SSNC Technologies is a large, well-established company with stable revenue and a relatively low valuation compared to its industry. However, it carries a significant amount of debt, and its net income has declined recently. The company has strong institutional backing and offers dividends, making it a steady but slightly risky investment due to debt concerns.
SSNC Technologies Market Cap & Enterprise Value
- Market Cap: $14.42 billion
- Market cap represents the total market value of the company. It is calculated as:
(Total Shares × Share Price) - It helps determine if a company is small, mid, or large-cap. SSNC is a large-cap company.
- Market cap represents the total market value of the company. It is calculated as:
- Enterprise Value (EV): $19.09 billion
- This gives a more complete value of the company because it includes debt and cash.
- If EV is higher than market cap, it means the company has a lot of debt.
Stock Price & Performance
- Current Stock Price: $57.94 per share
- This is the price you need to pay to buy one share of SSNC Technologies.
- 52-Week High: $64.52
- The highest stock price in the last one year.
- 52-Week Low: $46.61
- The lowest stock price in the last one year.
- If someone had bought the stock at this low price, they would have made a good profit by now.
Is the Stock Expensive or Cheap ?
- Price-to-Earnings (P/E) Ratio: 22.45
- This tells us how much investors are willing to pay for every $1 of company profit.
- Example: If P/E is 22.45, it means investors are paying $22.45 for every $1 of earnings.
- The industry average P/E is 30.42, which means SSNC is cheaper than its industry peers.
- Price-to-Book (P/B) Ratio: 2.63
- This shows how much investors are paying compared to the company’s actual book value.
- A P/B ratio near 1 means the stock is undervalued. SSNC’s P/B is 2.63, which is within a normal range.
- EV/EBITDA: 13.23
- Another valuation measure that compares the company’s earnings with its debt and market value.
- A lower number means a cheaper stock.
SSNC Technologies’s Financial Performance
- Revenue (Total Sales): $5.67 billion
- This is the total money the company made from its business.
- Higher revenue means better growth potential.
- Net Income (Profit After Tax): $643.90 million
- This is the real profit left after all expenses and taxes.
- It has dropped by 12% compared to last year, which is a negative sign.
- Earnings Per Share (EPS): $2.58
- This shows how much profit is earned per share.
- A rising EPS is a good sign.
- Profit Margin: 11.35%
- The company converts only 11.35% of its revenue into profit.
- A higher profit margin is always better.
How Much Debt Does the Company Have ?
- Total Debt: $5.54 billion
- The SSNC Technologies has a high amount of debt.
- This is a risk factor because if interest rates rise, it will become more expensive to repay.
- Cash & Cash Equivalents: $279.20 million
- This is the immediately available cash the company has.
- Debt-to-Equity Ratio: 1.08
- If this ratio is above 1, it means the company relies more on debt.
- SSNC’s 1.08 ratio suggests it has high debt, which is a bit risky.
Shareholding Pattern
- Institutional Ownership: 85.62%
- This is a positive sign because large investors (mutual funds, pension funds, hedge funds) trust the company.
- Insider Ownership: 14.18%
- This means the company’s CEO and top management own a significant portion of shares, which is a good thing.
Does the Company Pay Investors ?
- Dividend Yield: 1.44%
- If you hold SSNC shares, the SSNC Technologies will pay you 1.44% of your investment as a yearly dividend.
- This is an extra income for long-term investors.
Growth Potential
- Revenue Growth (YoY): 5.44%
- The SSNC Technologies company’s revenue has increased by 5.44% from last year, which is a good sign.
- Net Income Growth (YoY): -12.06%
- However, the SSNC Technologies company’s net profit has dropped by 12%, which is a negative sign.
Is SSNC Technologies a Good Investment or Not?
✅ Positive Points:
✔️ A large and well-established company.
✔️ Revenue is growing steadily.
✔️ Stock is cheaper compared to the industry (low P/E ratio).
✔️ Large institutional investors own the stock.
✔️ Pays dividends, which is good for long-term investors.
❌ Negative Points:
❗ High debt levels (which is risky).
❗ Profit margin is low, and net income has decreased.
❗ Stock is not a fast-growing investment.
Best for long-term investors looking for stability and dividends, but understanding the debt risk is important. 🚀
Disclaimer
The information provided on Investment Matters is for educational and informational purposes only and should not be considered as financial or investment advice. While we strive to ensure accuracy and reliability, we do not guarantee the completeness or timeliness of any content.
Investing in the stock market involves risks, and past performance is not indicative of future results. We strongly recommend that investors conduct their own research, consult with a certified financial advisor, and carefully consider their financial goals before making any investment decisions.
Investment Matters is not responsible for any financial losses incurred as a result of using the information provided on this platform. By accessing our content, you agree that you are solely responsible for your investment choices.