SEI Investments Company (SEIC) AI Stock Analysis

• Market Cap: $10.65B
• Dividend Yield: 1.11%
• Average Volume (3M): 778.49K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.96
• Revenue Growth: 10.23%
• EPS Growth: 26.56%
• Country: US
• Employees: 5,066
• Sector: Financial
• Sector Strength: 82
• Industry: Asset Management
• EPS (TTM): 1.17
• Shares Outstanding: 124,486,660
• 10 Day Avg. Volume: 748,500
• 30 Day Avg. Volume: 778,487
• PEG Ratio: 3.84
• Price to Book (P/B): 4.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.83
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 8.10
• Enterprise Value/Ebitda: 3.54
• 1Y Price Target: $85.20
• Price Target Upside: 0.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 82 Outperform
• Price Target: ―

SEI Investments Company demonstrates strong financial performance with robust revenue growth and profitability, low leverage, and efficient cash flow management. The positive sentiment from the recent earnings call and strategic corporate event further supports the stock's potential. However, technical indicators suggest caution due to potential overbought conditions, and the valuation is fair, indicating limited immediate upside. Overall, SEI is well-positioned for growth, with a strong foundation and strategic initiatives in place.

Positive Factors

Financial Performance

The company posted another solid quarter, driven by record sales events, expense discipline, continued strength in IMS and Private Banks, expanding spread income, and high capital return.

Sales Momentum

SEI has exhibited real, tangible, and sustainable improvement in sales activity and expense discipline that translates to improving core revenue growth and attractive incremental margins.

Stock Buyback

3.1M shares repurchased, an acceleration. SEIC has capacity to lean in with over $800M of cash (32% of assets).

Negative Factors

Economic Conditions

Growth remains weak in other segments and market headwinds and economic uncertainty could weigh on the company in the near term.

Interest Rate Impact

Roughly half of earnings growth over the last year has been driven by spread income, which has likely peaked and should move down from here as the Fed cuts.

Profit Margins

Reported 26.1% pre-tax margin was lower than expected, but driven by incentive comp related one timers.

SEI Investments Company Business Overview & Revenue Model

Company Description

SEI Investments Company is a publicly owned asset management holding company. Through its subsidiaries, the firm provides wealth management, retirement and investment solutions, asset management, asset administration, investment processing outsourcing solutions, financial services, and investment advisory services to its clients. It provides its services to private banks, independent financial advisers, institutional investors, investment managers, investment advisors, wealth management organizations, corporations, retirement scheme sponsors, not-for-profit organizations, hedge fund managers, registered investment advisers, independent broker-dealers, financial planners, life insurance agents, defined-benefit schemes, defined-contribution schemes, endowments, foundations, and board-designated fund, through its subsidiaries. Through its subsidiaries, the firm manages separate client-focused portfolios. It also launches and manages equity, fixed income, and balanced mutual funds, through its subsidiaries. Through its subsidiaries, the firm invests in public equity and fixed income markets. It employs fundamental and quantitative analysis with a focus on top-down and bottom-up analysis to make its investments, through its subsidiaries. SEI Investments Company was founded in 1968 and is based in Oaks, Pennsylvania.

How the Company Makes Money

SEI Investments Company generates revenue primarily through fees charged for its investment management and processing services. The company earns money from asset-based fees, which are calculated as a percentage of the assets under management (AUM) or administration. Additionally, SEI also collects transaction-based fees for its investment processing services. Key revenue streams include fees from institutional investors, private banks, and financial advisors who utilize SEI's investment management solutions. SEI's earnings are significantly influenced by the performance of financial markets, as fluctuations can impact the level of assets under management and consequently the fees generated. Moreover, strategic partnerships with financial institutions and continued innovation in financial technology enhance SEI's service offerings and contribute to its revenue growth.

SEI Investments Company Financial Statement Overview

Summary

SEI Investments Company demonstrates commendable financial health across all verticals. The income statement reflects consistent revenue growth and strong profitability metrics. The balance sheet is characterized by low leverage and high equity levels, indicating financial stability and reduced risk. Cash flow statements show efficient cash generation and utilization, underscoring the company's ability to sustain operations and invest in future growth. Overall, SEI Investments exhibits a strong financial position, well-suited for continued success in the asset management industry.

Income Statement

SEI Investments Company shows a robust and steady growth in revenue with a TTM (Trailing-Twelve-Months) revenue of $2.16 billion, a 2% increase from the previous annual report. The gross profit margin is strong at approximately 65.4%, reflecting efficient cost management. The net profit margin stands at 27.8%, indicating solid profitability. EBIT and EBITDA margins are at 26.9% and 34.4% respectively, showcasing strong operational efficiency. The consistent revenue growth and healthy margins highlight the company's strong performance in the asset management industry.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.01, indicating minimal leverage and low financial risk. The return on equity (ROE) is impressive at 26.6%, suggesting efficient use of shareholders' equity to generate profits. The equity ratio is high at 88%, reflecting a strong capital structure with substantial equity backing its assets. This solid financial position provides a stable foundation and reduces potential risks associated with high leverage.

Cash Flow

SEI Investments Company exhibits strong cash flow management with a TTM free cash flow of $619 million, up 9.5% from the previous period. The operating cash flow to net income ratio is robust at 1.09, demonstrating effective cash generation relative to net income. The free cash flow to net income ratio is 1.03, indicating efficient conversion of profits into cash. This strong cash flow performance ensures the company can fund operations, pay dividends, and invest in growth opportunities without relying heavily on external financing.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.16B	2.13B	1.92B	1.99B	1.92B	1.68B
	Gross Profit
1.17B	1.13B	984.14M	1.05B	1.09B	945.99M
	EBIT
582.99M	551.74M	424.52M	475.75M	553.38M	445.89M
	EBITDA
744.53M	822.55M	501.25M	561.23M	646.92M	530.43M
	Net Income Common Stockholders
601.31M	581.19M	462.26M	475.47M	546.59M	447.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
878.89M	869.47M	866.03M	885.16M	853.48M	818.69M
	Total Assets
2.57B	2.72B	2.52B	2.38B	2.35B	2.17B
	Total Debt
23.16M	32.13M	25.35M	29.13M	78.97M	42.64M
	Net Debt
-823.77M	-807.76M	-809.34M	-823.88M	-746.24M	-741.99M
	Total Liabilities
309.38M	432.49M	388.18M	429.73M	493.57M	427.35M
	Stockholders Equity
2.26B	2.25B	2.13B	1.95B	1.86B	1.74B
Cash Flow		Free Cash Flow
603.28M	565.78M	388.24M	491.63M	580.57M	410.12M
	Operating Cash Flow
656.53M	622.34M	447.03M	566.12M	633.10M	488.68M
	Investing Cash Flow
-118.02M	-117.30M	-141.54M	-89.81M	-164.88M	-67.50M
	Financing Cash Flow
-673.79M	-494.40M	-331.32M	-437.24M	-422.32M	-482.13M

SEI Investments Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 84.47 is above the 20-day moving average (MA) of 81.45, above the 50-day MA of 76.92, and above the 200-day MA of 76.29, indicating a bullish trend. The MACD of 2.54 indicates Negative momentum. The RSI at 63.35 is Neutral, neither overbought nor oversold. The STOCH value of 85.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEIC.

SEI Investments Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEIC	82 Outperform	$10.65B	18.63	26.62%	1.11%	10.23%	26.56%
JHG	77 Outperform	$5.99B	15.11	8.55%	4.10%	17.41%	-4.75%
IVZ	73 Outperform	$6.78B	12.14	5.50%	5.60%	5.69%	―
AMG	70 Outperform	$5.16B	14.23	12.81%	0.02%	-6.37%	-28.43%
CG	70 Outperform	$16.87B	15.78	20.38%	3.00%	62.87%	―
BEN	67 Neutral	$11.65B	32.11	2.84%	5.68%	7.02%	-60.38%
Sector *	64 Neutral	$12.78B	9.87	7.67%	17015.06%	12.34%	-5.99%

SEI Investments Company Corporate Events

SEI Investments Sells Family Office Services to Aquiline

On February 27, 2025, SEI Investments Company announced an agreement for Aquiline Capital Partners LP to acquire its Family Office Services business for $120 million, with the transaction expected to close in late second quarter 2025. The acquisition will see the Family Office Services employees transition to Aquiline and continue operating under the Archway brand, enhancing its position in the family office market. This move aligns with SEI’s strategy to focus on growth areas, while Aquiline aims to further invest in and expand the Archway Platform’s capabilities.

SEI Investments Expands EVP Role to CFO/COO

On February 25, 2025, SEI Investments Company announced that Sean J. Denham, Executive Vice President, will expand his role to Chief Financial and Chief Operating Officer. This strategic move is aimed at supporting SEI’s growth strategy by having Denham oversee information technology, operations, and human resources. The expansion of Denham’s role reflects SEI’s focus on maximizing return on invested capital and aligning company functions to drive growth, benefiting employees, clients, shareholders, and strategic partners.