Growth For The Quarter Ended 2020-12-31
SS&C Technologies Holdings Inc does not report a stunning amount of sales growth. It is not beneficial. With that, traders will appreciate SSNC’s gross profit margin of 44%. Last year, the company showed sales of $4667. 9 million. SSNC reports stunning R&D expenses growth, which money managers will appreciate. It means that SS&C Technologies Holdings Inc is in the process of creating new products. In summary, traders will most likely expect sales in the near future. R&D expenses are equal to $399. 4 million.
SSNC does not report large EBITDA growth. In spite of that, the company’s EBITDA ratio is equal to 36%. The numbers seem good. Furthermore, operating income is another useful feature of SSNC. The operating income grows at 8% y/y. I do appreciate that net income grew a 42%. In my experience, net income grows because interest expenses diminished a -39%. D&A expense diminished a -6%.
Balance Sheet Statement As Of 2020-12-31
With an A/L ratio of more than 1x, SSNC’s balance sheet looks stable. In Q4, the total amount of assets was equal to $15923 million, with total liabilities of $10207 million.
As for me, I think that SS&C Technologies Holdings Inc shows a large amount of goodwill. It is equal to $8078 million. It is difficult to know the real value of intangibles and goodwill. In summary, there is a potential goodwill impairment risk. SS&C Technologies Holdings Inc could review and impair intangible assets, which will most likely lead to a decline in the share price. The balance sheet shows deferred revenue of $332 million, which I like. Deferred revenue represents a prepayment by SSNC’s clients that have yet to be delivered. Summarising, SS&C Technologies Holdings Inc receives money in advance of it being earned. Moreover, SS&C Technologies Holdings Inc has positive working capital, which money managers will like. It means that SSNC can cover its short-term liabilities when they come due.
SSNC’s short term debt is less significant than the company’s cash. I feel that SS&C Technologies Holdings Inc may not have to worry about any liquidity risk. SSNC’s debt to equity ratio is below 2x. Therefore, the debt level appears to be under control. Note that SS&C Technologies Holdings Inc reports cash and cash equivalents of $209 million, and net debt of $2147 million. SSNC trades at 49x EBITDA, which may not seem cheap. But, with the company’s EBITDA margin of 36% the EV/EBITDA ratio makes sense. null
Quarterly Figures For The Quarter Ended 2020-12-31
In Q4 SSNC reported quarterly sales of $1203 million, and gross profit of $550 million. The gross profit margin was equal to 45%. Additionally, SSNC’s R&D expenses were equal to $100. 7 million, with selling and marketing expenses of $8. 58 million. Moreover, SSNC is profitable, which is favorable. SS&C Technologies Holdings Inc released positive quarterly EBITDA of $449. 9 million. Taking this into account, many investors will most likely have a look at SSNC. SSNC also released positive net income of $197. 1 million. I do appreciate it.
I assume sales of $4667 million. So, SSNC trades at 0. 4599498703913966x forward sales. In my view, it can be justified due to the fact that SS&C Technologies Holdings Inc has decent margins. Institutional shareholders FIRST HAWAIIAN BANK, Autus Asset Management, LLC, and Capital Investment Services of America, Inc. are SS&C Technologies Holdings Inc investors. The company shows a beta of 1. 58455. It is more substantial than 1, which means that the stock price can show significant volatility. SSNC’s stock price volatility is larger than that of the market. Evidently, if you are not a volatility expert don’t trade SS&C Technologies Holdings Inc.
The following SSNC’s insiders acquired or sold equity recently.SSNC’s traders will most likely study this information:
+In 2021-02-26, director MICHAEL JONATHAN E acquired equity of SSNC.
+In 2021-02-10, officer: SVP, Chief Legal Officer Frank Joseph J. sold stock of SSNC.
+In 2021-01-11, officer: SVP, Chief Legal Officer Frank Joseph J. sold equity of SSNC.
About SS&C Technologies Holdings Inc
SS&C Technologies Holdings, Inc. , together with its subsidiaries, provides software products and software-enabled services to financial services and healthcare industries. The company owns and operates technology stack across securities accounting, front-to-back-office operations, performance and risk analytics, regulatory reporting, and healthcare information processes.