Schroders (SDR) AI Stock Analysis

• Market Cap: £6.22B
• Dividend Yield: 535.63%
• Average Volume (3M): 2.58M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 1.47
• Revenue Growth: 0.72%
• EPS Growth: 7.66%
• Country: UK
• Employees: 6,363
• Sector: Financial
• Sector Strength: 76
• Industry: Asset Management
• EPS (TTM): 0.12
• Shares Outstanding: 1,610,711,300
• 10 Day Avg. Volume: 1,980,100
• 30 Day Avg. Volume: 2,579,390
• PEG Ratio: 0.80
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.18
• 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: £391.71
• Price Target Upside: -2.41% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: 439.00p ▲(9.37%Upside)

Schroders' overall stock score is driven by its solid financial performance and attractive valuation. The positive corporate events further support the stock's potential. However, technical indicators suggest caution due to overbought conditions.

Positive Factors

Cost Efficiencies

Cost efficiencies linked to removing duplication, focused sales and marketing, optimisation and innovation of the tech and operating platform.

Market Positioning

SDR is better positioned than traditional UK peers given exposure to structurally growing alternatives and wealth management (28% of AUM).

Valuation

Shares are at a 5-year trough valuation and a ~10% discount to the UK sector despite their historic premium.

Negative Factors

Equity Market Sentiment

Further downside potentially comes from weaker equity markets (37% of AUM), where strategists are bearish.

Market Pressures

Ongoing pressures from the active to passive shift pose a challenge for the mutual fund and institutional business divisions.

Revenue Expectations

Expectations for mutual funds, solutions, and institutional revenues to be broadly flat from 2024 to 2027 suggest some risk.

Schroders Business Overview & Revenue Model

Company Description

Schroders plc (SDR) is a leading global asset management company headquartered in London, United Kingdom. Established in 1804, Schroders operates in the financial services sector, primarily focusing on asset and wealth management services. The company offers a range of products and services, including investment management, advisory services, and investment funds, catering to a diverse client base comprising institutional investors, retail investors, and high-net-worth individuals across the globe.

How the Company Makes Money

Schroders makes money through a diversified revenue model primarily driven by the management fees it charges for its investment management services. These fees are typically calculated as a percentage of the assets under management (AUM) and can vary based on the type of investment product or service provided. The company also earns performance fees, which are contingent on the achievement of specific investment performance targets relative to benchmarks. Additionally, Schroders generates revenue through advisory services, offering strategic investment advice to its clients. Key revenue streams include institutional clients, such as pension funds and insurance companies, as well as retail investors accessing Schroders' mutual funds and other investment vehicles. Schroders' global presence and partnerships with financial institutions further enhance its ability to attract and manage assets, contributing significantly to its earnings.

Schroders Financial Statement Overview

Summary

Schroders demonstrates strong financial stability with consistent revenue growth, a robust gross profit margin, and low leverage. However, fluctuations in cash flow and net profit margin suggest potential risks that could impact long-term sustainability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.97B	2.94B	2.93B	3.02B	2.57B
Gross Profit	2.36B	2.33B	2.21B	2.30B	1.95B
EBITDA	731.00M	769.20M	798.50M	865.00M	756.00M
Net Income	433.00M	402.60M	486.20M	623.80M	486.00M
Balance Sheet
Total Assets	20.95B	20.63B	21.33B	24.34B	21.67B
Cash, Cash Equivalents and Short-Term Investments	6.78B	4.82B	4.44B	4.21B	3.47B
Total Debt	601.70M	318.70M	420.40M	443.70M	470.00M
Total Liabilities	16.45B	16.17B	16.85B	19.92B	17.59B
Stockholders Equity	4.41B	4.39B	4.36B	4.29B	4.00B
Cash Flow
Free Cash Flow	977.70M	-318.00M	143.60M	1.08B	224.70M
Operating Cash Flow	1.05B	-238.10M	247.90M	1.17B	317.50M
Investing Cash Flow	-694.80M	-225.00M	-561.60M	28.20M	212.70M
Financing Cash Flow	-213.00M	-479.50M	149.40M	-271.30M	22.50M

Schroders Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 401.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 401.4 is above the 20-day moving average (MA) of 380.81, above the 50-day MA of 367.03, and above the 200-day MA of 339.24, indicating a bullish trend. The MACD of 10.85 indicates Negative momentum. The RSI at 76.36 is Negative, neither overbought nor oversold. The STOCH value of 90.84 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
N91	79 Outperform	$3.37B	11.32	40.46%	625.64%	0.18%	-6.74%
EMG	76 Outperform	£2.04B	9.00	17.94%	4.46%	18.85%	26.14%
SDR	74 Outperform	£6.22B	15.19	9.48%	535.63%	0.72%	7.66%
ABDN	69 Neutral	£3.52B	14.98	4.88%	738.49%	-5.51%	1596.15%
ICG	67 Neutral	£5.97B	13.44	18.83%	392.99%	1.50%	-12.67%
MNG	66 Neutral	$6.11B	30.42	-10.00%	760.53%	28.69%	-220.08%
Sector *	62 Neutral	AU$9.83B	8.16	11.67%	4.87%	32.88%	39.55%

Schroders Corporate Events

Schroders Announces Managerial Share Purchases Under Incentive Plan

Schroders plc announced the monthly non-discretionary purchase of shares under the Company’s Share Incentive Plan for individuals in managerial positions. This transaction, conducted on the London Stock Exchange, involved the purchase of ordinary shares with voting rights, reflecting the company’s commitment to aligning the interests of its management with those of its shareholders.

The most recent analyst rating on (GB:SDR) stock is a Hold with a £3.63 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders CEO Executes Share Transaction Under Deferred Award Plan

Schroders plc announced a transaction involving Georg Wunderlin, CEO of Schroders Capital, who exercised awards granted under the Schroders Deferred Award Plan, resulting in the sale of ordinary shares. This transaction, conducted on the London Stock Exchange, reflects routine managerial responsibilities and compliance with UK Market Abuse Regulation, indicating transparency in the company’s governance practices.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders Announces Board Changes

Schroders plc has announced that Rakhi Goss-Custard, an independent non-executive director, has resigned from her position as a non-executive director at Kingfisher plc. This change reflects the company’s ongoing adjustments in its board composition, which may impact its governance and strategic direction.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders Executive Engages in Share Transaction Under Deferred Award Plan

Schroders plc announced a transaction involving Johanna Kyrklund, Group CIO and CEO of Public Markets, who exercised an award under the Schroders Deferred Award Plan, resulting in the sale of ordinary shares. This transaction, conducted on the London Stock Exchange, highlights the company’s ongoing commitment to transparent governance and regulatory compliance, potentially impacting stakeholders’ perceptions of executive involvement in the company’s financial activities.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £5.00 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 purchases of shares under its Share Incentive Plan for individuals in managerial positions. This notification, made under the UK Market Abuse Regulation, highlights the purchase of ordinary shares by key executives, including the Group Chief Executive and Chief Financial Officer, at the London Stock Exchange. The transactions are part of Schroders’ ongoing efforts to align the interests of its management with those of its shareholders, potentially impacting the company’s governance and stakeholder relations.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders Chair to Join London Stock Exchange Group as Non-Executive Director

Schroders plc has announced that Elizabeth Corley, the Chair of the Company, will join the London Stock Exchange Group plc as a Non-Executive Director in the fourth quarter of 2025. This appointment is significant as it reflects Schroders’ continued influence and presence in the financial industry, potentially enhancing its strategic connections and industry positioning.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders Director Joins O-I Glass Board

Schroders plc has announced the appointment of Iain Mackay, an independent non-executive director, to the board of O-I Glass, Inc., effective May 14, 2025. This move highlights Schroders’ commitment to strengthening its leadership and potentially expanding its influence in the industry, which could have implications for its strategic direction and stakeholder engagement.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders Announces Managerial Share Transactions

Schroders plc announced a notification regarding transactions by key managerial personnel acquiring rights to ordinary shares under a dividend reinvestment plan. This move aligns with the company’s strategy to enhance stakeholder value and reflects confidence in its long-term growth prospects, potentially impacting its market position positively.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders CEO Executes Share Transactions Under Deferred Award Plan

Schroders plc announced a transaction involving Mary-Anne Daly, CEO of Wealth Management, who exercised awards under the Schroders Deferred Award Plan and sold ordinary shares. These transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to aligning managerial incentives with shareholder interests.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders Announces Managerial Share Purchases Under Incentive Plan

Schroders plc announced the purchase of shares under its Share Incentive Plan by key managerial personnel, including the Group Chief Executive and Chief Financial Officer, among others. These transactions, conducted on the London Stock Exchange, indicate a strategic move to align the interests of the company’s leadership with its shareholders, potentially impacting the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders Announces Managerial Share Transactions Under Incentive Plans

Schroders plc announced transactions involving the acquisition of rights to ordinary shares by key managerial personnel under the Deferred Award Plan and Equity Incentive Plan. This notification, in compliance with UK Market Abuse Regulation, highlights the company’s commitment to aligning management interests with shareholder value, potentially impacting stakeholder confidence and market perception.

The most recent analyst rating on (GB:SDR) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders Enhances Shareholder Control with Strategic Share Acquisition

Schroders plc announced the acquisition of ordinary shares by Claire Fitzalan Howard and members of the company’s principal shareholder group, connected to Claire Fitzalan Howard and Leonie Schroder. This follows the issuance of shares to the company’s Employee Benefit Trust to satisfy employee share schemes, allowing the principal shareholder group to increase their voting rights without triggering a mandatory takeover offer. The transactions were conducted on the London Stock Exchange, reflecting strategic moves to consolidate shareholder influence and maintain control within the company’s governance structure.

Schroders Shareholder Group Increases Voting Rights with New Share Acquisition

Schroders plc announced the acquisition of 126,702 ordinary shares by Leonie Schroder and associated members of the principal shareholder group, following the issuance of shares to the Employee Benefit Trust. This move allows the shareholder group to increase their voting rights without triggering a mandatory offer, which could impact the company’s governance dynamics and shareholder influence.

Schroders Announces Successful AGM 2025 Results

Schroders plc announced the successful passing of all resolutions at its 2025 Annual General Meeting, highlighting strong shareholder support for its strategic initiatives and governance practices. The AGM results, which included the re-election of several board members and the approval of the remuneration report, reflect the company’s stable leadership and commitment to shareholder value. The departure of Director Deborah Waterhouse was also noted, marking a change in the board’s composition. The resolutions passed, including special resolutions on share buybacks and auditor appointments, underscore Schroders’ focus on maintaining robust financial management and operational efficiency.

Schroders Reports Positive Q1 2025 Flows Amid Market Challenges

Schroders reported positive net flows of £1.1 billion in its Schroders Capital and Wealth Management divisions for the first quarter of 2025, despite overall net outflows of £7.4 billion due to currency movements and money market outflows in China. The company emphasized its commitment to transformation initiatives and active management strategies to navigate market challenges, aiming to return to profitable growth by focusing on its core strengths and enhancing transparency in its financial disclosures.