This is a step-by-step stock review to answer the question, is SS&C Technologies Holdings (SSNC) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is SS&C Technologies Holdings (SSNC) stock a good buy?
- SS&C Technologies Holdings Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is SS&C Technologies Holdings (SSNC) stock a good buy?
1. SS&C Technologies Holdings Company History
- Founded in 1986: SS&C Technologies Holdings was established by Bill Stone in Windsor, Connecticut, as a provider of software and services to the financial services industry.
- Early Growth and Innovation: The company quickly became known for its financial technology solutions, offering software to manage complex financial operations, including investment management, accounting, and risk management.
- IPO in 1996: SS&C went public on NASDAQ under the ticker symbol SSNC, using the capital to fund further expansion and innovation in its product offerings.
- Strategic Acquisitions: SS&C expanded aggressively through acquisitions, including key purchases like Advent Software in 2015 and DST Systems in 2018, which significantly broadened its client base and service capabilities.
- Global Expansion: The company expanded its operations internationally, providing technology solutions to a global clientele in banking, insurance, asset management, and healthcare.
- Leadership in FinTech: SS&C became a leader in the financial technology sector, known for its comprehensive software solutions that streamline operations for financial institutions.
- Continued Growth and Innovation: Today, SS&C Technologies Holdings continues to grow, offering cutting-edge software and services that support the evolving needs of the global financial services industry.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Watch
- Score: 50
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how SS&C Technologies Holdings makes money:
- Software Licensing: SS&C Technologies earns revenue by licensing its financial software solutions to banks, investment firms, and other financial institutions.
- Subscription Fees: The company charges subscription fees for access to its cloud-based and software-as-a-service (SaaS) solutions, providing ongoing support and updates.
- Professional Services: SS&C provides consulting, implementation, and support services, which generate additional income beyond software sales.
- Data and Analytics: Revenue is generated from offering data management and analytics services, helping clients make informed decisions and manage risks.
- Managed Services: SS&C provides outsourced services for financial operations, such as fund administration and risk management, which are billed to clients.
- Acquisitions: The company grows its revenue through acquisitions, expanding its product offerings and customer base.
- Advent Software
- DST Systems
- The Bank of New York Mellon’s Investment Servicing Business
- Eze Software
- Boxcarr
- Clever Leaves
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how SS&C Technologies stacks up against other companies.
- Manhattan Associates, Inc.(MANH) – 100
- AppFolio, Inc.(APPF) – 89
- Intuit Inc.(INTU) – 89
- Paylocity Holding Corporation.(PCTY) – 89
- Cadence Design Systems, Inc.(CDNS) – 89
- SS&C Technologies Holdings, Inc.(SSNC) – 50
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Founded SS&C in 1986: William C. Stone founded SS&C Technologies and built it into a leading provider of financial services software and solutions.
- Growth Through Acquisitions: He led the company through numerous strategic acquisitions, including DST Systems and Advent Software, significantly expanding SS&C’s capabilities and market share.
- Successful IPO: Stone took SS&C public in 1996, providing the company with capital to fuel its growth and expansion.
- Global Expansion: Under his leadership, SS&C expanded its operations globally, serving clients in over 90 countries with a broad range of financial services software.
- Innovative Product Development: Stone consistently focused on innovation, driving the development of cutting-edge software solutions that cater to the evolving needs of the financial services industry.
- Leadership and Vision: Throughout his tenure, Stone’s vision and leadership turned SS&C into a powerhouse in the fintech sector, with a reputation for excellence and a robust portfolio of solutions.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of SS&C Technologies Holdings (SSNC) is 55/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is SS&C Technologies Holdings (SSNC) stock a good buy?
Some of the top questions investors can have is SS&C Technologies Holdings (SSNC) stock a good buy or should I buy SS&C Technologies Holdings (SSNC) stock?
SS&C Technologies Holdings is a strong investment option due to its leadership in financial services software and solutions. Investors may be attracted by the company’s diverse product offerings, global reach, and steady revenue growth driven by its extensive client base in finance. Strategic acquisitions, like DST Systems and Advent Software, have expanded its capabilities and market position. However, risks include potential integration challenges from acquisitions and fluctuations in the financial services sector. Overall, SS&C Technologies presents a solid investment opportunity for those interested in fintech and enterprise software, with a proven track record of growth and innovation, but it’s important to consider industry-specific risks.
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The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.