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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' recent performance was driven by strong Q1 2026 earnings, with EPS increasing 20% year-over-year to $1.44 per share, beating estimates. Revenue and operating income grew 13% and 21%, respectively, with an operating margin of 30%. The company's assets under management (AUM) also rose year-over-year. Additionally, SEI launched a digital onboarding solution for collective investment trusts, modernizing the onboarding experience for defined contribution plan sponsors and asset managers. The company has a "Moderate Buy" rating from brokerages, with six assigning a buy recommendation.

1.c. Company Highlights

2. SEI Q1 2026: Earnings Surge, Growth Engines Accelerate

SEI delivered a robust Q1, with adjusted EPS of $1.44—outpacing the $1.29 estimate and marking a 20% YoY lift—while net sales climbed to $67 million, a 40% jump driven by recurring revenue and professional services. Consolidated operating margin reached 32%, with core margin at 32% and an expected high‑20s to low‑30s outlook. The company trades at a P/E of 14.64 and EV/EBITDA of 10.58, underscoring valuation support for the growth trajectory. Staff noted that the Investment Manager Services (IMS) segment led with $51 million in net sales events, fueling the margin expansion.

Publication Date: Apr -26

📋 Highlights
  • Adjusted EPS Growth:: Q1 adjusted EPS reached $1.44, a 20% YoY increase driven by top-line growth and margin expansion.
  • Net Sales Events:: Total $67 million, including $57 million recurring revenue, exceeding prior records by over 40%.
  • Strategic Stock Repurchases:: $200 million in share buybacks, reflecting disciplined capital returns and confidence in future performance.
  • IMS Segment Leadership:: Generated $51 million in revenue, with large enterprise mandates driving over $50 million in sales events.
  • Core Margin Stability:: 32% core margin sustained via revenue growth and expense management, with expectations of high 20s to low 30s margins ahead.

Strategic Pillars Drive Momentum

SEI’s Investor Day pillars—investing in proven growth engines, reimagining asset management, enterprise excellence, boosting international returns, and strategic capital allocation—were the blueprint for Q1 performance. The firm repurchased over $200 million of shares, reinforcing shareholder value while maintaining disciplined capital returns.

Investment Manager Services Lead

IMS generated more than $50 million in net sales, anchored by large enterprise mandates. The segment’s margin held steady, and the firm secured two sizable deals that accounted for less than 50% of the quarter’s concentration, mitigating risk and reinforcing the platform’s scalability.

Asset Management Gains

Asset Management posted its strongest sales events in years, propelled by ETFs, SMAs, and custody‑only offerings. LSV’s flagship products outperformed benchmarks, and the diversified portfolio structure supports resilience amid market volatility.

Professional Services & Private Markets

Professional Services margin hit 21% thanks to professional services growth and new high‑margin contracts. Private credit and equity clients launched flagship products, sustaining demand on the institutional side, while the private banks’ margin remained healthy despite workforce reductions.

Cash Position & Capital Allocation

The quarter closed with $363 million in cash, providing ample flexibility for reinvestment. SEI’s integrated cash programs maintain a 1% operational cash cover, and the low cash balance—under 2% of the book—reduces liquidity risk while supporting disciplined capital deployment.

AI & Future Growth

AI is positioned as a catalyst for efficiency and productivity, enabling advisors to serve more clients and addressing advisor shortages. The firm’s AI initiatives are expected to enhance fee stability and drive premium pricing, aligning with a positive margin outlook into 2027.

3. NewsRoom

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SEI and Carlyle Enhance Partnership to Expand Private Market Access Across Wealth and Retirement Channels

Apr -30

Source: prnewswire.com

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SEI Investments Beats on Q1 Earnings as Revenues & AUM Rise Y/Y

Apr -23

Source: zacks.com

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SEI Investments Company (SEIC) Q1 2026 Earnings Call Transcript

Apr -23

Source: seekingalpha.com

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SEI (SEIC) Reports Q1 Earnings: What Key Metrics Have to Say

Apr -23

Source: zacks.com

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SEI Investments (SEIC) Surpasses Q1 Earnings and Revenue Estimates

Apr -22

Source: zacks.com

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SEI Reports First-Quarter 2026 Financial Results

Apr -22

Source: prnewswire.com

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SEI Launches Digital Onboarding Solution for Collective Investment Trusts

Apr -14

Source: prnewswire.com

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Huntington National Bank Selects the SEI Wealth Platform

Mar -31

Source: prnewswire.com

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: 6.4/10

Value: 7.6

Growth: 2.9

Quality: 6.7

Yield: 7.0

Momentum: 8.5

Volatility: 6.0

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SEI Investments

A-Score: 6.0/10

Value: 3.9

Growth: 5.7

Quality: 9.2

Yield: 2.0

Momentum: 5.5

Volatility: 9.7

1-Year Total Return ->

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Affiliated Managers Group

A-Score: 5.7/10

Value: 4.2

Growth: 5.4

Quality: 7.7

Yield: 0.0

Momentum: 9.0

Volatility: 8.0

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Franklin Resources

A-Score: 5.6/10

Value: 5.0

Growth: 2.8

Quality: 4.3

Yield: 8.0

Momentum: 5.5

Volatility: 8.0

1-Year Total Return ->

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Prospect Capital

A-Score: 5.5/10

Value: 6.5

Growth: 3.9

Quality: 4.7

Yield: 10.0

Momentum: 0.5

Volatility: 7.7

1-Year Total Return ->

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Cohen & Steers

A-Score: 5.4/10

Value: 4.2

Growth: 3.3

Quality: 8.8

Yield: 7.0

Momentum: 1.5

Volatility: 7.3

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

90.22$

Current Price

90.22$

Potential

-0.00%

Expected Cash-Flows