Ashmore Group PLC (ASHM) AI Stock Analysis

• Market Cap: £974.08M
• Dividend Yield: 11.33%
• Average Volume (3M): 902.89K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.35
• Revenue Growth: 0.82%
• EPS Growth: -26.44%
• Country: UK
• Employees: 283
• Sector: Financial
• Sector Strength: 87
• Industry: Asset Management
• EPS (TTM): 0.11
• Shares Outstanding: 712,740,800
• 10 Day Avg. Volume: 709,444
• 30 Day Avg. Volume: 902,889
• PEG Ratio: -0.67
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.10
• 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: £138.29
• Price Target Upside: -8.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

Ashmore Group PLC's strong financial stability and attractive valuation are balanced by challenges in revenue growth and cash flow generation, as well as bearish technical momentum. Positive corporate events, such as director share purchases, suggest potential confidence in future recovery.

Positive Factors

Acquisition Potential

ASHM, as a scarce, scaled, EM asset manager, could prove an attractive takeout candidate for a diversified manager given its surplus capital position.

Emerging Markets

A weaker USD could support emerging market performance, with potential for client allocation shifts from US to EM assets.

Negative Factors

Institutional Outflows

Large institutional outflows were driven by several big redemptions, despite some new wins and inflows.

Market Uncertainty

Outlook remains highly dependent on macro conditions, with market volatility and changes to global trade adding uncertainty.

Overvaluation Concerns

Ashmore trades at a higher multiple compared to the sector average, reflecting a potential overvaluation.

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 PLC generates revenue primarily through management fees and performance fees associated with the investment products they offer. Management fees are typically a percentage of the assets under management (AUM), providing a steady income stream based on the total value of assets managed on behalf of clients. Performance fees are earned when the company's investment funds surpass specified benchmarks, offering an incentive-based revenue stream that aligns the company's interests with those of its clients. Ashmore's ability to attract and retain institutional clients, alongside its expertise in emerging markets, significantly contributes to its financial performance. The company also benefits from strategic partnerships and a global network of offices that enhance its distribution capabilities and market reach.

Ashmore Group PLC Financial Statement Overview

Summary

Ashmore Group PLC shows strong profitability with high margins and a robust balance sheet characterized by low debt levels. However, declining revenue and cash flow raise concerns about future growth prospects. The company should focus on reversing revenue decline and improving cash flow generation.

Income Statement

The income statement shows a declining trend in revenue over recent years, with a noticeable drop from the previous year. Despite this, the company maintains strong profitability with a net profit margin of approximately 49.6% for the most recent year, and an EBITDA margin of 69.6%. The revenue growth rate is negative, indicating a decrease in revenue year-over-year. This pattern suggests that while the company is efficient at converting revenue into profit, it faces challenges in growing its revenue base.

Balance Sheet

Ashmore Group PLC maintains a solid balance sheet with a low debt-to-equity ratio of 0.01, highlighting minimal leverage. The equity ratio is strong at 90.1%, indicating robust financial stability and a high proportion of assets financed by equity. Return on equity stands at 10.6%, reflecting a moderate return on shareholders' investments. Overall, the company's balance sheet reflects financial strength and stability, with low risk from debt obligations.

Cash Flow

The cash flow statement reveals a decline in free cash flow from the previous year, resulting in a negative free cash flow growth rate. The operating cash flow to net income ratio is 0.95, demonstrating that the company effectively converts net income into cash. However, the reduction in free cash flow raises concerns about cash generation capacity. The free cash flow to net income ratio is 0.94, indicating good cash conversion, though long-term sustainability of cash flows should be monitored.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
172.00M	189.00M	219.30M	199.50M	424.90M	322.90M
	Gross Profit
90.10M	103.90M	153.10M	126.10M	344.60M	240.30M
	EBIT
53.30M	57.20M	83.40M	104.50M	274.00M	203.60M
	EBITDA
64.80M	131.50M	86.60M	107.60M	276.80M	207.00M
	Net Income Common Stockholders
72.60M	93.70M	83.30M	88.50M	240.10M	182.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
696.20M	745.50M	534.40M	584.30M	497.10M	512.50M
	Total Assets
929.40M	979.70M	1.01B	1.10B	1.11B	1.05B
	Total Debt
6.00M	6.40M	5.80M	8.00M	9.80M	10.20M
	Net Debt
-205.70M	-505.40M	-472.80M	-544.00M	-446.30M	-490.70M
	Total Liabilities
102.40M	88.90M	95.70M	131.40M	175.30M	168.60M
	Stockholders Equity
818.10M	882.60M	898.80M	945.00M	911.60M	856.40M
Cash Flow		Free Cash Flow
74.90M	88.30M	140.00M	158.10M	154.30M	215.40M
	Operating Cash Flow
75.70M	89.10M	140.40M	158.60M	155.00M	216.40M
	Investing Cash Flow
-123.70M	-108.40M	-36.80M	61.70M	-35.20M	-9.80M
	Financing Cash Flow
-160.10M	-151.20M	-170.00M	-172.40M	-121.10M	-196.00M

Ashmore Group PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 150.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 150.7 is above the 20-day moving average (MA) of 144.88, above the 50-day MA of 145.91, and below the 200-day MA of 160.35, indicating a neutral trend. The MACD of 1.86 indicates Negative momentum. The RSI at 58.81 is Neutral, neither overbought nor oversold. The STOCH value of 49.18 is Neutral, 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
CHRY	71 Outperform	£535.02M	5.91		―	―	―
ASHM	68 Neutral	£974.08M	13.70	8.62%	11.33%	0.82%	-26.44%
Sector *	64 Neutral	$12.82B	9.87	7.67%	17000.34%	12.39%	-5.85%
DORE	62 Neutral	£148.01M	29.41		6.80%	―	―

Ashmore Group PLC Corporate Events

Ashmore Group Reports Q1 Decline in Assets Under Management Amid Strong Emerging Markets Performance

Ashmore Group PLC reported a decline in assets under management (AuM) by US$2.6 billion for the quarter ending March 31, 2025, despite positive investment performance. The decline was primarily due to net outflows of US$3.9 billion, driven by large institutional redemptions in the local currency theme. While Emerging Markets showed strong performance, supported by economic resilience and favorable currency movements, Ashmore’s active investment strategies outperformed in equity and fixed income sectors. Despite the net outflow, investor interest in Ashmore’s Emerging Markets strategies remains strong, and the company anticipates potential benefits from global economic shifts, including a weaker US dollar and fiscal changes in Europe and Asia.

Spark’s Take on GB:ASHM Stock

According to Spark, TipRanks’ AI Analyst, GB:ASHM is a Neutral.

Ashmore Group PLC’s strong financial stability and attractive valuation are tempered by challenges in revenue growth and cash flow. While technical indicators suggest bearish momentum, the high dividend yield and positive corporate events offer a favorable risk-reward profile. The company’s solid balance sheet and positive emerging markets outlook provide a foundation for potential recovery.

To see Spark’s full report on GB:ASHM stock, click here.

Ashmore Group PLC Announces Internal Share Transfer

Ashmore Group PLC announced a transaction involving the transfer of 3,018 ordinary shares from Tom Shippey, a director, to Antonia Fay Shippey, a person closely associated with him. The transaction, conducted outside a trading venue on March 18, 2025, was executed at a nil price, indicating an internal reallocation of shares rather than a market sale, which may impact the company’s internal shareholding structure but not its market positioning.

Spark’s Take on GB:ASHM Stock

According to Spark, TipRanks’ AI Analyst, GB:ASHM is a Neutral.

Ashmore Group PLC’s strong financial stability and attractive valuation are tempered by challenges in revenue growth and cash flow. While technical indicators suggest bearish momentum, the high dividend yield and positive corporate events offer a favorable risk-reward profile. The company’s solid balance sheet and positive emerging markets outlook provide a foundation for potential recovery.

To see Spark’s full report on GB:ASHM stock, click here.

Ashmore Group Director Acquires Shares with Dividend Proceeds

Ashmore Group PLC announced a transaction involving Clive Adamson, a director, who acquired ordinary shares using cash proceeds from the interim dividend paid on March 31, 2025. This transaction highlights the company’s ongoing commitment to aligning managerial interests with shareholder value, potentially reinforcing investor confidence in Ashmore’s strategic direction.

Ashmore Group PLC Announces Director Share Transactions

Ashmore Group PLC announced a series of transactions involving its director, Tom Shippey, and a person closely associated with him, Antonia Fay Shippey. These transactions included the vesting of share awards, the sale of shares, and the transfer of shares between the two parties. The transactions, conducted outside of a trading venue, reflect internal adjustments in shareholdings and may impact the company’s internal governance and stakeholder dynamics.

Ashmore Group PLC Announces Director Share Vesting

Ashmore Group PLC announced a transaction involving the vesting of 8,030 share awards for Mark Coombs, a director of the company, under the Executive Omnibus Incentive Plan. This transaction, conducted outside a trading venue on March 14, 2025, reflects the company’s ongoing commitment to incentivizing its leadership, potentially impacting its managerial stability and stakeholder confidence.

Ashmore Group PLC Transfers Employee Benefit Trust Holdings

Ashmore Group PLC has announced a change in the administration of its Employee Benefit Trust, resulting in the transfer of its entire shareholding from the Ashmore 2004 Employee Benefit Trust to the Ashmore Group plc 2024 Employee Benefit Trust. This transfer, which took place on February 24, 2025, involves 58,534,386 voting rights, representing 8.21% of the company’s total voting rights. The move is part of the company’s ongoing efforts to manage its employee benefit schemes effectively, which may have implications for stakeholders in terms of governance and control over voting rights.

Ashmore Group PLC Transfers Employee Benefit Trust Holdings

Ashmore Group PLC has announced a significant change in the administration of its Employee Benefit Trust, resulting in the transfer of the entire shareholding from the Ashmore 2004 Employee Benefit Trust to the Ashmore Group plc 2024 Employee Benefit Trust. This change, effective from February 24, 2025, reflects a strategic adjustment in the company’s management of its employee benefits, potentially impacting the company’s internal operations and stakeholder interests.