SEI Investments (SEIC): 3 Reasons We Love This Stock

Since June 2025, SEI Investments has been in a holding pattern, posting a small loss of 0.7% while floating around $86.25. The stock also fell short of the S&P 500’s 13.3% gain during that period.

Is now the time to buy SEIC? Find out in our full research report, it’s free for active Edge members.

Why Is SEIC a Good Business?

Founded in 1968 as Simulated Environments Inc. to train bank loan officers using computer simulations, SEI Investments (NASDAQ:SEIC) provides technology platforms, investment management, and operational solutions for financial institutions, wealth managers, and investors.

1. Revenue Climbing Higher

We at StockStory place the most emphasis on long-term growth, but within financials, a stretched historical view may miss recent interest rate changes, market returns, and industry trends. SEI Investments’s annualized revenue growth of 9% over the last two years is above its five-year trend, suggesting some bright spots.

2. EPS Moving Up Steadily

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

SEI Investments’s EPS grew at a decent 12.7% compounded annual growth rate over the last five years, higher than its 6.2% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

3. Stellar ROE Showcases Lucrative Growth Opportunities

Return on equity, or ROE, quantifies bank profitability relative to shareholder equity - an essential capital source for these institutions. Over extended periods, superior ROE performance drives faster shareholder wealth compounding through reinvestment, share repurchases, and dividend growth.

Over the last five years, SEI Investments has averaged an ROE of 26.7%, exceptional for a company operating in a sector where the average shakes out around 10% and those putting up 25%+ are greatly admired. This shows SEI Investments has a strong competitive moat.

Final Judgment

These are just a few reasons why we think SEI Investments is a great business. With its shares underperforming the market lately, the stock trades at 15.8× forward P/E (or $86.25 per share). Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.

Stocks We Like Even More Than SEI Investments

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