Aberdeen Group (GB:ABDN)
LSE:ABDN
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Aberdeen Group
(LSE:ABDN)
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Rating:77Outperform
Price Target:
232.00 p
▲(23.47% Upside)
Action:ReiteratedDate:03/12/26
The score is driven primarily by improving financial fundamentals (profit and free-cash-flow recovery alongside low and declining leverage) and very attractive valuation (low P/E and high dividend yield). These positives are tempered by weak technical momentum and earnings-call risks around Adviser profitability, margin pressure, and near-term expected outflows despite reiterated 2026 targets.
Positive Factors
Improved cash generation
Substantial recovery in operating cash flow (427M) and free cash flow (406M) in 2025 indicates improved cash conversion and earnings quality. Sustained FCF bolsters the firm's ability to fund dividends, reduce debt, invest in growth initiatives and absorb stresses, enhancing multi‑year financial resilience.
Negative Factors
High historical earnings volatility
The company has experienced extreme profit swings across recent years, undermining predictability of fee revenue and capital generation. Such volatility complicates multi‑year planning, increases stress on dividend sustainability, and raises execution risk for strategy reliant on steady AUM and performance fees.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
Substantial recovery in operating cash flow (427M) and free cash flow (406M) in 2025 indicates improved cash conversion and earnings quality. Sustained FCF bolsters the firm's ability to fund dividends, reduce debt, invest in growth initiatives and absorb stresses, enhancing multi‑year financial resilience.
Read all positive factors
Aberdeen Group (ABDN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.35B
Dividend Yield7.21%
Average Volume (3M)3.98M
Price to Earnings (P/E)6.1
Beta (1Y)1.82
Revenue Growth-7.11%
EPS Growth0.45%
CountryUK
Employees4,409
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.07
Shares Outstanding1,840,744,600
10 Day Avg. Volume5,139,775
30 Day Avg. Volume3,984,434
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.72
Price to Sales (P/S)2.09
P/FCF Ratio9.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£221.38Price Target Upside17.82% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)0.15
Revenue Forecast (FY)£1.30B
Aberdeen Group Business Overview & Revenue Model
Company Description
abrdn plc provides asset management services in the United Kingdom, Europe, North America, and Asia. The company offers investment solutions and funds; long-term savings and investment products to individual and corporate customers; and life insur...
How the Company Makes Money
ABDN primarily makes money by charging fees for managing and administering client assets and delivering wealth-related services. The company’s main revenue model is fee-based: it earns recurring management fees calculated as a percentage of assets...
Aberdeen Group Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call communicated clear progress across key strategic priorities with materially strong performance at interactive investor, exceeded transformation savings, improved capital ratios and positive momentum in Investments. These positives were tempered by material near-term challenges in the Adviser business (repricing-led revenue and profit decline and ongoing net outflows), yield compression and some one-off/transaction-related costs that suppressed net capital generation in 2025. Management provided guidance and concrete actions to address weaknesses (targets for 2026: adjusted operating profit of at least GBP 300m and net capital generation around GBP 300m), and signalled confidence in sustaining growth beyond 2026.Positive Updates
Group Adjusted Operating Profit Growth
Adjusted operating profit increased 4% year-on-year to GBP 264 million, reflecting strong contributions from interactive investor and investment cost discipline.
Negative Updates
Adviser Business Profitability Pressure
Adviser experienced strategic repricing impacts: revenue fell 14%, adjusted operating profit declined 32% to GBP 86 million, and the business remained in net outflow despite net outflows improving by 44% year-on-year.
Read all updates
Q4-2025 Updates
Positive
Negative
Group Adjusted Operating Profit Growth
Adjusted operating profit increased 4% year-on-year to GBP 264 million, reflecting strong contributions from interactive investor and investment cost discipline.
Read all positive updates
Company Guidance
Guidance for 2026 reiterated the group's key targets and business-level outlook: management remains committed to adjusted operating profit of at least GBP 300m and net capital generation (NCG) of around GBP 300m for 2026, with medium‑term NCG growth targeted at 5–10% p.a.; net capital generation in 2026 will include a full‑year benefit of circa GBP 35m from DB surplus actions. Transformation has delivered GBP 180m of annualized savings (exceeding the GBP 150m target) with ~GBP 30m of residual annualized benefit expected in 2026, and restructuring/corporate transaction costs are expected to be materially lower than in 2025. Business guidance: Investments revenue margin ~19bps (but Q1 to include ~GBP 4bn of known equity outflows), Adviser total revenue margin to be slightly lower (cash margins in Adviser and ii expected to be lower given base‑rate cuts), and interactive investor to see lower FX/trading fees offset by higher subscription and treasury income and a slightly improved cost‑to‑AUMA (around 18bps). Capital guidance: regulatory requirement reduced 17% to GBP 879m, CET coverage at 163% (from 139%), total coverage 218% (from 198%) with an operating range of 140–180%; debt contributing to coverage now < GBP 400m. Dividend maintained at 14.6p per share.Aberdeen Group Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
82
Very Positive
Cash Flow
77
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.77B | 1.51B | 1.48B | 1.42B | 1.48B |
| Gross Profit | 1.75B | 1.53B | 1.45B | 1.39B | 1.45B |
| EBITDA | 573.00M | 403.00M | 154.00M | -420.00M | 1.26B |
| Net Income | 399.00M | 237.00M | 1.00M | -549.00M | 994.00M |
Balance Sheet | |||||
| Total Assets | 10.72B | 7.72B | 8.03B | 9.25B | 11.42B |
| Cash, Cash Equivalents and Short-Term Investments | 1.79B | 1.33B | 1.20B | 1.16B | 1.94B |
| Total Debt | 557.00M | 597.00M | 1.03B | 624.00M | 706.00M |
| Total Liabilities | 5.58B | 2.68B | 3.15B | 3.37B | 706.00M |
| Stockholders Equity | 5.13B | 5.03B | 4.88B | 5.87B | 7.85B |
Cash Flow | |||||
| Free Cash Flow | 406.00M | 180.00M | 162.00M | 83.00M | 2.00M |
| Operating Cash Flow | 427.00M | 213.00M | 221.00M | 110.00M | 14.00M |
| Investing Cash Flow | 438.00M | 258.00M | 542.00M | -86.00M | 755.00M |
| Financing Cash Flow | -394.00M | -342.00M | -711.00M | -761.00M | -243.00M |
Aberdeen Group Technical Analysis
Negative
187.90
Price Trends
203.96
Negative
199.91
Negative
193.00
Negative
Market Momentum
-4.09
Positive
39.45
Neutral
30.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ABDN, the sentiment is Negative. The current price of 187.9 is below the 20-day moving average (MA) of 196.63, below the 50-day MA of 203.96, and below the 200-day MA of 193.00, indicating a bearish trend. The MACD of -4.09 indicates Positive momentum. The RSI at 39.45 is Neutral, neither overbought nor oversold. The STOCH value of 30.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ABDN.
Aberdeen Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £4.18B | 5.71 | 41.35% | 5.93% | 4.28% | 5.18% | |
77 Outperform | £3.35B | 6.07 | 6.50% | 7.21% | -7.11% | 0.45% | |
76 Outperform | £8.88B | 11.95 | 12.35% | 5.37% | 4.78% | -4.86% | |
74 Outperform | £2.34B | 20.62 | -0.05% | 3.40% | -28.04% | -102.43% | |
73 Outperform | £2.82B | 19.57 | 11.51% | 5.71% | -10.85% | -42.02% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £4.26B | 5.37 | 23.35% | 4.13% | 28.34% | 44.04% |
* Financial Sector Average
GB:ABDN
Aberdeen Group
187.90
39.34
26.48%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.