Investors in SS&C Technologies Holdings (NASDAQ:SSNC) have unfortunately lost 36% over the last year

Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. For example, the SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) share price is down 37% in the last year. That falls noticeably short of the market decline of around 22%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 16% in three years.

It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that.

Check out our latest analysis for SS&C Technologies Holdings

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Unfortunately SS&C Technologies Holdings reported an EPS drop of 6.6% for the last year. This reduction in EPS is not as bad as the 37% share price fall. This suggests the EPS fall has made some shareholders are more nervous about the business.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Dive deeper into SS&C Technologies Holdings' key metrics by checking this interactive graph of SS&C Technologies Holdings's earnings, revenue and cash flow.

A Different Perspective

We regret to report that SS&C Technologies Holdings shareholders are down 36% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 22%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. On the bright side, long term shareholders have made money, with a gain of 5% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand SS&C Technologies Holdings better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with SS&C Technologies Holdings .

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.