SSNC

SS&C Technologies Holdings Inc

TMT


Presented:09/13/2018
Price:$57.66
Cap:$13.82B
Current Price:$76.00
Cap:$18.65B

Presented

Date09/13/2018
Price$57.66
Market Cap$13.82B
Ent Value$18.41B
P/E Ratio55.44x
Book Value$17.55
Div Yield0.55%
Shares O/S239.64M
Ave Daily Vol1,396,586
Short Int2.78%

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 Inc (SSNC)

Highlights

The presenter is long SS&C Technologies (SSNC) and feels there are near-term catalysts in the way of better-than-expected synergies from the integration of DST Systems and the potential for recent acquisitions to improve organic growth from flat- to mid-single digits. Additionally, Street concerns that it will have difficulty integrating three large deals at once, a lack of synergies from the Intralinks acquisition, and overleveraged at 5.5x, are overblown as the CEO has experience delivering results in similar situations. Currently trading at ~$57 or 14.3x EPS, the presenter sees EPS of $4 in 2020, ahead of street estimates of ~$3.50, with the stock rerating to 20x for an $80/share target, representing 40% upside in slightly over 12 months.

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Idea Discussion

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