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Aberdeen Group (GB:ABDN)
LSE:ABDN
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Aberdeen Group
(LSE:ABDN)
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Rating:78Outperform
Price Target:
236.00p
▲(12.60% Upside)
Aberdeen Group's stock is rated positively due to its strong financial performance and attractive valuation. The company's solid balance sheet and improving cash flow management contribute to its financial health. Technical indicators support a bullish outlook, with the stock trading above key moving averages. The absence of earnings call data and corporate events does not detract from the overall positive assessment.
Positive Factors
Strong Financial Position
The company's strong profitability and low leverage enhance its financial stability, providing a solid foundation for long-term growth and resilience in the asset management industry.
Efficient Cost Management
Efficient cost management contributes to improved profitability metrics, allowing the company to maintain competitive margins and invest in growth opportunities.
Improved Cash Flow Management
Enhanced cash flow management strengthens the company's ability to fund operations and invest in strategic initiatives, supporting long-term financial health.
Negative Factors
Declining Revenue Growth
While stable, the modest revenue growth may limit the company's ability to rapidly expand its market share and capitalize on new opportunities in the competitive asset management sector.
Potential Free Cash Flow Improvement
The need for better free cash flow conversion could constrain the company's ability to reinvest in its business and pursue growth initiatives, impacting long-term competitiveness.
Negative Revenue Growth
Negative revenue growth indicates challenges in expanding the business, which may affect the company's ability to maintain its market position and profitability over time.
Aberdeen Group (ABDN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.74B
Dividend Yield7.21%
Average Volume (3M)3.98M
Price to Earnings (P/E)11.8
Beta (1Y)1.77
Revenue Growth-7.11%
EPS Growth0.45%
CountryUK
Employees4,409
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.07
Shares Outstanding1,840,744,300
10 Day Avg. Volume5,139,775
30 Day Avg. Volume3,984,434
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.51
Price to Sales (P/S)1.71
P/FCF Ratio14.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£209.32Price Target Upside-0.13% Downside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Aberdeen Group Business Overview & Revenue Model
Company Descriptionabrdn 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 insurance and savings products. It provides its products through institutional, wholesale, and retail distribution channels. It also makes real estate investments. The company was formerly known as Standard Life Aberdeen plc. abrdn plc was founded in 1825 and is headquartered in Edinburgh, United Kingdom.
How the Company Makes MoneyAberdeen Group generates revenue through multiple key streams, primarily from management fees charged on assets under management (AUM). As clients invest their funds into the company's various investment vehicles, Aberdeen earns a percentage of the total AUM as a management fee, which is typically calculated on an annual basis. Additionally, the company may earn performance fees based on the investment returns it generates above a specified benchmark. Aberdeen also benefits from commission income derived from the sale of its investment products and services, as well as advisory fees for providing tailored investment strategies to institutional clients. Strategic partnerships with financial institutions and investment platforms further contribute to its revenue by expanding its distribution channels and client reach.
Aberdeen Group Earnings Call Summary
Earnings Call Date:Mar 04, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant achievements in AUMA growth, cost savings, and improved investment performance, tempered by challenges in the Adviser business and continued outflows in fixed income and insurance partners. The focus on operational efficiency and leadership changes are positive steps, but the balance of highlights and lowlights suggests a cautiously optimistic outlook.Q4-2024 Updates
Positive Updates
AUMA Growth
Assets Under Management and Administration (AUMA) reached £511 billion, up 1% in Q4 and 3% for the full year 2024.
Interactive Investor Performance
Customer numbers for Interactive Investor increased by 8% for the full year, reaching 439,000, with a net flow of £5.7 billion for the year, almost double that of 2023.
Cost Savings Achieved
Achieved over £100 million in run rate savings, on track to meet the £150 million annualized savings target by the end of 2025.
Improvement in Investment Flows
Net inflow in the quarter with £2.3 billion in Institutional & Retail Wealth (IRW), marking a significant improvement from the £17.9 billion outflow in 2023.
Improved Fund Performance
All major asset classes showed improvement on a three-year basis with equities one-year performance increasing from 23% to 32%.
Negative Updates
Adviser Business Challenges
Adviser AUMA was flat in Q4, with outflows offsetting positive market impacts, and a continued focus needed to return to net inflows.
Fixed Income Outflows
Fixed income experienced an outflow of £0.4 billion in Q4, though an improvement from £4 billion outflow in 2023.
Insurance Partners Net Outflow
Insurance Partners had a net outflow of £1.8 billion in Q4, with AUM flat in Q4 and up 2% for the year.
Lower Revenue Margins
A shift towards lower margin areas in the investment business, with a noted decrease in revenue margin expected in 2025.
Company Guidance
During the call, abrdn's CEO, Jason Windsor, provided guidance on their Q4 performance and strategic priorities. At the end of December, their Assets Under Management and Administration (AUMA) stood at £511 billion, marking a 1% increase for the quarter and a 3% increase for the year. The company reported a net inflow of £2.3 billion in the Institutional & Retail Wealth segment, with notable growth in alternative investments, quants, and liquidity products. The interactive investor platform saw an 8% increase in customer numbers, reaching 439,000, and attracted £5.7 billion in net flows for the year. The company achieved £100 million in run rate savings in 2024, progressing towards a target of £150 million by the end of 2025. Windsor emphasized the focus on sustaining growth and improving operational efficiency, with strategic hires aimed at enhancing service and product performance. The Investments business saw a £1.5 billion increase in AUM for the quarter, driven by positive market conditions and inflows into specific segments. The Adviser business reported a 2% AUMA increase for the year, despite a £0.9 billion outflow in Q4, with plans to return to positive net flows through improved service and pricing strategies. Overall, Windsor expressed confidence in the company's ability to achieve sustainable growth and improve profitability in 2025.Aberdeen Group Financial Statement Overview
Summary
Aberdeen Group demonstrates a solid financial position with strong profitability and stability. The company has effectively managed its costs and improved its profitability metrics, while maintaining a strong balance sheet with low leverage. Cash flow management is improving, but there is potential for further enhancement in free cash flow conversion.Income Statement
Aberdeen Group has shown a strong recovery in its income statement metrics. The gross profit margin is robust, reflecting efficient cost management. The net profit margin has improved significantly from previous losses, indicating a positive turnaround. Revenue growth is modest but steady, suggesting a stable business environment. The EBIT and EBITDA margins have also improved, showcasing enhanced operational efficiency.75
Positive
Balance Sheet
The balance sheet of Aberdeen Group is solid with a strong equity base and a healthy debt-to-equity ratio, indicating prudent financial management. The equity ratio is high, reflecting financial stability and low leverage. Return on equity has improved, highlighting the company's ability to generate profits from shareholders' investments.80
Positive
Cash Flow
Aberdeen Group's cash flow statement shows a positive trend in free cash flow growth, indicating better cash management. The operating cash flow to net income ratio is strong, reflecting efficient conversion of profits into cash. However, the free cash flow to net income ratio suggests room for improvement in translating earnings into free cash flow.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.46B | 1.51B | 1.48B | 1.42B | 1.48B | 3.70B |
| Gross Profit | 638.00M | 1.53B | 1.45B | 1.39B | 1.45B | 3.60B |
| EBITDA | 389.00M | 403.00M | 154.00M | -420.00M | 1.26B | 872.00M |
| Net Income | 319.00M | 237.00M | 1.00M | -549.00M | 994.00M | 833.00M |
Balance Sheet | ||||||
| Total Assets | 11.57B | 7.72B | 8.03B | 9.25B | 11.42B | 10.48B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 1.33B | 1.20B | 1.16B | 1.94B | 1.52B |
| Total Debt | 546.00M | 597.00M | 1.03B | 624.00M | 706.00M | 840.00M |
| Total Liabilities | 6.47B | 2.68B | 3.15B | 3.37B | 706.00M | 3.67B |
| Stockholders Equity | 4.89B | 5.03B | 4.88B | 5.87B | 7.85B | 6.81B |
Cash Flow | ||||||
| Free Cash Flow | 224.00M | 180.00M | 162.00M | 83.00M | 2.00M | 31.00M |
| Operating Cash Flow | 226.00M | 213.00M | 221.00M | 110.00M | 14.00M | 56.00M |
| Investing Cash Flow | 546.00M | 258.00M | 542.00M | -86.00M | 755.00M | 1.01B |
| Financing Cash Flow | -361.00M | -342.00M | -711.00M | -761.00M | -243.00M | -1.06B |
Aberdeen Group Technical Analysis
Positive
209.60
Price Trends
202.64
Positive
199.68
Positive
185.06
Positive
Market Momentum
2.73
Negative
57.05
Neutral
67.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ABDN, the sentiment is Positive. The current price of 209.6 is above the 20-day moving average (MA) of 205.49, above the 50-day MA of 202.64, and above the 200-day MA of 185.06, indicating a bullish trend. The MACD of 2.73 indicates Negative momentum. The RSI at 57.05 is Neutral, neither overbought nor oversold. The STOCH value of 67.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | £3.74B | 11.78 | 6.50% | 7.21% | -7.11% | 0.45% | |
78 Outperform | £3.84B | 12.05 | 41.56% | 5.93% | 4.28% | 5.18% | |
77 Outperform | £6.47B | 18.23 | 8.30% | 5.37% | 4.78% | -4.86% | |
76 Outperform | £5.58B | 9.49 | 24.36% | 4.13% | 28.34% | 44.04% | |
76 Outperform | £2.92B | 21.03 | 12.23% | 5.71% | -10.85% | -42.02% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $2.53B | -2,080.00 | -0.05% | 3.40% | -28.04% | -102.43% |
* Financial Sector Average
GB:ABDN
Aberdeen Group
209.60
83.48
66.19%
GB:ICG
Intermediate Capital
1,973.00
-13.62
-0.69%
GB:EMG
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261.20
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36.75%
GB:SDR
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417.40
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37.79%
GB:QLT
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GB:N91
Ninety One
220.20
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60.64%
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.