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Sei Investments Company (SEIC)
NASDAQ:SEIC
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SEI Investments Company (SEIC) AI Stock Analysis

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SEIC

SEI Investments Company

(NASDAQ:SEIC)

Rating:76Outperform
Price Target:
$99.00
▲(10.96% Upside)
SEI Investments Company is well-positioned with strong financials and strategic initiatives. While technical indicators are neutral, the company's valuation is fair, and recent corporate events support long-term growth. Challenges such as margin declines and market volatility are noted but are offset by strategic investments and strong sales performance.
Positive Factors
Acquisition Impact
The transformative Stratos transaction should be accretive to EPS and provide a new growth driver for the company.
Market Position
SEIC's comprehensive solution gives it an edge and can be more attractive to larger RIA players.
Sales Performance
SEIC delivered solid net sales events of $29M, above the L3Y average of $26M.
Negative Factors
Margin Pressures
Margin decline from 28.5% to 26.6% reflects previously announced investments and hiring to support growth.
Spread Income Risk
Spread income has been a meaningful driver of earnings and should switch to a headwind once the Fed starts easing, which should limit earnings growth.
Valuation Concerns
After the recent run-up, the stock is trading at 17 times 2026 EPS versus a historical average of 16 times, suggesting that stock upside is likely to be limited.

SEI Investments Company (SEIC) vs. SPDR S&P 500 ETF (SPY)

SEI Investments Company Business Overview & Revenue Model

Company DescriptionSEI Investments Company (SEIC) is a global provider of investment processing, investment management, and investment operations solutions. Founded in 1968 and headquartered in Oaks, Pennsylvania, SEI serves a diverse client base that includes financial institutions, investment managers, and corporations. The company operates primarily in the financial services sector and offers a range of products and services, including asset management, wealth management, and technology solutions designed to enhance operational efficiency and investment performance.
How the Company Makes MoneySEI generates revenue from multiple streams, primarily through asset management fees, technology services, and investment processing fees. The company earns management fees based on the assets under management (AUM) in its investment funds and accounts. Additionally, SEI provides technology solutions and services to financial institutions, charging fees for software licenses, implementation, and ongoing support. The firm also earns revenue from its investment processing services, which include transaction processing, reporting, and compliance services for institutional clients. Strategic partnerships with financial institutions and technology firms enhance SEI's service offerings and contribute to its earnings by expanding its market reach and client base.

SEI Investments Company Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted SEI's strategic investments and strong sales performance in the Investment Manager segment, alongside positive growth in AUM and AUA. However, it also pointed out challenges with margin declines and private banking delays due to market volatility.
Q2-2025 Updates
Positive Updates
Transformative Strategic Investment in Stratos
SEI announced a strategic investment in Stratos, a leader in the independent advisory space, expected to enhance SEI's platform for advisers and provide long-term shareholder value.
Record Net Sales in Investment Manager Segment
SEI realized nearly $30 million in net sales events, a new record on a trailing 12-month basis, driven by strong momentum in the Investment Manager segment.
Positive AUM and AUA Growth
SEI's AUM and AUA grew both sequentially and year-over-year, reflecting positive market conditions and improving asset flows, signaling improving performance in adviser and institutional businesses.
Introduction of Experienced Board Members
Karin Risi and Tom Naratil joined SEI's Board of Directors, bringing significant experience from Vanguard and UBS, which is expected to strengthen SEI's leadership team.
Negative Updates
Margin Decline
Margins declined in Q2 due to significant investments in talent and technology, impacting short-term income statements.
Private Banking Delays
Delays in private banking sales were caused by market volatility in April, affecting the overall sales performance for the quarter.
Sequential Revenue Challenges
Sequential revenue growth was flat in advisor and institutional businesses, with declines in April offsetting market appreciation in May and June.
Company Guidance
During the SEI second quarter earnings call for fiscal year 2025, several key metrics and strategic directions were discussed. The company reported an EPS of $1.78, which included significant one-time items such as a $0.60 EPS gain from the sale of the family office services business and a vendor negotiation. Without these items, EPS would have been $1.20, an increase from both the prior year and the prior quarter. SEI's net sales events in Q2 reached nearly $30 million, a record on a trailing 12-month basis, with strong momentum in the Investment Manager segment. The company also highlighted a strategic investment in Stratos, an independent advisory leader, and announced new board appointments to bolster long-term growth. Despite a slight decline in margins due to strategic investments in talent and technology, SEI is focusing on long-term growth and accountability. The company returned over $700 million to shareholders through buybacks over the last year and plans to continue leveraging its balance sheet capacity for growth and shareholder returns.

SEI Investments Company Financial Statement Overview

Summary
SEI Investments Company exhibits a very strong financial position, characterized by high profitability, efficient operations, and solid balance sheet management. The company is well-positioned to sustain its operations, though it faces moderate growth challenges. Overall, the financials reflect a stable and profitable asset management firm with minimal leverage and effective cash flow management.
Income Statement
85
Very Positive
The company exhibits a robust financial performance with a strong gross profit margin of 62.3% and a net profit margin of 31.2% in TTM (Trailing-Twelve-Months), indicating high profitability. Revenue growth rate is healthy at 3.78% over the past year, showing consistent business expansion. The EBIT and EBITDA margins are also strong at 27% and 39.9% respectively, highlighting operational efficiency. However, the revenue growth has slowed compared to previous years.
Balance Sheet
80
Positive
SEI Investments Company maintains a solid balance sheet with a low debt-to-equity ratio of 0.01, suggesting minimal leverage and reduced financial risk. The equity ratio is high at 89%, indicating strong equity financing. Return on equity (ROE) is impressive at 29.5%, reflecting efficient use of shareholders' funds. However, there has been a slight reduction in total assets over the past year.
Cash Flow
82
Very Positive
The company demonstrates strong cash flow management with operating cash flow to net income ratio of 0.93 and free cash flow to net income ratio of 0.88, indicating effective conversion of income into cash. The free cash flow growth rate stands at 7.44%, showing positive cash flow expansion. Despite stable cash flow performance, there has been a decrease in operating cash flow compared to the previous year.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.21B2.13B1.92B1.99B1.92B1.68B
Gross Profit1.51B1.13B984.14M1.05B1.09B945.99M
EBITDA757.00M822.55M669.21M561.23M646.92M530.43M
Net Income689.27M581.19M462.26M475.47M546.59M447.29M
Balance Sheet
Total Assets2.63B2.68B2.52B2.38B2.35B2.17B
Cash, Cash Equivalents and Short-Term Investments778.03M869.47M866.03M885.16M859.67M818.69M
Total Debt29.05M32.13M25.35M29.13M78.97M42.64M
Total Liabilities287.83M432.49M388.18M429.73M493.94M427.35M
Stockholders Equity2.34B2.25B2.13B1.95B1.86B1.74B
Cash Flow
Free Cash Flow607.87M565.78M388.24M491.63M580.57M410.12M
Operating Cash Flow638.32M622.34M447.03M566.12M633.10M488.68M
Investing Cash Flow9.05M-117.30M-141.54M-89.81M-164.88M-67.50M
Financing Cash Flow-683.93M-494.40M-331.32M-437.24M-422.32M-482.13M

SEI Investments Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price89.22
Price Trends
50DMA
89.71
Negative
100DMA
85.33
Positive
200DMA
82.62
Positive
Market Momentum
MACD
-0.01
Positive
RSI
52.29
Neutral
STOCH
40.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEIC, the sentiment is Positive. The current price of 89.22 is above the 20-day moving average (MA) of 88.58, below the 50-day MA of 89.71, and above the 200-day MA of 82.62, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 52.29 is Neutral, neither overbought nor oversold. The STOCH value of 40.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEIC.

SEI Investments Company Risk Analysis

SEI Investments Company disclosed 43 risk factors in its most recent earnings report. SEI Investments Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SEI Investments Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$6.53B17.3113.47%0.02%-5.87%-21.51%
79
Outperform
$6.91B16.708.87%3.50%17.59%-8.81%
76
Outperform
$10.89B16.5430.06%1.12%10.55%40.74%
76
Outperform
$13.20B48.742.16%4.93%4.72%-67.85%
74
Outperform
$9.66B23.255.74%3.78%6.79%
68
Neutral
$18.05B11.7310.24%3.73%9.66%1.70%
$6.87B8.108.70%2.39%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SEIC
SEI Investments Company
89.22
24.57
38.00%
AMG
Affiliated Managers
233.05
69.19
42.23%
BEN
Franklin Resources
25.74
7.74
43.00%
IVZ
Invesco
21.96
6.93
46.11%
JHG
Janus Henderson Group
45.10
10.81
31.53%
OTF
Blue Owl Technology Finance Corp.
14.63
-1.01
-6.46%

SEI Investments Company Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
SEI Investments Announces New $500M Credit Facility
Neutral
Aug 19, 2025

On August 18, 2025, SEI Investments Company announced the establishment of a new five-year senior unsecured revolving credit facility worth $500 million, replacing its previous $325 million facility. This new facility, which can be increased by an additional $250 million under certain conditions, includes covenants that restrict certain corporate activities and requires the company to maintain a specific leverage ratio, impacting its financial flexibility and operational strategy.

Executive/Board ChangesBusiness Operations and Strategy
SEI Investments Announces Board Resignation and Appointments
Positive
Jul 22, 2025

On July 22, 2025, SEI Investments Company announced the resignation of Stephanie D. Miller from its Board of Directors, effective upon acceptance, and the subsequent appointment of Karin Risi and Tom Naratil to the Board. This leadership change is part of SEI’s strategy to enhance its transformation and commitment to long-term growth. Risi and Naratil bring extensive experience in wealth management and financial services, expected to provide strategic insights that will support SEI’s ongoing innovation and adaptation to industry dynamics. Their appointments reflect SEI’s focus on leveraging opportunities for growth in a competitive landscape.

M&A Transactions
SEI Investments Sells Family Office Services to Aquiline
Positive
Jul 1, 2025

On July 1, 2025, SEI Investments Company announced the completion of the sale of its Family Office Services business to Aquiline Capital Partners, effective June 30, 2025. The business will now operate under the name Archway, providing integrated technology and outsourced services for family offices and financial intermediaries. This acquisition is expected to enhance the Archway Platform and drive industry adoption, supporting the success of Archway’s clients.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 05, 2025