| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 5/6 |
| Dividends | 5/6 |
TROW Stock Overview
T. Rowe Price Group, Inc. is a publicly owned investment manager.
T. Rowe Price Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$127.77 |
| 52 Week High | US$224.56 |
| 52 Week Low | US$104.72 |
| Beta | 1.31 |
| 1 Month Change | 10.18% |
| 3 Month Change | 3.96% |
| 1 Year Change | -40.73% |
| 3 Year Change | 19.85% |
| 5 Year Change | 52.40% |
| Change since IPO | 6,714.40% |
Recent News & Updates
T. Rowe Price Non-GAAP EPS of $1.79 misses by $0.36, revenue of $1.51B misses by $170M
T. Rowe Price press release (NASDAQ:TROW): Q2 Non-GAAP EPS of $1.79 misses by $0.36. Revenue of $1.51B (-21.8% Y/Y) misses by $170M. Quarter end AUM of $1.31T net client outflows of $14.7B.
Shareholder Returns
| TROW | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | 3.5% | 1.9% | 1.1% |
| 1Y | -40.7% | -17.6% | -13.0% |
Return vs Industry: TROW underperformed the US Capital Markets industry which returned -17.1% over the past year.
Return vs Market: TROW underperformed the US Market which returned -12.9% over the past year.
Price Volatility
| TROW volatility | |
|---|---|
| TROW Average Weekly Movement | 5.7% |
| Capital Markets Industry Average Movement | 0.5% |
| Market Average Movement | 7.9% |
| 10% most volatile stocks in US Market | 17.1% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: TROW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: TROW's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1937 | 7,771 | Rob Sharps | https://www.troweprice.com |
T. Rowe Price Group, Inc. is a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. It launches and manages equity and fixed income mutual funds.
T. Rowe Price Group Fundamentals Summary
| TROW fundamental statistics | |
|---|---|
| Market Cap | US$28.84b |
| Earnings (TTM) | US$2.37b |
| Revenue (TTM) | US$7.29b |
12.2x
P/E Ratio4.0x
P/S RatioIs TROW overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TROW income statement (TTM) | |
|---|---|
| Revenue | US$7.29b |
| Cost of Revenue | US$2.91b |
| Gross Profit | US$4.39b |
| Other Expenses | US$2.02b |
| Earnings | US$2.37b |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 10.49 |
| Gross Margin | 60.14% |
| Net Profit Margin | 32.45% |
| Debt/Equity Ratio | 1.1% |
How did TROW perform over the long term?
See historical performance and comparisonDividends
3.8%
Current Dividend Yield44%
Payout RatioDoes TROW pay a reliable dividends?
See TROW dividend history and benchmarks| T. Rowe Price Group dividend dates | |
|---|---|
| Ex Dividend Date | Sep 14 2022 |
| Dividend Pay Date | Sep 29 2022 |
| Days until Ex dividend | 35 days |
| Days until Dividend pay date | 50 days |
Does TROW pay a reliable dividends?
See TROW dividend history and benchmarksValuation
Is TROW undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for TROW?
Other financial metrics that can be useful for relative valuation.
| What is TROW's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$28.84b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 3.8x |
| Enterprise Value/EBITDA | 7.6x |
| PEG Ratio | 6.7x |
Price to Earnings Ratio vs Peers
How does TROW's PE Ratio compare to its peers?
| TROW PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 10.7x | ||
AMP Ameriprise Financial | 9x | 3.7% | US$29.2b |
STT State Street | 9.8x | 8.1% | US$25.8b |
NTRS Northern Trust | 13.5x | 6.2% | US$20.7b |
BK Bank of New York Mellon | 10.8x | 7.1% | US$34.8b |
TROW T. Rowe Price Group | 12.2x | 1.8% | US$28.8b |
Price-To-Earnings vs Peers: TROW is expensive based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (10.7x).
Price to Earnings Ratio vs Industry
How does TROW's PE Ratio compare vs other companies in the US Capital Markets Industry?
Price-To-Earnings vs Industry: TROW is good value based on its Price-To-Earnings Ratio (12.2x) compared to the US Capital Markets industry average (30.2x)
Price to Earnings Ratio vs Fair Ratio
What is TROW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 12.2x |
| Fair PE Ratio | 13.7x |
Price-To-Earnings vs Fair Ratio: TROW is good value based on its Price-To-Earnings Ratio (12.2x) compared to the estimated Fair Price-To-Earnings Ratio (13.7x).
Share Price vs Fair Value
What is the Fair Price of TROW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: TROW ($127.77) is trading below our estimate of fair value ($200.38)
Significantly Below Fair Value: TROW is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is lower than the current share price.
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Future Growth
How is T. Rowe Price Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Future Growth Score
1/6Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
1.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TROW's forecast earnings growth (1.8% per year) is below the savings rate (1.9%).
Earnings vs Market: TROW's earnings (1.8% per year) are forecast to grow slower than the US market (12.8% per year).
High Growth Earnings: TROW's earnings are forecast to grow, but not significantly.
Revenue vs Market: TROW's revenue (1.9% per year) is forecast to grow slower than the US market (8% per year).
High Growth Revenue: TROW's revenue (1.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TROW's Return on Equity is forecast to be high in 3 years time (20.7%)
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Past Performance
How has T. Rowe Price Group performed over the past 5 years?
Past Performance Score
3/6Past Performance Score 3/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
14.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TROW has high quality earnings.
Growing Profit Margin: TROW's current net profit margins (32.5%) are lower than last year (41.1%).
Past Earnings Growth Analysis
Earnings Trend: TROW's earnings have grown by 14.7% per year over the past 5 years.
Accelerating Growth: TROW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TROW had negative earnings growth (-18.7%) over the past year, making it difficult to compare to the Capital Markets industry average (53.7%).
Return on Equity
High ROE: TROW's Return on Equity (23.5%) is considered high.
Discover strong past performing companies
Financial Health
How is T. Rowe Price Group's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: TROW's short term assets ($2.9B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: TROW's short term assets ($2.9B) exceed its long term liabilities ($441.4M).
Debt to Equity History and Analysis
Debt Level: TROW has more cash than its total debt.
Reducing Debt: Insufficient data to determine if TROW's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: TROW's debt is well covered by operating cash flow (3301.1%).
Interest Coverage: TROW earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
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Dividend
What is T. Rowe Price Group current dividend yield, its reliability and sustainability?
Dividend Score
5/6Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
3.76%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: TROW's dividend (3.76%) is higher than the bottom 25% of dividend payers in the US market (1.52%).
High Dividend: TROW's dividend (3.76%) is low compared to the top 25% of dividend payers in the US market (4.1%).
Stability and Growth of Payments
Stable Dividend: TROW's dividends per share have been stable in the past 10 years.
Growing Dividend: TROW's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (43.7%), TROW's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (34.5%), TROW's dividend payments are well covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Rob Sharps (51 yo)
1.5yrs
Tenure
US$17,586,459
Compensation
Mr. Robert W. Sharps, also known as Rob, C.F.A., C.P.A., serves as Chief Executive Officer at T. Rowe Price Group, Inc. since January 01, 2022 and serves as its President since February 11, 2021. He serves...
CEO Compensation Analysis
Compensation vs Market: Rob's total compensation ($USD17.59M) is above average for companies of similar size in the US market ($USD12.96M).
Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: TROW's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: TROW's board of directors are considered experienced (6.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TROW insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
T. Rowe Price Group, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: T. Rowe Price Group, Inc.
- Ticker: TROW
- Exchange: NasdaqGS
- Founded: 1937
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Implied Market Cap: US$28.837b
- Shares outstanding: 225.69m
- Website: https://www.troweprice.com
Number of Employees
Location
- T. Rowe Price Group, Inc.
- 100 East Pratt Street
- Baltimore
- Maryland
- 21202
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/08 00:00 |
| End of Day Share Price | 2022/08/08 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.