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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Sei Investments Company (XNAS:SEIC) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
SEIC
Name:
SEI INVESTMENTS COMPANY (XNAS:SEIC)
Sector:
244.56M
Industry:
Asset Management
CEO:
Mr. Alfred West
Total Employees:
4,371
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -54.88% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF SEI INVESTMENTS COMPANY(SEIC) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND ASSET MANAGEMENT INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
53.85
One Month Price Target:
$54.14
Six Month Price Target :
$55.62
Likely Price in One Year's Time:
Ticker:
$57.38
Likely Trading Range Today Under (Normal Volatility)
$53.65
Price Upper limit ($) :
$54.04
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$51.47
This week:
$48.53
This month :
$43.21
Other Primary facts
Market Cap:
7.34B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
135.49M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
12.2%
-12.23%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$64.89
$59.88
$42.81
$47.82
Medium risk (<10%) entry points
Buy Call
Sell Call
$58.25
Buy Put:
Sell Put:
$57.18
$49.44
$50.52
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
SEIC
Sharpe Ratio:
-0.59%
Comparison:
SEIC, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -173.16% lower than the industry
& is -125.81% lower than the market/S&P 500 average
Average Returns/Yield of
SEIC
Daily returns:
0.00%
Weekly returns:
-0.02%
Monthly returns:
-0.08%
Yearly returns:
9.18%
Comparison of returns:
Average annual returns/yield (last 3 years) is -109.91% below industry average
Classification:
SEIC, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.79
Statistical test of Returns:
SEIC has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.15%
Weekly Volatility:
4.80%
Monthly Volatility:
9.61%
Yearly Volatility:
33.29%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.69%
Volatility in last five trading days has been -67.99% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.42%
Weekly VaR:
-9.88%
Monthly VaR:
-19.75%
How Much Can the price of
SEIC
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-18%
Worst case (decline):
-68.42%
This translates to price declining to:
$44.42
This translates to price declining to:
$17.00
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
SEIC is a 39.41% riskier investment compared to the market/S&P 500 & is 19.43% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -17.31% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
SEIC
Beta in relation to market/S&P 500--0.98
Expected beta in 1 year's time:
0.72
Expected beta in 3 year's time:
1.018
Unlevered (debt free) Beta:
0.955
Beta in relation to Nasdaq (XNAS):
0.557
Beta in relation to all global stocks::
0.882
Beta Comparison & Analysis
Beta of competitors/peers::
1.285
Beta is -24.04% lower than peers
Average Industry Beta:
1.694
Beta is -42.38% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
23.91%
Sustainable growth rate is -15.17% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.107
Alpha is 92.85% above industry average alpha yield
Alpha is -684% below the market average
Analysis of Cost of Capital of
SEIC
Equity cost of capital:
0.098
Equity cost of capital is -33.34% below industry mean WACC
Unlevered (without debt) cost of capital:
9.63%
Before-tax cost of debt:
1.04%
After-tax cost of debt:
0.82%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
0.82%
WACC is 30.07% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$15.09
Revenue growth rate per share of (3Y):
3.7
Annual revenue growth rate is -72.30% below industry average
EPS:
$4.29
Expected Annual growth rate of EPS (3Y):
4.80%
Expected future EPS growth rate is -82.71% lower than the Asset Management industry
Free cash flow (FCF) per share:
$5.04
Balance sheet equity growth per share: 24.67%
Equity growth rate per share is 16.73% higher than the industry
Debt per share
$0.41
EBITDA per share
$6.42
Valuation Analysis Today of
SEIC
P/E Ratio:
12.92
P/E Ratio of Competitors/Peers:
15.97
P/E ratio is -19.06% lower than main peers & is -19.97% lower than the industry
Stock price/value with industry average P/E ratio: $69.27
SEIC is -22.27% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $39.69
Present value of the expected future dividends only: $22.36
P/S (Price to Sales ratio):
3.57
Price to sales ratio is -47.90% below the industry mean
P/B (Price to book value ratio):
3.7
Price to free cash flow: 10.68
Price to free cash flow ratio is 44.74% higher than the industry
Net income growth rate (3Y):
20.41%
Net income growth rate is -85.96% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 9.14%
Dividend yeild: 2.86%
Previous Dividend: $0.40
Previous adjusted dividend: $0.40
Previous Dividend: $1.54
Expected next dividend best case: $0.43
Expected next dividend worst case: $0.37
Average dividend payment (long-term): $0.37
Average dividend increase/decrease (growth rate) % per period: 2.76%
Expected next dividend payment date: 20/09/2022
Expected next dividend record date: 09/12/2022
-
Previous dividend payment date: 22/06/2022
Previous dividend record date: 13/06/2022
-
Dividend History:
2022-06-10--$0.40
2021-06-11--$0.37
2020-06-12--$0.35
2021-12-20--$0.40
2020-12-18--$0.37
2019-12-26--$0.35
Dividend growth rate is -50.01% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
2.79%
Net debt to equity ratio:
-42.65%
Debt to assets ratio:
2.32%
Net debt to assets ratio:
-35.47%
Debt-to-asset ratio is -95.57% below industry average
Ability to repay debt:
Interest coverage ratio:
1259.92
Interest coverage ratio is 2018.64% more than industry average
Looking forward:
Debt growth rate:
0.00%
-
Debt repayment rate in last quarter: 15.39%
Analysis of Key Statistics
Correlation of price movement with the market:
0.578
Statistical significance of correlation:
SEIC has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.576
Stock price is 0.34% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.576
Correlation of price movement with Nasdaq (^IXIC):
0.013
Covariance of price movement with the market:
0.016
Kurtosis
7.291
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.171
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
SEIC
Gross Profit Margin Ratio:
231%
Operating Profit Margin Ratio:
31.08%
Operating profit margin is -33.92% lower than the industry
Net Profit Margin Ratio:
231%
Effective Tax Rate:
21.49%
Effective tax rate is -12.00% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
30.79%
Return on equity (ROE) is 21.78% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
25.60%
Return on assets (ROA) is 338.74% higher than the industry
Financial Leverage:
1.0x
Current Ratio:
5.19
Current ratio is 35.39% above industry average
Cash Conversion Cycle (days):
79.1
Cash conversion cycle is -90.89% below industry average
The remaining useful life of property plant & equipment is: 3.8 years
Stock based compensation to net income ratio:
1.74%
In-depth Efficiency Analysis
Revenue generated per employee:
467.6K
Each employee generates -66% less revenue than industry average revenue per employee
EBITDA generated per employee:
198.9K
Each employee generates -126% less EBITDA than industry average revenue per employee
Profit generated per employee:
139.0K
Each employee generates -111% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
55.9K
Each employee generates -147% less free cash flow than industry average revenue per employee
Assets/Capital per employee
204.0K
Each employee generates -147% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
SEIC
PEOPLE'S UNITED FINANCIAL, INC. (XNAS:PBCT)
COMMERCE BANCSHARES, INC. (XNAS:CBSH)
EVO ACQUISITION UNT (XNAS:EVOJU)
VCVCU
CREDIT ACCEPTANCE CORPORATION (XNAS:CACC)
OXFORD LANE CAPITAL CORP. (XNAS:OXLCP)
HEALTHCARE SERVICES ACQUISITION UNIT (XNAS:HCARU)
PINNACLE FINANCIAL PARTNERS, INC. (XNAS:PNFP)
Upstart Holdings Inc (XNAS:UPST)
Current Analyst Ratings
Strong buy�8%
Buy�8%
Hold�8%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
2.04B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
858.36M
1.19B
-
455.41M
455.41M
-
94.96M
550.37M
3.55M
690.00K
94.96M
869.35M
635.34M
607.43M
773.70M
166.27M
607.43M
Statement of Cash Flow
Date:
Period:
24.99M
Differed Income Tax :
- 10908.00K
Stock Based Compensation :
10.57M
Change in Working Capital :
42.65M
Accounts Receivables:
5.43M
Other Working Capital:
5.49M
Other Non-Cash Items:
2.83M
Net Cash Provided by Operating Activities:
260.43M
Investments in PP&E:
- 9283.00K
Net Acquisitions:
-
Purchases of Investments:
- 49333.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
907.83M
31.26M
939.09M
495.43M
-
46.47M
1.48B
211.48M
117.43M
301.82M
194.77M
2.71M
63.42M
891.62M
-
2.37B
8.04M
11.22M
55.28M
15.42M
250.47M
285.15M
55.00M
22.82M
114.38M
-
399.52M
1.37M
733.57M
- 28181.0K
-
March 31, 2022 at 6:00:00 AM
1.41B
1.97B
2.37B
226.02M
66.22M
- 841615.0K
35.45M
- 8589.00K
- 31760.00K
- 10000.00K
19.87M
- 100155.00K
- 55503.00K
- 868.00K
- 146652.00K
- 5591.00K
76.42M
908.18M
831.76M
260.43M
- 15872.00K
244.56M
Our Proprietary Portfolio Rating
Our Rating:
A
Price Forecast/Expected Price in Next 5 Years of
SEIC
2023
2024
2025
2026
2027
$68.33
$72.81
$77.59
$82.68
$88.11