SS&C Technologies Holdings (SSNC) AI Stock Analysis

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SS&C Technologies Holdings

(NASDAQ:SSNC)

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Outperform 74 (OpenAI - 4o)

Rating:74Outperform

Price Target:

$95.00

▲(16.72% Upside)

SS&C Technologies Holdings has a strong financial foundation with robust revenue growth and profitability, as well as positive earnings call insights highlighting strategic growth initiatives. However, technical indicators suggest bearish momentum, and the stock's valuation appears high, which could limit upside potential. The company's strategic focus on AI and acquisitions positions it well for future growth, but investors should be mindful of macroeconomic challenges and high capital expenditures.

Positive Factors

Revenue Growth

The consistent increase in revenue demonstrates SS&C's ability to expand its market presence and enhance its product offerings, contributing to long-term growth potential.

Cash Flow Generation

Strong cash flow generation indicates efficient operations and provides SS&C with the financial flexibility to invest in growth opportunities and manage liabilities.

Strategic Acquisitions

Strategic acquisitions like Calastone enhance SS&C's product offerings and market reach, supporting long-term revenue and margin growth.

Negative Factors

High Liabilities

While debt reduction is positive, high liabilities could strain financial resources and limit SS&C's ability to invest in future growth initiatives.

Macroeconomic Challenges

Macroeconomic headwinds in the Intralinks segment could impact SS&C's revenue and profitability, posing a risk to overall business performance.

Increased Capital Expenditures

Rising capital expenditures may pressure SS&C's margins and cash flow, potentially affecting its ability to fund other strategic initiatives.

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

Market Cap

$19.46B

Dividend Yield1.28%

Average Volume (3M)1.13M

Price to Earnings (P/E)25.1

Beta (1Y)0.81

Revenue Growth6.75%

EPS Growth15.99%

CountryUS

Employees26,800

SectorTechnology

Sector Strength88

IndustrySoftware - Application

Share Statistics

EPS (TTM)1.45

Shares Outstanding244,220,640

10 Day Avg. Volume1,320,417

30 Day Avg. Volume1,133,781

Financial Highlights & Ratios

PEG Ratio0.94

Price to Book (P/B)2.86

Price to Sales (P/S)3.17

P/FCF Ratio14.07

Enterprise Value/Market Cap1.29

Enterprise Value/Revenue4.15

Enterprise Value/Gross Profit8.53

Enterprise Value/Ebitda11.93

Forecast

1Y Price Target

$98.75

Price Target Upside21.33% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering9

SS&C Technologies Holdings Business Overview & Revenue Model

Company DescriptionSS&C Technologies Holdings (SSNC) is a global provider of investment management software and services, specializing in financial services and healthcare. The company offers a comprehensive suite of solutions designed to address the needs of investment management firms, insurance companies, and other financial institutions. Its core products include software for portfolio management, risk and compliance, fund administration, and data analytics, enabling clients to optimize their operations and enhance decision-making capabilities.

How the Company Makes MoneySS&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 Key Performance Indicators (KPIs)

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 has shown consistent growth, with a notable acceleration in 2024, reflecting strategic investments and international expansion. The License Maintenance and Related segment, while more volatile, has stabilized recently. The latest earnings call highlights robust financial performance, driven by strong international operations and strategic advancements, including AI and acquisitions like Calastone. However, challenges in the Intralinks segment and high capital expenditures could impact future margins. Overall, SS&C's strategic focus and operational successes position it well for continued growth.

Data provided by:

Main Street Data

SS&C Technologies Holdings Earnings Call Summary

Earnings Call Date:Jul 23, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 23, 2025

Earnings Call Sentiment Positive

The earnings call presented a positive outlook with record revenues, strong growth in adjusted EPS and EBITDA, successful international operations, and strategic acquisitions. However, challenges were noted in the Intralinks segment due to macroeconomic factors, and there is increased capital expenditure due to investments in growth and technology.

Q2-2025 Updates

Positive Updates

Record Adjusted Revenue

The company reported record adjusted revenue of $1.5378 billion, representing a 5.9% increase compared to prior periods.

Strong Adjusted EPS and EBITDA Growth

Adjusted earnings per share increased by 9.8% to $1.45, and adjusted consolidated EBITDA surpassed $600 million for the first time, showing a 7.4% increase with a margin of 39%.

International Success and Client Retention

The company experienced strong performance in Europe, Australia, and the Middle East, with a stable client retention rate of 97%.

Cash Flow and Share Buyback

Cash from operating activities rose by 14% year-over-year to $645.1 million, and the company repurchased 3.4 million shares for $269 million.

AI Strategy and First AI Agent Sale

The first AI agent sale was made to an insurance conglomerate, indicating significant future opportunities across the client base.

Acquisition of Calastone

The acquisition is expected to be accretive to revenue growth, EBITDA margin, and EPS within 12 months, aligning with the company's capital allocation strategy.

Negative Updates

Macroeconomic Challenges for Intralinks

The Intralinks segment faced macroeconomic challenges, including declines in global deal volume and active deal flow in Q2.

Increased Capital Expenditures

Capital expenditures have increased to over 4% of revenues, with expectations to maintain these levels due to investments in growth and technology.

Company Guidance

During the SS&C Technologies Second Quarter 2025 earnings call, the company provided detailed guidance and insights into their performance and future outlook. SS&C reported record adjusted revenue of $1.5378 billion for Q2 2025, marking a 5.9% increase, and an adjusted earnings per share (EPS) of $1.45, up 9.8%. The company also achieved a record adjusted consolidated EBITDA of over $600 million, reflecting a 7.4% rise and a 39% margin. Organic revenue growth for the quarter was 3.5%, driven by strong performance in their GlobeOp, GIDS, and WIT businesses, with GlobeOp showing a 7.3% organic growth. SS&C maintained a stable retention rate of 97% and generated $645.1 million in cash from operating activities, a 14% year-over-year increase. Looking ahead, SS&C expects Q3 2025 revenue between $1.525 billion and $1.565 billion, with an adjusted EPS of $1.44 to $1.50, and has raised its full-year revenue guidance to a range of $6.143 billion to $6.243 billion. The company continues to focus on expanding its AI strategy and integrating Blue Prism to enhance client offerings. Additionally, SS&C announced the acquisition of Calastone, expected to close in Q4 2025, which is anticipated to be accretive to revenue growth and EBITDA margins.

SS&C Technologies Holdings Financial Statement Overview

Summary

SS&C Technologies Holdings demonstrates strong financial performance with robust revenue growth, improved profit margins, and efficient cash flow management. The reduction in debt enhances the balance sheet's health, although high liabilities require careful monitoring.

Income Statement

Very Positive

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

Positive

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

Positive

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.05B	5.88B	5.50B	5.28B	5.05B	4.67B
Gross Profit	2.94B	2.86B	2.65B	2.52B	2.41B	2.09B
EBITDA	2.10B	2.04B	2.00B	1.86B	1.91B	1.75B
Net Income	806.40M	760.50M	607.10M	650.20M	800.00M	625.20M
Balance Sheet
Total Assets	18.98B	19.04B	18.10B	16.65B	17.33B	15.92B
Cash, Cash Equivalents and Short-Term Investments	2.89B	3.37B	3.00B	1.34B	3.17B	215.20M
Total Debt	7.02B	7.18B	6.92B	7.32B	6.22B	6.77B
Total Liabilities	11.97B	12.44B	11.70B	10.55B	11.11B	10.21B
Stockholders Equity	6.93B	6.53B	6.34B	6.04B	6.17B	5.72B
Cash Flow
Free Cash Flow	1.46B	1.33B	963.60M	926.00M	1.29B	1.08B
Operating Cash Flow	1.44B	1.39B	1.22B	1.13B	1.43B	1.18B
Investing Cash Flow	-895.30M	-855.70M	-268.40M	-1.76B	-148.20M	-210.50M
Financing Cash Flow	457.50M	-152.30M	712.80M	-1.18B	556.70M	-1.43B

SS&C Technologies Holdings Technical Analysis

Technical Analysis Sentiment

Negative

Last Price81.39

Price Trends

50DMA

87.09

Negative

100DMA

84.74

Negative

200DMA

82.41

Negative

Market Momentum

MACD

-2.01

Positive

RSI

36.55

Neutral

STOCH

11.88

Positive

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 81.39 is below the 20-day moving average (MA) of 85.31, below the 50-day MA of 87.09, and below the 200-day MA of 82.41, indicating a bearish trend. The MACD of -2.01 indicates Positive momentum. The RSI at 36.55 is Neutral, neither overbought nor oversold. The STOCH value of 11.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYC	77 Outperform	$11.62B	27.15	25.76%	0.75%	10.21%	-10.56%
SSNC	74 Outperform	$19.46B	25.10	12.07%	1.28%	6.75%	15.99%
TYL	71 Outperform	$21.87B	72.30	9.07%	―	10.69%	45.43%
GWRE	69 Neutral	$20.65B	305.85	4.99%	―	22.64%	―
HUBS	65 Neutral	$23.02B	7,452.21	-0.65%	―	18.96%	58.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TTD	59 Neutral	$24.44B	60.26	16.36%	―	23.18%	63.48%

* Technology Sector Average

Performance Comparison

SSNC

SS&C Technologies Holdings

81.39

6.83

9.16%

GWRE

Guidewire

253.97

66.79

35.68%

TYL

Tyler Technologies

510.25

-75.61

-12.91%

PAYC

Paycom

201.09

35.76

21.63%

HUBS

HubSpot

451.58

-80.04

-15.06%

TTD

Trade Desk

52.50

-66.44

-55.86%

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.

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: Oct 10, 2025