SilverSun Technologies (NasdaqCM:SSNT) - Share price, News & Analysis

SSNT fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	0/6
Financial Health	4/6
Dividends	2/6

SSNT Stock Overview

SilverSun Technologies, Inc. operates as a business application, technology, and consulting company in the United States.

Rewards

Trading at 41.1% below our estimate of its fair value

Risk Analysis

Earnings have declined by 16.8% per year over past 5 years

Dividend of 21.9% is not well covered by earnings

Does not have a meaningful market cap ($14M)

SilverSun Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SilverSun Technologies
Historical stock prices
Current Share Price	US$2.74
52 Week High	US$14.87
52 Week Low	US$2.28
Beta	1.36
1 Month Change	-4.53%
3 Month Change	-19.17%
1 Year Change	-75.45%
3 Year Change	-7.12%
5 Year Change	-29.74%
Change since IPO	238.27%

Recent News & Updates

Jun 25

Is SilverSun Technologies (NASDAQ:SSNT) Using Debt In A Risky Way?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Mar 08

Investors Could Be Concerned With SilverSun Technologies' (NASDAQ:SSNT) Returns On Capital

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'd want to identify a...

Shareholder Returns

	SSNT	US Software	US Market
7D	11.8%	9.9%	6.6%
1Y	-75.4%	-18.1%	-18.5%

Return vs Industry: SSNT underperformed the US Software industry which returned -18.1% over the past year.

Return vs Market: SSNT underperformed the US Market which returned -18.5% over the past year.

Price Volatility

Is SSNT's price volatile compared to industry and market?
SSNT volatility
SSNT Average Weekly Movement	7.2%
Software Industry Average Movement	11.1%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: SSNT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SSNT's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1988	165	Mark Meller	https://www.silversuntech.com

SilverSun Technologies, Inc. operates as a business application, technology, and consulting company in the United States. The company provides solutions for accounting and business management, financial reporting, managed services, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional services, specialized programming, training, and technical support.

SilverSun Technologies Fundamentals Summary

How do SilverSun Technologies's earnings and revenue compare to its market cap?
SSNT fundamental statistics
Market Cap	US$14.07m
Earnings (TTM)	-US$529.77k
Revenue (TTM)	US$41.85m

0.3x

P/S Ratio

-26.6x

P/E Ratio

Is SSNT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SSNT income statement (TTM)
Revenue	US$41.85m
Cost of Revenue	US$24.68m
Gross Profit	US$17.17m
Other Expenses	US$17.70m
Earnings	-US$529.77k

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.10
Gross Margin	41.02%
Net Profit Margin	-1.27%
Debt/Equity Ratio	19.2%

How did SSNT perform over the long term?

See historical performance and comparison

Dividends

21.9%

Current Dividend Yield

n/a

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SSNT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SSNT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SSNT. This is calculated by dividing SSNT's market cap by their current preferred multiple.
What is SSNT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$14.07m

SSNT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.2x
Enterprise Value/EBITDA	46x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does SSNT's PS Ratio compare to its peers?

SSNT PS Ratio vs Peers

The above table shows the PS ratio for SSNT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	3.3x

Forward PS

Price-To-Sales vs Peers: SSNT is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (3.3x).

Price to Earnings Ratio vs Industry

How does SSNT's PE Ratio compare vs other companies in the U.S. Software Industry?

Price-To-Sales vs Industry: SSNT is good value based on its Price-To-Sales Ratio (0.3x) compared to the US Software industry average (4.7x)

Price to Sales Ratio vs Fair Ratio

What is SSNT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SSNT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SSNT's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of SSNT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SSNT ($2.74) is trading below our estimate of fair value ($4.65)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SSNT's PEG Ratio to determine if it is good value.

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Future Growth

How is SilverSun Technologies forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

20.2%

Forecasted Software industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as SilverSun Technologies has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine whether SilverSun Technologies is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has SilverSun Technologies performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-16.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SSNT is currently unprofitable.

Growing Profit Margin: SSNT is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: SSNT is unprofitable, and losses have increased over the past 5 years at a rate of 16.8% per year.

Accelerating Growth: Unable to compare SSNT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SSNT is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (27.1%).

Return on Equity

High ROE: SSNT has a negative Return on Equity (-5.66%), as it is currently unprofitable.

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Financial Health

How is SilverSun Technologies's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SSNT's short term assets ($10.4M) exceed its short term liabilities ($7.7M).

Long Term Liabilities: SSNT's short term assets ($10.4M) exceed its long term liabilities ($1.6M).

Debt to Equity History and Analysis

Debt Level: SSNT has more cash than its total debt.

Reducing Debt: SSNT's debt to equity ratio has increased from 14% to 19.2% over the past 5 years.

Debt Coverage: SSNT's debt is well covered by operating cash flow (40%).

Interest Coverage: Insufficient data to determine if SSNT's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

What is SilverSun Technologies's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

21.90%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SSNT's dividend (21.9%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: SSNT's dividend (21.9%) is in the top 25% of dividend payers in the US market (4.24%)

Stability and Growth of Payments

Stable Dividend: SSNT has been paying a dividend for less than 10 years and during this time payments have been volatile.

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (537.9%), SSNT's dividend payments are not well covered by cash flows.

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Management

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

3.3yrs

Average management tenure

CEO

Mark Meller (61 yo)

18.75yrs

Tenure

US$936,238

Compensation

Mr. Mark Meller has been the Chief Executive Officer of SWK Technologies, Inc. since May 27, 2016. Mr. Meller has been the Chief Executive Officer of SilverSun Technologies, Inc. since September 1, 2004 an...

CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD936.24K) is about average for companies of similar size in the US market ($USD752.25K).

Compensation vs Earnings: Mark's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: SSNT's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: SSNT's board of directors are considered experienced (8.1 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31