SS&C Technologies Holdings (SSNC) AI Stock Analysis

• Market Cap: $19.17B
• Dividend Yield: 1.27%
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.89
• Revenue Growth: 6.92%
• EPS Growth: 28.43%
• Country: US
• Employees: 26,800
• Sector: Technology
• Sector Strength: 67
• Industry: Software - Application
• EPS (TTM): 1.44
• Shares Outstanding: 246,662,400
• 10 Day Avg. Volume: 1,956,556
• 30 Day Avg. Volume: 1,678,608
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 8.34
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $91.25
• Price Target Upside: 16.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

SS&C Technologies Holdings has a strong financial foundation with consistent revenue growth and profitability, supported by robust cash flow management. Technical indicators suggest mixed momentum, while valuation metrics indicate a slightly high valuation. Recent earnings call results were strong, but future guidance remains cautious. The appointment of a new independent director adds a positive strategic dimension to the company's growth prospects.

Positive Factors

Financial Performance

1Q25 results were slightly ahead of expectations, and the company doesn't yet appear to be seeing any deal slippage.

Growth Opportunities

The company sounds more optimistic about the Australian superannuation opportunity and cited incremental wins in the region.

Negative Factors

Competitive Pressures

There are likely competitive pressures leading to a worsening organic growth outlook for SS&C Technologies Holdings.

Guidance and Outlook

The softer 2Q guide and the lower organic growth outlook for FY25 reflects added conservatism on the part of management given increased NT economic uncertainty.

Revenue Concerns

Battea revenue recognition issues are a concern, with annual revenue tracking lower than expected.

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 Holdings generates revenue through a combination of software licensing, maintenance and support fees, and professional services. The company's key revenue streams include software-enabled services, which provide integrated solutions for investment operations, and software licensing, where clients pay for the use of SS&C's proprietary software. Additionally, SS&C benefits from recurring revenue through ongoing support and maintenance contracts. The company also engages in strategic acquisitions to expand its product offerings and client base, enhancing its ability to generate income. Significant partnerships with major financial institutions further bolster SS&C's earnings by fostering long-term client relationships and facilitating cross-selling opportunities.

SS&C Technologies Holdings Financial Statement Overview

Summary

SS&C Technologies Holdings shows strong financial performance characterized by consistent revenue growth and solid profitability. The company maintains a robust gross profit margin and a healthy net profit margin, with a steadiness in revenue growth and efficient operations. The balance sheet reflects a solid equity base with controlled debt, and cash flow metrics are strong, providing flexibility for future investments.

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
	EBIT
1.34B	1.24B	1.14B	1.24B	985.80M
	EBITDA
2.04B	2.00B	1.86B	1.91B	1.75B
	Net Income Common Stockholders
760.50M	607.10M	650.20M	800.00M	625.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
570.80M	432.20M	440.10M	564.00M	209.30M
	Total Assets
19.04B	18.10B	16.65B	17.33B	15.92B
	Total Debt
7.18B	6.92B	7.32B	6.22B	6.77B
	Net Debt
6.62B	6.49B	6.88B	5.65B	6.56B
	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: Neutral
• Last Price: 78.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSNC, the sentiment is Neutral. The current price of 78.1 is above the 20-day moving average (MA) of 75.58, below the 50-day MA of 80.47, and above the 200-day MA of 76.48, indicating a neutral trend. The MACD of -1.01 indicates Negative momentum. The RSI at 52.15 is Neutral, neither overbought nor oversold. The STOCH value of 84.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SSNC.

SS&C Technologies Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYC	78 Outperform	$13.15B	25.50	34.88%	0.66%	11.19%	51.03%
PCTY	77 Outperform	$10.47B	46.89	19.70%	―	14.63%	17.15%
PEGA	76 Outperform	$7.89B	44.81	39.29%	0.13%	14.29%	151.38%
SSNC	75 Outperform	$19.17B	24.19	12.34%	1.27%	6.92%	28.43%
TYL	68 Neutral	$23.72B	82.83	8.87%	―	9.96%	50.93%
GWRE	67 Neutral	$17.59B	528.94	-1.34%	―	17.16%	67.81%
Sector *	60 Neutral	$10.93B	10.46	-6.70%	2.99%	7.54%	-12.22%

SS&C Technologies Holdings Corporate Events

SS&C Technologies Appoints New Independent Director

On March 24, 2025, SS&C Technologies Holdings announced the election of Francesco Vanni d’Archirafi as a new independent director to its Board of Directors. His extensive experience in financial services and global enterprises is expected to support SS&C’s strategic goals and international expansion. Mr. Vanni d’Archirafi’s appointment is seen as a strategic move to enhance the company’s growth and success, leveraging his expertise in mergers and acquisitions and securities services.