SEI INVESTMENTS COMPANY (SEIC) Stock Fundamental Analysis
NASDAQ:SEIC - Nasdaq - US7841171033 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to SEIC. SEIC was compared to 232 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making SEIC a very profitable company, without any liquidiy or solvency issues. SEIC is not valued too expensively and it also shows a decent growth rate. These ratings could make SEIC a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
SEIC had positive earnings in the past year.
In the past year SEIC had a positive cash flow from operations.
SEIC had positive earnings in each of the past 5 years.
SEIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 23.43%, SEIC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SEIC's Return On Equity of 26.63% is amongst the best of the industry. SEIC outperforms 93.53% of its industry peers.
With an excellent Return On Invested Capital value of 19.69%, SEIC belongs to the best of the industry, outperforming 95.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SEIC is significantly above the industry average of 7.89%.
The 3 year average ROIC (17.57%) for SEIC is below the current ROIC(19.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.43% | ||
| ROE | 26.63% | ||
| ROIC | 19.69% |
ROA(3y)19.98%
ROA(5y)20.76%
ROE(3y)23.94%
ROE(5y)25.38%
ROIC(3y)17.57%
ROIC(5y)18.6%
1.3 Margins
SEIC has a better Profit Margin (27.77%) than 70.69% of its industry peers.
SEIC's Profit Margin has declined in the last couple of years.
SEIC has a Operating Margin (26.94%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SEIC has remained more or less at the same level.
SEIC has a better Gross Margin (85.83%) than 88.79% of its industry peers.
SEIC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.94% | ||
| PM (TTM) | 27.77% | ||
| GM | 85.83% |
OM growth 3Y-3.42%
OM growth 5Y-1.41%
PM growth 3Y-1.37%
PM growth 5Y-2.09%
GM growth 3Y0.77%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
SEIC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SEIC has been reduced compared to 5 years ago.
SEIC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 23.23 indicates that SEIC is not in any danger for bankruptcy at the moment.
SEIC has a Altman-Z score of 23.23. This is amongst the best in the industry. SEIC outperforms 99.14% of its industry peers.
There is no outstanding debt for SEIC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 23.23 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 5.66 indicates that SEIC has no problem at all paying its short term obligations.
The Current ratio of SEIC (5.66) is better than 88.36% of its industry peers.
A Quick Ratio of 5.66 indicates that SEIC has no problem at all paying its short term obligations.
The Quick ratio of SEIC (5.66) is better than 88.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.66 | ||
| Quick Ratio | 5.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.68% over the past year.
The Earnings Per Share has been growing slightly by 6.34% on average over the past years.
SEIC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.31%.
Measured over the past years, SEIC shows a small growth in Revenue. The Revenue has been growing by 5.20% on average per year.
EPS 1Y (TTM)25.68%
EPS 3Y4.98%
EPS 5Y6.34%
EPS Q2Q%18.18%
Revenue 1Y (TTM)10.31%
Revenue growth 3Y3.48%
Revenue growth 5Y5.2%
Sales Q2Q%7.77%
3.2 Future
Based on estimates for the next years, SEIC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.61% on average per year.
The Revenue is expected to grow by 4.66% on average over the next years.
EPS Next Y7.54%
EPS Next 2Y8%
EPS Next 3Y9.01%
EPS Next 5Y9.61%
Revenue Next Year3.87%
Revenue Next 2Y4.22%
Revenue Next 3Y4.65%
Revenue Next 5Y4.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.40, the valuation of SEIC can be described as rather expensive.
SEIC's Price/Earnings ratio is in line with the industry average.
SEIC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.25.
Based on the Price/Forward Earnings ratio of 16.42, the valuation of SEIC can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as SEIC.
When comparing the Price/Forward Earnings ratio of SEIC to the average of the S&P500 Index (22.15), we can say SEIC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 16.42 |
4.2 Price Multiples
78.45% of the companies in the same industry are more expensive than SEIC, based on the Enterprise Value to EBITDA ratio.
SEIC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.47 | ||
| EV/EBITDA | 14.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SEIC does not grow enough to justify the current Price/Earnings ratio.
SEIC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)2.9
EPS Next 2Y8%
EPS Next 3Y9.01%
5. Dividend
5.1 Amount
SEIC has a Yearly Dividend Yield of 1.16%. Purely for dividend investing, there may be better candidates out there.
SEIC's Dividend Yield is slightly below the industry average, which is at 8.15.
Compared to an average S&P500 Dividend Yield of 2.38, SEIC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
The dividend of SEIC is nicely growing with an annual growth rate of 7.04%!
SEIC has paid a dividend for at least 10 years, which is a reliable track record.
SEIC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.04%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
20.34% of the earnings are spent on dividend by SEIC. This is a low number and sustainable payout ratio.
The dividend of SEIC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.34%
EPS Next 2Y8%
EPS Next 3Y9.01%
84.65
-0.61 (-0.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners73.54%
Inst Owner Change3.41%
Ins Owners23.27%
Ins Owner Change-3.61%
Market Cap10.54B
Analysts78.33
Price Target86.9 (2.66%)
Short Float %3.29%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend0.93
Dividend Growth(5Y)7.04%
DP20.34%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.32%
Min EPS beat(2)-2.91%
Max EPS beat(2)2.26%
EPS beat(4)2
Avg EPS beat(4)1.68%
Min EPS beat(4)-2.91%
Max EPS beat(4)8.86%
EPS beat(8)3
Avg EPS beat(8)0.37%
EPS beat(12)4
Avg EPS beat(12)-3.29%
EPS beat(16)5
Avg EPS beat(16)-2.44%
Revenue beat(2)0
Avg Revenue beat(2)-1.4%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)-1.3%
Revenue beat(4)0
Avg Revenue beat(4)-1.72%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)-1.23%
Revenue beat(8)1
Avg Revenue beat(8)-1.63%
Revenue beat(12)2
Avg Revenue beat(12)-1.36%
Revenue beat(16)5
Avg Revenue beat(16)-0.92%
PT rev (1m)5.19%
PT rev (3m)-5.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.32%
EPS NY rev (1m)2.45%
EPS NY rev (3m)-4.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.64%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)-3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 16.42 | ||
| P/S | 4.87 | ||
| P/FCF | 17.47 | ||
| P/OCF | 16.05 | ||
| P/B | 4.67 | ||
| P/tB | 5.89 | ||
| EV/EBITDA | 14.94 |
EPS(TTM)4.6
EY5.43%
EPS(NY)5.16
Fwd EY6.09%
FCF(TTM)4.85
FCFY5.72%
OCF(TTM)5.27
OCFY6.23%
SpS17.39
BVpS18.14
TBVpS14.36
PEG (NY)2.44
PEG (5Y)2.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.43% | ||
| ROE | 26.63% | ||
| ROCE | 25.31% | ||
| ROIC | 19.69% | ||
| ROICexc | 29.04% | ||
| ROICexgc | 41.53% | ||
| OM | 26.94% | ||
| PM (TTM) | 27.77% | ||
| GM | 85.83% | ||
| FCFM | 27.86% |
ROA(3y)19.98%
ROA(5y)20.76%
ROE(3y)23.94%
ROE(5y)25.38%
ROIC(3y)17.57%
ROIC(5y)18.6%
ROICexc(3y)29.76%
ROICexc(5y)32.14%
ROICexgc(3y)46.13%
ROICexgc(5y)50.13%
ROCE(3y)22.59%
ROCE(5y)23.91%
ROICexcg growth 3Y-9.34%
ROICexcg growth 5Y-5.59%
ROICexc growth 3Y-7.45%
ROICexc growth 5Y-3.84%
OM growth 3Y-3.42%
OM growth 5Y-1.41%
PM growth 3Y-1.37%
PM growth 5Y-2.09%
GM growth 3Y0.77%
GM growth 5Y0.63%
F-Score9
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 70.91% | ||
| Cap/Sales | 2.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.7% | ||
| Profit Quality | 100.33% | ||
| Current Ratio | 5.66 | ||
| Quick Ratio | 5.66 | ||
| Altman-Z | 23.23 |
F-Score9
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)79.78%
Cap/Depr(5y)77.91%
Cap/Sales(3y)3.16%
Cap/Sales(5y)3.37%
Profit Quality(3y)94.91%
Profit Quality(5y)96.52%
High Growth Momentum
Growth
EPS 1Y (TTM)25.68%
EPS 3Y4.98%
EPS 5Y6.34%
EPS Q2Q%18.18%
EPS Next Y7.54%
EPS Next 2Y8%
EPS Next 3Y9.01%
EPS Next 5Y9.61%
Revenue 1Y (TTM)10.31%
Revenue growth 3Y3.48%
Revenue growth 5Y5.2%
Sales Q2Q%7.77%
Revenue Next Year3.87%
Revenue Next 2Y4.22%
Revenue Next 3Y4.65%
Revenue Next 5Y4.66%
EBIT growth 1Y28.37%
EBIT growth 3Y-0.06%
EBIT growth 5Y3.71%
EBIT Next Year28.02%
EBIT Next 3Y13.62%
EBIT Next 5Y11.29%
FCF growth 1Y76.5%
FCF growth 3Y-0.86%
FCF growth 5Y3.87%
OCF growth 1Y56.28%
OCF growth 3Y-0.57%
OCF growth 5Y2.69%