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1. Company Snapshot

1.a. Company Description

Ashmore Group plc is a publicly owned investment manager.The firm primarily provides its services to retail and institutional clients.It manages separate client-focused equity and fixed income portfolios.


The firm also launches and manages equity and fixed income mutual funds for its clients.It invests in the public equity and fixed income markets in emerging markets across the globe.The firm employs combination of fundamental analysis to make its investments.


Ashmore Group Plc was founded in 1992 and is based in London, United Kingdom.

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1.b. Last Insights on ASHM

Ashmore Group PLC's recent performance was negatively driven by weak first-half 2025 earnings, with EPS declining to UK£0.055 (vs UK£0.087 in 1H 2024). Revenue also decreased by 16% to UK£77.5m, from UK£92.1m in 1H 2024. In contrast, insider buying activity has been reported, highlighting potential value opportunities amidst uncertain market conditions. The company faces challenges in the current economic climate, with weak trade data from China impacting commodity prices and global economic growth.

1.c. Company Highlights

2. Ashmore's Resilient Performance Amidst Challenging Market Conditions

Ashmore Group's full-year results to June 2025 revealed a revenue decrease of 22% to GBP146.5 million, primarily due to lower average Assets Under Management (AUM) and a weaker dollar. However, the company demonstrated cost control, with operating costs down 14%, resulting in an adjusted EBITDA margin of 36%. Diluted EPS stood at 11.8p, and the dividend per share remained at 16.9p, underscoring the company's commitment to returning value to shareholders.

Publication Date: Sep -08

📋 Highlights
  • Revenue Decline and Margin Resilience:: Revenue fell 22% to GBP146.5M, but adjusted EBITDA rose to GBP52.5M (36% margin) due to 14% cost reductions.
  • Outperformance and Investor Confidence:: 70% outperformance over 3 years and 81% over 5 years, driving positive investor engagement despite 3% AUM decline to GBP47.6B.
  • Seed Program Returns:: Generated GBP200M in investment gains since inception, contributing GBP40.1M to profits in 2025.
  • Fee Margin Stability:: Exit fee margin at 34% with upward pressure from growth in equities, alternatives, and local market investments, despite 1bp annual erosion.
  • Strategic Expansion and Alternatives Focus:: Accelerated growth in private equity and alternatives, alongside regional expansion in Asia, Europe, and the Middle East to capitalize on emerging markets demand.

Financial Performance and Key Metrics

The company's adjusted operating costs decreased by 14% year-on-year to GBP97 million, contributing to a robust adjusted EBITDA margin. Performance fees reached GBP10.2 million, indicating strong investment performance. The seed program has been a significant contributor, with investment gains of GBP200 million since its inception, driven by a focus on local offices and alternative investments.

Valuation and Investor Returns

With a 'P/E Ratio' of 15.36, 'P/S Ratio' of 6.14, and a 'Dividend Yield (%)' of 10.49, Ashmore's valuation reflects a balance between growth expectations and income returns. The 'ROE (%)' of 8.54 suggests a reasonable return on equity, considering the challenging environment. The 'Net Debt / EBITDA' ratio of -3.17 indicates a strong financial position, with no net debt.

Business Outlook and Strategy

Ashmore remains cautiously optimistic, driven by its diversified strategy across emerging markets, with growth in equities, investment-grade, and alternatives. The company is expanding its local office network, particularly in Asia, and sees growing demand for its products in Europe and the Middle East. The focus on active management and local markets positions Ashmore well for future growth, despite competition from passive funds.

Alternatives Business and Seed Investments

The company is committed to growing its alternatives business, particularly in private equity, expecting this allocation to increase both in absolute terms and as a proportion of the total portfolio. Seed capital investments have contributed significantly to profits, with GBP40.1 million in the current period and a total of GBP200 million since inception.

Fee Margin and Variable Compensation

The firm's fee margin averaged 35% in the second half of the year, influenced by asset mix and performance. Variable compensation declined by 25% due to negative flows, but the firm maintains a cap on the variable compensation ratio at 35%, allowing flexibility to incentivize performance.

3. NewsRoom

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Milei’s Win Is Echoing Across Latin America

Nov -04

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Do These 3 Checks Before Buying Ashmore Group Plc (LON:ASHM) For Its Upcoming Dividend

Nov -02

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Ashmore Group (LON:ASHM) Is Paying Out A Dividend Of £0.121

Sep -27

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With US backing, Argentina gains time - but October vote will be crucial

Sep -26

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With US backing, Argentina gains time - but October vote will be crucial

Sep -26

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Anpario Leads These 3 UK Penny Stocks

Sep -15

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Ashmore Group Full Year 2025 Earnings: EPS Beats Expectations, Revenues Lag

Sep -06

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Trending tickers: Lululemon, Broadcom, DocuSign, Ashmore

Sep -05

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.50%)

6. Segments

Investment Management Services

Expected Growth: 10.5%

Emerging markets' growth, increasing demand for investment strategies, and expanding institutional and retail client base drive Ashmore Group PLC's Investment Management Services growth.

7. Detailed Products

Emerging Markets Investment

Ashmore Group PLC offers investment solutions focused on emerging markets, providing access to high-growth economies and opportunities.

External Debt

Ashmore Group PLC provides investment solutions focused on external debt, offering exposure to sovereign and corporate bonds in emerging markets.

Local Currency

Ashmore Group PLC offers investment solutions focused on local currency debt, providing exposure to emerging market currencies and interest rates.

Corporate Debt

Ashmore Group PLC provides investment solutions focused on corporate debt, offering exposure to emerging market corporate bonds.

Equities

Ashmore Group PLC offers investment solutions focused on emerging market equities, providing access to growth opportunities in emerging markets.

Blended Debt

Ashmore Group PLC provides investment solutions that blend different debt strategies, offering a diversified approach to emerging market debt investing.

Multi-Strategy

Ashmore Group PLC offers investment solutions that combine different strategies, providing a diversified approach to emerging market investing.

8. Ashmore Group PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

Ashmore Group PLC operates in a niche market, providing investment management services to institutional clients. While there are substitutes available, the company's strong brand reputation and expertise in emerging markets reduce the threat of substitutes.

Bargaining Power Of Customers

Ashmore Group PLC's clients are primarily institutional investors, who have limited bargaining power due to the company's specialized services and strong relationships.

Bargaining Power Of Suppliers

Ashmore Group PLC has a diversified supplier base, and the company's scale and reputation reduce the bargaining power of its suppliers.

Threat Of New Entrants

The investment management industry has high barriers to entry, including regulatory requirements and the need for specialized expertise. This reduces the threat of new entrants.

Intensity Of Rivalry

The investment management industry is highly competitive, with many established players competing for market share. Ashmore Group PLC must maintain its competitive edge through innovation and strong relationships with clients.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.64%
Debt Cost 6.69%
Equity Weight 99.36%
Equity Cost 9.32%
WACC 9.31%
Leverage 0.65%

11. Quality Control: Ashmore Group PLC passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Impax Asset Management

A-Score: 5.6/10

Value: 7.3

Growth: 7.1

Quality: 8.8

Yield: 8.1

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
IntegraFin

A-Score: 5.5/10

Value: 4.9

Growth: 6.9

Quality: 7.2

Yield: 5.0

Momentum: 4.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
MCI Capital

A-Score: 5.5/10

Value: 3.8

Growth: 2.2

Quality: 6.7

Yield: 6.2

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Impax Environmental Markets

A-Score: 5.5/10

Value: 7.4

Growth: 2.9

Quality: 6.4

Yield: 1.2

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Ashmore

A-Score: 5.1/10

Value: 3.0

Growth: 1.2

Quality: 8.4

Yield: 10.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
JTC

A-Score: 4.1/10

Value: 2.9

Growth: 6.6

Quality: 3.1

Yield: 1.2

Momentum: 8.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.67$

Current Price

1.67$

Potential

-0.00%

Expected Cash-Flows