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Aberdeen Group (GB:ABDN)
LSE:ABDN
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Aberdeen Group
(LSE:ABDN)
Rating:63Neutral
Price Target:―
Positive Factors
Management and Strategy
New management, a focus on areas of strength, and the effect of cost savings make analysts think that £100m of adjusted PBT is realistic in 2026.
Revenue and Profit Growth
Analysts expect continued revenue and profit growth for the Interactive Investor segment, supported by rising trading activity, strong customer growth, and an increased focus on profitability.
Valuation and Stock Rating
Aberdeen's current valuation is seen as an attractive entry point, leading to an upgrade of the shares to Buy from Neutral.
Negative Factors
Asset Management Challenges
The group has faced significant challenges within its asset management business, which has had to navigate high-margin outflows and eroding profitability.
Historical Stock Performance
Aberdeen's shares have delivered relatively disappointing returns over the past three years, falling c.12% vs the SXFP's 36% gain.
Aberdeen Group (ABDN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.27B
Dividend Yield7.96%
Average Volume (3M)4.41M
Price to Earnings (P/E)13.9
Beta (1Y)1.79
Revenue Growth-5.51%
EPS Growth1596.15%
CountryUK
Employees4,409
SectorFinancial
Sector Strength83
IndustryAsset Management
Share Statistics
EPS (TTM)0.07
Shares Outstanding1,840,743,400
10 Day Avg. Volume5,899,302
30 Day Avg. Volume4,410,410
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)0.65
Price to Sales (P/S)0.00
P/FCF Ratio19.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£160.11Price Target Upside-12.75% Downside
Rating ConsensusHold
Number of Analyst Covering9
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 Moneyabrdn makes money primarily through management fees charged on the assets it manages across its investment portfolios. These fees are typically a percentage of the assets under management (AUM) and vary based on the type of investment product and service provided. abrdn also earns revenue from performance fees, which are contingent on meeting or exceeding certain investment benchmarks. In addition to these core revenue streams, partnerships and strategic alliances play a significant role in expanding abrdn's distribution channels and market reach, further contributing to its earnings.
Aberdeen Group Earnings Call Summary
Earnings Call Date:Mar 04, 2025
(Q4-2024)
| % Change Since: 18.39%|
Next Earnings Date:Jul 30, 2025
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
abrdn demonstrates a mixed financial performance with improvements in net profitability and free cash flow generation. The company's balance sheet is strong with a solid equity base and debt elimination, enhancing financial resilience. However, revenue volatility and historical operational inefficiencies pose challenges. Continued focus on stabilizing revenue and optimizing operations will be key for future growth.Income Statement
The income statement reflects moderate performance with a substantial revenue decrease over the years, from $3.7 billion in 2020 to $1.53 billion in 2024. The net profit margin in 2024 is approximately 16.25%, indicating profitability improvement from prior years. However, the history of negative EBIT in recent years raises concerns about operational efficiency. Revenue growth has been inconsistent, showing volatility in the company’s revenue streams.50
Neutral
Balance Sheet
The balance sheet is relatively stable with a strong equity position, as evidenced by a high equity ratio of 65.2% in 2024. The company has reduced its debt significantly, achieving a debt-free status in 2024, which enhances financial stability. However, the decline in total assets since 2020 suggests potential asset management challenges.65
Positive
Cash Flow
Cash flow analysis shows robust free cash flow generation, with a growth rate of 11.11% from 2023 to 2024. The operating cash flow to net income ratio is strong, indicating good cash conversion. The company effectively manages its capital expenditures, but fluctuations in operating cash flow over the years suggest potential variability in cash generation capacity.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.53B | 1.45B | 1.40B | 2.69B | 3.70B | Gross Profit |
| 1.53B | 1.40B | 1.31B | 2.54B | 3.60B | EBIT |
| 351.00M | -282.00M | -598.00M | 1.11B | 738.00M | EBITDA |
| 0.00 | 0.00 | -420.00M | 1.31B | 872.00M | Net Income Common Stockholders |
| 248.00M | 1.00M | -549.00M | 994.00M | 833.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.33B | 1.20B | 1.16B | 1.94B | 1.52B | Total Assets |
| 7.72B | 8.03B | 9.25B | 11.42B | 10.48B | Total Debt |
| 597.00M | 1.03B | 624.00M | 706.00M | 840.00M | Net Debt |
| -738.00M | -167.00M | -532.00M | -1.23B | -717.00M | Total Liabilities |
| 2.68B | 3.15B | 3.37B | 706.00M | 3.67B | Stockholders Equity |
| 5.03B | 4.88B | 5.87B | 7.85B | 6.81B |
| Cash Flow | Free Cash Flow | |||
| 180.00M | 162.00M | 83.00M | 2.00M | 31.00M | Operating Cash Flow |
| 213.00M | 221.00M | 110.00M | 14.00M | 56.00M | Investing Cash Flow |
| 258.00M | 542.00M | -86.00M | 755.00M | 1.01B | Financing Cash Flow |
| -342.00M | -711.00M | -761.00M | -243.00M | -1.06B |
Aberdeen Group Technical Analysis
Positive
183.50
Price Trends
155.63
Positive
153.72
Positive
146.76
Positive
Market Momentum
7.00
Negative
74.29
Negative
80.10
Negative
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 183.5 is above the 20-day moving average (MA) of 170.36, above the 50-day MA of 155.63, and above the 200-day MA of 146.76, indicating a bullish trend. The MACD of 7.00 indicates Negative momentum. The RSI at 74.29 is Negative, neither overbought nor oversold. The STOCH value of 80.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ABDN.
Aberdeen Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £5.72B | 13.97 | 9.48% | 5.82% | 0.72% | 7.66% | |
77 Outperform | £2.01B | 8.80 | 17.94% | 7.32% | 18.85% | 26.14% | |
77 Outperform | £1.72B | 25.94 | 4.83% | 5.68% | 49.59% | 18.13% | |
64 Neutral | $12.85B | 9.81 | 7.59% | 16985.65% | 12.30% | -7.71% | |
63 Neutral | £3.27B | 13.90 | 4.88% | 7.96% | -5.51% | 1596.15% | |
| $7.81B | 31.80 | -10.00% | 7.89% | ― | ― | ||
| $4.13B | 8.22 | 40.46% | 8.30% | ― | ― |
* Financial Sector Average
Performance Comparison
GB:ABDN
Aberdeen Group
183.50
46.74
34.18%
GB:EMG
Man Group plc
176.90
-60.19
-25.39%
GB:RAT
Rathbones Group PLC
1,638.00
5.14
0.31%
GB:SDR
Schroders
369.20
9.94
2.77%
MGPUF
M&G Plc
3.26
0.95
41.13%
NINTF
Ninety One
1.80
-0.18
-9.09%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.