One-glance verdict
Undervalued
$176.77 our estimate vs market $81.05
Wall Street consensus: $98.56 (-44.2% lower than our fair-value estimate)
54% below our estimate, below the bear case
Fundamentals snapshot
SS&C Technologies Holdings, Inc.
SSNC · NMS · Technology · Software - Application
Current price
$81.05
52-week range
$61.40 - $89.93
Market cap
$19.02B
Balance sheet
Stretched
3.31x Stretched
Net debt $7.13B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.7% last year.
- Reward Free cash flow was positive in 10/10 years.
- Reward Dividend yield is 1.5% with 13-year payout history.
- Risk Net debt grew 4.5% over 3 years.
What this company does
SS&C Technologies Holdings, Inc.
SS&C Technologies provides the essential software and services that financial firms, like investment funds, and healthcare companies use to manage their complex daily operations. The company makes most of its money from ongoing subscriptions for its software, creating predictable recurring revenue (income that is expected to continue in the future). This is important because once a customer builds its business around SS&C's systems, it is very difficult and costly for them to switch to a competitor.
How the company got here
SS&C Technologies was started in 1986 by its current CEO, William C. Stone, in the basement of his home with his personal savings. The company's main idea was to create software to help financial institutions manage their complex operations more efficiently. A major part of SS&C's growth has come from buying other companies—over 50 of them since 1995. This strategy has allowed SS&C to quickly add new technologies and experts, expanding into new areas of the financial world and, eventually, healthcare. The company has gone from being privately owned to publicly traded on the stock market twice in its history.
What it actually does
Think of SS&C as a company that provides the behind-the-scenes computer systems and services that big money managers and healthcare organizations rely on every day. For financial firms like hedge funds (investment groups for wealthy individuals) and private equity firms (companies that buy and sell other companies), SS&C provides the software and services to track their investments, manage their money, and report on their performance. For healthcare companies, it offers solutions for processing claims, managing benefits, and improving patient care. Essentially, SS&C handles the complex, data-heavy tasks so these large organizations can focus on their main business.
Software-enabled Services
This is the largest part of SS&C's business, making up the majority of its sales. Instead of just selling software, SS&C uses its own technology to perform essential tasks for its clients, a service often called outsourcing. For example, a financial firm might hire SS&C to handle all of its accounting and reporting for its investment funds. Healthcare companies also use these services for things like managing insurance claims and benefits. Clients pay SS&C on a regular basis, often through long-term contracts, which provides a steady stream of revenue for the company.
License, Maintenance, and Related Revenues
This is the smaller part of SS&C's business. In this area, the company sells the rights to use its software directly to clients, who then run it on their own computer systems. This is known as a software license. Along with the license, customers typically pay for ongoing maintenance, which includes customer support and software updates. This is a more traditional way of selling software, and while it's not as large as their services business, it's still an important way the company makes money.
What management is betting on now
SS&C's leadership is heavily focused on two main areas for future growth: continuing to acquire other companies and investing in artificial intelligence (AI). The company has a long history of growing by buying other businesses and plans to continue this strategy to enter new markets and gain new technologies. At the same time, SS&C is embedding AI into its products and services to make them smarter and more efficient. The goal is to use AI to automate complex tasks, provide better insights to their clients, and maintain a competitive edge in the financial and healthcare technology industries.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$310.70M
FY2024 Q4
$466.90M
FY2025 Q1
$259.50M
FY2025 Q2
$350.00M
FY2025 Q3
$421.50M
FY2025 Q4
$633.00M
FY2026 Q1
$293.70M
FY2026 Q2
$403.40M
Revenue
$1.70B
Net income
$234.80M
Diluted EPS
0.97
Operating cash flow
$416.70M
Free cash flow
$403.40M
Fetching…
Sources
Revenue
$1.65B
Net income
$226.10M
Diluted EPS
0.91
Operating cash flow
$299.70M
Free cash flow
$293.70M
Fetching…
Sources
Revenue
$1.65B
Net income
$193.10M
Diluted EPS
0.76
Operating cash flow
$643.50M
Free cash flow
$633.00M
Fetching…
Sources
Revenue
$1.57B
Net income
$210.00M
Diluted EPS
0.83
Operating cash flow
$456.20M
Free cash flow
$421.50M
Fetching…
Sources
Revenue
$1.54B
Net income
$180.80M
Diluted EPS
0.72
Operating cash flow
$372.90M
Free cash flow
$350.00M
Fetching…
Sources
Revenue
$1.51B
Net income
$213.00M
Diluted EPS
0.84
Operating cash flow
$272.20M
Free cash flow
$259.50M
Fetching…
Sources
Revenue
$1.53B
Net income
$248.20M
Diluted EPS
0.98
Operating cash flow
$486.60M
Free cash flow
$466.90M
Fetching…
Sources
Revenue
$1.47B
Net income
$164.40M
Diluted EPS
0.65
Operating cash flow
$336.60M
Free cash flow
$310.70M
Fetching…
Sources
Is it cheap or expensive?
Fair value $176.77 vs current price $81.05
Wall Street consensus is the average analyst price target: $98.56 (-44.2% lower than our fair-value estimate).
Our most-likely fair value is $176.77 a share — about 118.1% above today's price of $81.05, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $7.1B. Interest coverage 3.3x.
Net debt
$7.13B
Interest coverage
3.31x
SS&C Technologies Holdings, Inc.'s profit covers its interest bill about 3.3 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
SSNC
BASELINE
SS&C Technologies Holdings, Inc.
Total debt $7.65B Interest coverage 3.31x This is the baseline the peer rows are being compared against.
Total debt — Interest coverage 3.72x +13% vs SSNC Has roughly the same debt cushion as SSNC.
Total debt $3.52B Interest coverage 11.63x +252% vs SSNC Carries about 3.5x more debt cushion than SSNC.
Total debt $69.30M Interest coverage 1,030.07x +31,067% vs SSNC Carries about 311.7x more debt cushion than SSNC.
Total debt $1.54B Interest coverage 12.80x +287% vs SSNC Carries about 3.9x more debt cushion than SSNC.
What you should know
The case for and against SSNC
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.7% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 1.5% with 13-year payout history.
Risks
-
Net debt grew 4.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.36x
Forward P/E
10.48x
P/B
2.84x
P/S
2.84x
EV/EBITDA
12.01x
PEG ratio
0.75x
Profitability
How much profit each dollar creates
Gross margin
48.2%
Operating margin
24.2%
Net margin
12.8%
ROE
12.4%
ROA
5.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.13x
Current ratio
0.78x
Quick ratio
0.22x
Total debt
$7.65B
Total cash
$525.40M
Growth
How the business has been compounding
Revenue TTM
$6.56B
Revenue 5Y CAGR
5.6%
EPS TTM
3.47
EPS 5Y CAGR
8.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.82B
Free CF TTM
$1.66B
FCF margin
25.3%
Dividend
Shareholder payout
Yield
1.5%
Payout ratio
31.1%
Last ex-div date
2026-09-01