Schroders (SDR) AI Stock Analysis

• Market Cap: £5.83B
• Dividend Yield: 5.72%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.45
• Revenue Growth: 4.78%
• EPS Growth: N/A
• 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: 1,527,331
• 30 Day Avg. Volume: 1,436,881
• 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: £404.63
• Price Target Upside: 7.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: 417.00p ▲(10.85% Upside)

Schroders' strong financial performance and strategic transformation efforts are key strengths, supported by a solid valuation. However, technical indicators suggest limited short-term momentum, and restructuring costs pose challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, enhancing long-term financial stability.

Cost Savings Initiatives

Effective cost-saving measures improve profitability and operational efficiency, supporting sustainable growth and competitive advantage.

Strong Financial Stability

A low debt-to-equity ratio indicates financial stability and reduces risk, providing flexibility for strategic investments and growth.

Negative Factors

Profit Decline

A significant decline in profit before tax due to restructuring costs can strain financial resources and impact short-term profitability.

Restructuring Costs

High restructuring costs can affect cash flow and profitability, posing challenges to financial performance during transformation periods.

Workforce Reduction

Significant workforce reductions can impact employee morale and operational capacity, potentially affecting service quality and growth.

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 the management of investment funds and assets, earning fees based on the assets under management (AUM). The company charges management fees, which are typically calculated as a percentage of AUM, and performance fees when investment returns exceed predefined benchmarks. Key revenue streams include institutional mandates, retail funds, and private client services. Additionally, Schroders has established significant partnerships with various financial institutions and has expanded its presence in emerging markets, which contribute to its earnings. The company's diversified investment offerings and client base help mitigate risks and enhance revenue stability.

Schroders Financial Statement Overview

Summary

Schroders shows a strong financial position with consistent revenue growth and profitability. The low debt-to-equity ratio and solid return on equity reflect financial stability. However, cash flow fluctuations slightly temper the overall financial strength.

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	601.70M	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: Neutral
• Last Price: 376.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Neutral. The current price of 376.2 is above the 20-day moving average (MA) of 374.35, below the 50-day MA of 383.36, and above the 200-day MA of 348.55, indicating a neutral trend. The MACD of -1.06 indicates Negative momentum. The RSI at 47.55 is Neutral, neither overbought nor oversold. The STOCH value of 55.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	3.49B	11.69	40.20%	6.03%	0.18%	-6.74%
EMG	76 Outperform	2.02B	14.41	17.78%	7.18%	-10.85%	-42.02%
SDR	72 Outperform	£5.83B	16.52	8.30%	5.72%	4.78%	―
ABDN	71 Outperform	3.40B	10.71	4.71%	7.65%	-7.11%	0.45%
ICG	67 Neutral	6.35B	14.44	―	3.70%	-0.15%	-7.47%
MNG	54 Neutral	5.97B	-102.40	-10.97%	8.02%	9.86%	-134.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Schroders Corporate Events

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.

The most recent analyst rating on (GB:SDR) stock is a Hold with a £392.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders’ Key Executives Participate in Share Incentive Plan

Schroders plc announced the purchase of ordinary shares under its Share Incentive Plan by key managerial personnel. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to aligning the interests of its management with those of its shareholders, potentially enhancing stakeholder confidence in its governance practices.

The most recent analyst rating on (GB:SDR) stock is a Sell with a £280.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders Facilitates Charitable Share Transfer

Schroders plc announced a gift of 7,357 ordinary shares by Vincitas Limited, a trustee company, to the Schroder Charity Trust. This transaction, which does not alter the overall shareholding of the principal shareholder group, underscores the company’s commitment to charitable activities. The announcement reflects compliance with the UK Market Abuse Regulation and highlights the involvement of key figures within the company, such as Claire Fitzalan Howard and Leonie Schroder, in the transaction.

The most recent analyst rating on (GB:SDR) stock is a Sell with a £280.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.

Schroders CEO Acquires Shares Under Deferred Award Plan

Schroders plc announced a transaction involving Oliver Gregson, CEO of Wealth Management, who acquired rights to ordinary shares under the Deferred Award Plan. The transaction, conducted on the London Stock Exchange, involved 967,229 shares at nil cost, reflecting Schroders’ ongoing commitment to aligning managerial interests with company performance.

The most recent analyst rating on (GB:SDR) stock is a Sell with a £280.00 price target. To see the full list of analyst forecasts on Schroders stock, see the GB:SDR Stock Forecast page.