SEI Investments Company (SEIC) AI Stock Analysis

• Market Cap: $9.83B
• Dividend Yield: 1.25%
• Average Volume (3M): 761.82K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.90
• Revenue Growth: 10.70%
• EPS Growth: 28.21%
• Country: US
• Employees: 5,066
• Sector: Financial
• Sector Strength: 84
• Industry: Asset Management
• EPS (TTM): 4.41
• Shares Outstanding: 126,950,450
• 10 Day Avg. Volume: 964,085
• 30 Day Avg. Volume: 761,824
• PEG Ratio: 0.61
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.53
• Price to Cash Flow (P/CF): 12.30
• P/FCF Ratio: 12.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $90.60
• Price Target Upside: 17.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

SEI Investments Company demonstrates strong financial performance with robust revenue growth and profitability margins. The earnings call reinforces the company's positive growth trajectory, despite technical analysis indicating short-term pressure. The fair valuation and strategic corporate changes further support a positive outlook.

Positive Factors

Financial Performance

SEIC delivered a record net sales quarter, revenue beat, LSV beat, expense beat, an expanded sweep program and the highest Private Banks pre-tax margin since 2009.

Revenue Growth

SEIC made modifications to their Integrated Cash Program on Sept 30 that doubled balances to $2.4B, which should double revenues from $11M in 3Q to more than $20M.

Sales Growth

SEI has now had back-to-back quarters of very strong net recurring sales activity, generating $28 million of closed recurring sales after previously reporting $35 million.

Negative Factors

Margin Pressure

Management expects slight pressure to margins in the near term as some expenses from onboarding hit P&L before revenues.

Pre-tax Margin

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 exhibits strong financial performance with consistent revenue growth, high profitability margins, and robust cash flow. The low debt levels and high Return on Equity further enhance the company's financial health, despite missing data on Total Assets for 2024.

Income Statement

SEI Investments Company has demonstrated strong financial performance with a consistent increase in revenue over the years, reaching $2.13 billion in 2024. The company's Gross Profit Margin is robust at 100%, indicating efficient cost management. The Net Profit Margin has improved to 27.35% in 2024 from 24.08% in 2023, showcasing enhanced profitability. EBIT and EBITDA margins are also strong, reflecting solid operational efficiency. Revenue growth is notable at 10.72% from 2023 to 2024, indicating a healthy growth trajectory.

Balance Sheet

The balance sheet of SEI Investments Company is solid with a Debt-to-Equity Ratio of 0.014, indicating low leverage and financial stability. The Return on Equity (ROE) has increased to 25.81% in 2024, which is a positive sign of profitability for shareholders. However, the Total Assets are not reported for 2024, preventing the calculation of the Equity Ratio. The company has maintained a healthy Stockholders' Equity, which supports its financial stability.

Cash Flow

The cash flow statement shows a strong Operating Cash Flow to Net Income Ratio of 1.07 in 2024, indicating that the company efficiently converts its net income into cash. The Free Cash Flow has grown significantly by 60.26% from 2023 to 2024, reflecting an improved cash position. The Free Cash Flow to Net Income Ratio is 1.07, which signifies a favorable cash flow situation. However, the absence of Capital Expenditure and Total Assets data for 2024 limits a full analysis.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.13B	1.92B	1.99B	1.92B	1.68B
	Gross Profit
1.13B	984.14M	1.05B	1.09B	945.99M
	EBIT
551.74M	424.52M	475.75M	553.38M	445.89M
	EBITDA
822.55M	501.25M	561.23M	646.92M	530.43M
	Net Income Common Stockholders
581.19M	462.26M	475.47M	546.59M	447.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
869.47M	866.03M	885.16M	853.48M	818.69M
	Total Assets
2.68B	2.52B	2.38B	2.35B	2.17B
	Total Debt
32.13M	25.35M	29.13M	78.97M	42.64M
	Net Debt
-807.76M	-809.34M	-823.88M	-746.24M	-741.99M
	Total Liabilities
432.49M	388.18M	429.73M	493.57M	427.35M
	Stockholders Equity
2.25B	2.13B	1.95B	1.86B	1.74B
Cash Flow		Free Cash Flow
565.78M	388.24M	491.63M	580.57M	410.12M
	Operating Cash Flow
622.34M	447.03M	566.12M	633.10M	488.68M
	Investing Cash Flow
-117.30M	-141.54M	-89.81M	-164.88M	-67.50M
	Financing Cash Flow
-494.40M	-331.32M	-437.24M	-422.32M	-482.13M

SEI Investments Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 77.43
• 50DMA: Negative
• 100DMA: Negative
• 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 77.43 is above the 20-day moving average (MA) of 76.31, below the 50-day MA of 80.52, and above the 200-day MA of 73.89, indicating a neutral trend. The MACD of -1.43 indicates Negative momentum. The RSI at 49.73 is Neutral, neither overbought nor oversold. The STOCH value of 85.90 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
AMP	79 Outperform	$50.96B	14.91	68.31%	1.20%	11.38%	39.25%
SEIC	77 Outperform	$9.83B	17.19	26.51%	1.25%	10.70%	28.21%
BLK	76 Outperform	$147.76B	22.66	14.67%	2.14%	12.15%	15.17%
IVZ	71 Outperform	$6.86B	13.01	5.31%	5.35%	3.97%	―
TROW	70 Outperform	$20.67B	10.14	20.60%	5.34%	9.80%	17.87%
BEN	66 Neutral	$10.44B	30.47	2.76%	6.29%	9.48%	-65.57%
Sector *	64 Neutral	$14.46B	10.13	8.73%	4.25%	17.00%	-11.86%

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.