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what it is
SEI runs the back-office pipes and investment systems that help banks, advisors, and institutions move and manage money.
how it gets paid
Last year Sei Investments made $2.3B in revenue. Investment Managers was the main engine at $0.78B, or 34% of sales.
why it's growing
Revenue grew 8.1% last year. We raised these estimates following the strongerthan-expected september period.
what just happened
SEI's last reported quarter delivered $1.34 EPS versus a $1.25 estimate, a 7.2% beat.
At a glance
A balance sheet — strong enough to weather a downturn
80/100 earnings predictability — you can trust these numbers
15.8x trailing p/e — the market's not buying it — or you found a deal
1.2% dividend yield — cash in your pocket every quarter
25.5% return on capital — every dollar works hard here
xvary composite: 79/100 — average
What they do
SEI runs the back-office pipes and investment systems that help banks, advisors, and institutions move and manage money.
SEI sits inside the plumbing. Once your reporting, custody, and investment workflows run through one system, switching gets expensive and annoying. That stickiness shows up in a 33.0% operating margin and 25.5% return on capital (return on capital → profit from each dollar invested → this business squeezes a lot out of its assets).
How they make money
$2.3B
annual revenue · their business grew +8.1% last year
Investment Managers
$0.78B
Private Banking
$0.58B
Investment Advisors
$0.55B
Institutional Investors
$0.30B
Investments in New Businesses
$0.09B
The products that matter
financial technology and investment processing
Technology & Investment Platforms
$2.3B revenue · whole company
it's effectively the entire $2.3B revenue engine, and that scale produced a 27.7% net margin last year. You are not buying a collection of disconnected side businesses here.
core platform
Key numbers
33.0%
operating margin
Operating margin → what is left after running the business → SEI keeps $0.33 from every revenue dollar before interest and taxes.
25.5%
return on capital
Return on capital → profit per dollar invested → SEI is turning ordinary balance-sheet inputs into unusually strong profits.
$1.6T
assets handled
That scale matters because even small fees on huge balances can produce durable revenue streams.
15.8x
trailing p/e
P/E → how much you pay for each dollar of profit → this is not an expensive price for a 29.0% net margin business.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 95 / 100
- net profit margin 29.0% — keeps 29 cents of every dollar in revenue
- return on equity 26% — $0.26 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in SEIC 3 years ago → it's now worth $15,330.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
SEI's last reported quarter delivered $1.34 EPS versus a $1.25 estimate, a 7.2% beat.
The business kept its momentum into year-end, with 2025 EPS reaching $5.50 versus $4.41 in 2024. Revenue for the year was about $2.3B, up 8.1%, while profitability stayed strong.
$607.9M
revenue
$1.34
eps
34.6%
gross margin
the number that mattered
The key number was the 7.2% EPS beat, because it supports the idea that SEI is still expanding earnings faster than its stock multiple suggests.
-
sei investments continues to step up its earnings performance.the company delivered a strong third-quarter result because market levels and client activity are supporting fee growth, while costs are being kept relatively controlled.
-
revenues rose 8% vs. prior year to about $579 million, and the operating income improved by roughly 11%, which contributed to earnings per share advancing 9%, to $1.30.results are being helped by two primary tailwinds, the rising demand from asset managers to outsource fund administration, and higher asset values that lift fees across several parts of the business. these tailwinds surely persisted through year-end, and likely contributed to a strong fourth quarter.
-
sei probably ended the year with revenues just shy of $2.3 billion, up 7% on the year, and earnings per share of $5.50, a 25% increase.
-
we raised these estimates following the strongerthan-expected september period, and as a result of generally conducive market conditions to end 2025.
-
we look for a steady continuation of supportive markets and further growth in the year ahead.
source: company earnings report, 2026
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What could go wrong
the top risk is fee growth slowing when market levels and client activity cool.
med
market-sensitive fee revenue
Recent results were helped by supportive markets and higher asset values. If that tailwind fades, revenue growth can slow without management doing anything wrong.
this pressure touches the full $2.3B revenue base
med
pricing pressure in outsourced administration and platform services
SEI's margins are strong because the platform is scaled. If rivals force pricing concessions in key workflows, the 27.7% net margin starts doing less of the talking.
margin pressure matters more here than headline revenue noise
low
high expectations for consistency
An 80/100 predictability score cuts both ways. Investors expect smooth execution. One messy quarter can hit sentiment harder when the stock's appeal is stability.
the stock already trades near the top of its $62–$94 range
SEI is not carrying obvious balance-sheet risk. The real risk is that a very good fee business turns into a merely good one, and 15.8x earnings stops looking cheap.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
margin staying above 30%
Quarterly margin hit 31.1%. If that starts slipping while revenue is still growing, the clean earnings story gets less clean.
trend
whether revenue stays near the $579M quarterly run rate
That number tells you if 2025 strength was durable or just helped by favorable markets.
calendar
the next full-year guide versus the $2B revenue estimate
The estimate stack looks conservative against the current $2.3B base. Next guidance should clear up whether that's caution or messy data.
risk
institutional buying holding up
Net buying lasted three straight quarters. If that flips while operating momentum cools, the support bid gets thinner.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they like the setup.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks. This reads more like steady compounder than financial rollercoaster.
chart momentum
average
technical score 3 — the stock is acting normal. No panic, no euphoria, just a chart doing chart things.
earnings predictability
80 / 100
management usually delivers what the market expects. You get fewer shock quarters, for better and worse.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 265 buyers vs. 234 sellers in 3q2025. total institutional holdings: 88.9M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$73
$128
$87
current price
$101
target midpoint · +16% from current · 3-5yr high: $150 (+75% · 15% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
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