SS&C Technologies Holdings (SSNC) AI Stock Analysis

• Market Cap: $21.01B
• Dividend Yield: 1.17%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.81
• Revenue Growth: 6.75%
• EPS Growth: 15.99%
• Country: US
• Employees: 26,800
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): 1.45
• Shares Outstanding: 246,662,400
• 10 Day Avg. Volume: 1,308,394
• 30 Day Avg. Volume: 1,095,879
• PEG Ratio: 3.51
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.61
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 4.86
• Enterprise Value/Gross Profit: 49.69
• Enterprise Value/Ebitda: 16.59
• 1Y Price Target: $98.14
• Price Target Upside: 15.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• 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 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 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 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

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

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

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.

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: 85.18
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEGA	79 Outperform	$10.06B	50.89	41.55%	0.18%	12.47%	65.19%
SSNC	78 Outperform	$21.01B	26.80	12.07%	1.17%	6.75%	15.99%
TYL	76 Outperform	$24.00B	83.91	8.87%	―	9.96%	50.93%
PCTY	75 Outperform	$10.38B	46.84	19.70%	―	14.63%	17.15%
PAYC	75 Outperform	$13.81B	34.09	24.99%	0.63%	9.86%	-14.34%
GWRE	70 Outperform	$18.81B	567.24	2.61%	―	18.61%	―
Sector *	63 Neutral	$34.94B	5.14	-11.21%	1.86%	5.61%	-19.33%

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.

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.