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Schroders PLC (GB:SDR)
LSE:SDR
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Schroders (SDR) AI Stock Analysis

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GB:SDR

Schroders

(LSE:SDR)

Rating:75Outperform
Price Target:
448.00p
▲(12.45% Upside)
Schroders' strong financial performance and positive earnings call guidance are key strengths, supported by technical indicators showing positive momentum. Valuation is reasonable, and recent corporate events enhance strategic positioning.
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 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 MoneySchroders 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 Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: 2.15%|
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant achievements in cost savings and sales momentum countered by declines in profit before tax and restructuring charges. Despite challenges, the company shows strong focus on future growth and strategic transformations.
Q2-2025 Updates
Positive Updates
Increase in Operating Profit
Adjusted operating profit was up 7% to GBP 316 million, driven by revenue growth, cost discipline, and strong transformation progress.
Cost Savings Exceed Expectations
Net in-year cost savings are expected to be GBP 50 million for 2025, up from the previously communicated GBP 40 million annualized savings.
Strong Sales Momentum
Gross sales totaled GBP 68 billion in the first 6 months, up 8% year-on-year, with notable wins in public markets and Schroders Capital.
Positive Net Flows in Q2
Generated positive net flows of GBP 6.4 billion in Q2, driven by strong inflows in global equities and sustainability mandates.
Resilient Employee Retention
The company maintains a voluntary turnover rate of less than 4%, emphasizing strong employee retention.
Negative Updates
Profit Before Tax Decline
Profit before tax was down 29% due to transformation costs and portfolio restructuring charges, which are noncash items.
Portfolio Restructuring Charges
A charge of GBP 56 million was taken due to portfolio restructuring, impacting profits despite being noncash.
Reduced Wealth Management Margins
Wealth Management net operating revenue margin dropped to 47 basis points, primarily due to lower transaction fees.
Company Guidance
In the recent call, Schroders provided detailed guidance for the second half of fiscal year 2025. They reported a 7% increase in adjusted operating profit to GBP 316 million, driven by a 2% rise in net operating revenue and a 1% containment of adjusted operating expenses. The transformation program delivered a GBP 21 million reduction in costs for the first half and is expected to achieve GBP 50 million in-year savings by year-end. Schroders also set ambitious financial targets, including GBP 150 million in annualized net cost savings by 2027 and reducing the cost-to-income ratio from 74% to below 70% by 2027. The company generated GBP 68 billion in gross sales in the first half, with significant mandates in public markets and Schroders Capital, and anticipates strong future growth, especially in private markets and Wealth Management. They also incurred GBP 56 million in restructuring charges, focusing on simplifying operations and enhancing competitive edge. Overall, Schroders remains committed to active management and is optimistic about maintaining profitable growth amidst global economic uncertainties.

Schroders Financial Statement Overview

Summary
Schroders maintains a strong financial position with consistent revenue growth, robust profit margins, and conservative leverage. The company exhibits financial stability despite cash flow fluctuations.
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 Price398.40
Price Trends
50DMA
380.03
Positive
100DMA
358.42
Positive
200DMA
342.77
Positive
Market Momentum
MACD
4.63
Positive
RSI
60.50
Neutral
STOCH
70.42
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 398.4 is above the 20-day moving average (MA) of 395.62, above the 50-day MA of 380.03, and above the 200-day MA of 342.77, indicating a bullish trend. The MACD of 4.63 indicates Positive momentum. The RSI at 60.50 is Neutral, neither overbought nor oversold. The STOCH value of 70.42 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 (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£6.17B17.378.30%5.40%4.78%
74
Outperform
£3.64B11.466.50%7.21%-7.11%0.45%
73
Outperform
£1.78B12.6912.23%8.18%-10.85%-42.02%
69
Neutral
€17.21B12.4515.03%5.53%-2.95%-8.40%
67
Neutral
£6.16B13.8818.83%3.81%-0.15%-7.47%
$8.44B31.80-10.00%7.26%
$4.56B11.8240.46%7.13%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SDR
Schroders
398.40
75.50
23.38%
GB:ICG
Intermediate Capital
2,174.00
187.46
9.44%
GB:EMG
Man Group plc
158.20
-44.06
-21.78%
GB:ABDN
Aberdeen Group
202.40
60.03
42.16%
MGPUF
M&G Plc
3.60
1.13
45.75%
NINTF
Ninety One
2.59
0.52
25.12%

Schroders Corporate Events

Business Operations and Strategy
Schroders’ Key Executives Participate in Share Incentive Plan
Positive
Aug 12, 2025

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.

Regulatory Filings and Compliance
Schroders Facilitates Charitable Share Transfer
Neutral
Aug 7, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Schroders CEO Acquires Shares Under Deferred Award Plan
Neutral
Aug 5, 2025

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.

DividendsFinancial Disclosures
Schroders Announces Half-Year Results and Dividend Declaration
Positive
Jul 31, 2025

Schroders has announced its half-year results for the period ending 30 June 2025, which have been submitted to the Financial Conduct Authority’s National Storage Mechanism. The company declared an interim dividend of 6.5 pence per share, payable on 25 September 2025, reflecting its commitment to returning value to shareholders. This announcement may impact the company’s financial outlook and stakeholder confidence as Schroders continues to engage with the investment community through a live webcast hosted by its executives.

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.

Business Operations and Strategy
Schroders Announces Managerial Share Purchases Under Incentive Plan
Neutral
Jul 11, 2025

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.

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.

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: Aug 12, 2025