Schroders PLC (GB:SDR)
LSE:SDR
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Schroders
(LSE:SDR)
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Rating:76Outperform
Price Target:
662.00 p
▲(15.63% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Schroders (SDR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£8.88B
Dividend Yield5.37%
Average Volume (3M)2.15M
Price to Earnings (P/E)12.0
Beta (1Y)1.22
Revenue Growth4.78%
EPS Growth-4.86%
CountryUK
Employees6,363
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.23
Shares Outstanding1,610,711,300
10 Day Avg. Volume3,170,161
30 Day Avg. Volume2,152,187
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)1.45
Price to Sales (P/S)1.97
P/FCF Ratio11.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£493.51Price Target Upside-13.80% Downside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)0.37
Revenue Forecast (FY)£2.67B
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, indi...
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 ...
Schroders Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call emphasized strong financial and operational progress: record AUM (GBP 824bn, +6%), double-digit operating profit and EPS growth (operating profit +25%, EPS +29%), positive flow momentum, delivery of transformation savings (GBP 75m in-year) and improved operating leverage (cost-to-income 71%). Management also announced an attractive all-cash offer from Nuveen that provides an immediate premium to shareholders and significant strategic scale (combined AUM > $1.8tn). Offsetting items include weaker net new business in parts of Wealth and Schroders Capital, a GBP 5bn outflow in joint ventures driven by China, FX/inflation-driven income and cost headwinds, and the need to accelerate deployment of private-market dry powder. Overall, the positive achievements and the strategic transaction announcement outweigh the operational challenges and near-term headwinds, producing a constructive outlook.Positive Updates
Strong profitability and EPS growth
Operating profit increased 25% year-on-year and adjusted operating EPS rose 29%, reflecting improved operating leverage and delivery against the transformation program.
Negative Updates
Schroders Capital fundraising-to-deployment gap
Schroders Capital fundraising was flat at GBP 10.9 billion, but net new business was softer than desired and the business needs to accelerate deployment and conversion of fee-earning dry powder (GBP 4.9 billion) into invested assets.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong profitability and EPS growth
Operating profit increased 25% year-on-year and adjusted operating EPS rose 29%, reflecting improved operating leverage and delivery against the transformation program.
Read all positive updates
Company Guidance
Management guidance highlighted a Q4 2026 expected completion of the Nuveen all‑cash offer (GBP6.12 per share: GBP5.90 cash + up to GBP0.22 permitted dividends) implying ~17x 2025 fully diluted adjusted operating EPS and premiums of 34% vs yesterday’s close, 47% vs 3‑month VWAP and 61% vs 12‑month VWAP; the combined group would have AUM in excess of $1.8tn (Nuveen >GBP1tn) and GBP307bn in Private Markets. Operationally, management reiterated its transformation targets: delivered GBP75m of in‑year savings in 2025 (GBP94m gross, GBP19m reinvested), ~GBP100m annualized net savings to date, a 10% headcount reduction and 12% fewer suppliers, and a target of GBP150m net annualized savings by 2027 (with a GBP25m net opex reduction targeted for 2026). Profitability and capital guidance: adjusted operating EPS up 29% and operating profit up 25% in 2025, cost‑to‑income exited 2025 at 71% and is expected to move towards 70% in 2026 (below 70% targeted for FY2027, subject to market conditions), and capital surplus stood at GBP865m after an estimated GBP250m Basel 3.1 impact. Commercial momentum guidance emphasized continued progress off a strong 2025 base: AUM GBP824bn (+6%), gross inflows GBP142bn (+9%), net inflows GBP11.2bn, Schroders Capital gross fundraising GBP10.9bn (dry powder up to GBP4.9bn), >70% of assets outperforming over 1/3/5 years, and continued focus on converting improved intermediary flows (>GBP4.5bn in 2025 vs <GBP3bn in 2024) into sustained net new business.Schroders Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
82
Very Positive
Cash Flow
62
Positive
| 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
Positive
572.50
Price Trends
525.81
Positive
456.73
Positive
413.22
Positive
Market Momentum
11.57
Positive
76.94
Negative
48.33
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 572.5 is above the 20-day moving average (MA) of 571.68, above the 50-day MA of 525.81, and above the 200-day MA of 413.22, indicating a bullish trend. The MACD of 11.57 indicates Positive momentum. The RSI at 76.94 is Negative, neither overbought nor oversold. The STOCH value of 48.33 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £4.15B | 5.71 | 41.35% | 5.93% | 4.28% | 5.18% | |
77 Outperform | £3.34B | 9.24 | 6.50% | 7.21% | -7.11% | 0.45% | |
76 Outperform | £8.88B | 11.95 | 12.35% | 5.37% | 4.78% | -4.86% | |
73 Outperform | £2.78B | 19.57 | 11.51% | 5.71% | -10.85% | -42.02% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £4.19B | 5.37 | 23.35% | 4.13% | 28.34% | 44.04% | |
52 Neutral | £6.47B | 22.80 | 9.49% | 7.09% | 9.86% | -134.41% |
* Financial Sector Average
GB:SDR
Schroders
572.50
229.16
66.75%
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GB:N91
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Schroders Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Nuveen Clarifies London Role in Recommended Cash Takeover of Schroders
Positive
Feb 12, 2026
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 d...
DividendsFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Schroders files 2025 results and proposes 15p final dividend
Positive
Feb 12, 2026
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 1...
Business Operations and StrategyM&A Transactions
Nuveen’s Pantheon to Acquire Schroders in £9.9 Billion Cash Deal
Positive
Feb 12, 2026
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 ...
Regulatory Filings and Compliance
Schroders discloses senior executives’ monthly share purchases under incentive plan
Neutral
Feb 11, 2026
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 Fi...
Business Operations and StrategyExecutive/Board Changes
Schroders strengthens board with bp executive as it extends director tenure
Positive
Feb 10, 2026
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, par...
Executive/Board Changes
Schroders Reshapes Board Roles as Westerman Takes Chair at Schroder & Co
Neutral
Jan 19, 2026
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 t...
Business Operations and StrategyFinancial Disclosures
Schroders flags stronger‑than‑expected 2025 profit on higher inflows and disciplined costs
Positive
Jan 15, 2026
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 opera...
Regulatory Filings and Compliance
Schroders Discloses Routine Share Incentive Plan Purchases for Senior Executives
Neutral
Jan 13, 2026
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...
Executive/Board Changes
Schroders Announces Change in Director Responsibilities
Neutral
Dec 15, 2025
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’...
Business Operations and Strategy
Schroders Announces Share Purchases Under Incentive Plan
Positive
Dec 11, 2025
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 ...
Business Operations and Strategy
Schroders Capital Eyes Growth with Strategic Initiatives
Positive
Dec 2, 2025
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 Eur...
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.