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Schroders

LSE:SDR
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SDR
LSE
£8B
Market Cap
  1. Home
  2. GB
  3. Diversified Financials
Company description

Schroders plc is a publicly owned investment manager. The last earnings update was 126 days ago. More info.


Add to Portfolio Compare Print
  • Schroders is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
SDR Share Price and Events
7 Day Returns
-4.4%
LSE:SDR
-2.1%
GB Capital Markets
-2.5%
GB Market
1 Year Returns
35.3%
LSE:SDR
21.8%
GB Capital Markets
5.3%
GB Market
SDR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Schroders (SDR) -4.4% -2% 12% 35.3% 9.1% 20.6%
GB Capital Markets -2.1% 0.2% 0.5% 21.8% 74.3% 101.2%
GB Market -2.5% -1.3% 0.9% 5.3% 4.1% 5.1%
1 Year Return vs Industry and Market
  • SDR outperformed the Capital Markets industry which returned 21.8% over the past year.
  • SDR outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 5.3% over the past year.
Price Volatility
SDR
Industry
5yr Volatility vs Market

Value

 Is Schroders undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Schroders to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Schroders.

LSE:SDR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= £14.35 * 14.7%
£2.12
Book Value of Equity per Share Weighted future Book Value estimates from 7 analysts. £14.35
Discount Rate (Cost of Equity) See below 5.8%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:SDR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.76
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.763 (1 + (1- 19%) (5.22%))
0.863
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (0.863 * 6.07%)
5.77%

Discounted Cash Flow Calculation for LSE:SDR using Excess Returns Model Model

The calculations below outline how an intrinsic value for Schroders is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:SDR Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (14.7% – 5.77%) * £14.35)
£1.29
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £1.29 / (5.77% - 0.53%)
£24.58
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £14.35 + £24.58
£38.93
LSE:SDR Discount to Share Price
Calculation Result
Value per share (GBP) From above. £38.93
Current discount Discount to share price of £31.88
= -1 x (£31.88 - £38.93) / £38.93
18.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Schroders is available for.
Intrinsic value
18%
Share price is £31.88 vs Future cash flow value of £38.93
Current Discount Checks
For Schroders to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Schroders's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Schroders's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Schroders's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Schroders's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:SDR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in GBP £1.69
LSE:SDR Share Price ** LSE (2019-12-05) in GBP £31.88
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PE Ratio Median Figure of 43 Publicly-Listed Capital Markets Companies 19.11x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 752 Publicly-Listed Companies 17.14x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Schroders.

LSE:SDR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:SDR Share Price ÷ EPS (both in GBP)

= 31.88 ÷ 1.69

18.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Schroders is good value based on earnings compared to the GB Capital Markets industry average.
  • Schroders is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Schroders's expected growth come at a high price?
Raw Data
LSE:SDR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
8.8%per year
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PEG Ratio Median Figure of 25 Publicly-Listed Capital Markets Companies 1.19x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 562 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

LSE:SDR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.85x ÷ 8.8%

2.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Schroders is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Schroders's assets?
Raw Data
LSE:SDR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in GBP £12.94
LSE:SDR Share Price * LSE (2019-12-05) in GBP £31.88
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PB Ratio Median Figure of 75 Publicly-Listed Capital Markets Companies 1.45x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,311 Publicly-Listed Companies 1.53x
LSE:SDR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:SDR Share Price ÷ Book Value per Share (both in GBP)

= 31.88 ÷ 12.94

2.46x

* Primary Listing of Schroders.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Schroders is overvalued based on assets compared to the GB Capital Markets industry average.
X
Value checks
We assess Schroders's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Schroders has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Schroders expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Schroders expected to grow at an attractive rate?
  • Schroders's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Schroders's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Schroders's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:SDR Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:SDR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 8.8%
LSE:SDR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 4.3%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 6.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:SDR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:SDR Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,544 665 1
2022-12-31 2,424 629 1
2021-12-31 2,334 793 599 11
2020-12-31 2,207 732 555 12
2019-12-31 2,065 674 511 11
2019-12-05
LSE:SDR Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-06-30 2,572 718 467
2019-03-31 2,625 616 486
2018-12-31 2,679 514 505
2018-09-30 2,703 459 561
2018-06-30 2,727 404 617
2018-03-31 2,648 494 606
2017-12-31 2,569 585 594
2017-09-30 2,485 642 566
2017-06-30 2,402 700 537
2017-03-31 2,312 632 514
2016-12-31 2,223 564 490
2016-09-30 2,152 337 476

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Schroders's earnings are expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
  • Schroders's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:SDR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Schroders Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SDR Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.11 2.15 2.08 2.00
2020-12-31 1.98 2.01 1.94 3.00
2019-12-31 1.80 1.83 1.76 3.00
2019-12-05
LSE:SDR Past Financials Data
Date (Data in GBP Millions) EPS *
2019-06-30 1.69
2019-03-31 1.76
2018-12-31 1.83
2018-09-30 2.03
2018-06-30 2.24
2018-03-31 2.20
2017-12-31 2.16
2017-09-30 2.06
2017-06-30 1.95
2017-03-31 1.87
2016-12-31 1.78
2016-09-30 1.73

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Schroders is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Schroders's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Schroders has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Schroders performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Schroders's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Schroders's year on year earnings growth rate has been positive over the past 5 years.
  • Schroders's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Schroders's 1-year earnings growth is negative, it can't be compared to the GB Capital Markets industry average.
Earnings and Revenue History
Schroders's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Schroders Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SDR Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 2,571.60 467.10 1,290.90
2019-03-31 2,625.20 485.90 1,300.80
2018-12-31 2,678.80 504.70 1,310.70
2018-09-30 2,702.75 560.90 1,310.30
2018-06-30 2,726.70 617.10 1,307.50
2018-03-31 2,647.65 605.75 1,270.20
2017-12-31 2,568.60 594.40 1,232.90
2017-09-30 2,485.05 565.70 1,216.25
2017-06-30 2,401.50 537.00 1,199.60
2017-03-31 2,312.35 513.60 1,160.60
2016-12-31 2,223.20 490.20 1,121.60
2016-09-30 2,151.60 475.75 1,108.70
2016-06-30 2,080.00 461.30 1,095.80
2016-03-31 2,089.40 464.35 1,081.25
2015-12-31 2,098.80 467.40 1,066.70
2015-09-30 2,073.95 461.80 1,051.80
2015-06-30 2,049.10 456.20 1,036.90
2015-03-31 2,009.05 434.70 1,021.10
2014-12-31 1,969.00 413.20 1,005.30
2014-09-30 1,973.20 388.95 1,021.80
2014-06-30 1,977.40 364.70 1,038.30
2014-03-31 1,908.45 358.70 985.65
2013-12-31 1,839.50 352.70 933.00
2013-09-30 1,717.90 336.50 844.75
2013-06-30 1,596.30 320.30 799.40
2013-03-31 1,533.45 301.75 795.30
2012-12-31 1,470.60 283.20 791.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Schroders has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Schroders used its assets less efficiently than the GB Capital Markets industry average last year based on Return on Assets.
  • Schroders has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Schroders's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Schroders has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Schroders's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Schroders's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Schroders is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Schroders's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Schroders's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Schroders has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Schroders Company Filings, last reported 5 months ago.

LSE:SDR Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 3,576.20 0.00 4,606.60
2019-03-31 3,576.20 0.00 4,606.60
2018-12-31 3,621.20 0.00 4,904.10
2018-09-30 3,621.20 0.00 4,904.10
2018-06-30 3,522.10 0.00 2,725.00
2018-03-31 3,522.10 0.00 2,725.00
2017-12-31 3,471.00 0.00 3,895.40
2017-09-30 3,471.00 0.00 3,895.40
2017-06-30 3,210.20 0.00 3,070.90
2017-03-31 3,210.20 0.00 3,070.90
2016-12-31 3,152.80 1.90 4,968.20
2016-09-30 3,152.80 1.90 4,968.20
2016-06-30 2,929.00 0.00 3,208.00
2016-03-31 2,929.00 0.00 3,208.00
2015-12-31 2,795.60 3.20 4,351.30
2015-09-30 2,795.60 3.20 4,351.30
2015-06-30 2,610.20 0.00 3,388.30
2015-03-31 2,610.20 0.00 3,388.30
2014-12-31 2,537.80 5.40 4,565.70
2014-09-30 2,537.80 5.40 4,565.70
2014-06-30 2,322.90 0.00 2,500.60
2014-03-31 2,322.90 0.00 2,500.60
2013-12-31 2,268.60 12.00 3,393.90
2013-09-30 2,268.60 8.40 3,387.50
2013-06-30 2,185.00 0.00 3,077.10
2013-03-31 2,185.00 0.00 3,077.10
2012-12-31 2,069.90 0.00 3,562.60
  • Schroders has no debt.
  • Schroders had no debt 5 years ago.
  • Schroders has no debt, it does not need to be covered by operating cash flow.
  • Schroders has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Schroders's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Schroders has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.58%
Current annual income from Schroders dividends. Estimated to be 3.7% next year.
If you bought £2,000 of Schroders shares you are expected to receive £72 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Schroders's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Schroders's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.29%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:SDR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 2.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 679 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:SDR Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.44 1.00
2022-12-31 1.36 1.00
2021-12-31 1.21 12.00
2020-12-31 1.16 13.00
2019-12-31 1.13 13.00
2019-12-05
LSE:SDR Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-22 1.140 3.806
2019-03-07 1.140 4.259
2018-03-16 1.130 3.884
2018-03-01 1.130 3.334
2017-03-17 0.930 2.784
2017-03-02 0.930 2.979
2016-03-18 0.870 3.191
2016-03-03 0.870 3.231
2015-03-20 0.780 2.639
2015-03-05 0.780 2.448
2014-08-13 0.660 2.567
2014-03-06 0.580 2.282
2014-03-05 0.580 2.183
2013-08-08 0.460 1.826
2013-03-07 0.430 1.883
2012-08-02 0.260 1.590
2012-03-08 0.390 2.873
2012-03-07 0.390 2.507
2011-08-04 0.390 2.808
2011-03-10 0.370 2.230
2011-03-09 0.370 2.089
2010-03-04 0.310 2.096
2010-03-03 0.310 2.437
2009-08-06 0.310 2.667
2009-02-12 0.310 3.776

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Schroders's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Schroders's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Schroders afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Schroders has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Schroders's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Peter Harrison
COMPENSATION £6,735,000
AGE 53
TENURE AS CEO 3.7 years
CEO Bio

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 the management of the overall business and strategic development of the Group. Previously, he served as the Head of Investment from May 23, 2014 to April 4, 2016, Global Head of Equities since March 15, 2013 and Equity Analyst since 1988 at the firm. Mr. Harrison joined the firm in 1988 and was responsible for the overall investment activities. He also served as the Global head of Equities at Schroder Investment Management Limited since March 15, 2013 and served as its Equity Analyst since 1988. Mr. Harrison served as the Chief Executive Officer and Chairman of RWC Partners Limited. He joined RWC in March 8, 2006. Mr. Harrison served as the Global Chief Investment Officer of Europe and the Asia-Pacific Region at Deutsche Asset Management Inc. He served as the Chief Investment Officer at J.P. Morgan Asset Management and was responsible for global equities and balanced mandates. He also served as Head of Global Equities and Multi-Asset at the firm. Mr. Harrison was a Co-Founder at JPM Group, Inc. and served as its Chief Executive Officer and President. He served as a Senior Portfolio Manager at Newton Investment Management Limited since 1991. He has been Director at FCLT Global since January 01, 2019. Mr. Harrison began his asset management career in 1988. He is member of the Takeover Panel. Mr. Harrison has been a Director of Cazenove Investment Fund Management Limited since July 16, 2013. Mr. Harrison serves as the Chairman and Director of Investment Management Association. He served as a Non-Executive Director at The Brunner Investment Trust PLC from January 1, 2013 to February 20, 2013.

CEO Compensation
  • Peter's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Peter's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Schroders management team in years:

5.1
Average Tenure
54
Average Age
  • The average tenure for the Schroders management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Peter Harrison

TITLE
Group CEO & Executive Director
COMPENSATION
£7M
AGE
53
TENURE
3.7 yrs

Richard Keers

TITLE
CFO & Executive Director
COMPENSATION
£3M
AGE
56
TENURE
6.6 yrs

Howard Trust

TITLE
General Counsel
COMPENSATION
£53K
AGE
65

Charles Prideaux

TITLE
Global Head of Investment
AGE
53
TENURE
0.9 yrs

Stewart Carmichael

TITLE
Chief Technology Officer
AGE
54

Alex James

TITLE
Investor Relations Manager

Estelle Bibby

TITLE
Head of Media Relations

James Cardew

TITLE
Global Head of Marketing

Emma Holden

TITLE
Global Head of Human Resources
AGE
44
TENURE
5.1 yrs

Mark Hemenetz

TITLE
Chief Operating Officer of North American Unit
AGE
62
TENURE
16.8 yrs
Board of Directors Tenure

Average tenure and age of the Schroders board of directors in years:

3.3
Average Tenure
55
Average Age
  • The tenure for the Schroders board of directors is about average.
Board of Directors

Michael Romsey Dobson

TITLE
Chairman
COMPENSATION
£635K
AGE
67
TENURE
3.7 yrs

Peter Harrison

TITLE
Group CEO & Executive Director
COMPENSATION
£7M
AGE
53
TENURE
5.6 yrs

Richard Keers

TITLE
CFO & Executive Director
COMPENSATION
£3M
AGE
56
TENURE
6.6 yrs

Rhian Davies

TITLE
Independent Non-Executive Director
COMPENSATION
£125K
AGE
54
TENURE
4.4 yrs

Damon Buffini

TITLE
Independent Non-Executive Director
COMPENSATION
£75K
AGE
57
TENURE
1.8 yrs

Ian King

TITLE
Senior Independent Director
COMPENSATION
£114K
AGE
63
TENURE
1.7 yrs

Philip Mallinckrodt

TITLE
Non-Executive Director
COMPENSATION
£80K
AGE
56
TENURE
10.9 yrs

Parekh Goss-Custard

TITLE
Independent Non-Executive Director
COMPENSATION
£83K
AGE
45
TENURE
2.9 yrs

Deborah Waterhouse

TITLE
Independent Non-Executive Director
AGE
52
TENURE
0.8 yrs

Leonie Emma Schroder

TITLE
Non-Independent Non-Executive Director
AGE
45
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Schroders individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
08. Nov 19 Sell Michael Romsey Dobson Individual 06. Nov 19 07. Nov 19 -50,000 £32.62 £-1,628,749
18. Sep 19 Sell Michael Romsey Dobson Individual 16. Sep 19 16. Sep 19 -40,185 £31.50 £-1,265,900
08. Jul 19 Sell Michael Romsey Dobson Individual 05. Jul 19 05. Jul 19 -3 £31.50 £-95
05. Jul 19 Sell Michael Romsey Dobson Individual 04. Jul 19 04. Jul 19 -12,083 £31.53 £-380,976
02. Jul 19 Sell Michael Romsey Dobson Individual 01. Jul 19 01. Jul 19 -80,040 £31.10 £-2,483,746
01. Jul 19 Sell Michael Romsey Dobson Individual 28. Jun 19 28. Jun 19 -19,960 £30.50 £-608,780
X
Management checks
We assess Schroders's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Schroders has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Concerned About Schroders plc's (LON:SDR) Earnings Growth?

Assessing Schroders plc's (LON:SDR) performance as a company requires looking at more than just a years' earnings data. … Below, I will run you through a simple sense check to build perspective on how Schroders is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its capital markets industry peers. … SDR's trailing twelve-month earnings (from 31 December 2017) of UK£594.40m has

Simply Wall St -

Should You Buy Schroders plc (LON:SDR) Now?

saw significant share price volatility over the past couple of months on the LSE, rising to the highs of £34.88 and falling to the lows of £31.51. … This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … Let’s take a look at Schroders’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Schroders plc (LON:SDR): Will The Growth Last?

In December 2017, Schroders plc (LON:SDR) announced its latest earnings update, whicha … signalled … business

Simply Wall St -

What Should We Expect From Schroders plc's (LON:SDR) Earnings Over The Next Few Years?

Below, I've presented key growth figures on how market analysts perceive Schroders's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. … The slope of this line is the rate of earnings growth, which in this case is 5.67%. … This means that, we can presume Schroders will grow its earnings by 5.67% every year for the next couple of years.

Simply Wall St -

Is Schroders plc (LON:SDR) A Smart Pick For Income Investors?

Check out our latest analysis for Schroders 5 checks you should do on a dividend stock If you are a dividend investor, you should always assess these five key metrics: Does it pay an annual yield higher than 75% of dividend payers? … Does earnings amply cover its dividend payments? … LSE:SDR Historical Dividend Yield Apr 4th 18 Does Schroders pass our checks?

Simply Wall St -

What Should We Expect From Schroders plc's (LON:SDR) Earnings Over The Next Year?

Generally, it seems that analyst expectations are fairly bearish, with profits predicted to rise by 3.22% next year against the higher past 5-year average growth rate of 10.42%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … LSE:SDR Future Profit Mar 26th 18 From the current net income level of UK£594.40M and the final forecast of UK£718.60M by 2021, the annual rate of growth for SDR’s earnings is 5.95%.

Simply Wall St -

Is Buying Schroders plc (LON:SDR) For Its Upcoming £0.79 Dividend A Good Choice?

See our latest analysis for Schroders 5 questions to ask before buying a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is their annual yield among the top 25% of dividend payers? … If there is one thing that you want to be reliable in your life, it's dividend stocks and their constant income stream. … In terms of its peers, Schroders has a yield of 3.30%, which is high for Capital Markets stocks but still below the market's top dividend payers.

Simply Wall St -

Is Schroders plc (LON:SDR) Worth £33.68 Based On Its Intrinsic Value?

LSE:SDR Intrinsic Value Mar 6th 18 The Calculation The central assumption for Excess Returns is that equity value is how much the firm can earn, over and above its cost of equity, given the level of equity it has in the company at the moment. … The returns above the cost of equity is known as excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (16.89% – 8.99%) * £14.36 = £1.13 We use this value to calculate the terminal value of the company, which is how much we expect the company to continue to earn every year, forever. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = £1.13 / (8.99% – 1.49%) = £15.12 These factors are combined to calculate the true value of SDR's stock: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = £14.36 + £15.12 = £29.49 Compared to the current share price of £33.68, SDR is currently priced in-line with its intrinsic value.

Simply Wall St -

What Does Schroders plc's (LON:SDR) Share Price Indicate?

Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. … If you believe Schroders should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. … However, the positive outlook is encouraging for Schroders, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

Simply Wall St -

Does Schroders plc's (LON:SDR) PE Ratio Warrant A Sell?

By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each pound of the company’s earnings. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SDR Price per share = £35.76 Earnings per share = £1.952 ∴ Price-Earnings Ratio = £35.76 ÷ £1.952 = 18.3x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … SDR’s P/E of 18.3x is higher than its industry peers (17.1x), which implies that each dollar of SDR’s earnings is being overvalued by investors.

Simply Wall St -

Company Info

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. It launches and manages equity mutual funds and manages fixed income mutual funds for its clients. The firm also manages hedge for its clients. It 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.

Details
Name: Schroders plc
SDR
Exchange: LSE
Founded: 1804
£8,386,197,000
276,100,000
Website: http://www.schroders.com
Address: Schroders plc
1 London Wall Place,
London,
Greater London, EC2Y 5AU,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE SDR Ordinary Shares London Stock Exchange GB GBP 01. Jan 1992
OTCPK SHNW.F Ordinary Shares Pink Sheets LLC US USD 01. Jan 1992
DB PYX Ordinary Shares Deutsche Boerse AG DE EUR 01. Jan 1992
BATS-CHIXE SDRL Ordinary Shares BATS 'Chi-X Europe' GB GBP 01. Jan 1992
LSE SDRC Non-Voting Ordinary Shares London Stock Exchange GB GBP 01. Jan 1992
DB PYXA Non-Voting Ordinary Shares Deutsche Boerse AG DE EUR 01. Jan 1992
BATS-CHIXE SDRCL Non-Voting Ordinary Shares BATS 'Chi-X Europe' GB GBP 01. Jan 1992
Number of employees
Current staff
Staff numbers
5,039
Schroders employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/05 20:37
End of day share price update: 2019/12/05 00:00
Last estimates confirmation: 2019/12/02
Last earnings filing: 2019/08/01
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.