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Schroders
(LSE:SDR)
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Rating:78Outperform
Price Target:
671.00 p
▲(14.02% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by constructive earnings-call takeaways (strong profit/EPS growth, transformation progress, and an attractive all-cash offer) alongside solid underlying financial strength. Technicals are supportive with price above key moving averages, while reasonable valuation and yield provide additional support. The main restraint is cash-flow volatility and uneven multi-year growth.
Positive Factors
Balance sheet strength
Schroders maintains low leverage and stable-to-growing equity with improving returns on equity, giving the firm durable financial flexibility. This conservative capital structure supports ongoing investment in distribution and private markets, cushions regulatory shocks, and underpins dividend and buyback capacity over the medium term.
Negative Factors
Cash flow volatility
Free cash flow variability weakens the link between reported earnings and cash conversion, complicating capital allocation and shareholder returns. Persistent swings reduce predictability for dividends or M&A, and mean management may need to retain capital buffers or curtail discretionary actions in weaker cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Schroders maintains low leverage and stable-to-growing equity with improving returns on equity, giving the firm durable financial flexibility. This conservative capital structure supports ongoing investment in distribution and private markets, cushions regulatory shocks, and underpins dividend and buyback capacity over the medium term.
Read all positive factors
Schroders (SDR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£9.04B
Dividend Yield2.32%
Average Volume (3M)2.15M
Price to Earnings (P/E)13.3
Beta (1Y)1.03
Revenue Growth17.81%
EPS Growth93.71%
CountryUK
Employees5,717
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.44
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.38
Revenue Forecast (FY)£2.65B
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 primarily makes money by charging fees for managing client assets and providing related investment and wealth services. Its main revenue streams typically include: (1) Management fees: recurring fees calculated as a percentage of assets ...
Schroders Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2027
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 | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.51B | 3.28B | 2.97B | 2.94B | 2.93B | 3.02B |
| Gross Profit | 2.35B | 2.17B | 2.36B | 2.33B | 2.21B | 2.30B |
| EBITDA | 1.07B | 879.40M | 731.00M | 769.20M | 798.50M | 865.00M |
| Net Income | 699.90M | 539.80M | 433.00M | 402.60M | 486.20M | 623.80M |
Balance Sheet | ||||||
| Total Assets | 25.83B | 24.61B | 20.95B | 20.63B | 21.33B | 24.34B |
| Cash, Cash Equivalents and Short-Term Investments | 3.64B | 4.58B | 6.78B | 4.82B | 4.44B | 4.21B |
| Total Debt | 648.30M | 573.60M | 668.20M | 318.70M | 420.40M | 443.70M |
| Total Liabilities | 21.28B | 20.16B | 16.45B | 16.17B | 16.85B | 19.92B |
| Stockholders Equity | 4.55B | 4.46B | 4.41B | 4.39B | 4.36B | 4.29B |
Cash Flow | ||||||
| Free Cash Flow | 825.70M | 578.00M | 977.70M | -318.00M | 143.60M | 1.08B |
| Operating Cash Flow | 842.10M | 597.10M | 1.05B | -238.10M | 247.90M | 1.17B |
| Investing Cash Flow | -588.30M | -101.70M | -694.80M | -225.00M | -561.60M | 28.20M |
| Financing Cash Flow | -1.21B | -40.70M | -213.00M | -479.50M | 149.40M | -271.30M |
Schroders Technical Analysis
Positive
588.50
Price Trends
580.03
Positive
576.50
Positive
509.95
Positive
Market Momentum
0.98
Positive
58.44
Neutral
15.28
Positive
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 588.5 is above the 20-day moving average (MA) of 582.08, above the 50-day MA of 580.03, and above the 200-day MA of 509.95, indicating a bullish trend. The MACD of 0.98 indicates Positive momentum. The RSI at 58.44 is Neutral, neither overbought nor oversold. The STOCH value of 15.28 is Positive, 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 | £9.04B | 13.25 | 12.35% | 3.65% | 17.81% | 93.71% | |
76 Outperform | £3.49B | 15.17 | 20.36% | 4.26% | 23.65% | 73.43% | |
74 Outperform | £4.37B | 11.23 | 7.70% | 7.21% | 2.19% | 19.78% | |
69 Neutral | £4.19B | 12.55 | 28.08% | 6.35% | 9.80% | 1.81% | |
68 Neutral | £5.86B | 12.34 | 18.00% | 4.66% | 6.46% | 6.47% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
55 Neutral | £8.48B | 28.52 | 9.49% | 5.76% | 52.52% | ― |
* Financial Sector Average
GB:SDR
Schroders
583.00
208.89
55.83%
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GB:N91
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Schroders Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Schroders Reports Routine Executive Share Purchases Under Incentive Plan
Positive
Jul 13, 2026
Schroders has disclosed routine monthly share purchases made on behalf of several senior executives under its Share Incentive Plan, in line with UK Market Abuse Regulation reporting requirements. The transactions, executed on 10 July 2026 on the L...
Business Operations and StrategyRegulatory Filings and Compliance
Schroders discloses routine executive share purchases under incentive plan
Neutral
Jun 11, 2026
Schroders has disclosed routine share purchases under its Share Incentive Plan for several senior executives, including the group chief executive, chief financial officer, and heads of investment, wealth management, and Schroders Capital. The non&...
Regulatory Filings and Compliance
Schroders Executives Add Shares Under Incentive Plan
Positive
May 12, 2026
Schroders has reported routine, non-discretionary share purchases for four senior executives under its Share Incentive Plan, in line with UK Market Abuse Regulation disclosure requirements. Group Chief Executive Richard Oldfield, Chief Financial O...
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.