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Schroders PLC (GB:SDR)
LSE:SDR

Schroders (SDR) AI Stock Analysis

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GB

Schroders

(LSE:SDR)

Rating:78Outperform
Price Target:
399.00p
▲(9.92%Upside)
Schroders' strong financial position and attractive valuation are the primary drivers of its stock score. Corporate events further bolster confidence in its strategic direction. While technical indicators suggest moderate momentum, potential risks from cash flow fluctuations and net profit volatility necessitate cautious optimism.
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 (SDR) vs. iShares MSCI United Kingdom ETF (EWC)

Schroders Business Overview & Revenue Model

Company DescriptionSchroders 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 MoneySchroders 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 exhibits strong financial stability with consistent revenue growth and robust profitability margins. The company's low leverage and solid equity base enhance its financial health, though cash flow fluctuations slightly temper the overall financial performance.
Income Statement
78
Positive
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
82
Very Positive
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.97B2.94B2.93B3.02B2.57B
Gross Profit2.36B2.33B2.21B2.30B1.95B
EBITDA731.00M769.20M798.50M865.00M756.00M
Net Income433.00M402.60M486.20M623.80M486.00M
Balance Sheet
Total Assets20.95B20.63B21.33B24.34B21.67B
Cash, Cash Equivalents and Short-Term Investments6.78B4.82B4.44B4.21B3.47B
Total Debt601.70M318.70M420.40M443.70M470.00M
Total Liabilities16.45B16.17B16.85B19.92B17.59B
Stockholders Equity4.41B4.39B4.36B4.29B4.00B
Cash Flow
Free Cash Flow977.70M-318.00M143.60M1.08B224.70M
Operating Cash Flow1.05B-238.10M247.90M1.17B317.50M
Investing Cash Flow-694.80M-225.00M-561.60M28.20M212.70M
Financing Cash Flow-213.00M-479.50M149.40M-271.30M22.50M

Schroders Technical Analysis

Technical Analysis Sentiment
Positive
Last Price363.00
Price Trends
50DMA
350.65
Positive
100DMA
351.58
Positive
200DMA
335.32
Positive
Market Momentum
MACD
3.13
Positive
RSI
53.33
Neutral
STOCH
40.48
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 363 is below the 20-day moving average (MA) of 364.74, above the 50-day MA of 350.65, and above the 200-day MA of 335.32, indicating a neutral trend. The MACD of 3.13 indicates Positive momentum. The RSI at 53.33 is Neutral, neither overbought nor oversold. The STOCH value of 40.48 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBSDR
78
Outperform
£5.65B13.799.48%8.24%0.72%7.66%
GBEMG
77
Outperform
£1.95B8.5717.94%9.89%18.85%26.14%
GBMNG
72
Outperform
$6.07B30.42-10.00%10.53%28.69%-220.08%
69
Neutral
£3.33B14.164.88%7.81%-5.51%1596.15%
GBN91
69
Neutral
£3.22B10.8240.46%5.81%-2.89%-1.53%
GBICG
67
Neutral
£5.45B12.2718.83%4.31%1.50%-12.67%
58
Neutral
$12.52B5.23-2.71%5.27%5.88%-56.03%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SDR
Schroders
363.00
10.33
2.93%
GB:ABDN
Aberdeen Group
186.80
44.71
31.47%
GB:EMG
Man Group plc
172.90
-55.11
-24.17%
GB:ICG
Intermediate Capital
1,924.00
-197.03
-9.29%
GB:MNG
M&G Plc
253.20
66.07
35.31%
GB:N91
Ninety One
186.20
24.82
15.38%

Schroders Corporate Events

Regulatory Filings and Compliance
Schroders CEO Executes Share Transaction Under Deferred Award Plan
Neutral
Jul 2, 2025

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.

Executive/Board Changes
Schroders Announces Board Changes
Neutral
Jun 23, 2025

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.

Regulatory Filings and Compliance
Schroders Executive Engages in Share Transaction Under Deferred Award Plan
Neutral
Jun 16, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
Schroders Announces Share Purchases Under Incentive Plan
Neutral
Jun 11, 2025

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.

Executive/Board Changes
Schroders Chair to Join London Stock Exchange Group as Non-Executive Director
Positive
May 30, 2025

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.

Executive/Board Changes
Schroders Director Joins O-I Glass Board
Neutral
May 15, 2025

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.

DividendsBusiness Operations and Strategy
Schroders Announces Managerial Share Transactions
Positive
May 13, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Schroders CEO Executes Share Transactions Under Deferred Award Plan
Neutral
May 13, 2025

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.

Business Operations and Strategy
Schroders Announces Managerial Share Purchases Under Incentive Plan
Positive
May 13, 2025

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.

Executive/Board ChangesRegulatory Filings and Compliance
Schroders Announces Managerial Share Transactions Under Incentive Plans
Neutral
May 12, 2025

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.

Business Operations and Strategy
Schroders Enhances Shareholder Control with Strategic Share Acquisition
Neutral
May 9, 2025

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.

Other
Schroders Shareholder Group Increases Voting Rights with New Share Acquisition
Neutral
May 7, 2025

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.

Executive/Board ChangesShareholder MeetingsStock Buyback
Schroders Announces Successful AGM 2025 Results
Positive
May 1, 2025

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.

Business Operations and StrategyFinancial Disclosures
Schroders Reports Positive Q1 2025 Flows Amid Market Challenges
Positive
May 1, 2025

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.

Business Operations and Strategy
Schroders Reinforces Executive Alignment with Share Incentive Purchases
Positive
Apr 11, 2025

Schroders plc announced the monthly non-discretionary purchase of shares under its Share Incentive Plan for individuals holding managerial responsibilities. This move, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to aligning the interests of its executives with those of its shareholders, potentially impacting its market positioning by reinforcing stakeholder confidence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 30, 2025