SS&C Technologies Holdings (SSNC) AI Stock Analysis

• Market Cap: $18.05B
• Dividend Yield: 1.35%
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 24.5
• Beta (1Y): 1.02
• Revenue Growth: 6.89%
• EPS Growth: 26.17%
• Country: US
• Employees: 26,800
• Sector: Technology
• Sector Strength: 40
• Industry: Software - Application
• EPS (TTM): 3.00
• Shares Outstanding: 246,406,280
• 10 Day Avg. Volume: 1,322,510
• 30 Day Avg. Volume: 1,510,273
• PEG Ratio: 0.93
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.45
• Price to Cash Flow (P/CF): 10.40
• P/FCF Ratio: 9.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $95.25
• Price Target Upside: 32.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

SS&C Technologies Holdings achieves a strong overall score driven by excellent financial performance, highlighted by robust revenue and cash flow growth, and solid earnings guidance. While technical analysis shows mixed signals and the valuation is moderate, the company's strategic initiatives, including a key board appointment, support its growth trajectory.

Positive Factors

Earnings Performance

SSNC's posted 4Q results which topped expectations on the back of solid organic growth which came in at 7% Y/Y as all of SSNCs core businesses delivered healthy growth.

Strategic Acquisitions

SSNC recently acquired Battea-Class Action Services, which is expected to be accretive to growth and margins while adding cross-selling opportunities.

Negative Factors

Growth Deceleration

The 4Q guide was mixed and calls for a deceleration in organic growth (2.4% Y/Y at the midpoint), largely due to a tough compare and may also reflect added conservatism given the still uncertain climate.

Healthcare Segment Performance

Healthcare segment continued to underperform expectations.

SS&C Technologies Holdings Business Overview & Revenue Model

Company Description

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-office functions, such as trading and modeling; middle-office functions include portfolio management and reporting; back-office functions, such as accounting, performance measurement, reconciliation, reporting, processing and clearing, and compliance and tax reporting; and healthcare solutions comprising claims adjudication, benefit management, care management, and business intelligence solutions. Its products and services allow professionals in the financial services and healthcare industries to automate complex business processes and are instrumental in helping its clients to manage information processing requirements. The company's software-enabled services include SS&C GlobeOp, Global Investor and Distribution Solutions, SS&C Retirement Solutions, Black Diamond Wealth Platform, Bluedoor, Advent Outsourcing Services, Advent Data Solutions, ALPS Advisors, and Virtual Data Rooms, as well as pharmacy, healthcare administration, and health outcomes optimization solutions. Its software products comprise portfolio/investment accounting and analytics software, portfolio management software, trading software, digital process automation product suite, and banking and lending solutions, as well as research, analytics, risk, and training solutions. The company also provides professional services, including consulting and implementation services to assist clients; and product support services. It operates in the United States; the United Kingdom; Europe, the Middle East, and Africa; the Asia Pacific and Japan; Canada; and the Americas. The company was founded in 1986 and is headquartered in Windsor, Connecticut.

How the Company Makes Money

SS&C Technologies Holdings generates revenue through a combination of software licensing, maintenance and support fees, and professional services. The company's key revenue streams include software-enabled services, which provide integrated solutions for investment operations, and software licensing, where clients pay for the use of SS&C's proprietary software. Additionally, SS&C benefits from recurring revenue through ongoing support and maintenance contracts. The company also engages in strategic acquisitions to expand its product offerings and client base, enhancing its ability to generate income. Significant partnerships with major financial institutions further bolster SS&C's earnings by fostering long-term client relationships and facilitating cross-selling opportunities.

SS&C Technologies Holdings Financial Statement Overview

Summary

SS&C Technologies Holdings demonstrates solid financial performance with strong revenue growth, improved profitability, and efficient cash flow generation. The reduction in debt and high return on equity are positive indicators of financial health. While there is a high liability level, the company's operational and cash flow strengths mitigate potential risks, positioning it well for future growth.

Income Statement

SS&C Technologies Holdings shows strong income statement performance. Gross profit margin is robust at approximately 48.68% for TTM, indicating efficient cost management. The net profit margin has improved to 12.93% from the previous year, suggesting enhanced profitability. Revenue growth rate is healthy at 6.89% TTM, indicating positive business expansion. EBIT and EBITDA margins are strong at 23.19% and 31.54%, respectively, showcasing excellent operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.03 in TTM, significantly reduced from previous years due to lower total debt. The return on equity is strong at 11.51%, indicating effective use of equity to generate profits. The equity ratio is stable at 34.69%, reflecting a balanced asset financing structure. While the reduction in debt is positive, the relatively high liabilities compared to assets may still pose potential risks.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 37.77% TTM, driven by improved operating cash flows. The operating cash flow to net income ratio stands at 1.83, indicating strong cash generation relative to net earnings. The free cash flow to net income ratio is robust at 1.74, reflecting efficient capital expenditure management. Overall, cash flow generation is strong, supporting further investment and debt reduction.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.88B	5.50B	5.28B	5.05B	4.67B
	Gross Profit
2.86B	2.65B	2.52B	2.41B	2.09B
	EBIT
1.34B	1.24B	1.14B	1.24B	985.80M
	EBITDA
1.34B	2.00B	1.86B	1.91B	1.75B
	Net Income Common Stockholders
760.50M	607.10M	650.20M	800.00M	625.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
570.80M	432.20M	440.10M	564.00M	209.30M
	Total Assets
19.04B	18.10B	16.65B	17.33B	15.92B
	Total Debt
195.10M	6.92B	7.32B	6.22B	6.77B
	Net Debt
-375.70M	6.49B	6.88B	5.65B	6.56B
	Total Liabilities
12.44B	11.70B	10.55B	11.11B	10.21B
	Stockholders Equity
6.53B	6.34B	6.04B	6.17B	5.72B
Cash Flow		Free Cash Flow
1.33B	963.60M	926.00M	1.29B	1.08B
	Operating Cash Flow
1.39B	1.22B	1.13B	1.43B	1.18B
	Investing Cash Flow
-855.70M	-268.40M	-1.76B	-148.20M	-210.50M
	Financing Cash Flow
-152.30M	712.80M	-1.18B	556.70M	-1.43B

SS&C Technologies Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSNC, the sentiment is Negative. The current price of 71.96 is below the 20-day moving average (MA) of 80.96, below the 50-day MA of 83.69, and below the 200-day MA of 75.30, indicating a bearish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 48.01 is Neutral, neither overbought nor oversold. The STOCH value of 54.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSNC.

SS&C Technologies Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSNC	80 Outperform	$18.05B	24.45	11.81%	1.35%	6.89%	26.17%
PAYC	78 Outperform	$11.34B	22.22	34.88%	0.76%	11.19%	51.03%
PCTY	75 Outperform	$9.77B	44.88	20.49%	―	15.96%	31.76%
TYL	73 Outperform	$23.20B	88.52	8.32%	―	9.53%	56.32%
PEGA	68 Neutral	$5.44B	57.20	21.12%	0.19%	4.51%	43.29%
GWRE	63 Neutral	$14.71B	528.94	-1.34%	―	17.16%	67.81%
Sector *	57 Neutral	$18.45B	9.41	-13.97%	2.74%	5.04%	-23.56%

SS&C Technologies Holdings Corporate Events

SS&C Technologies Appoints New Independent Director

On March 24, 2025, SS&C Technologies Holdings announced the election of Francesco Vanni d’Archirafi as a new independent director to its Board of Directors. His extensive experience in financial services and global enterprises is expected to support SS&C’s strategic goals and international expansion. Mr. Vanni d’Archirafi’s appointment is seen as a strategic move to enhance the company’s growth and success, leveraging his expertise in mergers and acquisitions and securities services.