FNGN

Financial Engines, Inc.

Finance/Real Estate, TMT


Presented:01/15/2015
Price:$34.82
Cap:$1.81B
Current Price:$44.95
Cap:$2.86B

Presented

Date01/15/2015
Price$34.82
Market Cap$1.81B
Ent Value$1.51B
P/E Ratio54.36x
Book Value$7.21
Div Yield0.7%
Shares O/S51.96M
Ave Daily Vol470,000
Short Int18.37%

Current

Price$44.95
Market Cap$2.86B
Financial Engines, Inc., together with its subsidiaries, provides independent, technology-enabled portfolio management services, investment advice, and retirement income services to participants in employer-sponsored defined contribution plans in the United States. The company helps investors to plan for retirement by offering personalized plans for saving and investing, as well as by providing assessments of retirement income needs and readiness. It provides Professional Management, a discretionary managed account service designed for plan participants who want affordable, personalized and professional portfolio management services, investment advice, and retirement income services from an independent investment advisor. The company also offers Online Advice, an Internet-based non-discretionary investment advisory service that offers personalized investment advice for plan participants who manage their portfolios directly. In addition, it provides Retirement Evaluation, a retirement readiness assessment provided to plan participants upon plan rollout. The company delivers its services to plan sponsors and plan participants primarily through connections to eight retirement plan providers. Financial Engines, Inc. was founded in 1996 and is headquartered in Sunnyvale, California.

Publicly traded companies mentioned herein: Aon plc (AON), Financial Engines Inc (FNGN), T. Rowe Price Group Inc (TROW), Xerox Corporation (XRX)

Highlights

Over the past 12 months, shares of Financial Engines (FNGN) have declined from the high $60s to the mid-$30s. The presenter has been short the stock for “part of the ride down” and still thinks shares are overvalued. He reviewed how FNGN came public backed by venture capital money (~$150 million) in the late 1990s and successfully positioned itself as a technology/ business services play in the asset management space. However, the presenter sees FNGN as an asset management company, and believes it should be valued as such.

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Idea Discussion

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