One-glance verdict
Undervalued
$103.53 our estimate vs market $77.17
Wall Street consensus: $92.33 (-10.8% lower than our fair-value estimate)
25% below our estimate, below the bear case
Fundamentals snapshot
SS&C Technologies Holdings, Inc.
SSNC · NMS · Technology · Software - Application
Current price
$77.17
52-week range
$61.40 - $91.07
Market cap
$18.59B
Balance sheet
Stretched
3.31x Stretched
Net debt $7.34B. 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 1.4% 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 sells the essential software that financial services and healthcare companies need to run their daily operations, like managing investment portfolios or processing insurance claims. The company primarily makes money from charging fees for its software and services, which creates predictable income known as recurring revenue (money that comes in regularly, like a subscription). This is important because its customers are deeply integrated with SS&C's products, making it difficult for them to switch to a competitor and creating a stable business for SS&C.
How the company got here
SS&C was started in 1986 by its current CEO, William Stone, in his basement with his personal savings. The company's main strategy for growth has been to buy other companies, having completed over 50 acquisitions (the process of buying other companies) since 1995. This approach allowed SS&C to absorb new technologies and talent, expanding its offerings for the financial world. After first selling shares to the public in 1996, it was later bought by a private company before having a second initial public offering (IPO) in 2010. Through this long history of buying and building, it has become a huge, specialized provider of software and services for the financial and healthcare industries.
What it actually does
Think of SS&C as providing the essential but complicated backstage operations for financial and healthcare companies so they can focus on their main jobs. For a money manager, SS&C provides the software that keeps track of all their investments, handles the accounting, and makes sure they follow the rules. For a health insurance company, it might manage the pharmacy benefits or process claims. Essentially, SS&C sells the critical software and services that handle the complex, data-heavy tasks that these industries rely on every day. Most of its revenue is recurring (predictable income that comes in regularly), which it earns from subscriptions to its software and services.
Financial Services
This is SS&C's largest and original business, making up the vast majority of its revenue. Its customers are investment firms like hedge funds, private equity firms, and wealth managers who pay SS&C for software and services to manage their operations. A huge part of this is fund administration (the back-office work of calculating a fund's value, handling investor communications, and ensuring compliance). They also provide the software that investment professionals use for managing portfolios (a collection of investments), executing trades, and performing accounting.
Healthcare Solutions
This is a smaller but important part of the company that provides technology and services to health plans, pharmacy benefit managers (companies that manage prescription drug benefits), and healthcare providers. These customers pay SS&C to help them manage costs, process claims, and improve patient care through data analysis. For example, SS&C uses a sophisticated system from Johns Hopkins to analyze patient data and help predict which patients might need more care, helping providers manage their resources better. This segment focuses on making the business side of healthcare more efficient and effective.
What management is betting on now
The company's top priority for growth continues to be strategic acquisitions (buying other companies) that add new technologies and give them more products to sell to their existing customers. Management is also heavily focused on using Artificial Intelligence (AI) and automation to make both its own operations and its clients' businesses more efficient. They are also aiming to improve their operating margins (the percentage of profit made from sales after paying for the day-to-day costs of running the business). Finally, the company sees a big opportunity in tokenization (the process of converting rights to an asset into a digital token on a blockchain) to create new services for its clients.
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 $103.53 vs current price $77.17
Wall Street consensus is the average analyst price target: $92.33 (-10.8% lower than our fair-value estimate).
Our most-likely fair value is $103.53 a share — about 34.2% above today's price of $77.17, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $7.3B. Interest coverage 3.3x.
Net debt
$7.34B
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 $7.78B 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 $1.57B 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 4.7% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 1.4% 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)
22.50x
Forward P/E
9.98x
P/B
2.77x
P/S
2.83x
EV/EBITDA
12.16x
PEG ratio
0.81x
Profitability
How much profit each dollar creates
Gross margin
48.1%
Operating margin
24.6%
Net margin
13.2%
ROE
12.6%
ROA
4.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.16x
Current ratio
1.06x
Quick ratio
0.28x
Total debt
$7.78B
Total cash
$434.80M
Growth
How the business has been compounding
Revenue TTM
$6.56B
Revenue 5Y CAGR
5.6%
EPS TTM
3.43
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
1.4%
Payout ratio
31.0%
Last ex-div date
2026-06-01