SSNC: Neutral Outlook on Mixed Technicals & Fundamentals

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SSNC's technical outlook is mildly bearish. The recent price action shows a downtrend from a high of $90.09 on September 11th to a recent close of $84.25. The price is currently below its 21-day EMA of $84.41, which acts as immediate resistance. The 50-day SMA, currently at $86.15, is trending downwards, further confirming the bearish sentiment. While the 200-day SMA is $83.10, it is trending sideways and will likely be broken in the near term. Momentum indicators also suggest weakness. The MACD is negative (-0.16), and the MACD histogram shows decreasing bullish momentum, suggesting a potential continuation of the downtrend. The RSI at 49.19 is neutral but trending down, indicating that selling pressure may increase. The stochastic oscillator shows a recent overbought condition which may lead to a short-term pullback. Overall, the technical indicators point towards continued downward pressure on SSNC, with potential for further declines in the coming 1-3 months. The ADX is low, which indicates a weak trend, but the indicators are bearish overall.

SS&C's management discussion reveals a positive but nuanced financial performance. Total revenues for the three months ended September 30, 2025, increased by 7.0% to $1,568.0 million, driven by an 8.6% increase in 'software-enabled services revenues'. However, 'license, maintenance and related revenues' saw a slight decrease of 0.4%. For the nine months ended September 30, 2025, total revenues increased by 6.1% to $4,618.7 million. The 'gross margin percentage' remained relatively stable, decreasing slightly from 48.0% to 47.7% for the three-month period. 'Net cash provided by operating activities' increased from $902.0 million to $1,101.3 million for the nine-month period. The company continues to invest in growth, with 'capitalized software development costs' at $155.5 million and 'capital expenditures' at $70.3 million. Financing activities included $717.3 million of 'purchases of common stock for treasury' and $188.3 million in 'quarterly dividends paid'. The company's debt structure includes Term B-8 Loans of $3,091.9 million and 5.5% Senior Notes of $2,000.0 million. Management states that they 'expect our cash on hand, cash flows from operations and cash available under our Credit Agreement to provide sufficient liquidity to fund our current obligations, projected working capital requirements and capital spending for at least the next twelve months'.

SS&C Technologies' Q2 2025 earnings call projects a moderately bullish sentiment. The company reported record adjusted revenue of '$1.5378 billion, up 5.9%' and adjusted EPS of '$1.45, a 9.8% increase'. Management also highlighted a record adjusted consolidated EBITDA of '$600.4 million' for the quarter. Organic revenue growth was 3.5%, driven by GlobeOp, GIDS, and WIT businesses. The company is raising its full-year revenue guidance by '$15 million' at the midpoint, now expecting revenue to be in the range of '$6.143 billion to $6.243 billion' with 4.5% organic revenue growth. Furthermore, they are raising earnings guidance, expecting adjusted diluted EPS to be in the range of '$5.82 to $6.06, up $0.10 at the midpoint'. The acquisition of Calastone, expected to close in Q4, is anticipated to be accretive to revenue growth, EBITDA margin, and EPS within 12 months. While Intralinks faced macroeconomic challenges, early indicators suggest activity is picking up. Management's tone is captured by Bill Stone's statement: 'We're working hard for our shareholders as we always do, and it's nice to present good results'. The company is actively investing in AI and share buybacks, indicating confidence in its future performance.

SSNC's financial performance presents a moderately positive picture. Revenue has increased from $1,411.6 million in Q4 2023 to $1,568.0 million in Q3 2025, indicating top-line growth. The gross profit ratio has remained relatively stable, fluctuating between 0.4769 and 0.5096, suggesting consistent profitability in core operations. Operating cash flow has been generally positive, with the latest quarter (Q3 2025) showing $456.2 million, indicating strong cash generation from operations. However, total debt has decreased significantly from $6,919.1 million in Q4 2023 to $232.7 million in Q3 2025, strengthening the balance sheet and reducing financial risk. Overall, the company demonstrates revenue growth, stable profitability, solid operating cash flow, and a significant reduction in debt, pointing towards improved financial health.

The company presents a moderately bullish investment profile based on its key metrics and financial ratios. Revenue has shown positive growth, indicating a healthy demand for its products or services. The gross margin has remained relatively stable, suggesting efficient cost management. The Return on Equity (ROE) indicates a solid return for shareholders. The Price-to-Earnings (P/E) ratio suggests the company is appropriately valued by the market. The debt-to-equity ratio has seen a decrease, showcasing the company's improved financial leverage. The current ratio signifies the company's strong ability to meet its short-term obligations. Overall, the company demonstrates a stable and growing business model with a healthy balance sheet, making it a moderately attractive investment for the next 6-12 months.