LSE:SDR

Stock Analysis Report

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Executive Summary

Schroders plc is a publicly owned investment manager. More Details

Rewards

Trading at 7.4% below our estimate of its fair value

Earnings are forecast to grow 10.6% per year

Pays a reliable dividend of 3.25%

Risk Analysis

No risks detected for SDR from our risk checks.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SDR is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SDR's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

SDR

-0.3%

GB Capital Markets

-0.4%

GB Market


1 Year Return

23.8%

SDR

15.2%

GB Capital Markets

2.0%

GB Market

Return vs Industry: SDR exceeded the UK Capital Markets industry which returned 15.7% over the past year.

Return vs Market: SDR exceeded the UK Market which returned 1.1% over the past year.


Shareholder returns

SDRIndustryMarket
7 Day-1.1%-0.3%-0.4%
30 Day2.8%4.8%3.3%
90 Day7.6%11.2%4.9%
1 Year29.3%23.8%18.8%15.2%8.0%2.0%
3 Year17.7%4.2%52.4%35.1%10.6%-2.6%
5 Year59.3%32.4%116.1%79.9%38.7%12.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SDR (£35.11) is trading below our estimate of fair value (£37.93)

Significantly Below Fair Value: SDR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SDR's PE Ratio (20.9x) is in line with the GB Capital Markets industry average.

PE vs Market: SDR is good value based on its PE Ratio (20.9x) compared to the UK market (23.8x).


Price to Earnings Growth Ratio

PEG Ratio: SDR is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: SDR is overvalued based on its PB Ratio (2.5x) compared to the GB Capital Markets industry average (1.5x).


Next Steps

Future Growth

How is Schroders forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SDR's forecast earnings growth (10.6% per year) is above the savings rate (1%).

Earnings vs Market: SDR's earnings (10.6% per year) are forecast to grow slower than the UK market (23.2% per year).

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

Revenue vs Market: SDR's revenue (5% per year) is forecast to grow slower than the UK market (7.3% per year).

High Growth Revenue: SDR's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SDR's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has Schroders performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SDR has high quality earnings.

Growing Profit Margin: SDR's current net profit margins (18.1%) are lower than last year (18.2%).


Past Earnings Growth Analysis

Earnings Trend: SDR's earnings have grown by 1.1% per year over the past 5 years.

Accelerating Growth: SDR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SDR had negative earnings growth (-0.8%) over the past year, making it difficult to compare to the Capital Markets industry average (-2%).


Return on Equity

High ROE: SDR's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Schroders's financial position?


Financial Position Analysis

Short Term Liabilities: SDR's short term assets (£7.2B) exceed its short term liabilities (£1.0B).

Long Term Liabilities: SDR's short term assets (£7.2B) do not cover its long term liabilities (£16.7B).


Debt to Equity History and Analysis

Debt Level: SDR is debt free.

Reducing Debt: SDR has no debt compared to 5 years ago when its debt to equity ratio was 0%.

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

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


Balance Sheet


Next Steps

Dividend

What is Schroders's current dividend yield, its reliability and sustainability?

3.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SDR's dividend (3.25%) is higher than the bottom 25% of dividend payers in the UK market (1.48%).

High Dividend: SDR's dividend (3.25%) is low compared to the top 25% of dividend payers in the UK market (4.58%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.9%), SDR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SDR's dividends in 3 years are forecast to be covered by earnings (53% payout ratio).


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Peter Harrison (54 yo)

4.83yrs

Tenure

UK£6,483,000

Compensation

Mr. Peter Harrison has been the Group Chief Executive Officer at Schroders plc since April 4, 2016. Mr. Harrison has been an Executive Director of Schroders Plc since May 23, 2014. He is responsible for th...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD9.03M) is above average for companies of similar size in the UK market ($USD4.00M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Harrison
Group CEO & Executive Director4.83yrsUK£6.48m0.0018%
£ 158.4k
Richard Keers
CFO & Executive Director7.75yrsUK£2.96m0.00030%
£ 26.8k
Charles Prideaux
Global Head of Investment2.08yrsno datano data
Stewart Carmichael
Chief Technology Officerno datano datano data
Alex James
Investor Relations Managerno datano datano data
Howard Trust
General Counselno dataUK£53.00kno data
Estelle Bibby
Head of Media Relationsno datano datano data
James Cardew
Global Head of Marketingno datano datano data
Emma Holden
Global Head of Human Resources6.25yrsno datano data
Mark Hemenetz
Chief Operating Officer of North American Unit17.92yrsno datano data
Nick Orr
Head of Charity Investments & Portfolio Directorno datano datano data
Michael MacDonald-Smith
Head of UK Defined Contribution Business15.92yrsno datano data

7.0yrs

Average Tenure

55yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Peter Harrison
Group CEO & Executive Director4.83yrsUK£6.48m0.0018%
£ 158.4k
Richard Keers
CFO & Executive Director7.75yrsUK£2.96m0.00030%
£ 26.8k
Damon Buffini
Independent Non-Executive Director3yrsUK£104.00k0.0018%
£ 162.9k
Matthew Westerman
Independent Non-Executive Director0.92yrno data0.00073%
£ 65.3k
Michael Romsey Dobson
Chairman4.83yrsUK£642.00k0.10%
£ 9.0m
Ian King
Senior Independent Director2.83yrsUK£120.00k0.00096%
£ 85.9k
Rhian Davies
Independent Non-Executive Director5.58yrsUK£128.00k0.00036%
£ 32.2k
Deborah Waterhouse
Independent Non-Executive Director1.92yrsUK£68.00kno data
Rakhi Goss-Custard
Independent Non-Executive Director4.08yrsUK£100.00k0.00024%
£ 21.5k
Leonie Emma Schroder
Non-Independent Non-Executive Director1.92yrsUK£65.00k0.019%
£ 1.7m
Claire L. Howard
Non-Executive Director0.83yrno datano data

3.0yrs

Average Tenure

55yo

Average Age

Experienced Board: SDR's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Schroders plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Schroders plc
  • Ticker: SDR
  • Exchange: LSE
  • Founded: 1804
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£8.948b
  • Shares outstanding: 274.25m
  • Website: https://www.schroders.com

Number of Employees


Location

  • Schroders plc
  • 1 London Wall Place
  • London
  • Greater London
  • EC2Y 5AU
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHNW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SDRCLSE (London Stock Exchange)Non-Voting Ordinary SharesGBGBPJan 1992
SDRLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
PYXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
PYXADB (Deutsche Boerse AG)Non-Voting Ordinary SharesDEEURJan 1992
SDRCLBATS-CHIXE (BATS 'Chi-X Europe')Non-Voting Ordinary SharesGBGBPJan 1992
SDRLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/01 19:49
End of Day Share Price2021/03/01 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.