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SS&C Technologies Holdings (SSNC)
NASDAQ:SSNC
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SS&C Technologies Holdings (SSNC) AI Stock Analysis

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SSNC

SS&C Technologies Holdings

(NASDAQ:SSNC)

Rating:78Outperform
Price Target:
$97.00
▲(13.88%Upside)
SS&C Technologies Holdings scores well due to its strong financial performance and positive earnings call outcomes. The company's technical indicators also support a favorable outlook, though its valuation suggests a premium pricing. Overall, the stock is positioned for potential growth, supported by strategic initiatives and market confidence.
Positive Factors
Acquisitions
The recent acquisition of Calastone is expected to be accretive to revenue growth, EBITDA margins, and EPS within approximately 12 months.
Earnings
SS&C reported another beat with adjusted EPS of $1.45, versus consensus and estimate of $1.39.
Financial Performance
Organic growth topped expectations, the EBITDA margin continued to trend back toward 40%, and capital return remained high.
Negative Factors
Earnings Guidance
SSNC provided in-line guidance for 3Q, which may temper investor excitement despite strong 2Q performance.
Market Valuation
With shares trading at only 13 times 2026 EPS, concerns might arise over whether the stock is undervalued in the current market.

SS&C Technologies Holdings (SSNC) vs. SPDR S&P 500 ETF (SPY)

SS&C Technologies Holdings Business Overview & Revenue Model

Company DescriptionSS&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 MoneySS&C Technologies makes money primarily through the sale of software and software-enabled services. The company generates revenue from licensing software products, providing maintenance and support services, and offering cloud-based solutions. Additionally, SS&C earns fees from its outsourcing services, which include fund administration, investor services, and other back-office support services for financial institutions. The company's revenue streams are diversified across its vast array of products and services, catering to various segments within the financial services industry. Key factors contributing to SS&C's earnings include its ability to attract and retain a large base of clients, strategic acquisitions that expand its service offerings, and long-term contracts that provide recurring revenue.

SS&C Technologies Holdings Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Shows revenue generated from each business segment, providing insight into the company's diverse income streams and potential growth areas.
Chart InsightsSS&C Technologies' Software Enabled Services segment shows robust growth, with a notable upward trend since 2023, reflecting strategic investments and strong demand. The License Maintenance and Related segment, however, exhibits more volatility, with recent fluctuations potentially linked to economic uncertainties highlighted in the earnings call. Despite these challenges, the company’s overall revenue guidance remains positive, supported by international expansion and AI advancements. Investors should monitor the healthcare segment, which faces growth challenges, and the potential impact of foreign exchange on future revenues.
Data provided by:Main Street Data

SS&C Technologies Holdings Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: 1.80%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong quarter for SS&C Technologies with record revenue, EBITDA, and several strategic successes including international growth and AI strategy advancements. However, challenges were noted in the Intralinks segment and high capital expenditures. Overall, the positive developments and strategic achievements outweighed the challenges.
Q2-2025 Updates
Positive Updates
Record Adjusted Revenue
SS&C Technologies reported record adjusted revenue of $1.5378 billion, marking a 5.9% increase compared to the previous period.
Strong Adjusted Earnings Per Share
Adjusted earnings per share (EPS) increased by 9.8% to $1.45.
Record Quarter for Adjusted Consolidated EBITDA
Adjusted consolidated EBITDA surpassed $600 million for the first time, increasing by 7.4% with a margin of 39%.
GlobeOp Organic Growth
GlobeOp achieved organic growth of 7.3%, driven by double-digit growth in private markets and retail alternatives.
International Strength
SS&C experienced strong performance in Europe, Australia, and the Middle East, contributing to increased international win rates.
Cash Flow Increase
Cash from operating activities was $645.1 million, up 14% year-over-year.
Share Repurchase Program
The company repurchased 3.4 million shares for $269 million and expanded the share repurchase authorization to $1.5 billion.
AI Strategy Success
SS&C's AI strategy resulted in a successful sale to an insurance conglomerate, significantly improving processing efficiency.
Acquisition of Calastone
SS&C announced a definitive agreement to acquire Calastone, expected to expand capabilities and cross-sell opportunities.
Negative Updates
Intralinks Challenges
Intralinks faced macroeconomic challenges with declines in global deal volume and active deal flow in Q2.
High Capital Expenditures
Capital expenditures have been over 4% of revenues due to investments in growth, including technology and R&D.
Company Guidance
During the SS&C Technologies Q2 2025 earnings call, the company reported robust financial performance with record adjusted revenue of $1.5378 billion, marking a 5.9% increase, and adjusted earnings per share of $1.45, up 9.8%. The company achieved a record adjusted consolidated EBITDA of over $600 million, representing a 7.4% growth with a 39% margin. They also recorded a 3.5% adjusted organic revenue growth, fueled by their GlobeOp, GIDS, and WIT businesses. Notably, GlobeOp reported a 7.3% organic growth, driven by private markets and retail alternatives, while GIDS continued to secure key clients. The international operations showed strength in Europe, Australia, and the Middle East. For the first half of 2025, cash from operating activities increased by 14% to $645.1 million. In Q2, SS&C repurchased 3.4 million shares at an average price of $77.99, and the company expanded its share repurchase authorization to $1.5 billion. Looking ahead, SS&C raised its full-year revenue guidance to a range of $6.143 billion to $6.243 billion, anticipating 4.5% organic revenue growth at the midpoint, alongside adjusted net income expected between $1.462 billion and $1.542 billion.

SS&C Technologies Holdings Financial Statement Overview

Summary
SS&C Technologies Holdings shows strong financial performance with consistent revenue growth, solid profitability, and efficient cash flow management. The company has demonstrated effective balance sheet management, particularly in reducing leverage and maintaining a healthy equity ratio. The slight decline in EBITDA margin is an area to monitor.
Income Statement
85
Very Positive
SS&C Technologies Holdings demonstrates a strong performance with consistent revenue growth and solid profitability. The Gross Profit Margin remains robust at nearly 49% for TTM, and Net Profit Margin has improved to 13.68%. Revenue growth is steady at 13.13% year-over-year from 2023 to TTM. EBIT and EBITDA margins are healthy, reflecting efficient operations and cost management. However, the slight decline in EBITDA margin from 2023 to TTM indicates an area to monitor.
Balance Sheet
78
Positive
The balance sheet indicates a healthy financial position with a strong equity base and controlled debt levels. The Debt-to-Equity Ratio shows a significant improvement to 0.03 in TTM, highlighting effective debt management. The Equity Ratio is stable at around 33.6%, underscoring a solid capital structure. Return on Equity has improved to 11.9% in TTM, indicating effective use of shareholder funds. However, maintaining this trajectory will be crucial given the competitive industry landscape.
Cash Flow
82
Very Positive
Cash flow metrics are strong, with a notable increase in Free Cash Flow by 10.20% from 2023 to TTM. The Operating Cash Flow to Net Income Ratio is favorable at 1.81, suggesting efficient cash conversion from earnings. The Free Cash Flow to Net Income Ratio is robust at 1.79, demonstrating strong cash generation relative to net income. This solid cash flow performance provides flexibility for future investments and debt reduction.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.88B5.50B5.28B5.05B4.67B
Gross Profit2.86B2.65B2.52B2.41B2.09B
EBITDA2.04B2.00B1.86B1.91B1.75B
Net Income760.50M607.10M650.20M800.00M625.20M
Balance Sheet
Total Assets19.04B18.10B16.65B17.33B15.92B
Cash, Cash Equivalents and Short-Term Investments570.80M432.20M440.10M564.00M209.30M
Total Debt7.18B6.92B7.32B6.22B6.77B
Total Liabilities12.44B11.70B10.55B11.11B10.21B
Stockholders Equity6.53B6.34B6.04B6.17B5.72B
Cash Flow
Free Cash Flow1.33B963.60M926.00M1.29B1.08B
Operating Cash Flow1.39B1.22B1.13B1.43B1.18B
Investing Cash Flow-855.70M-268.40M-1.76B-148.20M-210.50M
Financing Cash Flow-152.30M712.80M-1.18B556.70M-1.43B

SS&C Technologies Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price85.18
Price Trends
50DMA
81.54
Positive
100DMA
80.21
Positive
200DMA
78.89
Positive
Market Momentum
MACD
0.98
Negative
RSI
63.23
Neutral
STOCH
61.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSNC, the sentiment is Positive. The current price of 85.18 is above the 20-day moving average (MA) of 83.51, above the 50-day MA of 81.54, and above the 200-day MA of 78.89, indicating a bullish trend. The MACD of 0.98 indicates Negative momentum. The RSI at 63.23 is Neutral, neither overbought nor oversold. The STOCH value of 61.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSNC.

SS&C Technologies Holdings Risk Analysis

SS&C Technologies Holdings disclosed 42 risk factors in its most recent earnings report. SS&C Technologies Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SS&C Technologies Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$10.06B50.8941.55%0.18%12.47%65.19%
78
Outperform
$21.01B26.8012.07%1.17%6.75%15.99%
76
Outperform
$24.00B83.918.87%9.96%50.93%
75
Outperform
$10.38B46.8419.70%14.63%17.15%
75
Outperform
$13.81B34.0924.99%0.63%9.86%-14.34%
70
Outperform
$18.81B567.242.61%18.61%
63
Neutral
$34.94B5.14-11.21%1.86%5.61%-19.33%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SSNC
SS&C Technologies Holdings
85.18
12.63
17.41%
GWRE
Guidewire
227.21
77.51
51.78%
PEGA
Pegasystems
59.95
24.66
69.88%
TYL
Tyler Technologies
556.46
-18.09
-3.15%
PAYC
Paycom
236.44
72.15
43.92%
PCTY
Paylocity
186.26
37.61
25.30%

SS&C Technologies Holdings Corporate Events

Shareholder MeetingsStock BuybackDividends
SS&C Technologies Boosts Stock Incentive Plan and Repurchase
Positive
May 22, 2025

At the Annual Meeting of Stockholders on May 21, 2025, SS&C Technologies Holdings‘ stockholders approved an amendment to increase the shares reserved under the 2023 Stock Incentive Plan by 6,000,000 shares. Additionally, the Board of Directors authorized a 50% increase in the stock repurchase program, allowing up to $1.5 billion in share repurchases, reflecting the company’s strategy to maximize shareholder value. The Board also approved a quarterly dividend of $0.25 per share, payable on June 16, 2025. These decisions highlight SS&C’s focus on capital allocation to enhance shareholder value and its belief in the company’s undervalued stock price.

The most recent analyst rating on (SSNC) stock is a Buy with a $94.00 price target. To see the full list of analyst forecasts on SS&C Technologies Holdings stock, see the SSNC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 26, 2025