SEI Investments Co (SEIC) stock analysis

P/E above its 5-year median

SEI Investments's P/E of 19.2 is above its own 5-year median of 17.3.

P/E above the industry

SEI Investments's P/E of 19.2 is above the Security Brokers, Dealers, and Flotation median of 15.7.

EV/EBITDA above its 5-year median

SEI Investments's EV/EBITDA of 17.0 is above its 5-year median of 16.6.

P/B above the industry

SEI Investments's price-to-book of 5.34 is above the Security Brokers, Dealers, and Flotation median of 3.12.

Trading above fair value

The share price of $110.25 is above our fair value estimate of $87.66.

Margin of safety under 20%

The price is 25.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 17.6% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 1.8% over the last twelve months, against a 5-year average of 9.8% a year.

Growing slower than the industry

Revenue grew 12.8% over the last twelve months; the Security Brokers, Dealers, and Flotation median is 16.2%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 35.9% over the last twelve months, against 34.2% a year earlier.

Return on equity over 15%

Return on equity was 30.3% over the last twelve months and averaged 27.0% over five years.

Return on capital over 10%

Return on invested capital was 34.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

SEI Investments's return on equity of 30.3% is above the Security Brokers, Dealers, and Flotation median of 17.9%.

Earnings grew over 5 years

Net income grew 9.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 28.1% over the last twelve months, against a 5-year average of 27.0%.

Net margin above the industry

SEI Investments's net margin of 28.1% is above the Security Brokers, Dealers, and Flotation median of 14.4%.

No debt

SEI Investments has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

Operating income covers interest expense 400.3 times.

Short-term assets cover short-term debts

Current assets are 3.29 times current liabilities.

Bankruptcy risk (Altman Z)

Needs market value, working capital and retained earnings.

Pays a dividend

SEI Investments paid dividends worth 0.9% of the share price over the last twelve months.

Yield below Treasuries

The 0.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; SEI Investments yields 0.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 17.9% of net income.

Covered by free cash flow

Dividends take 19.1% of free cash flow.