, has been the Chief Executive Officer and Chairman of the Board of Directors of SS&C Technologies Holdings, Inc. and SS&C Technologies, Inc. since 1986. Mr. Stone f ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD15.86M) is above average for companies of similar size in the German market ($USD4.31M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Stone
Founder34.1yrsUS$15.86m12.58% $1.9b
Rahul Kanwar
President & COO0yrsUS$8.73m0.020% $3.0m
Patrick Pedonti
Senior VP & CFO17.5yrsUS$3.98mno data
Joseph Frank
Senior VP2yrsUS$8.55m0.00016% $24.2k
Anthony Caiafa
Chief Technology Officer1.5yrsno datano data
Justine Stone
Head of Investor Relations0yrsno datano data
Eamonn Greaves
Global Head of Sales0.5yrsno datano data
Steve Kremidas
Senior VP & Chief Development Officer0yrsno datano data
Henry Toy
Managing Director of SS&C GlobeOp Canada0yrsno datano data
James Ramenda
Senior Vice President of Enterprise Risk9yrsno datano data

5.5yrs

Average Tenure

58.5yo

Average Age

Experienced Management: WGSA's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Stone
Founder34.1yrsUS$15.86m12.58% $1.9b
Jonathan Michael
Independent Director9.8yrsUS$75.52k0.024% $3.7m
Normand Boulanger
Vice Chairman1.5yrsUS$2.55m0.091% $13.8m
Smita Conjeevaram
Independent Director4.3yrsUS$75.52k0.0012% $180.1k
Michael Daniels
Independent Director6.3yrsUS$68.02kno data
David Varsano
Independent Director8.9yrsUS$75.52k0.013% $1.9m
Michael Zamkow
Independent Director5.7yrsUS$68.02k0.034% $5.2m

6.3yrs

Average Tenure

63yo

Average Age

Experienced Board: WGSA's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WGSA insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.8%.


Top Shareholders

Company Information

SS&C Technologies Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SS&C Technologies Holdings, Inc.
  • Ticker: WGSA
  • Exchange: DB
  • Founded: 1986
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$16.343b
  • Listing Market Cap: US$15.138b
  • Shares outstanding: 252.71m
  • Website: https://www.ssctech.com

Number of Employees


Location

  • SS&C Technologies Holdings, Inc.
  • 80 Lamberton Road
  • Windsor
  • Connecticut
  • 6095
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SSNCNasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDMar 2010
WGSADB (Deutsche Boerse AG)YesNew Common StockDEEURMar 2010
0L1GLSE (London Stock Exchange)YesNew Common StockGBUSDMar 2010
SSNC *BMV (Bolsa Mexicana de Valores)YesNew Common StockMXMXNMar 2010

Biography

SS&C Technologies Holdings, Inc. provides software products and software-enabled services to financial services and healthcare industries in the United States, Canada, rest of the Americas, Europe, the Asia Pacific, and Japan. The company’s products and services allow its clients to automate and integrate front-office functions, such as trading and modeling; middle-office functions, including portfolio management and reporting; and back-office functions comprising accounting, transfer agency, compliance, regulatory services, performance measurement, reconciliation, reporting, processing, and clearing. It provides solutions to clients in institutional asset and wealth management, alternative investment management, brokerage, retirement, financial advisory, and financial institutions vertical markets, commercial lenders, real estate investment trusts, corporate treasury groups, insurance companies, pension funds, municipal finance groups, and real estate property managers. The company also offers health care solutions, such as claims adjudication, benefit management, care management, and business intelligence services to health care industry that include pharmacy, healthcare administration, and health optimization solutions, as well as provides professional and products support services. SS&C Technologies Holdings, Inc. was founded in 1986 and is headquartered in Windsor, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:00
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.