Ashmore Group PLC (ASHM) AI Stock Analysis

• Market Cap: £1.00B
• Dividend Yield: 11.15%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.33
• Revenue Growth: 0.82%
• EPS Growth: -26.44%
• Country: UK
• Employees: 283
• Sector: Financial
• Sector Strength: 93
• Industry: Asset Management Services
• EPS (TTM): 0.11
• Shares Outstanding: 712,740,800
• 10 Day Avg. Volume: 1,369,353
• 30 Day Avg. Volume: 1,116,715
• PEG Ratio: 1.06
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.77
• Price to Cash Flow (P/CF): 31.80
• P/FCF Ratio: 32.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 161.83p
• Price Target Upside: 5.84% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

Ashmore Group PLC's strong profitability and financial stability are overshadowed by declining revenue and cash flow concerns. The technical analysis indicates potential short-term weakness, while the valuation offers some appeal due to a high dividend yield. Positive corporate events related to stable assets under management and emerging market prospects provide a favorable long-term outlook.

Positive Factors

Potential Acquisition

ASHM, as a scarce, scaled, EM asset manager, could prove an attractive takeout candidate for a diversified manager given its surplus capital position.

Strategic Positioning

Ashmore is well positioned to capture part of the recovery given long-term investment track record, implying upside risks.

Negative Factors

Earnings and Compensation

FY25-26 earnings cut by ~13-15% driven by higher compensation costs and lower exit fee rate.

Ashmore Group PLC Business Overview & Revenue Model

Company Description

Ashmore Group PLC is a specialist asset management company headquartered in London, United Kingdom. It primarily focuses on investing in emerging markets across a range of asset classes including external debt, local currency, corporate debt, blended debt, equities, and alternatives. The company offers a variety of investment strategies to institutional and retail clients globally, aiming to provide them with access to high-growth potential regions and sectors.

How the Company Makes Money

Ashmore Group PLC generates revenue primarily through management fees and performance fees associated with managing clients' investments. Management fees are calculated as a percentage of the assets under management (AUM) and provide a stable income stream. Performance fees, on the other hand, are contingent on achieving certain investment return benchmarks, offering the potential for additional income when targets are met. The firm also benefits from strategic partnerships with financial institutions and distribution networks to expand its client base and enhance its market reach. Additionally, Ashmore's focus on emerging markets allows it to capitalize on the higher growth rates and investment opportunities in these regions, contributing to its overall earnings.

Ashmore Group PLC Financial Statement Overview

Summary

Ashmore Group PLC demonstrates strong profitability and financial stability, with healthy margins and a solid balance sheet characterized by low debt levels. However, declining revenue and cash flow present challenges that may impact future growth prospects.

Income Statement

The income statement shows a declining trend in revenue over recent years, with a noticeable drop from the previous year. Despite this, the company maintains strong profitability with a net profit margin of approximately 49.6% for the most recent year, and an EBITDA margin of 69.6%. The revenue growth rate is negative, indicating a decrease in revenue year-over-year. This pattern suggests that while the company is efficient at converting revenue into profit, it faces challenges in growing its revenue base.

Balance Sheet

Ashmore Group PLC maintains a solid balance sheet with a low debt-to-equity ratio of 0.01, highlighting minimal leverage. The equity ratio is strong at 90.1%, indicating robust financial stability and a high proportion of assets financed by equity. Return on equity stands at 10.6%, reflecting a moderate return on shareholders' investments. Overall, the company's balance sheet reflects financial strength and stability, with low risk from debt obligations.

Cash Flow

The cash flow statement reveals a decline in free cash flow from the previous year, resulting in a negative free cash flow growth rate. The operating cash flow to net income ratio is 0.95, demonstrating that the company effectively converts net income into cash. However, the reduction in free cash flow raises concerns about cash generation capacity. The free cash flow to net income ratio is 0.94, indicating good cash conversion, though long-term sustainability of cash flows should be monitored.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
189.00M	219.30M	199.50M	424.90M	322.90M
	Gross Profit
103.90M	153.10M	126.10M	344.60M	240.30M
	EBIT
57.20M	83.40M	104.50M	274.00M	203.60M
	EBITDA
131.50M	86.60M	107.60M	276.80M	207.00M
	Net Income Common Stockholders
93.70M	83.30M	88.50M	240.10M	182.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
745.50M	534.40M	584.30M	497.10M	512.50M
	Total Assets
979.70M	1.01B	1.10B	1.11B	1.05B
	Total Debt
6.40M	5.80M	8.00M	9.80M	10.20M
	Net Debt
-505.40M	-472.80M	-544.00M	-446.30M	-490.70M
	Total Liabilities
88.90M	95.70M	131.40M	175.30M	168.60M
	Stockholders Equity
882.60M	898.80M	945.00M	911.60M	856.40M
Cash Flow		Free Cash Flow
88.30M	140.00M	158.10M	154.30M	215.40M
	Operating Cash Flow
89.10M	140.40M	158.60M	155.00M	216.40M
	Investing Cash Flow
-108.40M	-36.80M	61.70M	-35.20M	-9.80M
	Financing Cash Flow
-151.20M	-170.00M	-172.40M	-121.10M	-196.00M

Ashmore Group PLC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 152.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ASHM, the sentiment is Neutral. The current price of 152.9 is above the 20-day moving average (MA) of 151.12, below the 50-day MA of 153.77, and below the 200-day MA of 164.12, indicating a neutral trend. The MACD of -2.09 indicates Negative momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 66.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:ASHM.

Ashmore Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POLR	73 Outperform	£418.71M	10.03	33.77%	10.49%	18.08%	22.78%
AJB	68 Neutral	£1.73B	20.67	45.56%	2.96%	23.46%	23.33%
ASHM	66 Neutral	£1.00B	13.92	8.62%	11.15%	0.82%	-26.44%
Sector *	64 Neutral	$14.34B	10.61	9.28%	4.07%	18.04%	-9.54%
INVP	63 Neutral	£9.27B	6.98	12.50%	7.02%	-3.32%	-31.32%

Ashmore Group PLC Corporate Events

Ashmore Group PLC Transfers Employee Benefit Trust Holdings

Ashmore Group PLC has announced a change in the administration of its Employee Benefit Trust, resulting in the transfer of its entire shareholding from the Ashmore 2004 Employee Benefit Trust to the Ashmore Group plc 2024 Employee Benefit Trust. This transfer, which took place on February 24, 2025, involves 58,534,386 voting rights, representing 8.21% of the company’s total voting rights. The move is part of the company’s ongoing efforts to manage its employee benefit schemes effectively, which may have implications for stakeholders in terms of governance and control over voting rights.

Ashmore Group PLC Transfers Employee Benefit Trust Holdings

Ashmore Group PLC has announced a significant change in the administration of its Employee Benefit Trust, resulting in the transfer of the entire shareholding from the Ashmore 2004 Employee Benefit Trust to the Ashmore Group plc 2024 Employee Benefit Trust. This change, effective from February 24, 2025, reflects a strategic adjustment in the company’s management of its employee benefits, potentially impacting the company’s internal operations and stakeholder interests.

Ashmore Group Reports Stable AuM and Positive Emerging Markets Outlook

For the six months ending December 2024, Ashmore Group PLC reported stable assets under management (AuM) at $48.8 billion, with a slight positive performance. Despite a challenging market environment, Ashmore successfully reduced redemptions, maintained a strong balance sheet, and declared an unchanged interim dividend. The company highlighted a strong macroeconomic outlook for emerging markets, citing robust fundamentals and significant investment opportunities. Ashmore aims to leverage its active investment processes to navigate market volatility and capture long-term growth potential.

Ashmore Group PLC Announces Change in Major Shareholding

Ashmore Group PLC announced a change in their voting rights as Azvalor Asset Management SGIIC SA, based in Madrid, crossed a threshold of 3.03% holding in voting rights as of January 16, 2025. This change in holdings may affect Ashmore’s shareholder dynamics and could have implications for its market strategy and influence within the industry.

Ashmore Group Reports Q4 Decline in Assets Amid Market Volatility

Ashmore Group PLC reported a decline in assets under management by US$3.0 billion for the quarter ending December 2024, driven by net outflows and negative investment performance. Despite increased market volatility ahead of the US election, the company saw net inflows in equities and alternatives, indicating growing client recognition of emerging market opportunities. The company anticipates potential gains in emerging market assets with active management being crucial to capitalize on diverse investment opportunities.

Ashmore Group PLC Voting Rights Update

Ashmore Group PLC has announced a change in its voting rights structure, as the Ashmore 2004 Employee Benefit Trust has altered its holdings. The trust’s voting rights rose from 7.02% to 8.1%, reflecting an acquisition or disposal event. This change signifies a significant shift in stakeholder influence within the company, potentially impacting the company’s governance and decision-making processes.