Stock (Symbol) |
SS&C Technologies (SSNC) |
Stock Price |
$38 |
Sector |
| Technology |
Data is as of |
| July 1, 2017 |
Expected to Report |
| Jul 25 |
Company Description |
 SS&C Technologies Holdings, Inc. (SS&C Holdings) is a holding company. The Company is a provider of software products and software-enabled services that allow financial services providers to automate complex business processes and manage their information processing requirements. The Company’s portfolio of software products and software-enabled services allows its clients to automate and integrate front-office functions, such as trading and modeling, middle-office functions, such as portfolio management and reporting, and back-office functions, such as accounting, performance measurement, reconciliation, reporting, processing and clearing. Source: Thomson Financial |
Sharek’s Take |
 This stock market is great for SS&C Technologies (SSNC), which provides financial services software for institutional investment managers. With markets higher across the board, that means more fees for money managers like myself and more fees means more money to invest in software like SS&C provides. Thus, SSNC has the wind at its back and should continue to post good returns in the coming qtrs. SS&C provides fund administration, trading, record keeping, and performance measurement to money managers, and if the managers are doing well its easier for SS&C to raise prices and get additional sales from add-on products. But the real growth story here is how SS&C grows via acquisitions. The company has completed more than 40 companies acquired in the last 20 years. Last year it acquired Citi Alternative Investor Services (which tracks alternative investments), Salentica (a CRM which works with Salesforce) Wells Fargo Fund Services and Conifer Financial Services. The Citi acquisition is important as alternative assets under management have been growing in the teens industry wide and this deal made SS&C the 2nd largest hedge fund administrator. SSNC has grown profits 24% per year since it went public in 2010 and analysts have an Est. LTG of 20% per year on the company. SSNC sells for a reasonable 20x earnings. This is a good growth stock at a reasonable price, and with the wind at its back via a healthy stock market I’m confident the stock will continue to trend higher. Long-term this company could get acquired by a larger software firm or a private equity firm. |
One Year Chart |
 Last qtr SSNC delivered sales and profit growth of 19%. Profits met analyst estimates. Afterwards, future estimates stayed relatively the same. Qtrly profit Estimates are for 18%, 19%, 15% and 20% profit growth the next 4 qrs. The stock has a nice Est. LTG of 20% per year as well as a reasonable P/E of 20. Also, the trend is your friend and the trend is up. |
Fair Value |
 Two qtrs ago I reduced my Fair Value from 22x earnings to 20x, but now with the stock market on a long-ride higher I feel a P/E of 23 is more appropriate. That gives the stock ample upside this year and next. |
Bottom Line |
 SS&C Technologies is a worldwide leader in financial services software that money managers depend on to do their daily business. I use its Advent software to calculate returns and would love to implement SS&C’s other software when the time is right ($$$). With the stock and bond markets doing well, this stock is timely and has good upside to its Fair Value. SSNC ranks 26th of 33 stocks in the Growth Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
26 of 33Aggressive Growth Portfolio N/AConservative Stock Portfolio N/A |
