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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
▲(8.31%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 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 makes money primarily through management fees charged on the assets it manages for its clients. These fees are typically calculated as a percentage of the assets under management (AUM) and vary depending on the type of investment strategy and the client relationship. Additionally, Schroders earns performance fees from some clients when the investment returns exceed predetermined benchmarks. The company also generates revenue from offering advisory services, providing insights and strategies for wealth management. Significant partnerships with financial institutions and intermediaries enhance its distribution capabilities, contributing to its revenue growth. Schroders' ability to deliver consistent investment performance and maintain strong client relationships is crucial to its financial success.

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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.97B2.94B2.93B3.02B2.57B
Gross Profit
2.36B2.33B2.21B2.30B1.95B
EBIT
640.50M661.00M609.60M702.20M587.20M
EBITDA
731.00M769.20M798.50M865.00M756.00M
Net Income Common Stockholders
433.00M402.60M486.20M623.80M486.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.78B4.82B4.44B4.21B3.47B
Total Assets
20.95B20.63B21.33B24.34B21.67B
Total Debt
601.70M318.70M420.40M443.70M470.00M
Net Debt
-3.61B-3.33B-4.02B-3.76B-3.00B
Total Liabilities
16.45B16.17B16.85B19.92B17.59B
Stockholders Equity
4.41B4.39B4.36B4.29B4.00B
Cash FlowFree Cash Flow
977.70M-318.00M143.60M1.08B224.70M
Operating Cash Flow
1.05B-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 Price368.40
Price Trends
50DMA
337.80
Positive
100DMA
347.07
Positive
200DMA
332.64
Positive
Market Momentum
MACD
8.39
Negative
RSI
69.82
Neutral
STOCH
80.86
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 368.4 is above the 20-day moving average (MA) of 356.38, above the 50-day MA of 337.80, and above the 200-day MA of 332.64, indicating a bullish trend. The MACD of 8.39 indicates Negative momentum. The RSI at 69.82 is Neutral, neither overbought nor oversold. The STOCH value of 80.86 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBSDR
78
Outperform
£5.74B14.009.48%8.11%0.72%7.66%
GBEMG
77
Outperform
£2.01B8.7917.94%9.65%18.85%26.14%
69
Neutral
£3.47B14.734.88%7.51%-5.51%1596.15%
GBICG
67
Neutral
£5.78B13.0018.83%5.55%1.50%-12.67%
64
Neutral
$12.85B9.817.79%78.20%12.23%-7.93%
$8.17B31.80-10.00%10.28%
$4.21B8.2240.46%7.57%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SDR
Schroders
368.40
16.68
4.74%
GB:ICG
Intermediate Capital
1,971.00
-167.32
-7.82%
GB:EMG
Man Group plc
173.50
-56.73
-24.64%
GB:ABDN
Aberdeen Group
191.30
59.83
45.51%
MGPUF
M&G Plc
3.43
1.20
53.81%
NINTF
Ninety One
1.80
-0.25
-12.20%

Schroders Corporate Events

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.

Regulatory Filings and Compliance
Schroders Announces Share Capital and Voting Rights Update
Neutral
Apr 1, 2025

Schroders plc announced that as of March 31, 2025, its issued share capital consists of 1,612,071,525 Ordinary Shares, with 1,360,247 shares held in treasury, resulting in a total of 1,610,711,278 voting rights. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules, impacting how they manage their interests in the company.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Schroders Releases 2024 Annual Report and Announces 2025 AGM Details
Neutral
Mar 21, 2025

Schroders plc has announced the availability of its 2024 Annual Report and Accounts, along with the Notice of the 2025 Annual General Meeting (AGM). These documents have been submitted to the Financial Conduct Authority and can be accessed via the National Storage Mechanism or the company’s website. The AGM is scheduled for 1 May 2025, offering shareholders the option to attend in person or remotely via a live online broadcast. This announcement underscores Schroders’ commitment to transparency and accessibility for its stakeholders.

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.