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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on SEIC

SEI Investments Company's recent performance was driven by strong Q1 2025 earnings, with EPS increasing by 18% year-over-year and revenue and operating income growing by 8% and 25%, respectively. The company's operating margins expanded to 28%, a significant improvement from the previous quarter. Additionally, SEI's Q1 2025 results beat analysts' estimates, with quarterly earnings of $1.17 per share surpassing the Zacks Consensus Estimate of $1.12 per share. The company's AUM also increased, contributing to the revenue growth. Furthermore, SEI's recent leadership appointments and strategic partnerships, such as its collaboration with Summit Wealth Group, demonstrate the company's commitment to driving growth and serving clients.

1.c. Company Highlights

2. SEI's Q3 2025 Earnings: A Record-Breaking Quarter

SEI's Q3 2025 earnings report was outstanding, with EPS reaching a record $1.30, up 8% sequentially and 17% year over year. The company's net sales events totaled $31 million, driven by strong revenue growth and margin expansion. The investment managers business led the way, with a record sales quarter reflecting surging demand for outsourcing and client expansions. Approximately two-thirds of sales events were tied to client expansion and two-thirds came from alternative managers.

Publication Date: Oct -23

📋 Highlights
  • Record EPS Growth: Earnings per share reached $1.30, reflecting 8% sequential and 17% year-over-year increases.
  • Strong Sales Performance: Net sales events totaled $31 million, with two-thirds driven by client expansion and alternative managers.
  • Strategic Wins and Losses: Secured a multibillion-dollar fixed income contract and a $13M private banking win, offset by a modestly impactful contract loss.
  • Margin and Cash Strength: Margins improved significantly, ending the quarter with $793M cash, $142M in Q3 share repurchases, and $775M in 12-month buybacks.
  • High Dividend Yield: Integrated cash program earns near Fed funds rate with a spread, offering investors a 55 bps dividend yield and 90–100% free cash flow returns to shareholders.

Business Segment Performance

The company secured significant wins in asset management, including a multibillion-dollar fixed income assignment for a state government client, and in private banking, a $13 million win with a leading super-regional U.S. bank. These wins were offset by a contract loss in private banking, which drove lower net sales for the segment. The financial impact of the loss is expected to be modest, and the company is confident that it is not a trend.

Margin Expansion and Capital Deployment

SEI's margins were solid in Q3, with meaningful improvement both year over year and sequentially. The company incurred severance costs of nearly $4 million and M&A costs related to the Stratos acquisition. SEI ended the quarter with $793 million of cash and no net debt, and share repurchases totaled $142 million in Q3 and $775 million for the trailing twelve months. As per the management, "the integrated cash program is earning close to the Fed funds rate with a spread, and the company is giving investors an attractive yield of 55 basis points."

Valuation and Growth Prospects

With a P/E Ratio of 14.82 and an ROE of 29.96%, SEI's valuation appears reasonable. The company's expected return of 90-100% of its free cash flow to shareholders through dividends or buybacks is attractive, given its Free Cash Flow Yield of 6.04%. Analysts estimate next year's revenue growth at 8.3%, which suggests a positive outlook for the company. The actual EPS of $1.30 beat estimates of $1.25, indicating a strong operational performance.

Outlook and Conclusion

The company is focused on driving growth, optimizing margins, and deploying capital to maximize shareholder value. SEI's integrated approach is breaking down silos, enabling the company to scale across segments, capture wallet share, and deliver consistent, repeatable growth. The Stratos partnership is expected to drive growth and increase awareness of SEI's capabilities across broker-dealer and RIA channels.

3. NewsRoom

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SEI Investments Completes First Phase of Stratos Strategic Partnership

Dec -04

Source: zacks.com

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SEI Drives Sustained Momentum Across Global Wealth Management Markets

Dec -04

Source: prnewswire.com

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SEI Completes First Stage of Strategic Investment in Stratos Wealth Holdings

Dec -03

Source: prnewswire.com

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Creative Planning Buys 7,115 Shares of SEI Investments Company $SEIC

Nov -29

Source: defenseworld.net

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Syverson Strege Partners with SEI to Elevate Financial Planning Experience

Nov -18

Source: prnewswire.com

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SEI Expands Tax Management and Overlay Capabilities

Nov -12

Source: prnewswire.com

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Advyzon Investment Management LLC Makes New $393,000 Investment in SEI Investments Company $SEIC

Nov -12

Source: defenseworld.net

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Asset Management One Co. Ltd. Has $1.10 Million Stake in SEI Investments Company $SEIC

Oct -30

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.61%)

6. Segments

Investment Managers

Expected Growth: 3.8%

SEI Investments Company's 3.8% growth is driven by Investment Managers' ability to attract and retain institutional clients, expand into new markets, and offer a diverse range of investment products. Additionally, their expertise in passive and active management, as well as their strong distribution channels, contribute to their growth.

Private Banks

Expected Growth: 3.5%

SEI Investments Company's private banking segment growth of 3.5% is driven by increasing demand for wealth management services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, investment in technology, and talent acquisition have enhanced its operational efficiency and client experience, contributing to the growth.

Investment Advisors

Expected Growth: 3.2%

SEI Investments Company's 3.2% growth in Investment Advisors is driven by increasing demand for wealth management services, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital platforms and technology has enhanced its ability to attract and retain clients, contributing to the growth.

Institutional Investors

Expected Growth: 3.9%

SEI Investments Company's 3.9% growth is driven by increasing adoption of its investment management services among institutional investors, fueled by its expertise in providing customized solutions, strong investment performance, and expanding distribution channels. Additionally, the company's strategic acquisitions and partnerships have enhanced its capabilities, attracting more institutional clients and contributing to its growth.

Investments in New Businesses

Expected Growth: 4.5%

SEI Investments Company's 4.5% growth in investments in new businesses is driven by increasing demand for alternative investment solutions, expansion into new markets, strategic partnerships, and innovative product offerings. Additionally, the company's strong brand reputation, efficient operations, and effective risk management practices have contributed to its growth momentum.

7. Detailed Products

Institutional Group

Provides investment management services to institutional clients, including pension funds, foundations, and endowments.

Investment Manager Services

Offers a range of services to investment managers, including investment operations outsourcing, distribution, and practice management.

Investor Services

Provides investment processing, settlement, and custody services to individual investors, investment advisors, and financial institutions.

Private Wealth Management

Offers wealth management services to high-net-worth individuals and families, including investment management, financial planning, and estate planning.

TRUST 3000

A comprehensive investment processing and accounting system for investment managers and institutional investors.

SEI Wealth Platform

A fully integrated, end-to-end wealth management platform for investment advisors and financial institutions.

8. SEI Investments Company's Porter Forces

Forces Ranking

Threat Of Substitutes

SEI Investments Company operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand reputation and diversified product offerings help to mitigate the threat of substitutes.

Bargaining Power Of Customers

SEI Investments Company's customers have some bargaining power due to the availability of alternative investment products. However, the company's strong relationships with its customers and its ability to provide customized solutions help to reduce the bargaining power of customers.

Bargaining Power Of Suppliers

SEI Investments Company has a diverse supplier base, and no single supplier has significant bargaining power. The company's strong relationships with its suppliers and its ability to negotiate favorable terms also reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants in the investment management industry is low due to the high barriers to entry, including regulatory requirements and the need for significant capital investments. SEI Investments Company's established brand and strong reputation also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The investment management industry is highly competitive, and SEI Investments Company faces intense competition from established players and new entrants. The company's ability to differentiate itself through its innovative products and services is critical to its success in this competitive environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.18%
Debt Cost 3.95%
Equity Weight 98.82%
Equity Cost 9.06%
WACC 9.00%
Leverage 1.19%

11. Quality Control: SEI Investments Company passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Invesco

A-Score: 6.3/10

Value: 7.4

Growth: 2.9

Quality: 7.2

Yield: 7.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

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SEI Investments

A-Score: 6.3/10

Value: 4.1

Growth: 5.6

Quality: 9.2

Yield: 2.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

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Prospect Capital

A-Score: 5.9/10

Value: 6.3

Growth: 3.9

Quality: 6.9

Yield: 10.0

Momentum: 0.0

Volatility: 8.3

1-Year Total Return ->

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Franklin Resources

A-Score: 5.9/10

Value: 5.1

Growth: 3.4

Quality: 4.3

Yield: 8.0

Momentum: 6.5

Volatility: 8.0

1-Year Total Return ->

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Affiliated Managers Group

A-Score: 5.7/10

Value: 5.8

Growth: 5.6

Quality: 6.8

Yield: 0.0

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Cohen & Steers

A-Score: 5.3/10

Value: 3.8

Growth: 3.3

Quality: 8.8

Yield: 7.0

Momentum: 1.5

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

81.1$

Current Price

81.1$

Potential

-0.00%

Expected Cash-Flows