One-glance verdict
Undervalued
$117.15 our estimate vs market $67.64
Wall Street consensus: $94.78 (-19.1% lower than our fair-value estimate)
42% below our estimate, below the bear case
Fundamentals snapshot
SS&C Technologies Holdings, Inc.
SSNC · NMS · Technology · Software - Application
Current price
$67.64
52-week range
$64.51 - $91.07
Market cap
$16.29B
Balance sheet
Stretched
3.31x Stretched
Net debt $7.21B. 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 2.1% last year.
- Reward Free cash flow was positive in 10/10 years.
- Reward Dividend yield is 1.6% 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 but complicated software that financial firms and healthcare companies use to run their businesses, handling tasks like investment accounting and processing insurance claims. Because this software is deeply integrated into a customer's operations, it's hard to switch, which means most of the company's income is recurring revenue (money that comes in regularly from subscriptions and contracts), making its sales predictable and stable.
How the company got here
SS&C Technologies was started in 1986 by William C. Stone in his basement with a focus on creating software for the financial industry. A key growth strategy for the company has been acquiring other companies, with over 50 acquisitions made since 1995. The company first sold its stock to the public in 1996, which provided money for more growth. After a period of being privately owned, SS&C had a second initial public offering (IPO) in 2010 and is now a large global company serving thousands of clients.
What it actually does
SS&C provides the behind-the-scenes software and services that financial companies and healthcare organizations use to manage their operations. Think of it as the complex plumbing that allows these large industries to function smoothly. Their clients, which include banks, investment managers, and insurance companies, use SS&C's tools to handle tasks like accounting for investments, managing trades, and ensuring they follow regulations. Essentially, SS&C's products help these organizations be more efficient and reduce their operational costs.
Financial Services
This is the company's largest area, providing a wide range of software and services to different types of financial firms. For example, they offer tools for asset managers (companies that invest money for others) to manage their portfolios (a collection of investments) and for banks to handle their lending operations. They are also the world's largest administrator for hedge funds and private equity funds, which means they handle the complex back-office tasks for these investment firms. This segment generates the vast majority of the company's revenue (the total money earned from sales).
Healthcare
SS&C also provides technology solutions specifically for the healthcare industry. This includes services for managing health insurance claims, administering employee benefits, and analyzing healthcare data to improve outcomes. For instance, their systems help insurance carriers and administrators efficiently exchange data about employee benefits. While smaller than their financial services business, it represents a significant area of operation for the company.
What management is betting on now
SS&C's main focus for the future is on growth through strategic acquisitions and technological innovation. The company continues to buy other companies to expand its services and enter new markets, like its recent acquisition of Calastone, a large global funds network. They are also investing heavily in artificial intelligence (AI) and automation to make their software and services smarter and more efficient for their clients. The goal is to simplify complex processes for their customers and find new ways to sell more of their services to their large existing client base.
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 Q2
$374.90M
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
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
Revenue
$1.45B
Net income
$190.30M
Diluted EPS
0.75
Operating cash flow
$384.90M
Free cash flow
$374.90M
Fetching…
Sources
Is it cheap or expensive?
Fair value $117.15 vs current price $67.64
Wall Street consensus is the average analyst price target: $94.78 (-19.1% lower than our fair-value estimate).
Our most-likely fair value is $117.15 a share — about 73.2% above today's price of $67.64, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $7.2B. Interest coverage 3.3x.
Net debt
$7.21B
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 $7.63B 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 $21.15B Interest coverage 4.50x +36% vs SSNC Carries about 1.4x more debt cushion than SSNC.
Total debt $3.41B Interest coverage 8.75x +165% vs SSNC Carries about 2.6x more debt cushion than SSNC.
Total debt $1.55B Interest coverage 13.29x +302% vs SSNC Carries about 4.0x more debt cushion than SSNC.
What you should know
The case for and against SSNC
3 Rewards
1 Risk
Rewards
-
Revenue grew 2.1% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 1.6% 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)
21.00x
Forward P/E
9.02x
P/B
2.38x
P/S
2.54x
EV/EBITDA
11.54x
PEG ratio
0.70x
Profitability
How much profit each dollar creates
Gross margin
48.0%
Operating margin
24.2%
Net margin
12.6%
ROE
11.8%
ROA
4.5%
Health
Liquidity and balance-sheet strength
Debt / equity
1.11x
Current ratio
1.10x
Quick ratio
0.31x
Total debt
$7.63B
Total cash
$420.90M
Growth
How the business has been compounding
Revenue TTM
$6.41B
Revenue 5Y CAGR
5.6%
EPS TTM
3.22
EPS 5Y CAGR
8.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.77B
Free CF TTM
$1.66B
FCF margin
26.0%
Dividend
Shareholder payout
Yield
1.6%
Payout ratio
32.9%
Last ex-div date
2026-06-01