# Schroders (SDR.LSE)

Canonical: https://gigainvestors.com/s/SDR.LSE

Analysis as of: 2026-10-16T07:35:33.301Z. Financial observations: FY2000–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 589.00 per share; close as of 2026-10-02.

Estimated value: low GBX 677.10 per share, central GBX 730.56 per share, high GBX 801.74 per share. Buy at or below the central value GBX 730.56 per share. Valuation as of 2026-10-16T07:35:33.301Z; scenarios are not confidence intervals.

Expected annual return: 13.5% at the stated quote. About 13.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.22×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.29×

- FY2017: 0.28×

- FY2018: 0.26×

- FY2019: 0.23×

- FY2020: 0.23×

- FY2021: 0.28×

- FY2022: 0.21×

- FY2023: 0.20×

- FY2024: 0.15×

- FY2025: 0.15×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 15.0%

- ROIC, second-lowest year: 7.8%

- Typical minus recent gross margin: 2.9 pp

- Typical gross margin (annual median): 79.9%

- Recent gross margin (lower of latest and 3-year median): 77.0%

- Years with nonpositive capital: 5

- Capital spending / revenue: 3.3%

- ROIC including acquisitions, ten-year median: 38.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 15.5%

- FY2017: 42.4%

- FY2018: >100%

- FY2019: 53.6%

- FY2020: >100%

- FY2021: 14.5%

- FY2022: 10.3%

- FY2023: 10.3%

- FY2024: 7.2%

- FY2025: 7.8%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.09×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 2.7B

- Net income, five-year total: GBP 2.4B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -1.2 pp

- Working capital / revenue, change between three-year averages: -9.8 pp

- Working capital / revenue, final three-year average: 11.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.03×

- FY2023: 1.18×

- FY2024: 1.12×

- FY2025: 1.18×

### management: fail

- ROIC first 3 years vs last 3 years: 42.4% vs 7.8%

- Per-share earnings: 0.35 to 0.26 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.4%

- Ordinary dilution, 5-year annual growth: 2.6%

- Diluted shares, 10-year annual growth: 1.4%

- Diluted shares, 5-year annual growth: 2.6%

- Per-share value growth: -3.6%

- Per-share value change: GBP -0.09

- Per-share value, starting three-year median: GBP 0.35

- Per-share value, ending three-year median: GBP 0.26

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 2.7B

- Cumulative net income, 10 years: GBP 5.0B

- ROIC, first three-year median: 42.4%

- ROIC, last three-year median: 7.8%

- Market cap gain: GBP -630M

- Cumulative retained earnings: GBP 1.3B

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Buybacks concentrated in cheaper years (correlation): 0.02

- Average buyback yield: 1.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.35

- FY2017: GBP 0.43

- FY2018: GBP 0.31

- FY2019: GBP 0.35

- FY2020: GBP 0.34

- FY2021: GBP 0.37

- FY2022: GBP 0.30

- FY2023: GBP 0.24

- FY2024: GBP 0.26

- FY2025: GBP 0.34

### accounting: pass

- Sloan accruals: -1.5%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.69×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.39×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.4%

- FY2017: 0.0%

- FY2018: -0.0%

- FY2019: -2.4%

- FY2020: -1.6%

- FY2021: -2.6%

- FY2022: -2.3%

- FY2023: 3.0%

- FY2024: -3.0%

- FY2025: -1.5%

## Holders

## Price story

Price needs cash profits to shrink 4% a year for ten years · sales +6%

Story as of 2026-10-07T13:30:47.988Z; price observation 2026-10-02.

Price needs cash profits to shrink 4% a year for ten years

### Sales · FY2024–2025

sales +6%; source https://filings.xbrl.org/2138001YYBULX5SZ2H24/2025-12-31/ESEF/GB/0/2138001YYBULX5SZ2H24-2025-12-31/reports/2138001YYBULX5SZ2H24-2025-12-31-T01.xhtml; observed 2026-03-10.

- FY2016: GBP 2.1B 

- FY2017: GBP 2.5B 

- FY2018: GBP 2.6B 

- FY2019: GBP 2.5B 

- FY2020: GBP 2.5B 

- FY2021: GBP 3.0B 

- FY2022: GBP 2.9B 

- FY2023: GBP 3.0B 

- FY2024: GBP 3.1B 

- FY2025: GBP 3.3B 

### Gross margin · FY2025

gross margin 77%; source https://filings.xbrl.org/2138001YYBULX5SZ2H24/2025-12-31/ESEF/GB/0/2138001YYBULX5SZ2H24-2025-12-31/reports/2138001YYBULX5SZ2H24-2025-12-31-T01.xhtml; observed 2026-03-10.

- FY2016: 79.9% 

- FY2017: 80.0% 

- FY2018: 78.8% 

- FY2019: 80.9% 

- FY2020: 82.0% 

- FY2021: 81.2% 

- FY2022: 81.7% 

- FY2023: 65.4% 

- FY2024: 77.3% 

- FY2025: 77.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in asset management; annual sales are GBP 3.3 billion.

- Source: https://filings.xbrl.org/2138001YYBULX5SZ2H24/2025-12-31/ESEF/GB/0/2138001YYBULX5SZ2H24-2025-12-31/reports/2138001YYBULX5SZ2H24-2025-12-31-T01.xhtml (filed 2026-03-10); FY2025: revenue 3250700000; grossProfit 2504300000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SDR.LSE: 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. The company was formerly known as New Schroders plc and changed its name to Schroders plc in April 2000. Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.

### Why customers stay

Margins ranged from 65.4% to 77.3% during 2023–25; it earns 15% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2023: grossProfit / revenue = 65.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2024: grossProfit / revenue = 77.3%.

- Source: https://filings.xbrl.org/2138001YYBULX5SZ2H24/2025-12-31/ESEF/GB/0/2138001YYBULX5SZ2H24-2025-12-31/reports/2138001YYBULX5SZ2H24-2025-12-31-T01.xhtml (filed 2026-03-10); FY2025: grossProfit / revenue = 77%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); 10-year return on capital observations [[2016,0.1550676958117171],[2017,0.42393074009720777],[2018,1.0773671960229212],[2019,0.5363202762977567],[2020,2.4410005067968514],[2021,0.1451666163717953],[2022,0.10347668257674567],[2023,0.10328630446166363],[2024,0.07155785329615487],[2025,0.07758347224384154]]; median 0.1501171560917562. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 46.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2016: growth capex 1828847.9564382061; upkeep 63371152.043561794; owner earnings 473228847.9564382. Growth capex / owner earnings = 0.003864616378176835.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2017: growth capex 10579037.135979235; upkeep 162020962.86402076; owner earnings 494379037.13597924. Growth capex / owner earnings = 0.021398636150240864.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2018: growth capex 5201161.28680706; upkeep 198898838.71319294; owner earnings 386901161.28680706. Growth capex / owner earnings = 0.013443126584340947.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2019: growth capex 0; upkeep 142900000; owner earnings 404840000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2020: growth capex 0; upkeep 92800000; owner earnings 472860000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2021: growth capex 0; upkeep 89400000; owner earnings 610540000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2022: growth capex 0; upkeep 104300000; owner earnings 492100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2023: growth capex 0; upkeep 79900000; owner earnings 456760000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2024: growth capex 0; upkeep 70500000; owner earnings 468460000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/2138001YYBULX5SZ2H24/2025-12-31/ESEF/GB/0/2138001YYBULX5SZ2H24-2025-12-31/reports/2138001YYBULX5SZ2H24-2025-12-31-T01.xhtml (filed 2026-03-10); FY2025: growth capex 0; upkeep 19100000; owner earnings 639400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); Dividend observations: [[2016,236600000],[2017,271100000],[2018,313100000],[2019,314700000],[2020,311800000],[2021,328400000],[2022,341400000],[2023,348500000],[2024,341100000],[2025,337600000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/2138001YYBULX5SZ2H24/2025-12-31/ESEF/GB/0/2138001YYBULX5SZ2H24-2025-12-31/reports/2138001YYBULX5SZ2H24-2025-12-31-T01.xhtml (filed 2026-03-10); FY2025: cash repurchases 46500000 GBP.

### Are managers owners

Insiders own 51.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SDR.LSE SharesStats.PercentInsiders = 51.856 percentage points; cache date 2026-10-16.

### What could break it

The US and Europe are using tariffs and industrial policies to steer investment towards strategic sectors.

- Source: https://filings.xbrl.org/2138001YYBULX5SZ2H24/2025-12-31/ESEF/GB/0/2138001YYBULX5SZ2H24-2025-12-31/reports/2138001YYBULX5SZ2H24-2025-12-31-T01.xhtml (filed 2026-03-10); Evolving policy priorities Increasingly complex geopolitical dynamics have led governments to review defence policy, while maintaining their focus on economic growth and inflation management. The US and Europe are using tariffs and industrial policies to steer investment towards strategic sectors. Such shifts will influence where future opportunities and risks emerge.

### What the price says

The price assumes cash profits shrink 4% yearly over ten years; actual growth was 1.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); Ten-year compound average after fade. Initial solved rate -0.06854133991472672. Price 589; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.3324962519537099 → FY2025 0.3982311908320877. Closing-price date 2026-10-02.

## Monthly share-price history (GBX per share)

- 2026-08: GBX 584.00 per share

- 2026-09: GBX 589.00 per share

- 2026-10: GBX 589.00 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 684.25 per share, central GBX 878.58 per share, high GBX 991.74 per share

- FY2017: low GBX 915.37 per share, central GBX 1,131.15 per share, high GBX 1,261.42 per share

- FY2018: low GBX 838.65 per share, central GBX 1,040.95 per share, high GBX 1,158.75 per share

- FY2019: low GBX 665.37 per share, central GBX 871.33 per share, high GBX 991.26 per share

- FY2020: low GBX 686.13 per share, central GBX 833.54 per share, high GBX 934.80 per share

- FY2021: low GBX 616.63 per share, central GBX 667.20 per share, high GBX 734.51 per share

- FY2022: low GBX 605.50 per share, central GBX 651.50 per share, high GBX 712.74 per share

- FY2023: low GBX 639.55 per share, central GBX 686.93 per share, high GBX 750.01 per share

- FY2024: low GBX 774.16 per share, central GBX 823.16 per share, high GBX 888.40 per share

- FY2025: low GBX 657.58 per share, central GBX 709.51 per share, high GBX 778.63 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:17.066Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/2138001YYBULX5SZ2H24/2025-12-31/ESEF/GB/0/2138001YYBULX5SZ2H24-2025-12-31/reports/2138001YYBULX5SZ2H24-2025-12-31-T01.xhtml); period 2025-12-31, filed 2026-03-10.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations