T. Rowe Price Group (NasdaqGS:TROW) - Share price, News & Analysis

TROW fundamental analysis
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.

Rewards

Trading at 55% below our estimate of its fair value

Earnings have grown 16.5% per year over the past 5 years

Pays a reliable dividend of 3.96%

Risk Analysis

Significant insider selling over the past 3 months

T. Rowe Price Group Competitors

Blackstone

NYSE:BX

US$125.9b

BlackRock

NYSE:BLK

US$93.2b

KKR

NYSE:KKR

US$43.9b

Bank of New York Mellon

NYSE:BK

US$35.1b

Price History & Performance

Summary of all time highs, changes and price drops for T. Rowe Price Group
Historical stock prices
Current Share Price	US$121.09
52 Week High	US$224.56
52 Week Low	US$112.65
Beta	1.34
1 Month Change	-12.86%
3 Month Change	-17.39%
1 Year Change	-36.76%
3 Year Change	16.29%
5 Year Change	69.83%
Change since IPO	6,358.13%

Recent News & Updates

May 11

Should You Be Adding T. Rowe Price Group (NASDAQ:TROW) To Your Watchlist Today?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

	TROW	US Capital Markets	US Market
7D	-1.1%	-1.7%	-2.5%
1Y	-36.8%	-14.2%	-10.4%

Return vs Industry: TROW underperformed the US Capital Markets industry which returned -14.2% over the past year.

Return vs Market: TROW underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is TROW's price volatile compared to industry and market?
TROW volatility
TROW Average Weekly Movement	5.6%
Capital Markets Industry Average Movement	0.4%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	2.8%

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	7,573	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

How do T. Rowe Price Group's earnings and revenue compare to its market cap?
TROW fundamental statistics
Market Cap	US$27.72b
Earnings (TTM)	US$2.83b
Revenue (TTM)	US$7.71b

9.7x

P/E Ratio

3.6x

P/S Ratio

Is TROW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TROW income statement (TTM)
Revenue	US$7.71b
Cost of Revenue	US$3.03b
Gross Profit	US$4.68b
Other Expenses	US$1.85b
Earnings	US$2.83b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	12.44
Gross Margin	60.68%
Net Profit Margin	36.69%
Debt/Equity Ratio	1.1%

How did TROW perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

36%

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 Date	Jun 14 2022
Dividend Pay Date	Jun 29 2022
Days until Ex dividend	28 days
Days until Dividend pay date	43 days

Does TROW pay a reliable dividends?

See TROW dividend history and benchmarks

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: TROW ($121.09) is trading below our estimate of fair value ($268.9)

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 (9.7x) compared to the US Capital Markets industry average (35.4x).

PE vs Market: TROW is good value based on its PE Ratio (9.7x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: TROW is poor value based on its PEG Ratio (5.2x)

Price to Book Ratio

PB vs Industry: TROW is overvalued based on its PB Ratio (3x) compared to the US Capital Markets industry average (-16.2x).

Future Growth

How is T. Rowe Price Group forecast to perform in the next 1 to 3 years based on estimates from 8 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

1.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TROW's forecast earnings growth (1.9% per year) is below the savings rate (1.9%).

Earnings vs Market: TROW's earnings (1.9% per year) are forecast to grow slower than the US market (12.6% per year).

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

Revenue vs Market: TROW's revenue (0.5% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: TROW's revenue (0.5% 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 (22.5%)

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

16.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TROW has high quality earnings.

Growing Profit Margin: TROW's current net profit margins (36.7%) are lower than last year (41.1%).

Past Earnings Growth Analysis

Earnings Trend: TROW's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: TROW's earnings growth over the past year (4.6%) is below its 5-year average (16.5% per year).

Earnings vs Industry: TROW earnings growth over the past year (4.6%) underperformed the Capital Markets industry 47.5%.

Return on Equity

High ROE: TROW's Return on Equity (28.2%) is considered high.

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 ($1.7B).

Long Term Liabilities: TROW's short term assets ($2.9B) exceed its long term liabilities ($514.1M).

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 (3275.7%).

Interest Coverage: TROW earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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
Future Dividend Coverage

3.96%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: TROW's dividend (3.96%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: TROW's dividend (3.96%) is low compared to the top 25% of dividend payers in the US market (4.05%).

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 (35.6%), TROW's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (32.8%), TROW's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Diversified Financials industry.

Management

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

1.0yrs

Average management tenure

CEO

Rob Sharps (50 yo)

1.25yrs

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 ($USD17.59M) is above average for companies of similar size in the US market ($USD13.26M).

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 years average tenure), which suggests a new team.

Board Members

Experienced Board: TROW's board of directors are considered experienced (6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31