SEI Investments Co
SEIC: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$41.00 | Bkwrht | Bsrrxtnd |
SEI Investments Has Three Highly Profitable Segments; Private Bank Segment Margins Remain Depressed
Business Strategy and Outlook
SEI Investments consists of four main segments: private banks, investment advisors, institutional investors, and investment managers. A minority interest in value equity manager LSV Asset Management generates about 20% of its pretax income. The firm’s investment advisors, institutional investors, and investment managers segments have been strong drivers of earnings and have strong operating margins, while private banks has been a thorn in SEI’s side, with disappointing revenue growth and operating margins.