Ashmore Group PLC (ASHM) AI Stock Analysis

• Market Cap: £1.63B
• Dividend Yield: 9.91%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 19.8
• Beta (1Y): 1.76
• Revenue Growth: -28.89%
• EPS Growth: -12.14%
• Country: UK
• Employees: 283
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.07
• Shares Outstanding: 712,740,800
• 10 Day Avg. Volume: 1,360,731
• 30 Day Avg. Volume: 1,034,706
• PEG Ratio: -0.90
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 7.23
• P/FCF Ratio: 21.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £169.80
• Price Target Upside: -31.14% Downside
• Rating Consensus: Strong Sell
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: 242.00p ▼(-1.87% Downside)

The score is driven primarily by strong profitability and a very low-leverage balance sheet, tempered by declining revenue and weaker cash-flow trends. Technicals are strong but look overbought (RSI 81), while valuation is supportive via a moderate P/E and high dividend yield. The latest earnings call was mixed, with strategic progress and cost actions offset by meaningful declines in revenue, EBITDA, and EPS.

Positive Factors

High Profitability and Margins

Sustained high gross and net margins indicate the business earns strong fee economics on AUM, allowing durable reinvestment in distribution, talent and seed capital. Robust margins support dividend payments and absorb volatility in AUM-driven revenue over the medium term.

Very Low Financial Leverage

Extremely low leverage and a high equity ratio give the firm financial flexibility to fund seed investments, expand local offices, and sustain dividends through market stress. Low debt reduces refinancing risk and supports strategic initiatives without balance-sheet strain.

Local Expansion and Product Development

Growth in local offices and successful new product launches broaden distribution and diversify AUM mix. Seed-capital gains validate product-market fit and can generate scalable management fees, strengthening long-term revenue prospects beyond legacy high-yield exposure.

Negative Factors

Material Revenue Decline

A persistent revenue decline driven by lower average AUM and weaker performance fees is structurally important because fee income funds operating costs and dividends. Continued revenue pressure reduces reinvestment capacity and raises reliance on cost cuts to protect margins.

Weakened Operating Cash Generation

Declining free cash flow and operating cash below reported income constrain the firm's ability to fund seed investments, maintain distributions and invest in growth initiatives. Over time this weakens financial flexibility and increases sensitivity to further AUM shocks.

Persistent High‑Yield Outflows and Redemptions

Ongoing redemptions in high‑yield—a core capability—erode the firm’s higher‑fee AUM and can change product mix toward lower‑fee strategies. Structural outflows reduce recurring fee income and make it harder to restore scale, pressuring long‑term growth and margin sustainability.

Ashmore Group PLC Business Overview & Revenue Model

Company Description

Ashmore Group plc is a publicly owned investment manager. The firm primarily provides its services to retail and institutional clients. It manages separate client-focused equity and fixed income portfolios. The firm also launches and manages equity and fixed income mutual funds for its clients. It invests in the public equity and fixed income markets in emerging markets across the globe. The firm employs combination of fundamental analysis to make its investments. Ashmore Group Plc was founded in 1992 and is based in London, United Kingdom.

How the Company Makes Money

Ashmore Group generates revenue primarily through management fees and performance fees from its investment funds. The company earns management fees based on the assets under management (AUM), which grow as more capital is allocated to its investment products. Performance fees are charged when the funds outperform a specified benchmark, incentivizing the firm to deliver strong investment returns. Additionally, Ashmore benefits from strategic partnerships with institutional investors and financial intermediaries, which help attract new investments. The firm's focus on emerging markets, combined with its strong historical performance, contributes to its ability to maintain and grow its revenue streams.

Ashmore Group PLC Financial Statement Overview

Summary

Strong profitability and efficiency (gross margin 83.5%, net margin 56.2%, EBIT margin 75.4%) and a very strong balance sheet with minimal leverage (debt-to-equity 0.0059, equity ratio 86.2%). Offsetting this, revenue declined 16% and cash flow quality weakened (free cash flow down 35.4%, operating cash flow to net income 0.46).

Income Statement

Ashmore Group PLC has shown strong profitability with a high gross profit margin of 83.5% and a net profit margin of 56.2% in the latest year. However, the company has experienced a significant revenue decline of 16% compared to the previous year, indicating challenges in revenue growth. The EBIT and EBITDA margins remain robust at 75.4% and 77.6%, respectively, showcasing operational efficiency despite the revenue drop.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.0059, indicating minimal leverage and financial risk. The return on equity is healthy at 10.4%, reflecting efficient use of equity capital. The equity ratio stands at 86.2%, suggesting a solid equity base relative to total assets.

Cash Flow

Ashmore Group PLC's cash flow performance shows a decline in free cash flow growth by 35.4%, which is a concern. The operating cash flow to net income ratio is 0.46, indicating that operating cash flow is less than net income, which may affect liquidity. However, the free cash flow to net income ratio is nearly 1, suggesting that the company is generating sufficient free cash flow relative to its net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	142.40M	144.40M	186.80M	219.30M	199.50M	424.90M
Gross Profit	71.40M	120.60M	101.70M	153.10M	126.10M	344.60M
EBITDA	44.40M	112.00M	131.50M	86.60M	107.60M	276.80M
Net Income	81.20M	81.20M	93.70M	83.30M	88.50M	240.10M
Balance Sheet
Total Assets	908.10M	908.10M	979.70M	1.01B	1.10B	1.11B
Cash, Cash Equivalents and Short-Term Investments	687.20M	687.20M	745.50M	764.30M	849.40M	815.20M
Total Debt	4.60M	4.60M	6.40M	5.80M	8.00M	9.80M
Total Liabilities	117.30M	117.30M	88.90M	95.70M	131.40M	175.30M
Stockholders Equity	782.60M	782.60M	882.60M	898.80M	945.00M	911.60M
Cash Flow
Free Cash Flow	48.40M	48.40M	88.30M	140.00M	158.10M	154.30M
Operating Cash Flow	48.60M	48.60M	89.10M	140.40M	158.60M	155.00M
Investing Cash Flow	33.60M	33.60M	-108.40M	-5.20M	70.30M	-32.50M
Financing Cash Flow	-156.10M	-156.10M	-151.20M	-170.00M	-173.30M	-121.10M

Ashmore Group PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 246.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ASHM, the sentiment is Positive. The current price of 246.6 is above the 20-day moving average (MA) of 222.48, above the 50-day MA of 189.54, and above the 200-day MA of 164.98, indicating a bullish trend. The MACD of 16.48 indicates Negative momentum. The RSI at 77.06 is Negative, neither overbought nor oversold. The STOCH value of 89.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ASHM.

Ashmore Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
N91	78 Outperform	£4.57B	13.77	41.56%	5.93%	4.28%	5.18%
EMG	76 Outperform	£2.94B	21.06	12.23%	5.71%	-10.85%	-42.02%
POLR	76 Outperform	£605.83M	15.59	31.19%	8.73%	7.71%	-7.39%
RAT	76 Outperform	£2.29B	36.10	4.75%	4.91%	14.05%	-3.07%
JUP	73 Outperform	£973.58M	17.28	7.11%	2.70%	-4.38%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ASHM	65 Neutral	£1.63B	19.84	9.75%	9.91%	-28.89%	-12.14%

Ashmore Group PLC Corporate Events

Ashmore’s Assets Under Management Rise 8% on Emerging Markets Inflows

Ashmore Group reported an 8% increase in assets under management to an estimated $52.5 billion as of 31 December 2025, driven by $2.6 billion of net inflows and $1.2 billion of positive investment performance, with growth concentrated in fixed income and equities, particularly external debt and local currency strategies. Management highlighted that strong emerging markets returns in 2025, continued economic outperformance versus developed markets, falling or low inflation, rate cuts in many EM countries, and a weaker US dollar are encouraging investors to rebalance away from US-heavy portfolios, reinforcing Ashmore’s positioning to capture further allocations and deliver alpha through active management.

The most recent analyst rating on (GB:ASHM) stock is a Hold with a £205.00 price target. To see the full list of analyst forecasts on Ashmore Group PLC stock, see the GB:ASHM Stock Forecast page.

Ashmore Group Director Acquires Shares Reflecting Confidence in Company

Ashmore Group PLC has announced a transaction involving Clive Adamson, a director of the company, who acquired ordinary shares using cash proceeds from the final ordinary dividend paid on December 8, 2025. This transaction reflects internal confidence in the company’s financial health and strategic direction, potentially impacting investor perceptions and market positioning.

The most recent analyst rating on (GB:ASHM) stock is a Hold with a £181.00 price target. To see the full list of analyst forecasts on Ashmore Group PLC stock, see the GB:ASHM Stock Forecast page.

Ashmore Group PLC Successfully Passes All AGM Resolutions

Ashmore Group PLC announced that all resolutions were passed at its Annual General Meeting, reflecting strong shareholder support. Key resolutions included the approval of the final dividend, re-election of directors, and adoption of a new incentive plan, indicating a stable governance structure and strategic focus on growth.

The most recent analyst rating on (GB:ASHM) stock is a Hold with a £165.00 price target. To see the full list of analyst forecasts on Ashmore Group PLC stock, see the GB:ASHM Stock Forecast page.