T. Rowe Price Group
Market Cap
US$23.0b
Last Updated
2020/03/30 02:20 UTC
Data Sources
Company Financials +
Executive Summary
T. Rowe Price Group, Inc. is a publicly owned investment manager.
Rewards
Snowflake Analysis
Similar Companies
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
15.2%
TROW
19.7%
US Capital Markets
12.5%
US Market
1 Year Return
-4.7%
TROW
-13.2%
US Capital Markets
-12.7%
US Market
Return vs Industry: TROW exceeded the US Capital Markets industry which returned -13.2% over the past year.
Return vs Market: TROW exceeded the US Market which returned -12.7% over the past year.
Shareholder returns
| TROW | Industry | Market | |
|---|---|---|---|
| 7 Day | 15.2% | 19.7% | 12.5% |
| 30 Day | -16.6% | -16.9% | -14.7% |
| 90 Day | -19.2% | -23.7% | -21.5% |
| 1 Year | -1.9%-4.7% | -11.5%-13.2% | -10.9%-12.7% |
| 3 Year | 56.7%44.3% | 6.8%0.7% | 12.6%5.4% |
| 5 Year | 41.6%19.9% | 32.7%20.3% | 31.9%17.5% |
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
1 year ago | Simply Wall St
T Rowe Price Group Inc (NASDAQ:TROW) Is Trading At A 10.31% Discount1 year ago | Simply Wall St
Is T Rowe Price Group Inc (NASDAQ:TROW) A Sell At Its Current PE Ratio?1 year ago | Simply Wall St
There's An Opportunity With T Rowe Price Group Inc (NASDAQ:TROW)Valuation
Is T. Rowe Price Group undervalued compared to its fair value and its price relative to the market?
45.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TROW ($98.43) is trading below our estimate of fair value ($180.48)
Significantly Below Fair Value: TROW is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TROW is good value based on its PE Ratio (11.2x) compared to the Capital Markets industry average (32.5x).
PE vs Market: TROW is good value based on its PE Ratio (11.2x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: TROW is poor value based on its PEG Ratio (6.8x)
Price to Book Ratio
PB vs Industry: TROW is good value based on its PB Ratio (3.3x) compared to the US Capital Markets industry average (7.2x).
Future Growth
How is T. Rowe Price Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
1.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TROW's forecast earnings growth (1.6% per year) is below the savings rate (1.7%).
Earnings vs Market: TROW's earnings (1.6% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: TROW's earnings are forecast to grow, but not significantly.
Revenue vs Market: TROW's revenue (2% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: TROW's revenue (2% 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 (25.1%)
Past Performance
How has T. Rowe Price Group performed over the past 5 years?
12.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TROW has high quality earnings.
Growing Profit Margin: TROW's current net profit margins (37%) are higher than last year (33.4%).
Past Earnings Growth Analysis
Earnings Trend: TROW's earnings have grown by 12.4% per year over the past 5 years.
Accelerating Growth: TROW's earnings growth over the past year (15.7%) exceeds its 5-year average (12.4% per year).
Earnings vs Industry: TROW earnings growth over the past year (15.7%) exceeded the Capital Markets industry 9.7%.
Return on Equity
High ROE: TROW's Return on Equity (27.3%) is considered high.
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?
3.66%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TROW's dividend (3.66%) is higher than the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: TROW's dividend (3.66%) is low compared to the top 25% of dividend payers in the US market (5.49%).
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 (34.5%), 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 covered by earnings (54.2% payout ratio).
Management
How experienced are the management team and are they aligned to shareholders interests?
3.7yrs
Average management tenure
CEO
Bill Stromberg (59yo)
4.17s
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 ($USD11.74M).
Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 4.17yrs | US$13.09m | 0.42% $96.3m | |
| Former CFO | 2yrs | US$3.75m | 0.00097% $222.8k | |
| Head of Investments | 3yrs | US$12.64m | 0.14% $32.5m | |
| Co-Head of Global Equity & VP | 3.17yrs | US$9.50m | 0.16% $36.5m | |
| Principal Accounting Officer & VP | 10yrs | no data | 0.0048% $1.1m | |
| CTO & Head of Global Technology | no data | no data | no data | |
| Investor Relations Manager | no data | no data | no data | |
| Chief Legal Counsel | 12yrs | no data | 0.042% $9.6m | |
| Head of Global Public Relations & VP | no data | no data | no data | |
| Managing Director of Sales & Client Relations | no data | no data | no data |
3.7yrs
Average Tenure
50yo
Average Age
Experienced Management: TROW's management team is considered experienced (3.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 4.17yrs | US$13.09m | 0.42% $96.3m | |
| Independent Director | 9.5yrs | US$360.19k | 0.0042% $962.4k | |
| Independent Director | 0.75yr | no data | no data | |
| Independent Director | 3.42yrs | US$348.84k | 0.0028% $634.0k | |
| Independent Director | 7.17yrs | US$361.80k | 0.011% $2.5m | |
| Independent Director | 7.42yrs | US$365.53k | no data | |
| Lead Independent Director | 2.17yrs | US$372.13k | no data | |
| Independent Director | 1.92yrs | US$396.41k | no data | |
| Independent Director | 6.25yrs | US$351.11k | 0.0098% $2.2m | |
| Independent Director | 6.75yrs | US$357.66k | 0.0040% $916.5k |
4.8yrs
Average Tenure
65yo
Average Age
Experienced Board: TROW's board of directors are considered experienced (4.8 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 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$22.970b
- Shares outstanding: 233.36m
- Website: https://www.troweprice.com
Number of Employees
Location
- T. Rowe Price Group, Inc.
- 100 East Pratt Street
- Baltimore
- Maryland
- 21202
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TROW | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Apr 1986 |
| TR1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 1986 |
| 0KNY | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Apr 1986 |
| TROW | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Apr 1986 |
| T1RO34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 COM | BR | BRL | Jan 2020 |
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 launches and manages equity and fixed income mutual funds. The firm invests in the public equity and fixed income markets across the globe. It employs fundamental and quantitative analysis with a bottom-up approach. The firm utilizes in-house and external research to make its investments. It employs socially responsible investing with a focus on environmental, social, and governance issues. It makes investment in late-stage venture capital transactions and usually invests between $3 million and $5 million. The firm was previously known as T. Rowe Group, Inc. and T. Rowe Price Associates, Inc. T. Rowe Price Group, Inc. was founded in 1937 and is based in Baltimore, Maryland, with additional offices in Colorado Springs, Colorado; Owings Mills, Maryland; San Francisco, California; Tampa, Florida; Toronto, Ontario; Hellerup, Denmark; Amsterdam, The Netherlands; Luxembourg, Grand Duchy of Luxembourg; Zurich, Switzerland; Dubai, United Arab Emirates; London, United Kingdom; Sydney, New South Wales; Hong Kong; Tokyo, Japan; Singapore; Frankfurt, Germany, Madrid, Spain, Milan, Italy, Stockholm, Sweden, Melbourne, Australia, and Amsterdam, Netherlands.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 02:20 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.