Schroders (SDR) AI Stock Analysis

• Market Cap: £6.21B
• Dividend Yield: 5.37%
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.34
• Revenue Growth: 4.78%
• EPS Growth: -4.86%
• Country: UK
• Employees: 6,363
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.10
• Shares Outstanding: 1,610,711,300
• 10 Day Avg. Volume: 3,170,161
• 30 Day Avg. Volume: 2,152,187
• PEG Ratio: 3.07
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 5.22
• 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: £421.88
• Price Target Upside: 5.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: 442.00p ▲(10.44% Upside)

Schroders' overall stock score reflects strong financial performance and strategic initiatives, supported by a solid valuation and positive corporate events. While technical indicators show moderate bullish momentum, challenges from restructuring costs and cash flow fluctuations temper the outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Cost Savings Initiatives

Effective cost savings initiatives enhance profitability and operational efficiency, positioning the company for sustainable growth.

Strong Sales Momentum

Increasing sales momentum reflects strong client demand and successful market strategies, suggesting robust future revenue streams.

Negative Factors

Profit Before Tax Decline

A significant decline in profit before tax indicates challenges in managing restructuring costs, potentially affecting short to medium-term profitability.

Restructuring Charges

High restructuring charges can strain financial resources and impact net income, posing risks to financial stability during transformation.

Cash Flow Fluctuations

Fluctuating cash flows may affect liquidity and operational flexibility, challenging the company's ability to fund growth initiatives consistently.

Schroders Business Overview & Revenue Model

Company Description

Schroders 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 Money

Schroders generates revenue primarily through management fees charged on the assets under management (AUM) in its investment funds and mandates. These fees are typically calculated as a percentage of AUM and vary depending on the specific fund or service provided. Additionally, the company earns performance fees when it exceeds certain investment benchmarks or targets. Key revenue streams also include advisory services and product distribution. Schroders has established significant partnerships with various financial institutions and platforms, which enhance its distribution capabilities and broaden its client reach, contributing positively to its overall earnings.

Schroders Financial Statement Overview

Summary

Schroders shows a strong financial position with consistent revenue growth and profitability. The company maintains a low debt-to-equity ratio, indicating financial stability. However, cash flow fluctuations and a recent dip in net profit margin slightly temper the overall financial performance.

Income Statement

Schroders has demonstrated consistent revenue growth over the years, with a slight dip in 2021. The gross profit margin is robust, reflecting efficient operations. Net profit margin has shown volatility, impacted by fluctuations in net income. EBIT and EBITDA margins remain strong, indicating healthy core business profitability.

Balance Sheet

The company maintains a low debt-to-equity ratio, suggesting conservative leverage and financial stability. Return on equity is solid, reflecting effective use of shareholders' funds. The equity ratio indicates a healthy proportion of assets financed by equity, reducing financial risk.

Cash Flow

Operating cash flow has seen fluctuations, but recent improvements are notable. Free cash flow growth has been inconsistent, with a significant increase in the latest period. The ratios of operating and free cash flow to net income suggest adequate liquidity to support operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.08B	2.97B	2.94B	2.93B	3.02B	2.57B
Gross Profit	2.40B	2.36B	2.33B	2.21B	2.30B	1.95B
EBITDA	630.90M	731.00M	769.20M	798.50M	865.00M	756.00M
Net Income	373.50M	433.00M	402.60M	486.20M	623.80M	486.00M
Balance Sheet
Total Assets	22.24B	20.95B	20.63B	21.33B	24.34B	21.67B
Cash, Cash Equivalents and Short-Term Investments	4.68B	6.78B	4.82B	4.44B	4.21B	3.47B
Total Debt	588.40M	668.20M	318.70M	420.40M	443.70M	470.00M
Total Liabilities	17.87B	16.45B	16.17B	16.85B	19.92B	17.59B
Stockholders Equity	4.28B	4.41B	4.39B	4.36B	4.29B	4.00B
Cash Flow
Free Cash Flow	729.20M	977.70M	-318.00M	143.60M	1.08B	224.70M
Operating Cash Flow	1.18B	1.05B	-238.10M	247.90M	1.17B	317.50M
Investing Cash Flow	-434.80M	-694.80M	-225.00M	-561.60M	28.20M	212.70M
Financing Cash Flow	282.20M	-213.00M	-479.50M	149.40M	-271.30M	22.50M

Schroders Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 400.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SDR, the sentiment is Positive. The current price of 400.2 is above the 20-day moving average (MA) of 390.31, above the 50-day MA of 386.45, and above the 200-day MA of 367.62, indicating a bullish trend. The MACD of 3.26 indicates Negative momentum. The RSI at 65.95 is Neutral, neither overbought nor oversold. The STOCH value of 96.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SDR.

Schroders Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABDN	78 Outperform	£3.60B	11.37	6.50%	7.23%	-7.11%	0.45%
N91	78 Outperform	£3.72B	11.81	41.56%	5.93%	4.28%	5.18%
SDR	77 Outperform	£6.21B	17.48	8.30%	5.37%	4.78%	-4.86%
ICG	76 Outperform	£5.79B	9.84	24.36%	4.12%	28.34%	44.04%
EMG	76 Outperform	£2.51B	18.21	12.23%	5.71%	-10.85%	-42.02%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MNG	61 Neutral	$6.72B	-115.81	-1.53%	7.09%	9.86%	-134.41%

Schroders Corporate Events

Schroders Capital Eyes Growth with Strategic Initiatives

Schroders hosted an investor day to highlight the growth potential of Schroders Capital, its specialist private markets business. With assets under management reaching £72.8 billion, Schroders Capital is positioned as the sixth largest in Europe. The event emphasized the company’s strategic initiatives, including a dedicated business development team and a commitment to deploy significant seed capital, aimed at capturing increased client demand and achieving £100 billion in assets under management by 2027.

Schroders Announces Monthly Share Purchases Under Incentive Plan

Schroders plc has announced the monthly non-discretionary purchase of shares under its Share Incentive Plan, involving key managerial figures such as the Group Chief Executive and Chief Financial Officer. The transactions were conducted on the London Stock Exchange, with each share priced at £3.889, reflecting the company’s ongoing commitment to aligning the interests of its management with those of its shareholders.

Schroders Executive Vice Chair Engages in Share Transaction

Schroders plc announced a transaction involving Karine Szenberg, Executive Vice Chair, who exercised an award under the Equity Incentive Plan, acquiring 59,352 shares. Subsequently, 32,742 shares were sold to cover tax and dealing costs, while 26,610 shares were retained. This transaction, conducted on the London Stock Exchange, highlights the company’s ongoing commitment to aligning managerial interests with shareholder value.

Schroders Achieves Record AUM with Strategic Market Exits and ETF Launches

Schroders PLC reported a significant increase in its assets under management (AUM), reaching a record £816.7 billion in Q3 2025, driven by net inflows and favorable market conditions. The company continues to execute its strategic plan by exiting non-scalable markets like Indonesia and Brazil, launching active ETFs in Europe, and simplifying its Wealth Management business. These moves are aimed at enhancing client investment performance and positioning Schroders for sustainable long-term growth.

Schroders Announces Share Transfer by Principal Shareholder

Schroders plc announced a transfer of indirect interest in 27,711,941 ordinary shares by Suzanne Schroder to Matthew Pintus and Quorum Limited, trustees of a trust established by Suzanne Schroder. This transfer, which does not alter the overall shareholding of the principal shareholder group, is associated with Leonie Schroder, a non-executive director of the company. The transaction is part of regulatory compliance under the UK Market Abuse Regulation.

Schroders Announces Share Purchases for Management

Schroders plc announced the monthly non-discretionary purchase of shares under its Share Incentive Plan for key managerial personnel. This transaction, conducted on the London Stock Exchange, involves the purchase of ordinary shares at a price of £3.994 each, reflecting the company’s commitment to aligning the interests of its management with those of its shareholders.

Schroders Executives Acquire Shares, Reinforcing Market Position

Schroders plc announced transactions involving key managerial figures acquiring rights to ordinary shares under a dividend reinvestment plan. This move, involving the Group Chief Executive, Chief Financial Officer, Group Chief Investment Officer, and CEO of Schroders Capital, highlights the company’s commitment to aligning management interests with shareholder value, potentially strengthening its market position.

Schroders Executives Acquire Share Rights in Strategic Move

Schroders plc has announced transactions involving the acquisition of rights to ordinary shares by several key executives under the Deferred Award Plan and Equity Incentive Plan. These transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to aligning managerial interests with shareholder value, potentially impacting its market positioning and stakeholder relations.

Schroders Chair Elizabeth Corley to Join LSE Group as Non-Executive Director

Schroders plc announced that Elizabeth Corley, the Chair of the Company, will join the London Stock Exchange Group plc as a Non-Executive Director starting December 1, 2025. This appointment aligns with Schroders’ strategic positioning within the financial industry, potentially enhancing its influence and connections in the market.

Schroders Chair to Step Down from BAE Systems Role

Schroders plc announced that Elizabeth Corley, the Chair of the Company, will resign from her role as a Non-Executive Director at BAE Systems plc, effective from November 30, 2025. This change in leadership may influence Schroders’ strategic direction and stakeholder relationships, as Corley focuses more on her responsibilities within Schroders.

Schroders Announces Managerial Share Purchases Under Incentive Plan

Schroders plc announced the non-discretionary purchase of shares under its Share Incentive Plan, involving key managerial personnel. The transactions, conducted on the London Stock Exchange, highlight the company’s ongoing efforts to align management interests with shareholder value, potentially strengthening its market position.