Is SS&C Technologies Holdings (NASDAQ:SSNC) A Risky Investment?
Oct 30
U.S. Professional Services Industry Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies169
- 7D-6.3%
- 3M-12.3%
- 1Y-9.0%
- YTD-6.9%
Over the last 7 days, the Professional Services industry has dropped 6.3%, driven by a pullback from Automatic Data Processing of 11%. Meanwhile, FTI Consulting actually outperformed within the industry, gaining 17% in the last week. Overall the industry is down 9.0% in 12 months. Looking forward, earnings are forecast to grow by 20% annually.
Industry Valuation and Performance
Has the U.S. Professional Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | US$446.6b | US$234.9b | US$8.6b | 19.9x | 51.7x | 1.9x |
| Thu, 28 Sep 2023 | US$478.4b | US$234.3b | US$9.5b | 23x | 50.5x | 2x |
| Sat, 26 Aug 2023 | US$499.4b | US$234.3b | US$9.2b | 23.4x | 54.4x | 2.1x |
| Mon, 24 Jul 2023 | US$473.4b | US$230.1b | US$9.0b | 21x | 52.5x | 2.1x |
| Wed, 21 Jun 2023 | US$487.7b | US$231.9b | US$9.5b | 22.3x | 51.3x | 2.1x |
| Fri, 19 May 2023 | US$461.3b | US$231.6b | US$9.6b | 20.8x | 47.8x | 2x |
| Sun, 16 Apr 2023 | US$457.5b | US$228.2b | US$10.6b | 22.6x | 43.1x | 2x |
| Tue, 14 Mar 2023 | US$246.8b | US$163.4b | US$3.2b | 18.4x | 76.1x | 1.5x |
| Thu, 09 Feb 2023 | US$265.5b | US$162.5b | US$3.1b | 21.5x | 86.4x | 1.6x |
| Sat, 07 Jan 2023 | US$258.9b | US$161.9b | US$3.5b | 21x | 73.9x | 1.6x |
| Mon, 05 Dec 2022 | US$266.5b | US$160.8b | US$4.1b | 21.6x | 64.6x | 1.7x |
| Wed, 02 Nov 2022 | US$254.4b | US$159.7b | US$8.4b | 19.4x | 30.2x | 1.6x |
| Fri, 30 Sep 2022 | US$233.3b | US$153.3b | US$8.2b | 16.7x | 28.3x | 1.5x |
| Sun, 28 Aug 2022 | US$257.4b | US$153.2b | US$8.3b | 18.4x | 31.2x | 1.7x |
| Tue, 26 Jul 2022 | US$256.5b | US$151.4b | US$7.4b | 17.9x | 34.8x | 1.7x |
| Thu, 23 Jun 2022 | US$239.3b | US$151.5b | US$7.5b | 15.2x | 32.1x | 1.6x |
| Sat, 21 May 2022 | US$253.1b | US$152.6b | US$7.8b | 16.5x | 32.3x | 1.7x |
| Mon, 18 Apr 2022 | US$286.7b | US$148.3b | US$7.2b | 19.7x | 39.6x | 1.9x |
| Wed, 16 Mar 2022 | US$319.3b | US$153.2b | US$10.9b | 21x | 29.3x | 2.1x |
| Fri, 11 Feb 2022 | US$330.1b | US$155.7b | US$7.8b | 23.5x | 42.2x | 2.1x |
| Sun, 09 Jan 2022 | US$353.8b | US$154.5b | US$7.3b | 23.5x | 48.3x | 2.3x |
| Tue, 07 Dec 2021 | US$365.8b | US$154.0b | US$7.4b | 23.3x | 49.6x | 2.4x |
| Thu, 04 Nov 2021 | US$367.7b | US$152.7b | US$7.6b | 24.9x | 48.2x | 2.4x |
| Sat, 02 Oct 2021 | US$352.3b | US$148.8b | US$7.1b | 25.7x | 49.5x | 2.4x |
| Mon, 30 Aug 2021 | US$354.3b | US$149.2b | US$7.1b | 25.3x | 49.8x | 2.4x |
| Tue, 06 Jul 2021 | US$340.7b | US$147.7b | US$7.2b | 23.4x | 47.4x | 2.3x |
| Fri, 09 Apr 2021 | US$308.1b | US$141.6b | US$6.0b | 27.5x | 51.8x | 2.2x |
| Thu, 31 Dec 2020 | US$304.6b | US$135.6b | US$5.2b | 23.7x | 58.6x | 2.2x |
Price to Earnings Ratio
50.3x
Current Industry PE
- Investors are relatively neutral on the American Professional Services industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 49.3x.
- The industry is trading close to its 3-year average PS ratio of 2.0x.
Past Earnings Growth
- The earnings for companies in the Professional Services industry have grown 19% per year over the last three years.
- Revenues for these companies have grown 21% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Industrials industry?
| US Market | -2.42% | |
| Industrials | -2.64% | |
| Professional Services | -6.34% | |
| Research and Consulting Services | -5.20% | |
| HR Services | -7.97% | |
Industry PE
- Investors are most optimistic about the Research and Consulting Services industry which is trading above its 3-year average PE ratio of 153x.
- Analysts are expecting annual earnings growth of 24.2%, which is higher than its past year's earnings decline of 5.9% per year.
- Investors are most pessimistic about the HR Services industry, which is trading close to its 3-year average of 36.2x.
Forecasted Growth
- Analysts are most optimistic on the Research and Consulting Services industry, expecting annual earnings growth of 24% over the next 5 years.
- This is better than its past earnings decline of 5.9% per year.
- In contrast, the HR Services industry is expected to see its earnings grow by 16% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| FCN FTI Consulting | US$214.65 | 16.6% +US$1.3b | 37.9% | PE31x | |
| RHI Robert Half | US$74.05 | 2.2% +US$167.5m | -3.2% | PE16.5x | |
| ASGN ASGN | US$81.39 | 3.5% +US$133.1m | -4.0% | PE17.5x | |
| SSNC SS&C Technologies Holdings | US$50.02 | 0.5% +US$67.0m | -2.7% | PE20x | |
| EXLS ExlService Holdings | US$25.89 | 1.6% +US$47.3m | -28.8% | PE24.2x |
