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1. Company Snapshot

1.a. 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, 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.

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1.b. Last Insights on SDR

Schroders' recent performance was driven by several positive factors. The company upgraded its stance on global corporate bonds to 'neutral' from 'negative', citing stabilizing growth, rising demand, and positive consumer sentiment data. Remi Olu-Pitan, multi-asset growth and income head at Schroders, also expressed optimism about international markets, such as Europe and Japan, potentially catching up with the US, with a premium of ten-plus percent in terms of outperformance. Additionally, Schroders opened a global digital assets hub in Singapore, employing specialists to develop best practices with policymakers and industry partners.

1.c. Company Highlights

2. Schroders' 2025 Half-Year Results: Resilient Performance with Progress on Transformation

Schroders reported an adjusted operating profit of GBP316 million, up 7% from the previous year, driven by good revenue growth, cost discipline, and progress on its 3-year transformation program. Net operating revenue increased 2%, with growth in Schroders Capital and Wealth. The company's cost-to-income ratio improved to 74% from 75% the previous year. EPS came out at 0.146, beating estimates of 0.1355. Analysts estimate next year's revenue growth at 5.3%.

Publication Date: Aug -07

📋 Highlights
  • Adjusted Operating Profit Growth: Increased by 7% to GBP316 million, driven by revenue growth and cost discipline.
  • Net Operating Revenue Growth: Rose by 2%, supported by Schroders Capital and Wealth Management segments.
  • Cost Savings Progress: Achieved GBP21 million in cost reductions, targeting GBP50 million by year-end.
  • Schroders Capital Fundraising: Generated GBP6 billion in fundraising and GBP2.3 billion in net new business, up 17%.
  • Wealth Management Revenue: Increased by 9%, with strong performance in Cazenove Capital and other wealth divisions.

Financial Performance

The company's asset management division reported resilient performance, with revenue down 2% due to FX headwinds. Its equities division saw net flows return to positive territory, driven by significant wins, including sustainability-related mandates. Schroders Capital generated net new business of GBP2.3 billion and GBP6 billion of fundraising, up 17%. The company's operating expenses increased by only 1%, thanks to transformation actions and FX movements.

Segmental Performance

Schroders Capital's fundraising reached GBP6 billion, with a net new business of GBP2.3 billion. The business continues to demonstrate good growth, driven by higher average AUM and increased carried interest. Wealth Management's net operating revenue rose 9%, with revenue in Cazenove Capital and other wealth increasing by 8%. According to Richard Oldfield, "The company has made significant progress on its cost savings target, achieving GBP21 million in reductions and expecting to reach GBP50 million by year-end."

Valuation and Outlook

At current prices, Schroders trades at a P/E Ratio of 14.08, a P/B Ratio of 1.38, and a Dividend Yield of 5.45%. The EV/EBITDA multiple stands at 3.33, while the Free Cash Flow Yield is 15.99%. With a ROIC of 3.26% and ROE of 9.91%, the company's valuation appears reasonable. Given its focus on profitable growth, strong pipeline, and commitment to delivering cost savings, Schroders' stock may offer a compelling investment opportunity.

ESG and Market Trends

Schroders is well-positioned to compete in the ESG space, with a strong focus on sustainability and active management. The company has won several ESG mandate wins, including an SJP mandate and a pension fund mandate. With the inclusion of LTAFs in stock and share ISAs from April 2026, Schroders is expected to benefit from this trend, having already secured listings on platforms.

3. NewsRoom

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Maximize Your Social Security: This Is the Best Age for Women to Begin Collecting Benefits

Dec -04

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Perella Weinberg (PWP) Stock Trades Up, Here Is Why

Dec -03

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Taking Social Security at 62 is a hot topic. Experts weigh in.

Nov -29

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Why Analysts Say the Story for Schroders Shares Is Evolving Amid Upgrades and Cautious Optimism

Nov -23

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Almost Half Of Non-Retirees Plan To File For Social Security Before Age 67, And Only 10% Plan To Wait Until Age 70

Nov -22

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Reeves dealt blow as Interactive Investor abandons retail campaign

Nov -19

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Plug Power Selected by Carlton Power for 55 MW GenEco Electrolyzer Deployment Across Three Green Hydrogen Projects in the United Kingdom

Nov -17

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What Wall Street Experts Are Saying About Today’s Selloff

Nov -13

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.71%)

6. Segments

Asset Management

Expected Growth: 9.9%

Schroders' 9.9% growth in Asset Management is driven by strong institutional net inflows, particularly in fixed income and multi-asset solutions. Additionally, the acquisition of Sandaire Investment Office and the expansion of its wealth management business contributed to the growth. Furthermore, the company's focus on sustainable investing and ESG integration also attracted new clients and assets.

Wealth Management

Expected Growth: 8.95%

Schroders' Wealth Management segment growth of 8.95% is driven by increasing demand for discretionary portfolio management, robust net new business inflows, and strong investment performance. Additionally, the segment benefits from its diversified distribution channels, including intermediaries, institutional clients, and direct-to-consumer platforms.

7. Detailed Products

Equity

Schroders' equity products offer a range of actively managed funds that invest in global, regional and country-specific equities, providing investors with access to a diverse range of equity markets.

Fixed Income

Schroders' fixed income products offer a range of actively managed funds that invest in government bonds, corporate bonds, and other debt securities, providing investors with regular income and capital preservation.

Multi-Asset

Schroders' multi-asset products offer a range of actively managed funds that invest in a diversified portfolio of assets, including equities, bonds, and alternatives, providing investors with a balanced investment approach.

Real Estate

Schroders' real estate products offer a range of actively managed funds that invest in direct property and real estate securities, providing investors with exposure to the property market.

Alternatives

Schroders' alternatives products offer a range of actively managed funds that invest in alternative assets, including private equity, infrastructure, and commodities, providing investors with diversification and income.

Sustainable Investing

Schroders' sustainable investing products offer a range of actively managed funds that invest in companies that meet certain environmental, social, and governance (ESG) criteria, providing investors with a responsible investment approach.

Wealth Management

Schroders' wealth management services offer bespoke investment management and financial planning solutions to high net worth individuals and families.

Institutional Investment Management

Schroders' institutional investment management services offer customized investment solutions to institutional clients, including pension funds, insurance companies, and sovereign wealth funds.

8. Schroders plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Schroders plc operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand reputation and diversified product offerings help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Schroders plc's customers are primarily institutional investors and high net worth individuals, who have limited bargaining power due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

Schroders plc has a diversified supplier base, and the company's suppliers have limited bargaining power due to the company's strong financial position and diversified operations.

Threat Of New Entrants

The asset management industry has high barriers to entry, including regulatory requirements and the need for significant capital investment. This limits the threat of new entrants to the market.

Intensity Of Rivalry

The asset management industry is highly competitive, with many established players competing for market share. Schroders plc faces intense competition from other asset managers, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 8.70%
Debt Cost 3.95%
Equity Weight 91.30%
Equity Cost 9.85%
WACC 9.34%
Leverage 9.53%

11. Quality Control: Schroders plc passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Julius Bär

A-Score: 6.4/10

Value: 6.4

Growth: 6.4

Quality: 6.0

Yield: 8.1

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Schroders

A-Score: 6.3/10

Value: 6.8

Growth: 3.1

Quality: 6.6

Yield: 8.1

Momentum: 5.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
RIT Capital Partners

A-Score: 6.2/10

Value: 5.0

Growth: 3.8

Quality: 8.6

Yield: 3.1

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
L E Lundbergföretagen

A-Score: 4.7/10

Value: 3.7

Growth: 4.1

Quality: 6.2

Yield: 1.2

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Latour

A-Score: 4.6/10

Value: 1.4

Growth: 7.3

Quality: 6.4

Yield: 3.1

Momentum: 1.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Bure Equity

A-Score: 3.5/10

Value: 5.4

Growth: 3.0

Quality: 4.6

Yield: 0.6

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.89$

Current Price

3.89$

Potential

-0.00%

Expected Cash-Flows