Summary
- SS&C is well-positioned to help serve the changing needs of companies in a rapidly changing landscape.
- From a pure performance perspective, SS&C has fared reasonably well over the past year.
- U.S. outsourcing is predicted to increase by 7.5% annually, with much of this growth occurring in the financial services industry.
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Once companies begin to outsource, they never go back. – Barry Lam
SS&C Technologies Inc. (SSNC) is a Windsor, Connecticut-based company that provides services and software primarily for the global financial services industry, and to a lesser extent, the medical industry. With a market cap of $16.3B, and revenue exceeding $4.6B in 2019, SS&C has proven itself an established player in this space.
SS&C has the capabilities and size to help serve companies' changing needs in a rapidly shifting landscape. New realities brought on by COVID have only sped up this transition. Cloud technology solutions, of which SS&C is a provider, will increasingly play a larger role in day-to-day management and operations. SS&C has the history, credibility, and resources to make further inroads in this sector.
The demand for outsourcing solutions for middle and back-office operations is likely to see increased demand in the coming years. Financial firms, in particular, are expected to continue this already well-established practice of outsourcing functions, like accounting or human resources.
From a revenue perspective, SS&C looks excellent. The past decade has seen revenues grow at a notable rate.
Steadily rising revenue. Source: Y Charts
SS&C's trajectory has been impressive. Its earnings per share have been growing more aggressively over the past three years compared to its five and ten-year period. However, paid out dividends have slowed in growth during this period, and total asset growth has similarly slowed.
