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Schroders PLC (GB:SDR)
LSE:SDR

Schroders (SDR) AI Stock Analysis

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GB

Schroders

(LSE:SDR)

77Outperform
Schroders' strong financial fundamentals, fair valuation, and positive corporate events contribute to a robust overall stock score. While technical indicators show a bullish trend, they do not suggest immediate significant upward movement.
Positive Factors
Cost Efficiencies
Cost efficiencies linked to removing duplication, focused sales and marketing, optimisation and innovation of the tech and operating platform.
Cost Savings
Analyst's guidance for £150m cost saves over 3 years implies approximately 9% upside to consensus expectations.
Valuation
Shares are at a 5-year trough valuation and a ~10% discount to the UK sector despite their historic premium.
Negative Factors
Business Challenges
Ongoing pressures from the active to passive shift pose a challenge for the mutual fund and institutional business divisions.
Market Pressures
Further downside potentially comes from weaker equity markets (37% of AUM), where strategists are bearish.
Revenue Expectations
Expectations for mutual funds, solutions, and institutional revenues to be broadly flat from 2024 to 2027 suggest some risk.

Schroders (SDR) vs. S&P 500 (SPY)

Schroders Business Overview & Revenue Model

Company DescriptionSchroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe. The firm's alternative investments include real estate markets, emerging market debt, commodities and agriculture funds, funds of hedge funds and private equity funds of funds. It conducts an in-house research to make its investments. Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.
How the Company Makes MoneySchroders makes money primarily through management fees charged on the assets it manages for its clients. These fees are typically calculated as a percentage of the assets under management (AUM) and vary depending on the type of investment strategy and the client relationship. Additionally, Schroders earns performance fees from some clients when the investment returns exceed predetermined benchmarks. The company also generates revenue from offering advisory services, providing insights and strategies for wealth management. Significant partnerships with financial institutions and intermediaries enhance its distribution capabilities, contributing to its revenue growth. Schroders' ability to deliver consistent investment performance and maintain strong client relationships is crucial to its financial success.

Schroders Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
2.94B2.94B2.93B3.02B2.57B2.58B
Gross Profit
2.24B2.33B2.21B2.30B1.95B1.96B
EBIT
606.50M661.00M609.60M702.20M587.20M645.10M
EBITDA
778.00M769.20M798.50M865.00M756.00M783.80M
Net Income Common Stockholders
377.20M402.60M486.20M623.80M486.00M495.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.97B4.82B4.44B4.21B3.47B2.66B
Total Assets
19.63B20.63B21.33B24.34B21.67B21.27B
Total Debt
3.66B318.70M420.40M443.70M470.00M522.40M
Net Debt
977.20M-3.33B-4.02B-3.76B-3.00B-2.14B
Total Liabilities
16.01B16.17B16.85B19.92B17.59B17.42B
Stockholders Equity
3.62B4.39B4.36B4.29B4.00B3.78B
Cash FlowFree Cash Flow
1.02B-318.00M143.60M1.08B224.70M787.80M
Operating Cash Flow
1.10B-238.10M247.90M1.17B317.50M930.70M
Investing Cash Flow
-751.30M-225.00M-561.60M28.20M212.70M14.50M
Financing Cash Flow
-211.80M-479.50M149.40M-271.30M22.50M-568.50M

Schroders Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price347.80
Price Trends
50DMA
357.05
Negative
100DMA
329.16
Positive
200DMA
334.42
Positive
Market Momentum
MACD
-0.83
Positive
RSI
40.81
Neutral
STOCH
12.42
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SDR, the sentiment is Neutral. The current price of 347.8 is below the 20-day moving average (MA) of 368.08, below the 50-day MA of 357.05, and above the 200-day MA of 334.42, indicating a neutral trend. The MACD of -0.83 indicates Positive momentum. The RSI at 40.81 is Neutral, neither overbought nor oversold. The STOCH value of 12.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SDR.

Schroders Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBSDR
77
Outperform
£5.56B13.569.48%6.00%0.72%7.66%
69
Neutral
£2.86B12.144.88%9.11%-5.51%1596.15%
GBJUP
67
Neutral
£386.52M5.998.03%8.85%0.37%
GBSTJ
65
Neutral
£5.41B13.8435.30%1.38%36.14%
63
Neutral
$14.20B10.119.01%4.34%16.34%-11.27%
56
Neutral
£14.18B84.394.06%8.46%-21.56%-61.14%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SDR
Schroders
347.80
-1.29
-0.37%
GB:JUP
Jupiter Fund Management Plc
70.90
-10.62
-13.03%
GB:LGEN
Legal & General
242.80
12.71
5.52%
GB:STJ
St. James's Place
977.00
531.88
119.49%
GB:ABDN
abrdn
154.65
27.24
21.38%
MGPUF
M&G Plc
2.48
-0.11
-4.25%

Schroders Corporate Events

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Schroders Releases 2024 Annual Report and Announces 2025 AGM Details
Neutral
Mar 21, 2025

Schroders plc has announced the availability of its 2024 Annual Report and Accounts, along with the Notice of the 2025 Annual General Meeting (AGM). These documents have been submitted to the Financial Conduct Authority and can be accessed via the National Storage Mechanism or the company’s website. The AGM is scheduled for 1 May 2025, offering shareholders the option to attend in person or remotely via a live online broadcast. This announcement underscores Schroders’ commitment to transparency and accessibility for its stakeholders.

Executive/Board ChangesBusiness Operations and Strategy
Schroders Aligns Management Incentives with Shareholder Interests
Positive
Mar 11, 2025

Schroders plc announced transactions involving managerial personnel acquiring rights to ordinary shares as part of their Deferred Award Plan. This move, involving key executives, underscores the company’s commitment to aligning management incentives with shareholder interests, potentially impacting its market positioning by strengthening leadership engagement.

Executive/Board ChangesBusiness Operations and Strategy
Schroders Executives Acquire Shares Under Incentive Plan
Positive
Mar 11, 2025

Schroders plc announced transactions involving key managerial personnel acquiring rights to ordinary shares under the Long Term Incentive Plan. This move, involving senior executives such as the Group Chief Executive and Chief Financial Officer, reflects the company’s commitment to aligning management interests with shareholder value, potentially impacting the company’s market positioning and stakeholder confidence.

Business Operations and Strategy
Schroders Announces Managerial Share Purchases Under Incentive Plan
Neutral
Mar 11, 2025

Schroders plc announced the monthly non-discretionary purchase of shares on behalf of its managerial staff under the company’s Share Incentive Plan. This transaction, conducted on the London Stock Exchange, involved key executives such as the Group Chief Executive and Chief Financial Officer, reflecting the company’s commitment to aligning management interests with shareholder value.

Dividends
Schroders Proposes Final Dividend for 2024
Positive
Mar 11, 2025

Schroders plc has announced a proposed final dividend of 15.0 pence per share for the year ending 31 December 2024, subject to shareholder approval at the upcoming 2025 Annual General Meeting. This decision reflects the company’s commitment to returning value to shareholders and maintaining its competitive position in the asset management industry. The dividend is scheduled to be paid on 8 May 2025, with a dividend reinvestment plan available for shareholders who wish to participate.

Executive/Board ChangesShareholder Meetings
Schroders Announces Key Board Changes Ahead of AGM
Neutral
Mar 6, 2025

Schroders plc has announced changes to its board of directors, with Deborah Waterhouse stepping down after six years to focus on her role at GSK plc. Ian King will also step down as Senior Independent Director, to be succeeded by Iain Mackay following the Annual General Meeting on May 1, 2025. These changes reflect a strategic realignment within the company, potentially impacting its governance and stakeholder engagement strategies.

Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Schroders Releases 2024 Strategy Update and Annual Results
Neutral
Mar 6, 2025

Schroders plc has announced the submission of its Strategy Update and Annual Results for 2024 to the Financial Conduct Authority’s National Storage Mechanism. This update, which will be available on Schroders’ Investor Relations website, outlines the company’s performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

Business Operations and Strategy
Tikehau Capital Increases Stake in Schroders PLC
Neutral
Feb 25, 2025

Schroders PLC has announced a change in its major holdings, with Tikehau Capital UK Limited increasing its voting rights from 4.034% to 5.199%. This acquisition of additional voting rights signifies a strengthened position for Tikehau Capital in Schroders, potentially impacting the company’s strategic decisions and influencing its market positioning.

Business Operations and StrategyRegulatory Filings and Compliance
Harris Associates Adjusts Stake in Schroders PLC
Neutral
Feb 20, 2025

Schroders PLC announced a change in major holdings, as Harris Associates L.P., a Chicago-based entity, has adjusted its voting rights in the company to 4.989808% as of February 18, 2025. This acquisition or disposal of voting rights may influence Schroders’ corporate governance and decision-making, potentially impacting shareholder value and strategic direction.

Business Operations and Strategy
Tikehau Capital Increases Stake in Schroders PLC to 4.034%
Neutral
Feb 14, 2025

Schroders PLC announced that Tikehau Capital UK Limited has increased its voting rights in the company to 4.034%, up from a previous position of 3.254%. This acquisition of voting rights signifies a strengthened influence of Tikehau Capital within Schroders, potentially impacting its decision-making processes and future strategic direction.

Business Operations and Strategy
Schroders PLC Announces Change in Major Holdings
Neutral
Feb 13, 2025

Schroders PLC, a leading asset management firm, announced a change in its major holdings with Tikehau Capital UK Limited acquiring a 3.254% voting rights stake in the company. This development could influence Schroders’ strategic decisions and shareholder dynamics, potentially impacting its market positioning and operations.

Business Operations and StrategyRegulatory Filings and Compliance
Schroders Announces Managerial Share Purchases Under Incentive Plan
Neutral
Feb 11, 2025

Schroders plc announced the monthly non-discretionary purchases of company shares under its Share Incentive Plan, involving key managerial personnel. This initiative reflects the company’s commitment to engaging its leadership in the ownership structure, potentially strengthening alignment between management and shareholder interests.

Schroders Executives Acquire Shares Under Incentive Plan
Jan 13, 2025

Schroders plc announced the purchase of ordinary shares under its Share Incentive Plan by key managerial personnel. This notification, made under the UK Market Abuse Regulation, details the purchase of shares by several top executives, indicating the company’s commitment to align management interests with shareholder value and reinforcing its market position and governance practices.

Schroders Announces Share Capital and Voting Rights Update
Jan 2, 2025

Schroders plc has announced its share capital details as of 31 December 2024, revealing a total of 1,612,071,525 Ordinary Shares issued with 6,383,664 shares held in treasury, resulting in 1,605,687,861 voting rights. This information is pertinent for shareholders who need to calculate their interest changes for regulatory compliance under the Financial Conduct Authority’s rules.

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.