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SEI Investments Is Another Decent Dividend Growth Stock (NASDAQ:SEIC) – Seeking Alpha

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Introduction

As a dividend growth investor, I am constantly screening for additional income-producing opportunities. Sometimes I acquire stocks I own to take advantage of their …….

tomertu/iStock via Getty Images

Introduction

As a dividend growth investor, I am constantly screening for additional income-producing opportunities. Sometimes I acquire stocks I own to take advantage of their attractive valuation. On other occasions, I try to diversify further to limit the risks of relying on a limited number of shares.

In this article, I will look into the financial sector. I lack exposure primarily to financials and consumer staples companies. One of my favorite segments in the industry, especially when the markets are low, is the asset management companies. I own shares in T. Rowe (TROW) and Ameriprise Financial (AMP). I also have analyzed BlackRock (BLK) lately. In this article, I will study SEI Investments (NASDAQ:SEIC)

I will analyze the company using my methodology for analyzing dividend growth stocks. I am using the same method to make it easier to compare researched companies. I will examine the company’s fundamentals, valuation, growth opportunities, and risks. I will then try to determine if it’s a good investment.

Seeking Alpha’s company overview shows that:

SEI Investments Company is an asset management holding company. The firm provides wealth management, retirement and investment solutions, asset management, asset administration, investment processing outsourcing solutions, financial services, and investment advisory services to its clients. Through its subsidiaries, the firm manages separate client-focused portfolios. It also launches and manages equity, fixed income, and balanced mutual funds.

Fundamentals

The sales of SEI Investments more than doubled over the last twelve months. The company enjoyed its fastest growth during the pandemic, as more people showed interest in investments, and closed stores led to more disposable income. The company grows mainly organically as the assets under management grow, while its M&A activity aims to improve its technological capabilities. In the future, analysts’ consensus, as seen on Seeking Alpha, expects SEI Investments to keep growing sales at an annual rate of ~3% in the medium term.

SEIC Revenue (TTM) data by YCharts

The EPS (earnings per share) has grown much faster. The EPS has almost quadrupled over the last ten years. EPS has grown at a much quicker rate compared to the sales. EPS grew faster as the company, in addition to the higher sales, executed significant buybacks and became leaner and more efficient, thus enjoying higher margins. In the future, analysts’ consensus, as seen on Seeking Alpha, expects SEI Investments to maintain a flat EPS in the medium term as it waits for a market recovery.

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Source: https://seekingalpha.com/article/4527499-sei-investments-is-another-decent-dividend-growth-stock

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