T ROWE PRICE GROUP INC (TROW) Stock Fundamental Analysis
NASDAQ:TROW - Nasdaq - US74144T1088 - Common Stock - Currency: USD
Overall TROW gets a fundamental rating of 7 out of 10. We evaluated TROW against 227 industry peers in the Capital Markets industry. While TROW has a great health rating, its profitability is only average at the moment. TROW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TROW was profitable.
In the past year TROW had a positive cash flow from operations.
TROW had positive earnings in each of the past 5 years.
Each year in the past 5 years TROW had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 15.17%, TROW belongs to the best of the industry, outperforming 96.48% of the companies in the same industry.
With an excellent Return On Equity value of 19.76%, TROW belongs to the best of the industry, outperforming 87.22% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.11%, TROW belongs to the best of the industry, outperforming 89.43% of the companies in the same industry.
TROW had an Average Return On Invested Capital over the past 3 years of 15.27%. This is significantly above the industry average of 7.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.17% | ||
| ROE | 19.76% | ||
| ROIC | 14.11% |
ROA(3y)14.15%
ROA(5y)17.62%
ROE(3y)18.44%
ROE(5y)23.71%
ROIC(3y)15.27%
ROIC(5y)18%
1.3 Margins
Looking at the Profit Margin, with a value of 28.82%, TROW is in the better half of the industry, outperforming 68.72% of the companies in the same industry.
TROW's Profit Margin has declined in the last couple of years.
TROW has a better Operating Margin (33.52%) than 60.35% of its industry peers.
In the last couple of years the Operating Margin of TROW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.52% | ||
| PM (TTM) | 28.82% | ||
| GM | N/A |
OM growth 3Y-11.5%
OM growth 5Y-4.63%
PM growth 3Y-9.7%
PM growth 5Y-4.85%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for TROW has been reduced compared to 1 year ago.
Compared to 5 years ago, TROW has less shares outstanding
The debt/assets ratio for TROW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.06 indicates that TROW is not in any danger for bankruptcy at the moment.
TROW has a better Altman-Z score (6.06) than 89.43% of its industry peers.
TROW has a debt to FCF ratio of 0.05. This is a very positive value and a sign of high solvency as it would only need 0.05 years to pay back of all of its debts.
The Debt to FCF ratio of TROW (0.05) is better than 91.63% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that TROW is not too dependend on debt financing.
TROW has a better Debt to Equity ratio (0.01) than 85.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TROW has a Current Ratio of 3.76. This indicates that TROW is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TROW (3.76) is better than 83.26% of its industry peers.
A Quick Ratio of 3.76 indicates that TROW has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.76, TROW belongs to the top of the industry, outperforming 83.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.76 | ||
| Quick Ratio | 3.76 |
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.
The Earnings Per Share has been growing slightly by 2.42% on average over the past years.
The Revenue has grown by 9.80% in the past year. This is quite good.
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
Based on estimates for the next years, TROW will show a small growth in Earnings Per Share. The EPS will grow by 3.59% on average per year.
The Revenue is expected to grow by 2.79% on average over the next years.
EPS Next Y0.7%
EPS Next 2Y2.4%
EPS Next 3Y2.55%
EPS Next 5Y3.59%
Revenue Next Year1.71%
Revenue Next 2Y2.61%
Revenue Next 3Y2.27%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TROW is valuated reasonably with a Price/Earnings ratio of 9.23.
Based on the Price/Earnings ratio, TROW is valued a bit cheaper than 71.37% of the companies in the same industry.
TROW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 9.17, which indicates a very decent valuation of TROW.
Based on the Price/Forward Earnings ratio, TROW is valued a bit cheaper than the industry average as 68.28% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TROW to the average of the S&P500 Index (21.08), we can say TROW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.23 | ||
| Fwd PE | 9.17 |
4.2 Price Multiples
91.63% of the companies in the same industry are more expensive than TROW, based on the Enterprise Value to EBITDA ratio.
63.88% 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 | 15.16 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TROW may justify a higher PE ratio.
PEG (NY)13.17
PEG (5Y)3.82
EPS Next 2Y2.4%
EPS Next 3Y2.55%
5. Dividend
5.1 Amount
TROW has a Yearly Dividend Yield of 5.91%, which is a nice return.
In the last 3 months the price of TROW has falen by -23.94%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TROW's Dividend Yield is comparable with the industry average which is at 8.84.
TROW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
5.2 History
The dividend of TROW is nicely growing with an annual growth rate of 10.37%!
TROW has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TROW decreased in the last 3 years.
Dividend Growth(5Y)10.37%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TROW pays out 55.55% of its income as dividend. This is a bit on the high side, but may be sustainable.
TROW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.55%
EPS Next 2Y2.4%
EPS Next 3Y2.55%
86.11
+0.74 (+0.87%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.04%
Inst Owner Change0%
Ins Owners1.67%
Ins Owner Change1.25%
Market Cap19.14B
Analysts50
Price Target108.97 (26.55%)
Short Float %4.15%
Short Ratio5.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
Yearly Dividend5.08
Dividend Growth(5Y)10.37%
DP55.55%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-2.29%
PT rev (3m)-6.16%
EPS NQ rev (1m)-3.15%
EPS NQ rev (3m)-7.24%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-3.01%
Revenue NY rev (1m)-2.37%
Revenue NY rev (3m)-4.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.23 | ||
| Fwd PE | 9.17 | ||
| P/S | 2.7 | ||
| P/FCF | 15.16 | ||
| P/OCF | 11.35 | ||
| P/B | 1.85 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 6.26 |
EPS(TTM)9.33
EY10.83%
EPS(NY)9.4
Fwd EY10.91%
FCF(TTM)5.68
FCFY6.6%
OCF(TTM)7.58
OCFY8.81%
SpS31.92
BVpS46.55
TBVpS33
PEG (NY)13.17
PEG (5Y)3.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.17% | ||
| ROE | 19.76% | ||
| ROCE | 18.97% | ||
| ROIC | 14.11% | ||
| ROICexc | 17.88% | ||
| ROICexgc | 28.45% | ||
| OM | 33.52% | ||
| PM (TTM) | 28.82% | ||
| GM | N/A | ||
| FCFM | 17.79% |
ROA(3y)14.15%
ROA(5y)17.62%
ROE(3y)18.44%
ROE(5y)23.71%
ROIC(3y)15.27%
ROIC(5y)18%
ROICexc(3y)18.71%
ROICexc(5y)21.89%
ROICexgc(3y)30.22%
ROICexgc(5y)33.06%
ROCE(3y)20.58%
ROCE(5y)24.24%
ROICexcg growth 3Y-16.2%
ROICexcg growth 5Y-1.08%
ROICexc growth 3Y-13.37%
ROICexc growth 5Y-6.73%
OM growth 3Y-11.5%
OM growth 5Y-4.63%
PM growth 3Y-9.7%
PM growth 5Y-4.85%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 166.63% | ||
| Cap/Sales | 5.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.04% | ||
| Profit Quality | 61.74% | ||
| Current Ratio | 3.76 | ||
| Quick Ratio | 3.76 | ||
| Altman-Z | 6.06 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)130.91%
Cap/Depr(5y)124.54%
Cap/Sales(3y)4.8%
Cap/Sales(5y)4.19%
Profit Quality(3y)84.47%
Profit Quality(5y)86.86%
High Growth Momentum
Growth
EPS 1Y (TTM)22.76%
EPS 3Y-9.91%
EPS 5Y2.42%
EPS Q2Q%23.26%
EPS Next Y0.7%
EPS Next 2Y2.4%
EPS Next 3Y2.55%
EPS Next 5Y3.59%
Revenue 1Y (TTM)9.8%
Revenue growth 3Y-2.58%
Revenue growth 5Y4.78%
Sales Q2Q%13.9%
Revenue Next Year1.71%
Revenue Next 2Y2.61%
Revenue Next 3Y2.27%
Revenue Next 5Y2.79%
EBIT growth 1Y16.51%
EBIT growth 3Y-13.78%
EBIT growth 5Y-0.07%
EBIT Next Year3.67%
EBIT Next 3Y4.03%
EBIT Next 5Y4.53%
FCF growth 1Y38.52%
FCF growth 3Y-26.76%
FCF growth 5Y-0.86%
OCF growth 1Y38.27%
OCF growth 3Y-21.25%
OCF growth 5Y2.05%