LSE:SLA

Stock Analysis Report

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Executive Summary

Standard Life Aberdeen plc provides asset management services in the United Kingdom, Europe, North America, and Asia.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Standard Life Aberdeen's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SLA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.0%

SLA

-1.2%

GB Capital Markets

2.0%

GB Market


1 Year Return

-3.4%

SLA

9.7%

GB Capital Markets

-12.8%

GB Market

Return vs Industry: SLA underperformed the UK Capital Markets industry which returned 10.3% over the past year.

Return vs Market: SLA exceeded the UK Market which returned -12.4% over the past year.


Shareholder returns

SLAIndustryMarket
7 Day11.0%-1.2%2.0%
30 Day16.8%8.4%5.7%
90 Day-6.5%1.2%-8.2%
1 Year6.8%-3.4%12.2%9.7%-8.6%-12.8%
3 Year-12.6%-41.1%57.2%46.0%-6.2%-17.6%
5 Year-21.2%-52.1%127.6%102.2%12.7%-12.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Standard Life Aberdeen undervalued compared to its fair value and its price relative to the market?

29.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SLA (£2.58) is trading above our estimate of fair value (£1.64)

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


Price To Earnings Ratio

PE vs Industry: SLA is poor value based on its PE Ratio (29.2x) compared to the Capital Markets industry average (15.3x).

PE vs Market: SLA is poor value based on its PE Ratio (29.2x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: SLA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SLA is good value based on its PB Ratio (0.9x) compared to the GB Capital Markets industry average (1.6x).

Future Growth

How is Standard Life Aberdeen forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-0.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLA's earnings are forecast to decline over the next 3 years (-0.1% per year).

Earnings vs Market: SLA's earnings are forecast to decline over the next 3 years (-0.1% per year).

High Growth Earnings: SLA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SLA's revenue is expected to decline over the next 3 years (-38% per year).

High Growth Revenue: SLA's revenue is forecast to decline over the next 3 years (-38% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SLA's Return on Equity is forecast to be low in 3 years time (6.6%).

Past Performance

How has Standard Life Aberdeen performed over the past 5 years?

-36.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLA has a large one-off loss of £1.6B impacting its December 31 2019 financial results.

Growing Profit Margin: SLA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SLA's earnings have declined by -36.7% per year over the past 5 years.

Accelerating Growth: SLA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SLA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (16.4%).


Return on Equity

High ROE: SLA's Return on Equity (3.2%) is considered low.

Financial Health

How is Standard Life Aberdeen's financial position?


Financial Position Analysis

Short Term Liabilities: SLA's short term assets (£4.5B) exceed its short term liabilities (£1.7B).

Long Term Liabilities: SLA's short term assets (£4.5B) exceed its long term liabilities (£3.0B).


Debt to Equity History and Analysis

Debt Level: SLA's debt to equity ratio (14.9%) is considered satisfactory.

Reducing Debt: SLA's debt to equity ratio has reduced from 47.1% to 14.9% over the past 5 years.

Debt Coverage: SLA's debt is well covered by operating cash flow (20.2%).

Interest Coverage: SLA's interest payments on its debt are well covered by EBIT (44x coverage).


Balance Sheet

Dividend

What is Standard Life Aberdeen's current dividend yield, its reliability and sustainability?

8.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SLA's dividend (8.36%) is higher than the bottom 25% of dividend payers in the UK market (2.04%).

High Dividend: SLA's dividend (8.36%) is in the top 25% of dividend payers in the UK market (5.67%)


Stability and Growth of Payments

Stable Dividend: SLA's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (244.2%), SLA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SLA's dividends in 3 years are not forecast to be well covered by earnings (112.7% payout ratio).

Management

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

2.8yrs

Average management tenure


CEO

Norman Skeoch (62yo)

1.17yrs

Tenure

UK£1,472,000

Compensation

Mr. Norman Keith Skeoch has been the Chief Executive at Standard Life Aberdeen plc since March 13, 2019 and its Executive Director since May 25, 2006. Mr. Skeoch has been the Chief Executive Officer at Sta ...


CEO Compensation Analysis

Compensation vs Market: Norman's total compensation ($USD1.82M) is below average for companies of similar size in the UK market ($USD3.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Norman Skeoch
CEO & Executive Director1.17yrsUK£1.47m0.11% £6.6m
Stephanie Bruce
CFO & Executive Director0.92yrUK£835.91k0.0012% £66.8k
Roderick Paris
Chief Investment Officer13.33yrsUK£1.16mno data
Martin Gilbert
Executive Officerno dataUK£1.22m0.019% £1.1m
Michael Tumilty
Chief Operating Officer1.17yrsno datano data
Mark Dixon
CTO & Chief Information Officer9.92yrsno datano data
Jakub Rosochowski
Investor Relations Directorno datano datano data
Rushad Abadan
General Counsel4.33yrsno datano data
Stephen Whitehead
Chief Corporate Affairs Officer0.92yrno datano data
Jean Guay
Senior Vice President of Sales & Marketing8.5yrsno datano data

2.8yrs

Average Tenure

60yo

Average Age

Experienced Management: SLA's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Norman Skeoch
CEO & Executive Director1.17yrsUK£1.47m0.11% £6.6m
Stephanie Bruce
CFO & Executive Director0.92yrUK£835.91k0.0012% £66.8k
Jonathan Asquith
Senior Independent Non-Executive Director0.67yrUK£46.00k0.0020% £116.3k
Douglas Flint
Chairman of the Board1.33yrsUK£476.00k0.0040% £233.1k
Melanie Gee
Independent Non-Executive Director4.5yrsUK£121.00k0.0030% £174.4k
Jutta af Rosenborg
Independent Non-Executive Director2.75yrsUK£94.00k0.00039% £22.4k
Martin St. Pike
Independent Non-Executive Director6.67yrsUK£131.00k0.0031% £179.6k
John Devine
Independent Non-Executive Director3.83yrsUK£134.00k0.0013% £73.1k
Cecilia Leuzinger
Independent Non-Executive Director0.58yrUK£24.00kno data
Carolyn Raffaeli
Independent Non-Executive Director1.75yrsUK£152.00k0.00042% £24.2k

2.3yrs

Average Tenure

61yo

Average Age

Experienced Board: SLA's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SLA 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

Standard Life Aberdeen plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Standard Life Aberdeen plc
  • Ticker: SLA
  • Exchange: LSE
  • Founded: 1825
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£5.755b
  • Shares outstanding: 2.23b
  • Website: https://www.standardlifeaberdeen.com

Number of Employees


Location

  • Standard Life Aberdeen plc
  • 1 George Street
  • Edinburgh
  • EH2 2LL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SLALSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2006
T3V2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2006
SLFP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2006
SLALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2006
SLFP.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDJun 2008

Biography

Standard Life Aberdeen plc provides asset management services in the United Kingdom, Europe, North America, and Asia. The company offers investment solutions and funds; long-term savings and investment products to individual and corporate customers; and life insurance and savings products. It provides its products through institutional, wholesale, and retail distribution channels. It also makes real estate investments. The company was formerly known as Standard Life plc and changed its name to Standard Life Aberdeen plc in August 2017. Standard Life Aberdeen plc was founded in 1825 and is headquartered in Edinburgh, United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 22:01
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
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.