Is SEI Investments (SEIC) A Bargain On Singapore Expansion And ICE ETF Hub?

SEI Investments (SEIC) just linked its exchange traded product business to ICE ETF Hub and opened a Singapore office, giving investors fresh data points on technology, geography and scale in its investment services model.

Recent moves into Singapore and the ICE ETF Hub come as SEI Investments trades at US$104.70, with a 1-day share price return of 1.40% and a 90-day share price gain of 10.34%. Its 1-year total shareholder return of 28.41% and 3-year total shareholder return of 91.39% point to solid momentum, although this has eased slightly with a 30-day share price decline of 2.09%.

Benchmark SEI Investments against other globally focused financial services stocks using our handpicked list of list of solid balance sheet and fundamentals (25 results) to see how its scale and reach compare.

These moves could either reflect investors warming to the story or a business that is quietly getting stronger underneath. For SEI Investments, the valuation now needs to separate the narrative from the underlying fundamentals.

Most Popular Narrative: 9.6% Undervalued

Against a last close of $104.70, the most followed narrative on SEI Investments points to a fair value of $115.86. The story investors are watching therefore leans toward a modest discount that hinges on how its outsourcing and higher margin services play out.

Professional services and Data Cloud offerings are being scaled across the company, with leadership roles created to expand these 30 to 40% margin services beyond Private Banking into other segments. This can lift blended operating margins and earnings over time as attach rates rise.

See why 5 investors see SEI Investments as 10% undervalued.

Result: Fair Value of $115.86 (UNDERVALUED)

Still, the SEI Investments story could weaken if lower-fee products continue to gain share or if insider selling continues to cloud confidence in the outlook.

Find out about the key risks to this SEI Investments narrative.

Next Steps

Mixed signals in the SEI Investments story so far. If you want to move quickly and build your own view on both the upside and the downside, start with the 3 key rewards and 1 important warning sign.

Looking for more SEI Investments style ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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