One-glance verdict
Undervalued
$120.15 our estimate vs market $80.27
Wall Street consensus: $93.56 (-22.1% lower than our fair-value estimate)
33% below our estimate, below the bear case
Fundamentals snapshot
SS&C Technologies Holdings, Inc.
SSNC · NMS · Technology · Software - Application
Current price
$80.27
52-week range
$61.40 - $90.22
Market cap
$18.84B
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 1.5% 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 that financial services firms and healthcare companies use for complex jobs, like managing investments or processing insurance claims. The company makes most of its money from ongoing subscriptions and service contracts, which creates predictable recurring revenue (income that is likely to continue in the future). This makes their business less dependent on landing big, one-time sales each quarter.
How the company got here
SS&C was started in 1986 by its current CEO, Bill Stone, in his basement with his own savings. The company's main strategy for growth has been to buy other companies, having acquired over 50 businesses since 1995. This 'growth-by-acquisition' approach has been a defining feature, allowing SS&C to add new technologies and services for the financial and healthcare industries. After first selling shares to the public in 1996, it was later bought by a private company, and then became public again in 2010. This history of strategic purchases has pieced together the wide range of products and services it offers today.
What it actually does
Think of SS&C as providing the essential, but complicated, digital plumbing for the financial and healthcare worlds. The company sells specialized software and also offers services where it runs these complex operations for its clients. Its customers are big players like investment funds, wealth managers, and healthcare organizations who rely on SS&C for critical tasks like investment accounting, trade processing, and managing healthcare claims. By handling these vital back-office functions (the administrative and support tasks), SS&C allows its clients to focus on their main business, like managing investments or caring for patients.
Financial Services: Fund Administration
This is SS&C's largest business, making it the world's biggest administrator for hedge funds and private equity funds (investment pools for wealthy individuals and institutions). In this segment, known as SS&C GlobeOp, the company acts as the back office for these investment funds. Fund managers pay SS&C to handle the complex accounting, calculate the fund's value, manage investor reporting, and ensure they meet regulations. This generates steady, predictable income because it's based on long-term contracts for services that are essential to the client's daily operations.
Financial Services: Software and Wealth Management Platforms
Instead of doing the work for a client, this part of the business sells the specialized software tools directly to them. Customers like wealth management firms, who advise people on their investments, use platforms such as Black Diamond and Advent to manage their clients' portfolios, report on performance, and handle billing. This software helps financial advisors streamline their own operations and provide a better digital experience to their clients. This segment also includes software for trading and managing risk (the potential for investment losses).
Healthcare Solutions
SS&C provides software and services to the healthcare industry, which is a smaller but important part of its business. This division helps manage the complex data and payment systems behind healthcare. For example, it offers solutions for pharmacy benefits management (handling prescription drug programs), processing medical claims, and analyzing patient data to improve care. Customers are healthcare providers and insurance companies who pay SS&C to make their operations more efficient and handle the massive flow of information in the industry.
Intralinks: Secure Data Sharing
Through its acquisition of a company called Intralinks, SS&C operates a leading platform for secure document sharing. This service provides what are called virtual data rooms (secure online sites) where companies can share highly sensitive information. This is most often used when one company is buying another, a process called mergers and acquisitions (M&A), and both sides need to review confidential documents. Companies pay SS&C for these secure spaces to ensure their private information is protected during major business deals.
What management is betting on now
The company is heavily focused on integrating artificial intelligence (AI) into its products to make them smarter and more efficient. Management believes that financial and healthcare firms will continue to outsource (handing off tasks to a specialist company) their complex back-office operations to control costs, which creates a continuing demand for SS&C's services. The company is also focused on paying down its debt (money borrowed to buy other companies) and returning money to shareholders through dividends (a portion of profits paid to investors) and buybacks (when a company buys its own stock to reduce the number of shares available). Finally, SS&C continues to look for strategic acquisitions to add new capabilities and expand its reach.
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 $120.15 vs current price $80.27
Wall Street consensus is the average analyst price target: $93.56 (-22.1% lower than our fair-value estimate).
Our most-likely fair value is $120.15 a share — about 49.7% above today's price of $80.27, 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 $21.26B Interest coverage 4.50x +36% vs SSNC Carries about 1.4x more debt cushion than SSNC.
Total debt $3.52B Interest coverage 11.63x +252% vs SSNC Carries about 3.5x 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 1.5% 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)
23.07x
Forward P/E
10.38x
P/B
2.84x
P/S
2.87x
EV/EBITDA
12.44x
PEG ratio
0.75x
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
3.48
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
31.0%
Last ex-div date
2026-09-01