T ROWE PRICE GROUP INC (TROW)
US74144T1088 - Common Stock
We assign a fundamental rating of 7 out of 10 to TROW. TROW was compared to 220 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making TROW a very profitable company, without any liquidiy or solvency issues. TROW has a correct valuation and a medium growth rate. With these ratings, TROW could be worth investigating further for quality investing!.
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.
Each year in the past 5 years TROW has been profitable.
In the past 5 years TROW always reported a positive cash flow from operatings.
1.2 Ratios
TROW's Return On Assets of 14.90% is amongst the best of the industry. TROW outperforms 94.47% of its industry peers.
TROW's Return On Equity of 19.92% is amongst the best of the industry. TROW outperforms 86.18% of its industry peers.
TROW has a Return On Invested Capital of 13.20%. This is amongst the best in the industry. TROW outperforms 88.94% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TROW is significantly above the industry average of 7.00%.
The 3 year average ROIC (18.36%) for TROW is well above the current ROIC(13.20%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.9% | ||
| ROE | 19.92% | ||
| ROIC | 13.2% |
ROA(3y)17.09%
ROA(5y)19.04%
ROE(3y)22.95%
ROE(5y)25.6%
ROIC(3y)18.36%
ROIC(5y)19.05%
1.3 Margins
TROW's Profit Margin of 29.55% is fine compared to the rest of the industry. TROW outperforms 70.97% of its industry peers.
In the last couple of years the Profit Margin of TROW has declined.
TROW's Operating Margin of 31.78% is in line compared to the rest of the industry. TROW outperforms 53.46% of its industry peers.
TROW's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.78% | ||
| PM (TTM) | 29.55% | ||
| GM | N/A |
OM growth 3Y-10.61%
OM growth 5Y-6.27%
PM growth 3Y-10.11%
PM growth 5Y-4.16%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for TROW remains at a similar level compared to 1 year ago.
The number of shares outstanding for TROW has been reduced compared to 5 years ago.
Compared to 1 year ago, TROW has an improved debt to assets ratio.
2.2 Solvency
TROW has an Altman-Z score of 6.63. This indicates that TROW is financially healthy and has little risk of bankruptcy at the moment.
TROW's Altman-Z score of 6.63 is amongst the best of the industry. TROW outperforms 91.71% of its industry peers.
The Debt to FCF ratio of TROW is 0.05, which is an excellent value as it means it would take TROW, only 0.05 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.05, TROW belongs to the best of the industry, outperforming 92.17% of the companies in the same industry.
TROW has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.01, TROW belongs to the top of the industry, outperforming 86.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.63 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TROW has a Current Ratio of 2.78. This indicates that TROW is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.78, TROW is in the better half of the industry, outperforming 76.04% of the companies in the same industry.
TROW has a Quick Ratio of 2.78. This indicates that TROW is financially healthy and has no problem in meeting its short term obligations.
TROW's Quick ratio of 2.78 is fine compared to the rest of the industry. TROW outperforms 76.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.78 |
3. Growth
3.1 Past
TROW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.19%, which is quite good.
Measured over the past 5 years, TROW shows a small growth in Earnings Per Share. The EPS has been growing by 0.95% on average per year.
Looking at the last year, TROW shows a quite strong growth in Revenue. The Revenue has grown by 8.96% in the last year.
The Revenue has been growing slightly by 3.76% on average over the past years.
EPS 1Y (TTM)17.19%
EPS 3Y-7.49%
EPS 5Y0.95%
EPS Q2Q%18.43%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y1.34%
Revenue growth 5Y3.76%
Sales Q2Q%6.88%
3.2 Future
TROW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.19% yearly.
TROW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.09% yearly.
EPS Next Y26.31%
EPS Next 2Y12.16%
EPS Next 3Y9.42%
EPS Next 5Y6.19%
Revenue Next Year10.51%
Revenue Next 2Y7.93%
Revenue Next 3Y6.61%
Revenue Next 5Y3.09%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.00, the valuation of TROW can be described as correct.
60.37% of the companies in the same industry are more expensive than TROW, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.73. TROW is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.15 indicates a correct valuation of TROW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TROW is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, TROW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TROW is valued cheaply inside the industry as 88.02% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TROW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.2 | ||
| EV/EBITDA | 8.92 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TROW may justify a higher PE ratio.
PEG (NY)0.49
PEG (5Y)13.73
EPS Next 2Y12.16%
EPS Next 3Y9.42%
5. Dividend
5.1 Amount
TROW has a Yearly Dividend Yield of 4.10%, which is a nice return.
Compared to an average industry Dividend Yield of 9.13, TROW has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.24, TROW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
On average, the dividend of TROW grows each year by 11.74%, which is quite nice.
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)11.74%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
55.37% of the earnings are spent on dividend by TROW. 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.
DP55.37%
EPS Next 2Y12.16%
EPS Next 3Y9.42%
T ROWE PRICE GROUP INC
NASDAQ:TROW (12/20/2024, 8:00:01 PM)
After market: 116.12 0 (0%)116.12
+3.15 (+2.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners74.12%
Inst Owner Change1.98%
Ins Owners4.02%
Ins Owner Change0.86%
Market Cap25.80B
Analysts50
Price Target115.57 (-0.47%)
Short Float %4.83%
Short Ratio7.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Dividend Growth(5Y)11.74%
DP55.37%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.85%
Min EPS beat(2)-2.27%
Max EPS beat(2)7.98%
EPS beat(4)3
Avg EPS beat(4)6.27%
Min EPS beat(4)-2.27%
Max EPS beat(4)14.18%
EPS beat(8)7
Avg EPS beat(8)7.59%
EPS beat(12)8
Avg EPS beat(12)2.94%
EPS beat(16)11
Avg EPS beat(16)2.54%
Revenue beat(2)0
Avg Revenue beat(2)-4.97%
Min Revenue beat(2)-5.13%
Max Revenue beat(2)-4.82%
Revenue beat(4)1
Avg Revenue beat(4)-3.11%
Min Revenue beat(4)-5.13%
Max Revenue beat(4)0.07%
Revenue beat(8)2
Avg Revenue beat(8)-2%
Revenue beat(12)3
Avg Revenue beat(12)-2.76%
Revenue beat(16)4
Avg Revenue beat(16)-2.16%
PT rev (1m)1.77%
PT rev (3m)-2.41%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)4.72%
EPS NY rev (1m)0.27%
EPS NY rev (3m)3.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.74%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 12.15 | ||
| P/S | 3.73 | ||
| P/FCF | 18.2 | ||
| P/OCF | 14.25 | ||
| P/B | 2.52 | ||
| P/tB | 3.58 | ||
| EV/EBITDA | 8.92 |
EPS(TTM)8.93
EY7.69%
EPS(NY)9.56
Fwd EY8.23%
FCF(TTM)6.38
FCFY5.5%
OCF(TTM)8.15
OCFY7.02%
SpS31.11
BVpS46.13
TBVpS32.46
PEG (NY)0.49
PEG (5Y)13.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.9% | ||
| ROE | 19.92% | ||
| ROCE | 17.94% | ||
| ROIC | 13.2% | ||
| ROICexc | 17.78% | ||
| ROICexgc | 29.65% | ||
| OM | 31.78% | ||
| PM (TTM) | 29.55% | ||
| GM | N/A | ||
| FCFM | 20.51% |
ROA(3y)17.09%
ROA(5y)19.04%
ROE(3y)22.95%
ROE(5y)25.6%
ROIC(3y)18.36%
ROIC(5y)19.05%
ROICexc(3y)21.72%
ROICexc(5y)23.17%
ROICexgc(3y)36.19%
ROICexgc(5y)33.06%
ROCE(3y)25.02%
ROCE(5y)25.86%
ROICexcg growth 3Y-2.37%
ROICexcg growth 5Y-5.03%
ROICexc growth 3Y-13.97%
ROICexc growth 5Y-11.29%
OM growth 3Y-10.61%
OM growth 5Y-6.27%
PM growth 3Y-10.11%
PM growth 5Y-4.16%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 149.96% | ||
| Cap/Sales | 5.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.65% | ||
| Profit Quality | 69.44% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.78 | ||
| Altman-Z | 6.63 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)114.29%
Cap/Depr(5y)112.66%
Cap/Sales(3y)3.85%
Cap/Sales(5y)3.73%
Profit Quality(3y)99.56%
Profit Quality(5y)87.21%
High Growth Momentum
Growth
EPS 1Y (TTM)17.19%
EPS 3Y-7.49%
EPS 5Y0.95%
EPS Q2Q%18.43%
EPS Next Y26.31%
EPS Next 2Y12.16%
EPS Next 3Y9.42%
EPS Next 5Y6.19%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y1.34%
Revenue growth 5Y3.76%
Sales Q2Q%6.88%
Revenue Next Year10.51%
Revenue Next 2Y7.93%
Revenue Next 3Y6.61%
Revenue Next 5Y3.09%
EBIT growth 1Y5.36%
EBIT growth 3Y-9.41%
EBIT growth 5Y-2.75%
EBIT Next Year20.2%
EBIT Next 3Y11.3%
EBIT Next 5Y6.36%
FCF growth 1Y-45.85%
FCF growth 3Y-18.84%
FCF growth 5Y-8.89%
OCF growth 1Y-36.62%
OCF growth 3Y-14.03%
OCF growth 5Y-5.53%