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T ROWE PRICE GROUP INC (TROW) Stock Fundamental Analysis

NASDAQ:TROW - Nasdaq - US74144T1088 - Common Stock

112.8  -1 (-0.88%)

Fundamental Rating

7

Taking everything into account, TROW scores 7 out of 10 in our fundamental rating. TROW was compared to 224 industry peers in the Capital Markets industry. TROW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TROW has a decent growth rate and is not valued too expensively. This makes TROW very considerable for quality investing!


Dividend Valuation Growth Profitability Health

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7

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.
In the past 5 years TROW has always been profitable.
Each year in the past 5 years TROW had a positive operating cash flow.
TROW Yearly Net Income VS EBIT VS OCF VS FCFTROW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

1.2 Ratios

TROW has a Return On Assets of 14.90%. This is amongst the best in the industry. TROW outperforms 95.43% of its industry peers.
TROW has a better Return On Equity (19.92%) than 87.21% of its industry peers.
With an excellent Return On Invested Capital value of 13.20%, TROW belongs to the best of the industry, outperforming 89.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TROW is significantly above the industry average of 6.66%.
The last Return On Invested Capital (13.20%) for TROW is well below the 3 year average (18.36%), which needs to be investigated, but indicates that TROW had better years and this may not be a problem.
Industry RankSector 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%
TROW Yearly ROA, ROE, ROICTROW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

1.3 Margins

With a decent Profit Margin value of 29.55%, TROW is doing good in the industry, outperforming 71.23% of the companies in the same industry.
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 53.88% of its industry peers.
TROW's Operating Margin has declined in the last couple of years.
Industry RankSector 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
TROW Yearly Profit, Operating, Gross MarginsTROW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

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9

2. Health

2.1 Basic Checks

TROW has about the same amout of shares outstanding than it did 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.
TROW Yearly Shares OutstandingTROW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
TROW Yearly Total Debt VS Total AssetsTROW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

TROW has an Altman-Z score of 6.66. This indicates that TROW is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.66, TROW belongs to the top of the industry, outperforming 89.95% of the companies in the same industry.
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.
TROW has a Debt to FCF ratio of 0.05. This is amongst the best in the industry. TROW outperforms 91.78% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that TROW is not too dependend on debt financing.
The Debt to Equity ratio of TROW (0.01) is better than 86.30% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.05
Altman-Z 6.66
ROIC/WACCN/A
WACCN/A
TROW Yearly LT Debt VS Equity VS FCFTROW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 2.78 indicates that TROW has no problem at all paying 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 74.89% of the companies in the same industry.
A Quick Ratio of 2.78 indicates that TROW has no problem at all paying its short term obligations.
TROW's Quick ratio of 2.78 is fine compared to the rest of the industry. TROW outperforms 74.89% of its industry peers.
Industry RankSector Rank
Current Ratio 2.78
Quick Ratio 2.78
TROW Yearly Current Assets VS Current LiabilitesTROW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 17.19% over the past year.
TROW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.95% yearly.
The Revenue has grown by 8.96% in the past year. This is quite good.
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

Based on estimates for the next years, TROW will show a small growth in Earnings Per Share. The EPS will grow by 6.19% on average per year.
The Revenue is expected to grow by 3.09% on average over the next years.
EPS Next Y26.3%
EPS Next 2Y12.17%
EPS Next 3Y9.45%
EPS Next 5Y6.19%
Revenue Next Year10.57%
Revenue Next 2Y8.11%
Revenue Next 3Y6.73%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
TROW Yearly Revenue VS EstimatesTROW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B
TROW Yearly EPS VS EstimatesTROW Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8 10

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 12.63, the valuation of TROW can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TROW indicates a somewhat cheap valuation: TROW is cheaper than 60.73% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. TROW is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.80, which indicates a very decent valuation of TROW.
61.19% of the companies in the same industry are more expensive than TROW, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.44. TROW is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.63
Fwd PE 11.8
TROW Price Earnings VS Forward Price EarningsTROW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TROW indicates a rather cheap valuation: TROW is cheaper than 89.50% of the companies listed in the same industry.
TROW's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 17.68
EV/EBITDA 9
TROW Per share dataTROW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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.
TROW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.48
PEG (5Y)13.33
EPS Next 2Y12.17%
EPS Next 3Y9.45%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.42%, TROW is a good candidate for dividend investing.
TROW's Dividend Yield is comparable with the industry average which is at 9.45.
Compared to an average S&P500 Dividend Yield of 2.28, TROW pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.42%

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
TROW Yearly Dividends per shareTROW Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6

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.
The dividend of TROW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.37%
EPS Next 2Y12.17%
EPS Next 3Y9.45%
TROW Yearly Income VS Free CF VS DividendTROW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B
TROW Dividend Payout.TROW Dividend Payout, showing the Payout Ratio.TROW Dividend Payout.PayoutRetained Earnings

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T ROWE PRICE GROUP INC

NASDAQ:TROW (1/22/2025, 10:43:48 AM)

112.8

-1 (-0.88%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)11-01 2024-11-01/bmo
Earnings (Next)02-05 2025-02-05/amc
Inst Owners75.19%
Inst Owner Change-0.57%
Ins Owners1.62%
Ins Owner Change0.85%
Market Cap25.06B
Analysts50
Price Target116.12 (2.94%)
Short Float %4.73%
Short Ratio7.2
Dividend
Industry RankSector Rank
Dividend Yield 4.42%
Yearly Dividend5.01
Dividend Growth(5Y)11.74%
DP55.37%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)0.48%
PT rev (3m)0.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.72%
EPS NY rev (1m)0%
EPS NY rev (3m)3.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.74%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.16%
Valuation
Industry RankSector Rank
PE 12.63
Fwd PE 11.8
P/S 3.63
P/FCF 17.68
P/OCF 13.84
P/B 2.45
P/tB 3.48
EV/EBITDA 9
EPS(TTM)8.93
EY7.92%
EPS(NY)9.56
Fwd EY8.48%
FCF(TTM)6.38
FCFY5.66%
OCF(TTM)8.15
OCFY7.22%
SpS31.11
BVpS46.13
TBVpS32.46
PEG (NY)0.48
PEG (5Y)13.33
Profitability
Industry RankSector 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 RankSector 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 6.66
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 Y26.3%
EPS Next 2Y12.17%
EPS Next 3Y9.45%
EPS Next 5Y6.19%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y1.34%
Revenue growth 5Y3.76%
Sales Q2Q%6.88%
Revenue Next Year10.57%
Revenue Next 2Y8.11%
Revenue Next 3Y6.73%
Revenue Next 5Y3.09%
EBIT growth 1Y5.36%
EBIT growth 3Y-9.41%
EBIT growth 5Y-2.75%
EBIT Next Year25.07%
EBIT Next 3Y11.38%
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%