SS&C Technologies Holdings (SSNC) AI Stock Analysis

• Market Cap: $21.21B
• Dividend Yield: 1.15%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.82
• Revenue Growth: 6.75%
• EPS Growth: 15.99%
• Country: US
• Employees: 26,800
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 1.45
• Shares Outstanding: 244,220,640
• 10 Day Avg. Volume: 1,097,846
• 30 Day Avg. Volume: 1,202,073
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 4.15
• Enterprise Value/Gross Profit: 8.53
• Enterprise Value/Ebitda: 14.35
• 1Y Price Target: $98.00
• Price Target Upside: 12.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 78 Outperform
• Price Target: $97.00 ▲(11.61% Upside)

SS&C Technologies Holdings receives a strong overall score driven by solid financial performance and a positive earnings call outlook. The company's strategic focus on AI and international expansion, along with shareholder-friendly corporate actions, bolster its position. However, valuation concerns and macroeconomic challenges in certain segments temper the score.

Positive Factors

Acquisitions

The recent acquisition of Calastone is expected to expand SS&C’s capabilities and be accretive to revenue growth, EBITDA margins, and EPS within a year.

Earnings

SSNC reported solid results, beating estimates on both the top and bottom line as it delivered an all-time high EBITDA.

Growth Prospects

Higher confidence in sustained organic growth prospects leads to a price target increase to $88.

Negative Factors

Client Activity

Although management indicated a strong pipeline, the lack of any meaningful slowdown in client dialogue may signal potential future market saturation.

Market Valuation

With shares trading at only 13 times 2026 EPS, the stock is seen as an attractive opportunity, but this low valuation may suggest market skepticism.

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 generates revenue through a diversified model that includes software licensing, subscription fees, and professional services. The company earns a significant portion of its income from recurring revenue streams, primarily through its cloud-based solutions and software-as-a-service (SaaS) offerings, which provide ongoing support and maintenance to clients. Additionally, SS&C offers consulting and managed services, further contributing to its revenue. Key partnerships with financial institutions and strategic acquisitions of complementary businesses enhance its market reach and product offerings, driving growth and profitability.

SS&C Technologies Holdings Financial Statement Overview

Summary

SS&C Technologies Holdings demonstrates strong financial performance with robust revenue growth, improving profit margins, and efficient cash flow management. The balance sheet shows a favorable debt reduction, enhancing financial stability, although high total liabilities remain a risk.

Income Statement

SS&C Technologies Holdings has demonstrated strong revenue growth over the years, with the TTM (Trailing-Twelve-Months) revenue increasing to $6.05 billion from $5.88 billion in the previous year. The Gross Profit Margin remains healthy at 48.67%, reflecting efficient cost management. The Net Profit Margin has also improved to 13.34%, indicating enhanced profitability. EBIT and EBITDA margins are robust at 22.91% and 28.90%, respectively, underscoring strong operational efficiency.

Balance Sheet

The company's balance sheet shows a favorable debt reduction, with Total Debt decreasing significantly in the TTM period. The Debt-to-Equity Ratio has improved, indicating reduced leverage risk. Stockholders' Equity has increased to $7.01 billion, contributing to a stronger Equity Ratio of 36.92%. However, the high total liabilities present a risk factor that needs careful management.

Cash Flow

SS&C Technologies Holdings exhibits strong cash flow health, with Free Cash Flow growing to $1.46 billion in the TTM period. The Operating Cash Flow to Net Income Ratio is 1.79, reflecting good cash generation efficiency. The Free Cash Flow to Net Income Ratio is 1.81, indicating robust capacity to generate cash surplus beyond net income.

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
EBITDA	2.04B	2.00B	1.86B	1.91B	1.75B
Net Income	760.50M	607.10M	650.20M	800.00M	625.20M
Balance Sheet
Total Assets	19.04B	18.10B	16.65B	17.33B	15.92B
Cash, Cash Equivalents and Short-Term Investments	570.80M	432.20M	440.10M	564.00M	209.30M
Total Debt	7.18B	6.92B	7.32B	6.22B	6.77B
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: Positive
• Last Price: 86.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 86.91 is above the 20-day moving average (MA) of 85.78, above the 50-day MA of 83.46, and above the 200-day MA of 79.79, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 60.08 is Neutral, neither overbought nor oversold. The STOCH value of 69.23 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSNC	78 Outperform	$21.21B	27.35	12.07%	1.15%	6.75%	15.99%
PAYC	78 Outperform	$12.57B	29.38	25.76%	0.67%	10.21%	-10.56%
TYL	72 Outperform	$24.75B	81.80	9.07%	―	10.69%	45.43%
PEGA	71 Outperform	$9.01B	45.55	41.55%	0.14%	12.47%	65.19%
PCTY	70 Outperform	$9.49B	42.81	20.04%	―	13.74%	10.99%
Sector *	68 Neutral	¥242.89B	15.23	6.64%	2.42%	9.16%	-0.19%
GWRE	68 Neutral	$17.80B	545.99	2.61%	―	18.61%	―

SS&C Technologies Holdings Corporate Events

SS&C Technologies Boosts Stock Incentive Plan and Repurchase

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.