SS&C Technologies Holdings Inc (SSNC) stock analysis

P/E below its 5-year median

SS&C Technologies's P/E of 22.9 is below its own 5-year median of 24.7.

P/E below the industry

SS&C Technologies's P/E of 22.9 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.

EV/EBITDA below its 5-year median

SS&C Technologies's EV/EBITDA of 11.0 is below its 5-year median of 11.8.

P/B below the industry

SS&C Technologies's price-to-book of 2.78 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.

Trading below fair value

The share price of $79.44 is below our fair value estimate of $96.45.

Margin of safety under 20%

The price is 17.6% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 8.3% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 0.1% over the last twelve months, against a 5-year average of 5.0% a year.

Growing slower than the industry

Revenue grew 8.7% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Guidance raised

SS&C Technologies raised its FY 2026 Cash from Operating Activities ($M) outlook on Oct 22, 2026.

Gross margin slipping

Gross margin was 48.2% over the last twelve months, against 48.6% a year earlier.

Return on equity under 15%

Return on equity was 12.5% over the last twelve months and averaged 11.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.3%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

SS&C Technologies's return on equity of 12.5% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.

Earnings grew over 5 years

Net income grew 5.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 12.8% over the last twelve months, against a 5-year average of 13.0%.

Net margin above the industry

SS&C Technologies's net margin of 12.8% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

High debt

Debt is 111% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 113% five years ago to 111%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 25.0% of total debt.

Interest not well covered

Operating income covers interest expense 3.6 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.09 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.75; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

SS&C Technologies paid dividends worth 1.4% of the share price over the last twelve months.

Yield below Treasuries

The 1.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; SS&C Technologies yields 1.4%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 31.1% of net income.

Covered by free cash flow

Dividends take 14.6% of free cash flow.