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TROW

T. Rowe Price Group NasdaqGS:TROW Stock Report

Last Price

US$127.77

Market Cap

US$28.8b

7D

3.5%

1Y

-40.7%

Updated

08 Aug, 2022

Data

Company Financials +
TROW fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health5/6
Dividends5/6

TROW Stock Overview

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

T. Rowe Price Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for T. Rowe Price Group
Historical stock prices
Current Share PriceUS$127.77
52 Week HighUS$224.56
52 Week LowUS$104.72
Beta1.31
1 Month Change10.18%
3 Month Change3.96%
1 Year Change-40.73%
3 Year Change19.85%
5 Year Change52.40%
Change since IPO6,714.40%

Recent News & Updates

Jul 28

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

TROWUS Capital MarketsUS Market
7D3.5%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

Is TROW's price volatile compared to industry and market?
TROW volatility
TROW Average Weekly Movement5.7%
Capital Markets Industry Average Movement0.5%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

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

FoundedEmployeesCEOWebsite
19377,771Rob Sharpshttps://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

How do T. Rowe Price Group's earnings and revenue compare to its market cap?
TROW fundamental statistics
Market CapUS$28.84b
Earnings (TTM)US$2.37b
Revenue (TTM)US$7.29b

12.2x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TROW income statement (TTM)
RevenueUS$7.29b
Cost of RevenueUS$2.91b
Gross ProfitUS$4.39b
Other ExpensesUS$2.02b
EarningsUS$2.37b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)10.49
Gross Margin60.14%
Net Profit Margin32.45%
Debt/Equity Ratio1.1%

How did TROW perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

44%

Payout Ratio

Does TROW pay a reliable dividends?

See TROW dividend history and benchmarks
When do you need to buy TROW by to receive an upcoming dividend?
T. Rowe Price Group dividend dates
Ex Dividend DateSep 14 2022
Dividend Pay DateSep 29 2022
Days until Ex dividend35 days
Days until Dividend pay date50 days

Does TROW pay a reliable dividends?

See TROW dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is TROW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation 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.

TROW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.8x
Enterprise Value/EBITDA7.6x
PEG Ratio6.7x

Price to Earnings Ratio vs Peers

How does TROW's PE Ratio compare to its peers?

TROW PE Ratio vs Peers
The above table shows the PE ratio for TROW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.7x
AMP Ameriprise Financial
9x3.7%US$29.2b
STT State Street
9.8x8.1%US$25.8b
NTRS Northern Trust
13.5x6.2%US$20.7b
BK Bank of New York Mellon
10.8x7.1%US$34.8b
TROW T. Rowe Price Group
12.2x1.8%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.

TROW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.2x
Fair PE Ratio13.7x

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

1/6

Future 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

3/6

Past 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.


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Financial Health

How is T. Rowe Price Group's financial position?

Financial Health Score

5/6

Financial 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

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.76%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 09 2022Ex Dividend DateSep 14 2022Dividend Pay DateSep 29 202215 days from Ex DividendBuy in the next 35 days to receive the upcoming dividend

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/08 00:00
End of Day Share Price2022/08/08 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.