NEW YORK ( TheStreet) -- SS&C Technologies Holdings (Nasdaq: SSNC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Highlights from the ratings report include:
- SSNC's revenue growth has slightly outpaced the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 11.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- SSNC's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.05, which illustrates the ability to avoid short-term cash problems.
- SS&C TECHNOLOGIES HLDGS INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, SS&C TECHNOLOGIES HLDGS INC increased its bottom line by earning $0.62 versus $0.45 in the prior year. This year, the market expects an improvement in earnings ($1.22 versus $0.62).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 44.5% when compared to the same quarter one year prior, rising from $9.18 million to $13.26 million.
- Net operating cash flow has increased to $38.83 million or 38.97% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 21.93%.
-- Written by a member of TheStreet RatingsStaff