NasdaqGS:TROW

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TROW's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

4.7%

TROW

1.3%

US Capital Markets

0.9%

US Market


1 Year Return

23.1%

TROW

13.9%

US Capital Markets

22.1%

US Market

Return vs Industry: TROW exceeded the US Capital Markets industry which returned 13.9% over the past year.

Return vs Market: TROW exceeded the US Market which returned 22.1% over the past year.


Shareholder returns

TROWIndustryMarket
7 Day4.7%1.3%0.9%
30 Day12.3%13.3%10.2%
90 Day15.3%13.5%9.7%
1 Year26.9%23.1%16.9%13.9%24.8%22.1%
3 Year61.3%48.4%30.4%20.3%48.6%38.7%
5 Year148.4%115.4%93.2%69.1%99.6%77.6%

Long-Term 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?

17.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TROW ($152.53) is trading below our estimate of fair value ($183.92)

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 (16.9x) compared to the US Capital Markets industry average (23.5x).

PE vs Market: TROW is good value based on its PE Ratio (16.9x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: TROW is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: TROW is overvalued based on its PB Ratio (4.8x) compared to the US Capital Markets industry average (4.5x).


Next Steps

Future Growth

How is T. Rowe Price Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TROW's forecast earnings growth (8% per year) is above the savings rate (2.2%).

Earnings vs Market: TROW's earnings (8% per year) are forecast to grow slower than the US market (21.9% per year).

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

Revenue vs Market: TROW's revenue (7.8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: TROW's revenue (7.8% 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 (30.9%)


Next Steps

Past Performance

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

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TROW has high quality earnings.

Growing Profit Margin: TROW's current net profit margins (34.9%) are higher than last year (34.6%).


Past Earnings Growth Analysis

Earnings Trend: TROW's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: TROW's earnings growth over the past year (9.8%) is below its 5-year average (13.4% per year).

Earnings vs Industry: TROW earnings growth over the past year (9.8%) exceeded the Capital Markets industry 5%.


Return on Equity

High ROE: TROW's Return on Equity (25.8%) is considered high.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: TROW's short term assets ($2.9B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: TROW's short term assets ($2.9B) exceed its long term liabilities ($221.8M).


Debt to Equity History and Analysis

Debt Level: TROW is debt free.

Reducing Debt: TROW has not had any debt for past 5 years.

Debt Coverage: TROW has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TROW has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is T. Rowe Price Group current dividend yield, its reliability and sustainability?

2.36%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: TROW's dividend (2.36%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: TROW's dividend (2.36%) 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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.4%), 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 (32.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Bill Stromberg (60 yo)

4.92yrs

Tenure

US$14,588,346

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 ($USD14.59M) is above average for companies of similar size in the US market ($USD10.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Stromberg
Chairman4.92yrsUS$14.59m0.46%
$ 158.5m
Céline Dufétel
CFO, Treasurer & VP2.83yrsUS$6.08m0.0010%
$ 345.4k
Robert Sharps
Head of Investments3.75yrsUS$14.09m0.22%
$ 75.2m
Christopher Alderson
Head of International Equity3.92yrsUS$10.04m0.14%
$ 49.7m
Eric Veiel
Co-head of Global Equity14.92yrsUS$10.59m0.076%
$ 26.3m
Jessica Hiebler
Principal Accounting Officer & VP10.75yrsno data0.0050%
$ 1.7m
Nigel Faulkner
CTO & Head of Global Technologyno datano datano data
Teresa Whitaker
Investor Relations Managerno datano datano data
David Oestreicher
Chief Legal Counsel12.75yrsno data0.039%
$ 13.6m
Edward Giltenan
Head of Global Public Relations & VPno datano datano data
Thomas Pedersen
Managing Director of Sales & Client Relationsno datano datano data
Donna Anderson
VP & Head of Global Corporate Governanceno datano datano data

4.9yrs

Average Tenure

49yo

Average Age

Experienced Management: TROW's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Stromberg
Chairman4.92yrsUS$14.59m0.46%
$ 158.5m
Robert MacLellan
Independent Director10.25yrsUS$347.22k0.011%
$ 3.7m
Robert Stevens
Independent Director1.5yrsUS$376.85kno data
Sandra Wijnberg
Independent Director4.17yrsUS$345.71k0.0029%
$ 984.3k
Freeman Hrabowski
Independent Director7.92yrsUS$365.79k0.011%
$ 3.9m
Mary Bush
Independent Director8.17yrsUS$369.79k0.0071%
$ 2.5m
Alan Wilson
Lead Independent Director2.92yrsUS$375.20k0%
$ 0
Richard Verma
Independent Director2.67yrsUS$334.00k0%
$ 0
Mark Bartlett
Independent Director7yrsUS$346.50k0.011%
$ 3.8m
Olympia Snowe
Independent Director7.5yrsUS$365.44k0.0041%
$ 1.4m

5.6yrs

Average Tenure

67yo

Average Age

Experienced Board: TROW's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$34.538b
  • Shares outstanding: 226.43m
  • 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
TR1ETLX (Eurotlx)YesCommon StockITEURApr 1986
T1RO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 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 la...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 23:34
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.