Schroders (SDR) AI Stock Analysis

• Market Cap: £7.15B
• Dividend Yield: 5.37%
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.41
• 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: £426.84
• Price Target Upside: -7.45% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: 520.00p ▲(12.75% 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

Conservative balance sheet / low leverage

A low debt-to-equity profile reduces financial risk and preserves strategic optionality across market cycles. For an asset manager, conservative leverage supports liquidity to withstand AUM outflows, funds continued investment in product development and talent, and underpins client and counterparty confidence over the medium term.

Consistent revenue growth with robust margins

Sustained revenue growth and healthy margins reflect diversified fee streams and efficient operations. Margin durability supports reinvestment in active management, wealth and private markets capabilities, and funds dividend or capital allocation priorities, leading to a more predictable income base over the next several quarters.

Positive net flows and product momentum

Material positive net flows and targeted product launches signal distribution strength and client trust, which sustainably grow AUM and fee revenue. Momentum in global equities, private markets and wealth management broadens revenue sources, reducing reliance on any single segment and supporting medium-term organic growth.

Negative Factors

Profit before tax decline from restructuring

A large decline in pre-tax profit driven by transformation and restructuring charges reduces near-term earnings power and free cash flow conversion. While intended to improve efficiency, these charges create execution risk and temporarily constrain capital available for growth initiatives or client-facing investments over the medium term.

Significant restructuring and job reductions

Large one-off charges and ~7% headcount reductions can weaken institutional knowledge and talent depth if not carefully managed. For an investment manager, losing experienced staff risks performance and client relationships, potentially impacting net flows and long-term revenue if restructuring undermines investment continuity or distribution capability.

Volatile operating and free cash flow

Inconsistent free cash flow reduces predictability for dividends, buybacks and strategic investment. For an asset manager facing flow sensitivity, cash volatility can constrain opportunistic investments in product launches or distribution and complicate capital allocation planning over the coming 2–6 months despite recent improvements.

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 demonstrates strong financial performance with consistent revenue growth, robust profit margins, and a solid balance sheet. The low debt-to-equity ratio and strong equity base provide financial stability, although cash flow fluctuations present some risk.

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: 461.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 461.2 is above the 20-day moving average (MA) of 447.98, above the 50-day MA of 416.90, and above the 200-day MA of 382.66, indicating a bullish trend. The MACD of 11.85 indicates Positive momentum. The RSI at 62.01 is Neutral, neither overbought nor oversold. The STOCH value of 67.73 is Neutral, 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	£3.90B	12.24	6.50%	7.21%	-7.11%	0.45%
N91	78 Outperform	£4.57B	13.77	41.56%	5.93%	4.28%	5.18%
SDR	77 Outperform	£7.15B	20.01	8.30%	5.37%	4.78%	-4.86%
EMG	76 Outperform	£2.94B	21.06	12.23%	5.71%	-10.85%	-42.02%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ICG	67 Neutral	£4.79B	7.96	24.36%	4.13%	28.34%	44.04%
MNG	61 Neutral	£7.36B	-126.06	-1.53%	7.09%	9.86%	-134.41%

Schroders Corporate Events

Schroders Reshapes Board Roles as Westerman Takes Chair at Schroder & Co

Schroders plc has announced a change in director responsibilities, with Matthew Westerman appointed as non-executive Chair of Schroder & Co Limited, subject to regulatory approval. To accommodate his new role, Westerman will step down as Chair of the Schroders plc Remuneration Committee following the 2026 Annual General Meeting, though he will remain a member of the committee, while Frederic Wakeman, a committee member since August 2024, will assume the role of Remuneration Committee Chair from the same date, signaling a managed transition in the company’s governance and oversight of remuneration policies.

The most recent analyst rating on (GB:SDR) stock is a Hold with a £511.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders flags stronger‑than‑expected 2025 profit on higher inflows and disciplined costs

Schroders expects its 2025 adjusted operating profit to come in at least £745 million, well ahead of market expectations and up from £603.1 million in 2024, driven by higher net operating income and tight cost control. Adjusted net operating income is set to rise to at least £2.58 billion, supported by a favourable asset mix from strong intermediary flows, higher performance fees and carried interest, and positive market returns, while adjusted operating expenses are expected to be broadly flat year-on-year, improving the cost:income ratio to about 71% from 75%. Group assets under management have grown to around £825 billion including joint ventures and associates, reflecting market gains, solid investment performance and approximately £11 billion of net new business. Net inflows were broadly based, with Public Markets attracting about £3.9 billion, Schroders Capital delivering around £4.0 billion plus a first £0.5 billion contribution from Future Growth Capital and increased dry powder, and Wealth Management adding roughly £3.4 billion despite a challenging macro backdrop and charity outflows offsetting strong gross inflows in that segment.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £4.95 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders Discloses Routine Share Incentive Plan Purchases for Senior Executives

Schroders plc has disclosed routine share purchases made on 12 January 2026 under its Share Incentive Plan on behalf of several senior executives, including the Group Chief Executive, Chief Financial Officer, Group Chief Investment Officer and the CEO of Schroders Capital. The non-discretionary transactions, executed on the London Stock Exchange’s Main Market, involved small volumes of ordinary shares at a price of £4.16309 per share, underscoring ongoing alignment of senior management’s interests with shareholders through regular equity-based remuneration in line with UK Market Abuse Regulation reporting requirements.

The most recent analyst rating on (GB:SDR) stock is a Hold with a £438.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders Announces Change in Director Responsibilities

Schroders plc has announced a change in its board of directors, with Annette Thomas set to take over from Ian King as the non-executive Director responsible for workforce engagement starting January 1, 2026. This change reflects the company’s ongoing commitment to enhancing its governance and engagement with employees, which is crucial for maintaining its competitive edge in the asset management industry.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £442.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders Announces Share Purchases Under Incentive Plan

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 acquisition of ordinary shares at a price of £3.879 each. The announcement highlights the company’s commitment to aligning the interests of its management with those of its shareholders, potentially strengthening stakeholder confidence and reinforcing Schroders’ market position.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £442.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

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.

The most recent analyst rating on (GB:SDR) stock is a Sell with a £360.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

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.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £421.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

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.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £421.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.