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Aberdeen Group
(LSE:ABDN)
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Rating:74Outperform
Price Target:
267.00 p
▲(7.14% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by improved financial performance (profit and cash flow rebound alongside a low-leverage balance sheet) and supportive valuation (moderate P/E with a high dividend yield). Offsetting factors are weaker near-term technical positioning (below 20/50-day averages) and earnings-call risks around Adviser outflows and potentially transitory benefits from elevated rates/trading activity.
Positive Factors
Strengthening cash generation
Sustained improvement in operating and free cash flow provides durable internal funding for dividends, debt reduction and strategic investment. Strong cash conversion enhances resilience to market swings and supports management's net capital generation targets over the medium term.
Negative Factors
Historical earnings and revenue volatility
Past extreme volatility in revenue and earnings indicates the company's fee base and profitability can swing materially with markets and flows. That reduces predictability of cash generation and dividends, complicates long-term planning and increases execution risk versus targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Strengthening cash generation
Sustained improvement in operating and free cash flow provides durable internal funding for dividends, debt reduction and strategic investment. Strong cash conversion enhances resilience to market swings and supports management's net capital generation targets over the medium term.
Read all positive factors
Aberdeen Group (ABDN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.29B
Dividend Yield6.07%
Average Volume (3M)3.98M
Price to Earnings (P/E)11.0
Beta (1Y)1.67
Revenue Growth2.19%
EPS Growth19.78%
CountryUK
Employees4,668
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.22
Shares Outstanding1,840,745,700
10 Day Avg. Volume5,139,775
30 Day Avg. Volume3,984,434
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.75
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
£243.71Price Target Upside-2.20% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.16
Revenue Forecast (FY)£1.31B
Aberdeen Group Business Overview & Revenue Model
Company Description
Aberdeen Group Plc is a global investment company, which engages in the provision of asset management and savings solutions. It operates through the following business segments: Investments, Adviser, Interactive Investor (ii), and Other. The Inves...
How the Company Makes Money
Aberdeen makes money primarily by charging fees for managing client assets and providing related investment and wealth services. Its core revenue stream is recurring management and advisory fees earned as a percentage of assets under management/ad...
Aberdeen Group Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 09, 2027
Earnings Call Sentiment Positive
The call conveyed clear positive momentum: group profitability, capital generation and Interactive Investor’s strong operational performance were standout positives, alongside improving investment performance and a robust balance sheet. Key risks include persistent Adviser net outflows and some fee/mix pressures in Investments as well as portions of H1 income that reflect favorable short-term market/interest-rate conditions. Management has taken steps to address Adviser operational issues and expects a stronger H2 in Investments, but flow recovery timing is uncertain.Positive Updates
Group profitability and capital generation
Adjusted operating profit increased 21% year-on-year to GBP 151m. Adjusted capital generation rose 26% to GBP 182m and net capital generation increased 47% to GBP 163m. IFRS profit before tax was GBP 276m (benefiting from investment gains and interest income). Interim dividend maintained at 7.3p with dividend coverage strengthened (adjusted capital generation covers dividend 1.39x; net capital generation covers dividend 1.24x).
Negative Updates
Adviser net flow weakness and delayed turnaround
Adviser net outflows were GBP 1.3bn in H1 (versus GBP 0.9bn prior year) despite inflows up 9%, with higher redemptions offsetting inflows. Management now expects the return to net inflows to take longer than previously anticipated for 2026, reflecting adviser consolidation, panel rationalization and stronger competition for transfer business. Revenue yield reduced to 25.3 bps.
Read all updates
Q2-2026 Updates
Positive
Negative
Group profitability and capital generation
Adjusted operating profit increased 21% year-on-year to GBP 151m. Adjusted capital generation rose 26% to GBP 182m and net capital generation increased 47% to GBP 163m. IFRS profit before tax was GBP 276m (benefiting from investment gains and interest income). Interim dividend maintained at 7.3p with dividend coverage strengthened (adjusted capital generation covers dividend 1.39x; net capital generation covers dividend 1.24x).
Read all positive updates
Company Guidance
Aberdeen reiterated confidence in delivering its 2026 targets of adjusted operating profit of more than GBP 300m and net capital generation of around GBP 300m, after H1 results of AOP GBP 151m (up 21%) and net capital generation GBP 163m (up 47%) (adjusted capital generation GBP 182m); divisional H1 results included ii revenue GBP 173m (up 22%) and ii AUMA c. GBP 108bn with record net inflows GBP 6.8bn, 525,000 customers (SIPP 125,000), DARTs ~35,700 (up 42%) and cost-to-AUMA at 18bps (guidance: <18bps); Adviser AUMA GBP 85bn, H1 revenue GBP 103m and adjusted operating profit ~GBP 41m with flows expected to remain challenged and H2 profitability broadly flat; Investments AUM GBP 398bn, H1 revenue GBP 363m, adjusted operating profit GBP 38m with H2 expected materially stronger (targeting to be broadly in line with the original GBP 100m 2026 ambition based on annualised H2), and group guidance for an investments fee margin around 19bps; capital coverage stood at 229% (target medium-term 140–180%), interim dividend maintained at 7.3p (dividend covered 1.39x by adjusted capital generation and 1.24x by net capital generation), plans to redeem GBP 210m of Tier 1 debt in Dec 2026, cash margin ran at 234bps in H1 (long‑run guide ~2.1–2.2%) and management expects c.5–10% p.a. medium‑term growth in net capital generation on top of the ’26 targets.Aberdeen Group Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
82
Very Positive
Cash Flow
77
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.71B | 1.77B | 1.51B | 1.48B | 1.42B | 1.48B |
| Gross Profit | 1.66B | 1.75B | 1.53B | 1.45B | 1.39B | 1.45B |
| EBITDA | 449.00M | 597.00M | 403.00M | 154.00M | -420.00M | 1.26B |
| Net Income | 399.00M | 399.00M | 237.00M | 1.00M | -549.00M | 994.00M |
Balance Sheet | ||||||
| Total Assets | 10.83B | 10.72B | 7.72B | 8.03B | 9.25B | 11.42B |
| Cash, Cash Equivalents and Short-Term Investments | 1.62B | 1.79B | 1.33B | 1.20B | 1.16B | 1.94B |
| Total Debt | 564.00M | 557.00M | 597.00M | 1.03B | 624.00M | 706.00M |
| Total Liabilities | 5.59B | 5.58B | 2.68B | 3.15B | 3.37B | 706.00M |
| Stockholders Equity | 5.24B | 4.93B | 5.03B | 4.88B | 5.87B | 7.85B |
Cash Flow | ||||||
| Free Cash Flow | 713.00M | 406.00M | 180.00M | 162.00M | 83.00M | 2.00M |
| Operating Cash Flow | 722.00M | 427.00M | 213.00M | 221.00M | 110.00M | 14.00M |
| Investing Cash Flow | -228.00M | 438.00M | 258.00M | 542.00M | -86.00M | 755.00M |
| Financing Cash Flow | -311.00M | -394.00M | -342.00M | -711.00M | -761.00M | -243.00M |
Aberdeen Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £9.13B | 13.38 | 12.35% | 3.65% | 17.81% | 93.71% | |
76 Outperform | £3.36B | 14.55 | 20.36% | 4.26% | 23.65% | 73.43% | |
74 Outperform | £4.29B | 11.01 | 7.96% | 7.21% | 2.19% | 19.78% | |
74 Outperform | £2.54B | 21.76 | 8.35% | 3.23% | 71.85% | ― | |
69 Neutral | £4.08B | 12.14 | 28.08% | 6.35% | 9.80% | 1.81% | |
68 Neutral | £5.39B | 11.31 | 18.00% | 4.66% | 6.46% | 6.47% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
GB:ABDN
Aberdeen Group
252.60
63.08
33.28%
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Aberdeen Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Aberdeen Group lifts profit and capital generation as interactive investor drives growth
Positive
Jul 29, 2026
Aberdeen Group reported a 21% rise in adjusted operating profit to £151m for the first half of 2026, driven by modest revenue growth and a continued focus on efficiency, which also boosted net capital generation by 47% to £163m. The grou...
Regulatory Filings and Compliance
Aberdeen Group Confirms Total Voting Rights After Share Capital Update
Positive
Jul 1, 2026
Aberdeen Group plc has confirmed that, as of 30 June 2026, its issued share capital comprises 1,840,745,774 ordinary shares, each conferring one vote, and that it holds no shares in treasury. This establishes the total number of voting rights at 1...
Private Placements and FinancingRegulatory Filings and Compliance
Aberdeen Group Issues New Shares Under Employee Share Plan
Neutral
Jul 1, 2026
Aberdeen Group plc has issued and allotted 259 new ordinary shares under its share plan, with the shares admitted to trading on the London Stock Exchange’s Main Market under existing block admission arrangements. The new shares rank pari pas...
Business Operations and StrategyFinancial Disclosures
Aberdeen highlights record flows and growth strategy at interactive investor roundtable
Positive
Jun 25, 2026
Aberdeen Group is hosting a roundtable focused on its direct-to-consumer investment platform, interactive investor, highlighting the unit’s role as a growth engine within the wider wealth and investments group. Executives including Aberdeen ...
Business Operations and StrategyExecutive/Board Changes
Aberdeen Group bolsters board with senior asset management veterans
Positive
Jun 3, 2026
Aberdeen Group plc has strengthened its board by appointing seasoned industry figures Arno Kitts and Rick Lacaille as non-executive directors, effective 3 June 2026, ahead of their planned election by shareholders at the 2027 AGM. Both will receiv...
Regulatory Filings and Compliance
Aberdeen Group Updates Total Voting Rights After Share Capital Review
Neutral
Jun 1, 2026
Aberdeen Group plc reported that, as of 31 May 2026, its issued share capital comprises 1,840,745,515 ordinary shares, each carrying one vote, with no shares held in treasury. This sets the company’s total voting rights at 1,840,745,515, est...
Private Placements and Financing
Aberdeen Group Issues Shares Under Employee Plan, Confirms Updated Capital
Neutral
Jun 1, 2026
Aberdeen Group plc has issued and allotted 260 new ordinary shares under its share plan, with the new stock admitted to trading on the London Stock Exchange’s Main Market and ranking pari passu with existing ordinary shares. Following this m...
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.