NasdaqGS:TROW

Stock Analysis Report

Executive Summary

T. Rowe Price Group, Inc. is a publicly owned investment manager.

Snowflake


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Share Price & News

How has T. Rowe Price Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TROW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

TROW

1.8%

US Capital Markets

-0.2%

US Market


1 Year Return

27.9%

TROW

12.5%

US Capital Markets

16.1%

US Market

Return vs Industry: TROW exceeded the US Capital Markets industry which returned 12.5% over the past year.

Return vs Market: TROW exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

TROWIndustryMarket
7 Day-0.4%1.8%-0.2%
30 Day11.7%6.7%3.7%
90 Day14.6%10.9%8.5%
1 Year31.6%27.9%15.0%12.5%18.7%16.1%
3 Year76.4%62.6%43.8%35.6%46.9%37.4%
5 Year70.5%45.0%79.0%62.4%61.8%44.0%

Price Volatility Vs. Market

How volatile is T. Rowe Price Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is T. Rowe Price Group undervalued compared to its fair value and its price relative to the market?

23.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TROW ($121.02) is trading below our estimate of fair value ($158.74)

Significantly Below Fair Value: TROW is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TROW is good value based on its PE Ratio (15.2x) compared to the Capital Markets industry average (33x).

PE vs Market: TROW is good value based on its PE Ratio (15.2x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: TROW is poor value based on its PEG Ratio (8.9x)


Price to Book Ratio

PB vs Industry: TROW is good value based on its PB Ratio (4.2x) compared to the US Capital Markets industry average (6.3x).

Future Growth

How is T. Rowe Price Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TROW's forecast earnings growth (1.7% per year) is below the savings rate (2.7%).

Earnings vs Market: TROW's earnings (1.7% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: TROW's earnings are forecast to grow, but not significantly.

Revenue vs Market: TROW's revenue (5.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TROW's revenue (5.1% 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 (26.8%)

Past Performance

How has T. Rowe Price Group performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TROW has high quality earnings.

Growing Profit Margin: TROW's current net profit margins (34.6%) are higher than last year (33.4%).


Past Earnings Growth Analysis

Earnings Trend: TROW's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: TROW's earnings growth over the past year (5.5%) is below its 5-year average (11.4% per year).

Earnings vs Industry: TROW earnings growth over the past year (5.5%) underperformed the Capital Markets industry 20.6%.


Return on Equity

High ROE: TROW's Return on Equity (24.3%) is considered high.


Return on Assets


Return on Capital Employed

Financial Health

How is T. Rowe Price Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: TROW has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if TROW's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: TROW's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if TROW has a sufficient allowance for bad loans.

Low Risk Liabilities: TROW reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if TROW has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TROW has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if TROW has an appropriate level of bad loans.

Dividend

What is T. Rowe Price Group's current dividend yield, its reliability and sustainability?

2.51%

Current Dividend Yield


Upcoming Dividend Payment

Purchase T. Rowe Price Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: TROW's dividend (2.51%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TROW's dividend (2.51%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.4%), TROW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TROW's dividends in 3 years are forecast to be well covered by earnings (34% payout ratio).

Management

What is the CEO of T. Rowe Price Group's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Bill Stromberg (59yo)

3.8yrs

Tenure

US$13,086,753

Compensation

Mr. William J. Stromberg, also known as Bill, CFA is President, Director, Vice President, Head of Equity, Director of Equity Research and Portfolio Manager at T. Rowe Price Associates, Inc. He is President ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD13.09M) is about average for companies of similar size in the US market ($USD11.04M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

50yo

Average Age

Experienced Management: TROW's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

65yo

Average Age

Experienced Board: TROW's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$472,95307 Aug 19
Sebastien Page
EntityIndividual
Shares4,418
Max PriceUS$107.05
SellUS$374,71611 Jun 19
Mary Bush
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$107.06
SellUS$2,158,47029 Apr 19
Edward Bernard
EntityIndividual
Shares20,000
Max PriceUS$107.92
SellUS$263,59714 Mar 19
Robert Sharps
EntityIndividual
Role
Chief Investment Officer
Head of Investments & Group Chief Investment Officer
Shares2,617
Max PriceUS$100.73
SellUS$971,46919 Feb 19
Edward Bernard
EntityIndividual
Shares10,000
Max PriceUS$97.15
SellUS$523,93012 Dec 18
Christopher Alderson
EntityIndividual
Role
Senior Key Executive
Co-Head of Global Equity
Shares5,681
Max PriceUS$92.22

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Tom Pedersen

    Managing Director of Sales & Client Relations

    • Tenure: 0yrs
  • Ed Giltenan

    Head of Global Public Relations & VP

    • Tenure: 0yrs
  • Bill Stromberg (59yo)

    Chairman

    • Tenure: 3.8yrs
    • Compensation: US$13.09m
  • Chris Alderson (57yo)

    Co-Head of Global Equity

    • Tenure: 2.8yrs
    • Compensation: US$9.50m
  • Rob Sharps (48yo)

    Head of Investments & Group Chief Investment Officer

    • Tenure: 2.7yrs
    • Compensation: US$12.64m
  • David Oestreicher (52yo)

    Chief Legal Counsel

    • Tenure: 11.7yrs
  • Jessica Hiebler (43yo)

    Principal Accounting Officer & VP

    • Tenure: 9.7yrs
  • Nigel Faulkner

    CTO & Head of Global Technology

    • Tenure: 0yrs
  • Teresa Whitaker

    Investor Relations Manager

    • Tenure: 0yrs
  • Céline Dufétel (38yo)

    CFO & Treasurer

    • Tenure: 1.8yrs
    • Compensation: US$3.75m

Board Members

  • Rob MacLellan (64yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$360.19k
  • Dina Dublon (66yo)

    Independent Director

    • Tenure: 0.4yrs
  • Sandra Wijnberg (63yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$348.84k
  • Freeman Hrabowski (68yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$361.80k
  • Mary Bush (71yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$365.53k
  • Alan Wilson (61yo)

    Lead Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$372.13k
  • Bill Stromberg (59yo)

    Chairman

    • Tenure: 3.8yrs
    • Compensation: US$13.09m
  • Rich Verma (50yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$396.41k
  • Mark Bartlett (68yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$351.11k
  • Olympia Snowe (72yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$357.66k

Company Information

T. Rowe Price Group, Inc.'s company bio, 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
  • Market Cap: US$28.048b
  • Shares outstanding: 233.68m
  • Website: https://www.troweprice.com

Number of Employees


Location

  • T. Rowe Price Group, Inc.
  • 100 East Pratt Street
  • Baltimore
  • Maryland
  • 21202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TROWNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1986
TR1DB (Deutsche Boerse AG)YesCommon StockDEEURApr 1986
0KNYLSE (London Stock Exchange)YesCommon StockGBUSDApr 1986
TROWWBAG (Wiener Boerse AG)YesCommon StockATEURApr 1986

Biography

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 la ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 23:43
End of Day Share Price2019/11/22 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.