Last Updated: 12 Nov 2024
Executive Summary
SS&C Technologies Holdings Inc. (SSNC) is a leading provider of software products and software-enabled services to the healthcare and financial services industries. The company has a strong financial position with a market capitalization of $18.52 billion and an EBITDA of $1.93 billion. SSNC's trailing price-to-earnings (PE) ratio of 26.8 is slightly above the industry average, but its forward PE ratio of 13.0 is attractive. The company's shares have outperformed the market over the past year, and analysts are generally positive on the stock.
Company Overview
SS&C Technologies Holdings Inc. was founded in 1986 and is headquartered in Windsor, Connecticut. The company provides a wide range of software products and services to the healthcare and financial services industries. SSNC's healthcare solutions include software for practice management, electronic health records, and revenue cycle management. The company's financial services solutions include software for investment management, wealth management, and regulatory compliance.
Fundamental Analysis
SSNC's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 10.5% over the past five years. SSNC's net income has grown at a CAGR of 12.3% over the same period. The company's profit margin is 12.3%, and its operating margin is 22.2%. SSNC's return on assets (ROA) is 4.88%, and its return on equity (ROE) is 10.8%.
SSNC's balance sheet is also strong. The company has $2.7 billion in cash and equivalents and $1.5 billion in debt. SSNC's debt-to-equity ratio is 0.55, which is below the industry average.
Technical Analysis
SSNC's stock price has been in a strong uptrend over the past year. The stock is currently trading above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 65, which indicates that the stock is overbought. However, the stock's moving average convergence divergence (MACD) is positive, which indicates that the stock is still in a bullish trend.
Short Term Outlook
SSNC's stock price is likely to continue to rise in the short term. The stock is currently trading above its key moving averages, and the RSI is overbought. However, the MACD is positive, which indicates that the stock is still in a bullish trend.
Long Term Outlook
SSNC's long-term outlook is positive. The company has a strong financial position and a growing market share. The company's software products and services are in high demand, and the company is well-positioned to continue to grow in the future.
Analyst Recommendations
Analysts are generally positive on SSNC's stock. The consensus rating on the stock is "buy." The average analyst target price is $84.14, which represents a potential upside of 12.5% from the current price.
