T ROWE PRICE GROUP INC(NASDAQ:TROW) stock Fundamental Analysis

Fundamental Rating

TROW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 225 industry peers in the Capital Markets industry. TROW has an average financial health and profitability rating. TROW is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

1.1 Basic Checks

TROW had positive earnings in the past year.

TROW had a positive operating cash flow in the past year.

In the past 5 years TROW has always been profitable.

Each year in the past 5 years TROW had a positive operating cash flow.

1.2 Ratios

TROW has a Return On Assets of 15.17%. This is amongst the best in the industry. TROW outperforms 95.43% of its industry peers.

The Return On Equity of TROW (19.76%) is better than 86.30% of its industry peers.

		Industry Rank	Sector Rank
ROA	15.17%
ROE	19.76%
ROIC	N/A

ROA(3y)14.15%

ROA(5y)17.62%

ROE(3y)18.44%

ROE(5y)23.71%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 28.82%, TROW is in the better half of the industry, outperforming 67.58% of the companies in the same industry.

In the last couple of years the Profit Margin of TROW has declined.

With a Operating Margin value of 33.77%, TROW perfoms like the industry average, outperforming 57.53% of the companies in the same industry.

In the last couple of years the Operating Margin of TROW has declined.

		Industry Rank	Sector Rank
OM	33.77%
PM (TTM)	28.82%
GM	N/A

OM growth 3Y-10.13%

OM growth 5Y-3.75%

PM growth 3Y-9.7%

PM growth 5Y-4.85%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

TROW has less shares outstanding than it did 1 year ago.

TROW has less shares outstanding than it did 5 years ago.

TROW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

There is no outstanding debt for TROW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	N/A

ROIC/WACCN/A

WACCN/A

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

TROW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.76%, which is quite impressive.

TROW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.42% yearly.

TROW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.80%.

Measured over the past years, TROW shows a small growth in Revenue. The Revenue has been growing by 4.78% on average per year.

EPS 1Y (TTM)22.76%

EPS 3Y-9.91%

EPS 5Y2.42%

EPS Q2Q%23.26%

Revenue 1Y (TTM)9.8%

Revenue growth 3Y-2.58%

Revenue growth 5Y4.78%

Sales Q2Q%13.9%

3.2 Future

The Earnings Per Share is expected to grow by 3.59% on average over the next years.

The Revenue is expected to grow by 2.79% on average over the next years.

EPS Next Y1.52%

EPS Next 2Y2.62%

EPS Next 3Y2.56%

EPS Next 5Y3.59%

Revenue Next Year5.06%

Revenue Next 2Y4.53%

Revenue Next 3Y1.75%

Revenue Next 5Y2.79%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.39, the valuation of TROW can be described as reasonable.

TROW's Price/Earnings ratio is a bit cheaper when compared to the industry. TROW is cheaper than 64.38% of the companies in the same industry.

TROW is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.

With a Price/Forward Earnings ratio of 11.22, the valuation of TROW can be described as very reasonable.

Based on the Price/Forward Earnings ratio, TROW is valued a bit cheaper than 63.47% of the companies in the same industry.

When comparing the Price/Forward Earnings ratio of TROW to the average of the S&P500 Index (22.68), we can say TROW is valued rather cheaply.

		Industry Rank	Sector Rank
PE	11.39
Fwd PE	11.22

4.2 Price Multiples

TROW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TROW is cheaper than 90.87% of the companies in the same industry.

61.64% of the companies in the same industry are more expensive than TROW, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	14.06
EV/EBITDA	8.13

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

PEG (NY)7.51

PEG (5Y)4.71

EPS Next 2Y2.62%

EPS Next 3Y2.56%

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5. Dividend

5.1 Amount

TROW has a Yearly Dividend Yield of 4.74%, which is a nice return.

TROW's Dividend Yield is comparable with the industry average which is at 10.00.

Compared to an average S&P500 Dividend Yield of 2.29, TROW pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	4.74%

5.2 History

The dividend of TROW is nicely growing with an annual growth rate of 11.74%!

TROW has paid a dividend for at least 10 years, which is a reliable track record.

TROW has decreased its dividend in the last 3 years.

Dividend Growth(5Y)11.74%

Div Incr Years2

Div Non Decr Years2

5.3 Sustainability

The dividend of TROW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.

DP0%

EPS Next 2Y2.62%

EPS Next 3Y2.56%

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T ROWE PRICE GROUP INC

NASDAQ:TROW (2/21/2025, 8:00:01 PM)

After market: 106.35 +0.08 (+0.08%)

106.27

-2.22 (-2.05%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupFinancial Services

GICS IndustryCapital Markets

Earnings (Last)02-05 2025-02-05/bmo

Earnings (Next)04-24 2025-04-24/amc

Inst Owners75.19%

Inst Owner Change2.98%

Ins Owners1.62%

Ins Owner Change1.26%

Market Cap23.70B

Analysts50

Price Target114.71 (7.94%)

Short Float %4.63%

Short Ratio6.75

Dividend

		Industry Rank	Sector Rank
Dividend Yield	4.74%

Yearly Dividend5.01

Dividend Growth(5Y)11.74%

DP0%

Div Incr Years2

Div Non Decr Years2

Ex-Date03-14 2025-03-14 (1.27)

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)1.33%

Min EPS beat(2)-5.31%

Max EPS beat(2)7.98%

EPS beat(4)2

Avg EPS beat(4)3.64%

Min EPS beat(4)-5.31%

Max EPS beat(4)14.18%

EPS beat(8)6

Avg EPS beat(8)6.9%

EPS beat(12)8

Avg EPS beat(12)2.57%

EPS beat(16)10

Avg EPS beat(16)1.76%

Revenue beat(2)0

Avg Revenue beat(2)-4.57%

Min Revenue beat(2)-4.82%

Max Revenue beat(2)-4.33%

Revenue beat(4)1

Avg Revenue beat(4)-3.55%

Min Revenue beat(4)-5.13%

Max Revenue beat(4)0.07%

Revenue beat(8)2

Avg Revenue beat(8)-2.14%

Revenue beat(12)3

Avg Revenue beat(12)-3.03%

Revenue beat(16)3

Avg Revenue beat(16)-2.52%

PT rev (1m)-1.22%

PT rev (3m)1.01%

EPS NQ rev (1m)-3.37%

EPS NQ rev (3m)3.49%

EPS NY rev (1m)-0.96%

EPS NY rev (3m)-0.6%

Revenue NQ rev (1m)-2.12%

Revenue NQ rev (3m)2.55%

Revenue NY rev (1m)-0.91%

Revenue NY rev (3m)-0.79%

Valuation

		Industry Rank	Sector Rank
PE	11.39
Fwd PE	11.22
P/S	3.34
P/FCF	14.06
P/OCF	14.06
P/B	2.29
P/tB	3.23
EV/EBITDA	8.13

EPS(TTM)9.33

EY8.78%

EPS(NY)9.47

Fwd EY8.91%

FCF(TTM)7.56

FCFY7.11%

OCF(TTM)7.56

OCFY7.11%

SpS31.81

BVpS46.39

TBVpS32.89

PEG (NY)7.51

PEG (5Y)4.71

Profitability

		Industry Rank	Sector Rank
ROA	15.17%
ROE	19.76%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	33.77%
PM (TTM)	28.82%
GM	N/A
FCFM	23.76%

ROA(3y)14.15%

ROA(5y)17.62%

ROE(3y)18.44%

ROE(5y)23.71%

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3Y-10.13%

OM growth 5Y-3.75%

PM growth 3Y-9.7%

PM growth 5Y-4.85%

GM growth 3YN/A

GM growth 5YN/A

F-Score6

Asset Turnover0.53

Health

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Debt/EBITDA	0
Cap/Depr	N/A
Cap/Sales	N/A
Interest Coverage	250
Cash Conversion	63.62%
Profit Quality	82.45%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score6

WACCN/A

ROIC/WACCN/A

Cap/Depr(3y)N/A

Cap/Depr(5y)N/A

Cap/Sales(3y)N/A

Cap/Sales(5y)N/A

Profit Quality(3y)91.37%

Profit Quality(5y)91%

High Growth Momentum

Growth

EPS 1Y (TTM)22.76%

EPS 3Y-9.91%

EPS 5Y2.42%

EPS Q2Q%23.26%

EPS Next Y1.52%

EPS Next 2Y2.62%

EPS Next 3Y2.56%

EPS Next 5Y3.59%

Revenue 1Y (TTM)9.8%

Revenue growth 3Y-2.58%

Revenue growth 5Y4.78%

Sales Q2Q%13.9%

Revenue Next Year5.06%

Revenue Next 2Y4.53%

Revenue Next 3Y1.75%

Revenue Next 5Y2.79%

EBIT growth 1Y17.35%

EBIT growth 3Y-12.45%

EBIT growth 5Y0.85%

EBIT Next Year5.77%

EBIT Next 3Y4.08%

EBIT Next 5Y4.53%

FCF growth 1Y84.99%

FCF growth 3Y-19.35%

FCF growth 5Y5.04%

OCF growth 1Y38.27%

OCF growth 3Y-21.25%

OCF growth 5Y2.05%

T ROWE PRICE GROUP INC (TROW) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens