Thursday, September 22, 2011

SEI Investments

SEI Investments (SEIC) offers comprehensive software products and computer processing services for trusts and investment programs and administrative and distribution services to high net worth markets, mutual funds and other pooled funds.

SEI has grown its profits and dividends at a 14-20% pace over the past 10 years earning an 18-30% return on equity. The recent turmoil in the securities markets caused earnings problems in 2009; however, the company has resumed its above average growth as a result of:

(1) rising assets under management,

(2) continuation of its aggressive stock buy back program,

(3) the trend towards outsourcing in the investment industry.


(1) the high costs of developing its Global Wealth Platform,

(2) continued investor uncertainty spawned by the European debt crisis, the sluggish US economy and slowing growth in Asia.

SEIC’s stock is rated A by Value Line, has a 4% debt to equity ratio and its stock yields 1.4%.

Statistical Summary

Stock YieldDividend Growth RatePayout Ratio # Increases Since 2001
SEIC1.4%12% 12%10

Debt/EquityROEEPS Down Since 2001 Net MarginValue Line Rating
IND1722 NA 13NA

*over one half of the companies in SEIC industry do not pay a dividend


Note: SEIC stock has made moderate progress off its March 2009 low, ultimately surpassing the down trend off its December 2008 high (red line) and the November 2008 trading high (green line). Long term, the stock is in n up trend (straight blue lines). Earlier this year, SEIC broke its up trend off the March 2009 low (intermediate term up trend), re-set to a trading range (purple lines) and then recently broke the lower boundary of that trading range. The stock is now in a short term down trend (brown line). The wiggly blue lines are Bollinger Bands. The Aggressive Growth Portfolio owns no SEIC; though, it is currently on the Aggressive Growth Buy List. However, technically speaking, the stock needs to resolve whether the long term up trend or the short term down trend is the stronger. Until that occurs, no position will be established. The lower boundary of its Sell Half Range is $33.