Schroders (SDR) AI Stock Analysis

• Market Cap: £9.09B
• Dividend Yield: 5.37%
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.40
• Revenue Growth: 4.78%
• EPS Growth: -4.86%
• Country: UK
• Employees: 6,363
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.23
• Shares Outstanding: 1,610,711,300
• 10 Day Avg. Volume: 3,170,161
• 30 Day Avg. Volume: 2,152,187
• PEG Ratio: 0.46
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 11.16
• 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: £493.03
• Price Target Upside: -15.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.37
• Revenue Forecast (FY): £2.67B

• Rating: 76 Outperform
• Price Target: 662.00p ▲(12.87% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by solid underlying financial strength and a notably positive earnings call (strong profit/EPS growth, improving flows, and an attractive all-cash offer at a premium). Technicals support the uptrend but are stretched on RSI/Stoch, while valuation looks fair with a supportive dividend yield.

Positive Factors

Conservative balance sheet and improving ROE

Schroders' low leverage and stable-to-growing equity provide durable financial flexibility for a manager dependent on capital adequacy and regulatory buffers. Consistent low-double-digit ROE shows the business earns respectable returns without aggressive borrowing, supporting resilience through market cycles.

Material profitability and transformation-driven cost savings

Double-digit operating profit and EPS expansion tied to a targeted transformation program (net savings delivered and headcount/supplier reductions) show sustainable margin improvement potential. Structural cost savings plus reinvestment discipline can support longer-term operating leverage and earnings durability.

Record AUM, positive inflows and private markets dry powder

Record AUM and sustained gross/net inflows broaden the fee base and strengthen recurring revenue. Material private markets fundraising and fee-earning dry powder give the firm optionality to deploy into higher-fee strategies, supporting medium-term revenue mix improvement and higher-margin growth.

Negative Factors

Volatile cash generation and episodic negative FCF

Irregular free cash flow reduces visibility on sustainable shareholder returns and constrains reinvestment timing. For an asset manager, inconsistent cash conversion versus accounting earnings raises risk around funding transformations, dividends, and opportunistic investments during weaker market periods.

Revenue and profit sensitivity to markets and performance fees

Dependence on market-driven fee income and performance fees makes earnings cyclical: downturns can reduce AUM, lower performance fee visibility and pressure margins. Structural reliance on favorable markets increases earnings volatility and necessitates steady net new business to smooth revenue streams.

Private markets deployment and fundraising-to-deployment gap

Holding substantial fee-earning dry powder without timely deployment limits near-term fee income and returns from higher-margin private strategies. Execution risk in converting fundraising into invested, fee-generating assets may weigh on medium-term revenue growth and the promised private-market uplift.

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

Solid profitability and a conservatively positioned balance sheet (low leverage, stable equity, improving ROE), but confidence is tempered by uneven multi-year growth and volatile cash generation (including a negative cash-flow year and lower FCF in 2025 despite higher earnings).

Income Statement

Revenue has been broadly stable with a modest step-up in 2025 (+6.72% year over year), but the multi-year growth profile is low and uneven. Profitability remains solid for the industry, with strong gross margins and healthy operating profitability; however, margins have compressed versus 2024 (notably the gross margin decline and lower EBIT). Net profit improved in 2025 versus 2024, but remains below the 2021 peak, pointing to a business that is profitable but not consistently expanding earnings power year-to-year.

Balance Sheet

The balance sheet looks conservatively positioned with low leverage: debt remains modest relative to equity even after rising in 2025. Equity has been stable-to-growing over the period, supporting resilience. Returns on equity are consistently around low-double-digits, improving into 2025, which indicates decent profitability without requiring heavy leverage. The main watch-out is the 2025 increase in debt versus prior years, though overall leverage still appears manageable.

Cash Flow

Cash generation is generally supportive, with free cash flow closely tracking net income in 2024–2025, suggesting earnings quality is reasonable. That said, cash flows have been volatile: 2023 showed negative operating and free cash flow, and 2025 free cash flow declined sharply (down ~20.7% year over year) despite higher earnings. Overall, the business can generate strong cash, but the variability reduces confidence in consistency across cycles.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.28B	2.97B	2.94B	2.93B	3.02B
Gross Profit	2.17B	2.36B	2.33B	2.21B	2.30B
EBITDA	879.40M	731.00M	769.20M	798.50M	865.00M
Net Income	539.80M	433.00M	402.60M	486.20M	623.80M
Balance Sheet
Total Assets	24.61B	20.95B	20.63B	21.33B	24.34B
Cash, Cash Equivalents and Short-Term Investments	4.58B	6.78B	4.82B	4.44B	4.21B
Total Debt	924.20M	668.20M	318.70M	420.40M	443.70M
Total Liabilities	20.16B	16.45B	16.17B	16.85B	19.92B
Stockholders Equity	4.46B	4.41B	4.39B	4.36B	4.29B
Cash Flow
Free Cash Flow	578.00M	977.70M	-318.00M	143.60M	1.08B
Operating Cash Flow	597.10M	1.05B	-238.10M	247.90M	1.17B
Investing Cash Flow	-101.70M	-694.80M	-225.00M	-561.60M	28.20M
Financing Cash Flow	-40.70M	-213.00M	-479.50M	149.40M	-271.30M

Schroders Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 586.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 586.5 is above the 20-day moving average (MA) of 541.96, above the 50-day MA of 474.31, and above the 200-day MA of 401.79, indicating a bullish trend. The MACD of 36.69 indicates Positive momentum. The RSI at 84.65 is Negative, neither overbought nor oversold. The STOCH value of 38.89 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	£3.96B	12.35	6.50%	7.21%	-7.11%	0.45%
N91	78 Outperform	£4.69B	13.64	41.56%	5.93%	4.28%	5.18%
SDR	76 Outperform	£9.09B	17.21	8.30%	5.37%	4.78%	-4.86%
EMG	76 Outperform	£2.99B	22.91	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	£4.64B	8.07	24.36%	4.13%	28.34%	44.04%
MNG	61 Neutral	£7.46B	-127.80	-1.53%	7.09%	9.86%	-134.41%

Schroders Corporate Events

Nuveen Clarifies London Role in Recommended Cash Takeover of Schroders

Nuveen-owned Pantheon, LLC has agreed a recommended cash acquisition of Schroders plc via newly formed Bidco, with both boards confirming that London will serve as the combined group’s non-U.S. headquarters for at least five years from the deal’s effective date. The clarification follows a Bloomberg Television interview with Schroders CEO Richard Oldfield, with Nuveen and Bidco stressing that his comments did not constitute binding post-offer undertakings under the UK Takeover Code, a point aimed at managing regulatory expectations and providing certainty to shareholders and other stakeholders over future headquarters arrangements.

The most recent analyst rating on (GB:SDR) stock is a Hold with a £480.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders files 2025 results and proposes 15p final dividend

Schroders has submitted its full-year 2025 annual results to the UK Financial Conduct Authority’s National Storage Mechanism and made them available via its investor relations website, with a webcast scheduled for analysts and investors on 12 February 2026. The release underscores transparency around the group’s performance and offers stakeholders multiple channels to access detailed financial information and management commentary.

The board has proposed a final dividend of 15.0 pence per share for the year to 31 December 2025, payable on 23 April 2026 subject to shareholder approval at the upcoming AGM, with a dividend reinvestment plan available to eligible investors. The move signals a continued commitment to shareholder returns and provides investors with the option to reinvest distributions, which may support longer-term capital accumulation and engagement with the stock.

The most recent analyst rating on (GB:SDR) stock is a Hold with a £480.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Nuveen’s Pantheon to Acquire Schroders in £9.9 Billion Cash Deal

Nuveen’s newly formed subsidiary Pantheon has agreed a recommended all-cash offer to acquire the entire share capital of Schroders at up to 612 pence per share, including permitted dividends. The deal values Schroders’ equity at about £9.9 billion on a fully diluted basis, implying a 17x multiple of 2025 adjusted operating profit and premiums of up to 61% over recent average trading prices.

The combination will create one of the world’s largest global active asset managers with nearly $2.5 trillion in assets under management, balanced across institutional and wealth channels. Schroders’ brand will be retained, London will serve as the combined group’s non‑US headquarters, and the boards intend to unanimously recommend the transaction, which is targeted to complete in Q4 2026 subject to regulatory approvals.

Nuveen and Schroders emphasised their complementary product platforms, aligned cultures and shared focus on sustainability and innovation as key drivers of the merger. The transaction is expected to accelerate Schroders’ growth plans, deepen its public‑to‑private investment capabilities, and reinforce London’s position as a global centre for asset and wealth management, with significant irrevocable support already secured from major shareholders.

The most recent analyst rating on (GB:SDR) stock is a Hold with a £480.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders discloses senior executives’ monthly share purchases under incentive plan

Schroders has reported monthly non-discretionary share purchases made on behalf of several senior executives under its Share Incentive Plan, in line with UK Market Abuse Regulation disclosure rules. Group Chief Executive Richard Oldfield, Chief Financial Officer Meagen Burnett, Group Chief Investment Officer Johanna Kyrklund and Schroders Capital CEO Georg Wunderlin each acquired small volumes of ordinary shares at £4.6666 per share on 10 February 2026 on the London Stock Exchange, reinforcing ongoing equity-based alignment between top management and shareholders.

The most recent analyst rating on (GB:SDR) stock is a Hold with a £480.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders strengthens board with bp executive as it extends director tenure

Schroders has announced that bp executive William Lin will join its board as an independent non‑executive director in May 2026 and will sit on the Nomination and Governance Committee, bringing deep international energy-sector experience, particularly in Asia, and a track record in leading large-scale transformation programmes. The firm is also extending non‑executive director Ian King’s tenure to the end of 2026 to preserve board continuity during an ongoing search for additional independent directors, while Rakhi Goss‑Custard will retire from the board after nine years, changes that collectively aim to maintain a balanced skills mix and support Schroders’ strategic push toward sustainable profitable growth.

These board moves underscore Schroders’ focus on bolstering governance and transformation expertise as it navigates its next phase of growth, with Lin’s background in global energy and low‑carbon businesses aligning with broader market shifts and stakeholder expectations. The extension of King’s term is intended to stabilise board oversight and preserve institutional knowledge through a period of strategic change, while Goss‑Custard’s planned departure reflects normal board refreshment after long service but will require careful succession planning to maintain the level of challenge and insight valued by the chair.

The most recent analyst rating on (GB:SDR) stock is a Hold with a £480.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

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.