Ashmore Group PLC (ASHM) AI Stock Analysis

• Market Cap: £1.46B
• Dividend Yield: 9.91%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 4.2
• 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): 0.03
• 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: £196.17
• Price Target Upside: -12.50% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.09
• Revenue Forecast (FY): £142.12M

• Rating: 72 Outperform
• Price Target: 275.00p ▲(22.66% Upside)
• Action: Upgraded Date: 02/17/26
• Date: Action: Upgraded 02/17/26

The score is driven primarily by strong profitability and an exceptionally low-leverage balance sheet, supported by constructive price momentum and an attractive income valuation (6.81% yield, P/E 14.343). The main constraints are declining revenue, weaker operating cash conversion, and earnings-call risks around performance-fee timing and gradual fee pressure.

Positive Factors

High Profitability and Margins

Ashmore’s fee-based model is delivering very high gross and net margins, reflecting low variable costs and operational leverage. These durable margins support reinvestment, dividends and the ability to absorb temporary AUM volatility while maintaining strong shareholder returns over months.

Very Strong Balance Sheet & Liquidity

Extremely low leverage and significant excess financial resources provide durable financial flexibility. This lets management seed strategies, support redemptions, invest in product/geographic expansion and sustain distributions without forcing asset sales in stressed EM cycles.

AUM Growth, Net Inflows & Investment Outperformance

Sustained inflows and AUM growth, supported by broad outperformance, indicate durable client demand and successful investment capability. Consistent net inflows and positive performance underpin long-term management-fee revenue and improve scale economics across strategies.

Negative Factors

Material Revenue Decline

A 16% revenue drop reflects sensitivity to fee mix and performance fees. Because management fees link to AUM and performance fees are lumpy, revenue volatility can persist, complicating multi-quarter planning for costs, dividends and investment whether markets or flows ebb.

Weaker Cash Conversion

Declining FCF growth and sub‑par operating cash conversion reduce the firm’s internal funding capacity. Over several months this can constrain seed recycling, slow product investment, increase reliance on realizations for performance fees and create timing risk for shareholder payouts.

Fee Margin Pressure & Performance-Fee Timing Risk

Management anticipates structural fee compression and uncertain performance‑fee realizations. Even small persistent bps erosion across AUM can materially affect recurring management-fee revenue, while lumpy performance fees increase earnings volatility and planning risk over the next 12–24 months.

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 (gross margin 83.5%, net margin 56.2%) and a very strong balance sheet (debt-to-equity 0.0059, equity ratio 86.2%) are key positives. Offsetting this are a notable revenue decline (-16%) and weaker cash-flow quality/trajectory (free cash flow growth -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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	144.50M	144.40M	186.80M	219.30M	199.50M	424.90M
Gross Profit	107.20M	120.60M	101.70M	153.10M	126.10M	344.60M
EBITDA	99.50M	112.00M	131.50M	86.60M	107.60M	276.80M
Net Income	113.50M	81.20M	93.70M	83.30M	88.50M	240.10M
Balance Sheet
Total Assets	961.50M	908.10M	979.70M	1.01B	1.10B	1.11B
Cash, Cash Equivalents and Short-Term Investments	288.30M	687.20M	745.50M	764.30M	849.40M	815.20M
Total Debt	16.90M	4.60M	6.40M	5.80M	8.00M	9.80M
Total Liabilities	180.70M	117.30M	88.90M	95.70M	131.40M	175.30M
Stockholders Equity	771.80M	782.60M	882.60M	898.80M	945.00M	911.60M
Cash Flow
Free Cash Flow	62.30M	48.40M	88.30M	140.00M	158.10M	154.30M
Operating Cash Flow	62.70M	48.60M	89.10M	140.40M	158.60M	155.00M
Investing Cash Flow	107.10M	33.60M	-108.40M	-5.20M	70.30M	-32.50M
Financing Cash Flow	-112.70M	-156.10M	-151.20M	-170.00M	-173.30M	-121.10M

Ashmore Group PLC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 224.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ASHM, the sentiment is Neutral. The current price of 224.2 is below the 20-day moving average (MA) of 241.74, above the 50-day MA of 217.00, and above the 200-day MA of 172.02, indicating a neutral trend. The MACD of 2.93 indicates Positive momentum. The RSI at 40.53 is Neutral, neither overbought nor oversold. The STOCH value of 11.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	£4.55B	5.71	41.56%	5.93%	4.28%	5.18%
POLR	76 Outperform	£616.93M	5.68	31.19%	8.73%	7.71%	-7.39%
JUP	74 Outperform	£955.23M	8.25	7.11%	2.70%	-4.38%	―
EMG	73 Outperform	£2.93B	19.57	12.23%	5.71%	-10.85%	-42.02%
ASHM	72 Outperform	£1.46B	4.19	9.75%	9.91%	-28.89%	-12.14%
RAT	70 Outperform	£2.20B	17.89	4.75%	4.91%	14.05%	-3.07%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Ashmore Group PLC Corporate Events

Ashmore lifts profit as emerging markets rally drives AuM growth

Ashmore Group plc reported a 10% rise in assets under management to US$52.5 billion for the six months to 31 December 2025, driven by US$2.3 billion of net inflows and US$2.6 billion of performance gains as emerging markets outperformed developed markets. Equities and locally managed strategies expanded, with equities AuM up 17% to US$8.8 billion and EM client-sourced assets rising to 39% of the total, highlighting the firm’s efforts to diversify its product base and deepen its presence in on-the-ground markets.

Despite adjusted net revenue falling 16% year-on-year to £67.5 million due to lower average AuM and reduced performance fees, Ashmore delivered a 64% increase in profit before tax to £81.9 million and an 89% jump in diluted EPS to 10.1 pence, supported by higher seed capital returns and tight cost control. The group maintained a strong balance sheet with £480 million of excess financial resources, kept its interim dividend at 4.8 pence per share, and said it is well positioned to benefit from a supportive emerging markets backdrop of higher growth, easier monetary conditions and a weaker US dollar, reinforcing its competitive positioning in active EM asset management.

The most recent analyst rating on (GB:ASHM) stock is a Buy with a £293.00 price target. To see the full list of analyst forecasts on Ashmore Group PLC stock, see the GB:ASHM Stock Forecast page.

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.