SS&C Technologies Holdings (SSNC) AI Stock Analysis

• Market Cap: $17.17B
• Dividend Yield: 1.17%
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.79
• Revenue Growth: 6.67%
• EPS Growth: 21.21%
• Country: US
• Employees: 26,800
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.69
• Shares Outstanding: 244,027,400
• 10 Day Avg. Volume: 2,528,851
• 30 Day Avg. Volume: 2,199,664
• PEG Ratio: 4.87
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 3.40
• P/FCF Ratio: 12.83
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.80
• Enterprise Value/Gross Profit: 5.81
• Enterprise Value/Ebitda: 8.20
• 1Y Price Target: $100.50
• Price Target Upside: 37.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 6.86
• Revenue Forecast (FY): $6.72B

• Rating: 68 Neutral
• Price Target: $76.00 ▲(4.30% Upside)
• Action: Downgraded Date: 02/07/26
• Date: Action: Downgraded 02/07/26

The score is driven primarily by strong financial performance (steady growth and improving free cash flow) and a largely positive earnings call with constructive 2026 guidance and capital returns. These positives are partially offset by weak technicals (price below key moving averages with negative momentum) and only mid-range valuation support.

Positive Factors

Recurring subscription revenue & diversified client base

SS&C’s core model is subscription and services for financial institutions, producing predictable recurring revenue. That durable revenue mix and a diversified client roster across asset managers, insurers and banks supports stable cash flow, lowers revenue cyclicality, and underpins reinvestment and shareholder returns over time.

Steady multi-year revenue growth and resilient margins

SS&C has delivered consistent mid-single-digit top-line growth and maintained healthy gross and net margins across several years. This continuity in scale and margin resilience supports durable profitability, enabling margin expansion targets and funding of strategic initiatives without relying on one-off gains.

Strong cash generation and high cash conversion

Robust and improving operating and free cash flow, with cash conversion above 100% recently, creates durable financial flexibility. Reliable cash generation funds buybacks, dividends, capex and debt paydown, and insulates the business from cyclical revenue swings while supporting long-term strategic investments.

Negative Factors

Material net leverage and interest exposure

Despite improving balance sheet metrics, SS&C still carried substantial net debt and ~2.8x net leverage at year-end. That level maintains meaningful interest expense exposure and reduces optionality for large M&A or aggressive capital allocation moves; sustained leverage can constrain strategic flexibility if cash generation weakens.

Lumpy, timing-dependent revenue in key segments

Key end-markets like healthcare and intelligent automation exhibit lumpy, timing-sensitive sales (large licenses and delayed deals). This structural unevenness makes forecasting harder, produces quarter-to-quarter volatility in revenue and margins, and can impede consistent organic growth despite long-term opportunity.

Material GAAP vs. adjusted differences and guidance clarity issues

Large disparities between GAAP and adjusted results and an inconsistent guidance presentation raise questions about earnings quality and transparency. Persistent heavy non-GAAP adjustments can obscure true operating performance, complicate comparability, and increase investor reliance on management judgment rather than consistent accounting trends.

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 generates revenue primarily through software licensing, subscription fees, and professional services. Its core revenue streams include the sale of its software solutions, which are often offered on a subscription basis, providing predictable recurring revenue. Additionally, the company earns income from consulting and implementation services, as well as ongoing maintenance and support for its software products. SS&C also benefits from strategic partnerships with financial institutions and technology providers, which enhance its service offerings and expand its market reach. The company’s diverse portfolio of clients across various financial sectors contributes to its stable revenue base and growth potential.

SS&C Technologies Holdings Financial Statement Overview

Summary

Durable fundamentals supported by steady multi-year revenue growth, resilient gross/net margins, and strong, improving free cash flow. Balance sheet flexibility appears to improve materially in 2025 due to sharply lower reported debt, but the size of the step-change versus prior years adds some normalization risk.

Income Statement

Revenue shows a steady upward trajectory from $4.67B (2020) to $6.27B (2025), with mid-single-digit growth in most years. Profitability is consistently solid, with gross margin holding around ~45%–49% and net margin generally in the low-to-mid teens (about ~11%–16%), though net income has been somewhat choppy (peaking in 2021 and lower in 2022–2023 before recovering). A key weakness is margin volatility in operating profitability (and an apparent inconsistency where 2025 EBIT margin is shown as 0% despite sizable EBIT), which adds noise to trend interpretation.

Balance Sheet

Leverage looks meaningfully improved in 2025, with debt dropping sharply and debt-to-equity improving from ~1.0–1.21 (2020–2024) to ~0.03 (2025), which materially strengthens financial flexibility. Equity and total assets have also expanded over time, supporting balance sheet scale. The main concern is the large year-over-year step-change in reported debt between 2024 and 2025, which warrants caution in assessing normalized leverage, even though return on equity remains healthy and fairly stable around ~10%–13%.

Cash Flow

Cash generation is strong and improving: operating cash flow rises from ~$1.18B (2020) to ~$1.74B (2025) and free cash flow from ~$1.08B to ~$1.66B, with a notable acceleration in 2024–2025. Free cash flow closely tracks net income (roughly ~0.79–0.96x across the period), signaling generally good earnings quality. Weaknesses include some volatility in free cash flow growth (notably declines in 2020 and 2022) and a relatively modest share of operating cash flow versus revenue (as indicated by the provided coverage ratio staying around ~0.32–0.52).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.27B	5.88B	5.50B	5.28B	5.05B
Gross Profit	3.02B	2.86B	2.65B	2.52B	2.41B
EBITDA	2.14B	2.04B	2.00B	1.86B	1.91B
Net Income	796.90M	760.50M	607.10M	650.20M	800.00M
Balance Sheet
Total Assets	20.71B	19.04B	18.10B	16.65B	17.33B
Cash, Cash Equivalents and Short-Term Investments	462.10M	3.37B	432.20M	440.10M	564.00M
Total Debt	238.20M	7.18B	6.92B	7.32B	6.22B
Total Liabilities	13.77B	12.44B	11.70B	10.55B	11.11B
Stockholders Equity	6.89B	6.53B	6.34B	6.04B	6.17B
Cash Flow
Free Cash Flow	1.66B	1.33B	963.60M	926.00M	1.29B
Operating Cash Flow	1.74B	1.39B	1.22B	1.13B	1.43B
Investing Cash Flow	-1.33B	-855.70M	-268.40M	-1.76B	-148.20M
Financing Cash Flow	-221.70M	-152.30M	712.80M	-1.18B	556.70M

SS&C Technologies Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.87
• 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 72.87 is below the 20-day moving average (MA) of 74.94, below the 50-day MA of 82.20, and below the 200-day MA of 83.55, indicating a bearish trend. The MACD of -3.39 indicates Negative momentum. The RSI at 39.80 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 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
TYL	72 Outperform	$13.92B	46.54	8.90%	―	10.62%	31.43%
TTD	72 Outperform	$12.06B	28.71	16.78%	―	20.82%	41.82%
PAYC	70 Outperform	$6.48B	14.77	27.42%	0.94%	9.72%	-2.69%
HUBS	70 Outperform	$12.27B	282.41	2.31%	―	19.21%	75.32%
SSNC	68 Neutral	$17.17B	22.34	11.87%	1.17%	6.67%	21.21%
GWRE	65 Neutral	$10.89B	128.87	6.57%	―	22.80%	198.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%