Revenue Analysis
SEIC’s Total Revenue has shown a growth trend from $469.1M in Q1 2023 to $511.6M by Q1 2024. Similarly, Operating Revenue has maintained a parallel upward trajectory. Gross Profit in Q1 2023 was $241.0M which increased to $263.4M by Q1 2024. The Gross Profit margins relative to total revenues have improved slightly, indicating more efficient revenue conversion into gross profit.
Cost Management
The Cost of Revenue was $228.1M in Q1 2023, which increased to $248.2M by Q1 2024, in line with revenue growth. Similarly, Operating Expense saw a significant surge from $139.3M in Q1 2023 to $137.6M in Q1 2024. Total Expenses have been closely tracking upwards, demonstrating raised operational activities, correlating with the increments in revenue.
Profitability Analysis
SEIC’s EBITDA increased from $158.1M in Q1 2023 to $189.3M by Q1 2024. This growth in EBITDA signifies operational profit before the impacts of taxes and interest, aligning with overall revenue increments. Operating Income follows a similar path, climbing from $101.8M in Q1 2023 to $125.9M in Q1 2024. Pretax Income expanded from $140.0M to $170.4M during the same periods, while Net Income from continuing operations also rose from $107.0M to $131.4M, reflecting strong profit retention.
Cash Flow Indicators
Reconciled Depreciation showcased a steady rise from $17.9M in Q1 2023 to $18.8M in Q1 2024, highlighting ongoing asset depreciation. Interest Expense also exhibited subtle fluctuations but remained relatively low compared to other financial metrics, reflecting manageable borrowing cost.
Taxation
The Tax Rate applicable to calculations has seen a gradual variation, peaking at around 22.9% in Q1 2024. Tax Provisions also rose from $33.0M in Q1 2023 to $39.0M in Q1 2024, matching the pace of pretax income growth. SEIC has experienced fluctuations in the Tax Effect of Unusual Items, suggesting varying non-recurring items influencing tax calculations.
Shareholder Metrics
Diluted EPS has increased from 0.79 in Q1 2023 to 0.99 in Q1 2024, while Basic EPS saw an uptick from 0.80 to 1.0, displaying enhanced shareholder earnings per share. The number of average shares (Diluted and Basic) increased slightly over this period which can influence the EPS calculations. The Net Income Available to Common Stockholders consistently mirrored the Net Income, confirming that all profits were attributed to common shareholders.
Conclusion
SEIC has demonstrated a fundamentally robust and growing financial profile over the past three years. Revenue, profitability, and cash flow metrics have shown consistent growth. Taxation policies seem well-managed, reflecting steady tax rate applications. The slight increase in shares has not deterred per-share earnings, which ideally is a positive sign for investors. It is recommended that SEIC continues its growth strategies while maintaining cost efficiencies to sustain and possibly escalate its profitability margins.