Schroders plc

    Jurisdiction
    United Kingdom
    LEI
    2138001YYBULX5SZ2H24
    ISIN
    GB0002395811 (SDRC.L)
    Sectors
    1. Financial Services
    2. Asset Management

    Scores

    InsiderPie Expert Score
    trending_flat 51 / 100
    Even with peer group:
    50 / 100
    Fair value (Benjamin Graham formula)
    €7.36 ∞% undervalued
    Fundamental strength relative to industry (Mohanram G-Value)
    6 / 7

    Profile

    Schroders plc is a publicly owned investment manager. Read full profile

    Quick analysis

    Schroders plc – Global Investment Manager with a Long History

    Brief Summary for Investors: Schroders is an established, listed UK asset manager with a diversified range of active fund and wealth management solutions. The company's performance is closely linked to the performance of the financial markets and the level of assets under management (AUM).

    Performance The historical share price performance has been significantly influenced by market volatility and interest rate expectations. Strong annual profits and free cash flows in 2020-2021, driven by bullish financial markets, gave way to a normalization in 2022-2023. However, the most recent quarter (Q4 2024) shows a solid operational recovery with increasing revenue (£1.51 billion), EBITDA (£378.1 million), and a significantly improved free cash flow of GBP 335.9 million. The return on equity (ROE) of 5.1% remains moderate for the industry.

    Opportunities:

    • Growth in alternative asset classes: The strong presence in lucrative areas such as private assets, real estate, and hedge funds offers higher margins and growth independent of traditional market cycles.
    • Operational efficiency: The recent improvement in cash generation and stable employee productivity indicate efficient cost management.
    • Global diversification: Broad positioning across asset classes and regions makes the company more resilient to local shocks.

    Risks:

    • Outflows of client funds: The core industry is highly competitive; performance and net inflows are crucial and not directly controllable.
    • High market dependency: Revenues are directly tied to the performance of the financial markets. A prolonged bear market or volatile prices will negatively impact management fee income.
    • Debt: A debt-to-equity ratio of 3.66 represents a significant financial risk, particularly in a high-yield environment.

    Additional Notes: The strong increase in EPS from 2020 to 2021 shown is due to exceptional items and is not comparable with subsequent years. The current quarterly data indicate a more positive trend than the annualized 2023 data.

    Conclusion: Schroders is becoming more operationally stable again after a weaker year in 2023. The company benefits from its diversification, particularly in alternative asset classes. The high level of debt and the continued dependence on capital market performance remain the biggest challenges. For investors, Schroders offers exposure to active asset management but is not an investment independent of market cycles.

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    Created

    Stock price

    Stock price loading... No stock price available Stock price provided by Lang & Schwarz Steigende Zinsen und niedrigere Bewertungen für Wachstumsaktien im Allgemeinen Eine Gewinnwarnung beim Konkurrenten Adyen signalisiert eine Abkühlung des europäischen Markts für Zahlungsdienstleistungen. Eine Gewinnwarnung von Wordline SA triggert einen massiven Kursverlust.

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    Fundamentals

    Net revenue
    €6.93B
    Gross margin
    77.1%
    EBIT
    €1.31B
    EBIT margin
    18.9%
    Net income
    €863.77M
    Net margin
    12.5%

    Statement period: - (published )

    Estimates

    Fiscal Year Net revenue Net income
    €2.97B -57.1% €634.26M -26.6%
    €3.14B +5.5% €728.87M +14.9%
    €3.28B +4.6% €746.14M +2.4%

    Dividends

    Last dividend amount
    £37.00
    Ex date
    Dividend payout ratio
    92.1%

    Earnings Calls

    Latest earnings call: August 1, 2025

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