SEI Investments (SEIC) has put up a solid set of FY 2025 numbers so far, with third quarter revenue of US$578.5 million and basic EPS of US$1.33 feeding into trailing 12 month revenue of about US$2.2 billion and EPS of US$5.56, alongside earnings growth of 27.9% over the past year. Over recent periods, revenue has moved from US$537.4 million in Q3 2024 to US$578.5 million in Q3 2025, while quarterly basic EPS has shifted from US$1.20 to US$1.33. The trailing net profit margin now sits at 31.1%, compared with 26.6% a year earlier. Taken together, these numbers highlight how efficiently the business is turning revenue into profit.

See our full analysis for SEI Investments.

With the latest figures on the table, the next step is to see how these margins and growth numbers line up with the widely held narratives around SEI Investments and where those stories might need updating.

27.9% earnings growth backed by higher TTM profits

• On a trailing basis, SEI Investments earned US$698.6 million in net income and US$5.56 in EPS, with earnings growth of 27.9% over the past year alongside a 5.1% annualized earnings growth rate over five years.
• What stands out for the bullish view is that this higher trailing profit base, at US$2.2b in revenue and a 31.1% net margin, lines up with the idea of SEI as a durable fee based platform. At the same time, the 5.1% longer term earnings growth rate shows a more measured pace that keeps bullish expectations grounded rather than pointing to a rapid acceleration story.
  • Bulls can point to the consistency in trailing 12 month revenue moving from US$2.05b to US$2.25b alongside higher profit, which supports the case that the business model is holding up as it scales.
  • At the same time, the 27.9% jump in earnings versus the more moderate 5.1% five year trend suggests recent strength may not represent a permanent step change, which is an important caveat for anyone leaning heavily on the bullish side.

To see how this earnings run feeds into long term growth stories and where views differ, check the full narrative many investors are building around SEI. 📊 Read the full SEI Investments Consensus Narrative.

31.1% net margin shows strong profitability

• The trailing 12 month net profit margin is 31.1% on US$2.25b of revenue, compared with 26.6% a year earlier, which means a larger share of every dollar of revenue is currently dropping to the bottom line.
• Bulls are likely to focus on how this margin level fits with SEI's role as a financial infrastructure provider, and the data gives them concrete support while also setting some boundaries.
  • Margins near one third of revenue sit comfortably with the idea that technology and outsourcing style services can scale efficiently, and this is visible in the trailing revenue and net income numbers moving up together.
  • However, with analysts forecasting earnings growth of 9.4% per year and revenue growth of 8.3% per year, the current 31.1% margin does not automatically imply that profitability will keep expanding at the same clip, which keeps the bullish case focused more on stability than on aggressive margin expansion.

P/E of 15.5x vs peers and DCF fair value

• SEI trades on a P/E of 15.5x at a share price of US$88.04, which is below the US Capital Markets industry average of 24.5x and below the broader US market P/E of 19.1x, but above the peer average of 10.6x and the DCF fair value of US$68.39 per share.
• Critics who are more bearish on the stock can point to the gap between the current price and the DCF fair value, and the higher P/E versus closer peers, as reasons to be cautious even with the solid trailing profitability.
  • The DCF fair value of US$68.39 compared with the US$88.04 share price suggests the stock is trading above what that cash flow model implies, which lines up with a more conservative stance from bears.
  • At the same time, the 15.5x P/E sitting below the 24.5x industry average and 19.1x market level means the market is not pricing SEI at a premium to the broader sector, so any bearish case has to balance valuation concerns against the company's relatively lower multiple versus the wider industry.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on SEI Investments's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

SEI Investments pairs strong recent earnings with a share price that sits above one cash flow based fair value estimate and above closer peer P/E levels, which introduces valuation tension for cautious investors.

If paying up for that kind of profile does not sit well with you, use these 866 undervalued stocks based on cash flows to focus on companies where current prices look more aligned with their underlying cash flows and earnings power.

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.