SSNC

SS&C Technologies Holdings Inc

TMT, Finance/Real Estate


Presented:01/09/2019
Price:$47.32
Cap:$11.86B
Current Price:$76.00
Cap:$18.65B

Presented

Date01/09/2019
Price$47.32
Market Cap$11.86B
Ent Value$20.30B
P/E Ratio49.01x
Book Value$17.57
Div Yield0.68%
Shares O/S250.69M
Ave Daily Vol2,139,198
Short Int2.95%

Current

Price$76.00
Market Cap$18.65B
SS&C Technologies Holdings, Inc. engages in the development and provision of software solutions. Its portfolio of products provides functions including 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. It also caters to the institutional asset and wealth management, alternative investment management, financial advisory, and financial institutions vertical markets. The company was founded by William Charles Stone in February 1986 and is headquartered in Windsor, CT.

Publicly traded companies mentioned herein: SS&C Technologies Holdings Inc (SSNC)

Highlights

With shares of SS&C Technologies (SSNC) trading in the high $40s, the presenter sees a favorable risk/reward setup. The company is a roll-up of various software/fund administration solution providers, mainly serving the asset management community (including hedge funds, a source of perceived risk of late). CEO Bill Stone has a proven ability to leverage his “currency” (SSNC shares) to buy quality assets and achieve meaningful synergies. While it’s not the most exciting story, there is optionality around M&A once SSNC reduces its leverage (headline Net Debt/ EBITDA of 6.7x; 4.7x pro forma), synergies from DST, Eze, and Intralinks could all come in ahead of guidance and estimates, and earnings of $4/share in 2020, and ~$4.20 in 2021 should be achievable. Using current P/E multiples (17x trailing, 13.5x forward), the implied upside over 12 - 24 months should be at least 20% - 35%.

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Idea Discussion

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