LSE:ASHM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Ashmore Group plc is a publicly owned investment manager. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Ashmore Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ASHM is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ASHM's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.7%

ASHM

-1.5%

GB Capital Markets

-0.3%

GB Market


1 Year Return

-10.3%

ASHM

-1.3%

GB Capital Markets

-11.0%

GB Market

Return vs Industry: ASHM underperformed the UK Capital Markets industry which returned -1% over the past year.

Return vs Market: ASHM matched the UK Market which returned -10% over the past year.


Shareholder returns

ASHMIndustryMarket
7 Day3.7%-1.5%-0.3%
30 Day17.7%4.4%10.2%
90 Day1.7%0.2%6.4%
1 Year-6.4%-10.3%2.0%-1.3%-7.4%-11.0%
3 Year29.6%14.3%23.7%9.0%0.9%-11.5%
5 Year115.5%72.2%64.9%35.2%26.5%-2.5%

Long-Term Price Volatility Vs. Market

How volatile is Ashmore Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ashmore Group undervalued compared to its fair value and its price relative to the market?

15.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ASHM (£4.29) is trading above our estimate of fair value (£4.28)

Significantly Below Fair Value: ASHM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ASHM is good value based on its PE Ratio (15.7x) compared to the GB Capital Markets industry average (18.9x).

PE vs Market: ASHM is good value based on its PE Ratio (15.7x) compared to the UK market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: ASHM is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: ASHM is overvalued based on its PB Ratio (3.3x) compared to the GB Capital Markets industry average (1.3x).


Next Steps

Future Growth

How is Ashmore Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASHM's forecast earnings growth (4.4% per year) is above the savings rate (1.2%).

Earnings vs Market: ASHM's earnings (4.4% per year) are forecast to grow slower than the UK market (27.3% per year).

High Growth Earnings: ASHM's earnings are forecast to grow, but not significantly.

Revenue vs Market: ASHM's revenue (3.1% per year) is forecast to grow slower than the UK market (6.7% per year).

High Growth Revenue: ASHM's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASHM's Return on Equity is forecast to be low in 3 years time (19.6%).


Next Steps

Past Performance

How has Ashmore Group performed over the past 5 years?

9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASHM has high quality earnings.

Growing Profit Margin: ASHM's current net profit margins (56.3%) are lower than last year (59%).


Past Earnings Growth Analysis

Earnings Trend: ASHM's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: ASHM's earnings growth over the past year (1.8%) is below its 5-year average (9.2% per year).

Earnings vs Industry: ASHM earnings growth over the past year (1.8%) underperformed the Capital Markets industry 1.8%.


Return on Equity

High ROE: ASHM's Return on Equity (21%) is considered high.


Next Steps

Financial Health

How is Ashmore Group's financial position?


Financial Position Analysis

Short Term Liabilities: ASHM's short term assets (£886.3M) exceed its short term liabilities (£153.5M).

Long Term Liabilities: ASHM's short term assets (£886.3M) exceed its long term liabilities (£15.1M).


Debt to Equity History and Analysis

Debt Level: ASHM is debt free.

Reducing Debt: ASHM has not had any debt for past 5 years.

Debt Coverage: ASHM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ASHM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Ashmore Group current dividend yield, its reliability and sustainability?

3.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ASHM's dividend (3.94%) is higher than the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: ASHM's dividend (3.94%) is low compared to the top 25% of dividend payers in the UK market (4.94%).


Stability and Growth of Payments

Stable Dividend: ASHM's dividends per share have been stable in the past 10 years.

Growing Dividend: ASHM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.8%), ASHM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASHM's dividends in 3 years are forecast to be covered by earnings (65.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

Mark Coombs (60 yo)

21.92yrs

Tenure

UK£116,203

Compensation

Mr. Mark Langhorn Coombs serves as Chief Executive and Director at Ashmore Investment Advisors Limited. Mr. Coombs has been the Chief Executive Officer at Ashmore Investment Management Limited since Decemb...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD154.92K) is below average for companies of similar size in the UK market ($USD2.13M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Coombs
CEO & Executive Director21.92yrsUK£116.20k35.73%
£ 1.0b
Thomas Shippey
Group Finance Director & Executive Director 7yrsUK£1.34m0.0071%
£ 200.7k
Robert Hegt
Global Head of Institutional Account Managementno datano datano data
Mark Grimwood
Compliance Officerno datano datano data
Kevin Bond
Head of Institutional business Developmentno datano datano data
Camilo Villaveces
Colombia Chief Executiveno datano datano data
John Taylor
Group Company Secretary2.42yrsno datano data
Julian Green
Senior Portfolio Manager no datano datano data
Jake Ward
Junior Frontier Equity Analystno datano datano data

7.0yrs

Average Tenure

58.5yo

Average Age

Experienced Management: ASHM's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Coombs
CEO & Executive Director21.92yrsUK£116.20k35.73%
£ 1.0b
Thomas Shippey
Group Finance Director & Executive Director 7yrsUK£1.34m0.0071%
£ 200.7k
David Bennett
Non- Executive Chairman2.08yrsUK£151.60k0.0018%
£ 50.2k
Clive Adamson
Senior Independent Director2.08yrsUK£85.00k0.00031%
£ 8.8k
Anne Pringle
Independent Non-Executive Director7.75yrsUK£75.00k0.00065%
£ 18.4k
Jennifer Bingham
Independent Non-Executive Director2.42yrsUK£60.00kno data

4.7yrs

Average Tenure

62yo

Average Age

Experienced Board: ASHM's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ASHM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ashmore Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ashmore Group PLC
  • Ticker: ASHM
  • Exchange: LSE
  • Founded: 1992
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£2.835b
  • Shares outstanding: 656.26m
  • Website: https://www.ashmoregroup.com

Number of Employees


Location

  • Ashmore Group PLC
  • 61 Aldwych
  • London
  • Greater London
  • WC2B 4AE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASHMLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2006
AJMP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2006
A1BDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2006
ASHMLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2006

Biography

Ashmore Group plc is a publicly owned investment manager. The firm primarily provides its services to retail and institutional clients. It manages separate client-focused equity and fixed income portfolios...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 18:50
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.