A Valuation Check on SS&C Technologies (SSNC) After Q3 Earnings Beat, Raised Guidance, and Strategic Expansion

SS&C Technologies Holdings (SSNC) delivered a 7% jump in adjusted revenue last quarter and outperformed Wall Street expectations on both sales and profit. Management also lifted its full-year earnings guidance, which caught investors’ attention.

See our latest analysis for SS&C Technologies Holdings.

SS&C Technologies Holdings has seen its share price climb 7.2% year-to-date, reflecting renewed optimism after a string of upbeat quarters and the announcement of several international acquisitions. With a 1-year total shareholder return of 8.95% and nearly 71% growth delivered over the past three years, the company’s momentum appears to be picking up again, supported by raised guidance, continued buybacks, and steady top-line growth.

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With SS&C’s rapid gains and a share price still trading at a sizable discount to analyst targets, investors may be wondering whether the market is underestimating its potential or if future growth is already reflected in the current price.

Most Popular Narrative: 17.4% Undervalued

SS&C Technologies Holdings currently trades at $80.88, notably below the most widely followed narrative's fair value estimate of $97.89 per share. This substantial gap has caught attention, especially as stronger profit margins and organic revenue drivers take center stage in future expectations.

The integration of AI-driven automation platforms like Blue Prism, designed to enhance operational efficiency, is anticipated to reduce costs and improve net margins over time. The strategic lift-out agreement with Insignia Financial is set to contribute significantly to SS&C's revenue in the latter half of 2025, supporting a stronger revenue forecast.

Read the complete narrative.

Curious about why analysts think this price gap could soon close? The reasoning centers on transformative technology moves, deals with financial giants, and ambitious forecasts for shareholder returns. Unpack the boldest assumptions and see which financial trends power this eye-catching fair value.

Result: Fair Value of $97.89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing foreign exchange impacts and SS&C’s sizeable net debt could pressure revenue growth if market conditions or interest rates unexpectedly worsen.

Find out about the key risks to this SS&C Technologies Holdings narrative.

Build Your Own SS&C Technologies Holdings Narrative

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A great starting point for your SS&C Technologies Holdings research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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