Saturday, September 15, 2012

SEI Investments (SEIC) 2012 Review

SEI Investments, SEIC, has grown its profits and dividends at a 10-18% pace over the past 10 years earning an 18-30% return on equity.

SEI Investment< 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 10-18% pace over the past 10 years earning an 18-30% return on equity. The 2008/2009 turmoil in the securities markets caused SEIC earnings problems; 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) improving cost controls,

(4) new product offerings.


(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 no debt and its stock yields 1.8%.

Statistical Summary

Stock Yield Dividend Growth Rate Payout Ratio # Increases Since 2002
SEIC 1.8% 14% 23% 10
IND 1.5 9* 23 NA

Debt/Equity ROE EPS Down Since 2002 Net Margin Value Line Rating
SEIC 0% 21% 3 25% A
IND 15 23 NA 12 NA

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


Note: SEIC stock made slow progress off its March 2009 low, surpassing the downtrend off its December 2007 high (straight red line) and the November 2008 trading high (green line). Long term, SEIC is in an uptrend (blue lines). Intermediate term, it is in a trading range (purple lines). The wiggly red line is the 50 day moving average. The Aggressive Growth Portfolio owns no position in SEIC. The upper boundary of its Buy Value is $19; the lower boundary of its Sell Half Range is $35.

Steve Cook received his education in investments from Harvard, where he earned an MBA, New York University, where he did post graduate work in economics and financial analysis and the CFA Institute, where he earned the Chartered Financial Analysts designation in 1973. His 40 years of investment experience includes institutional portfolio management at Scudder, Stevens and Clark and Bear Stearns. Steve's goal at Strategic Stock Investments is to help other investors build wealth and benefit from the investing lessons he learned the hard way.