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TROW

T. Rowe Price GroupNasdaqGS:TROW Stock Report

Market Cap

US$44.9b

7D

-4.0%

1Y

37.4%

Updated

30 Nov, 2021

Data

Company Financials +
TROW fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends5/6

TROW Stock Overview

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

T. Rowe Price Group Competitors

Blackstone

NYSE:BX

US$173.1b

BlackRock

NYSE:BLK

US$137.4b

KKR

NYSE:KKR

US$64.2b

Bank of New York Mellon

NYSE:BK

US$45.2b

Price History & Performance

Summary of all time highs, changes and price drops for T. Rowe Price Group
Historical stock prices
Current Share PriceUS$199.95
52 Week HighUS$224.56
52 Week LowUS$144.39
Beta1.22
1 Month Change-7.81%
3 Month Change-9.53%
1 Year Change37.42%
3 Year Change109.88%
5 Year Change162.78%
Change since IPO10,564.00%

Recent News & Updates

Oct 15

T. Rowe Price Is The Ultimate Buffett-Style Rich Retirement Blue Chip

99% of Warren Buffett's incredible wealth was generated following a "wonderful company at a fair price" strategy. The recent market pullback has created numerous opportunities for buying the world's greatest companies at reasonable to attractive valuations. Today TROW is the ultimate Buffett-style rich retirement blue chip. It's a 13/13 Ultra SWAN quality hyper-growth dividend aristocrat with a debt-free balance sheet and some of the best corporate risk management in the industry. TROW is 3% undervalued today, but 15.8% long-term growth means analysts think TROW can deliver 18.1% CAGR long-term returns, just as it has for 31 years when it beat the market by 10X. For anyone comfortable with its risk profile, TROW is as close to a perfect dividend growth investment as exists today. Within a diversified and prudently risk-managed portfolio, it could be just the ticket for achieving your rich retirement dreams.

Oct 01
Does T. Rowe Price Group (NASDAQ:TROW) Deserve A Spot On Your Watchlist?

Does T. Rowe Price Group (NASDAQ:TROW) Deserve A Spot On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Sep 29

T. Rowe Price: Fully Priced But A Solid Business

T. Rowe Price has performed well over the last 4 to 5 years, including so far through the period of the pandemic. A continuation of present P/E levels, and EPS falling within the range of analysts' estimates, should see solid returns through end of 2023. The fallback - even if P/E ratio were to contract to historical levels, low- to mid-single-digit returns are indicated.

Shareholder Returns

TROWUS Capital MarketsUS Market
7D-4.0%-3.7%-2.8%
1Y37.4%44.8%20.0%

Return vs Industry: TROW underperformed the US Capital Markets industry which returned 44.8% over the past year.

Return vs Market: TROW exceeded the US Market which returned 20% over the past year.

Price Volatility

Is TROW's price volatile compared to industry and market?
TROW volatility
TROW Average Weekly Movement3.8%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: TROW is not significantly more volatile than the rest 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.

About the Company

FoundedEmployeesCEOWebsite
19377,124Bill Stromberghttps://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$44.94b
Earnings (TTM)US$3.04b
Revenue (TTM)US$7.44b

14.8x

P/E Ratio

6.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TROW income statement (TTM)
RevenueUS$7.44b
Cost of RevenueUS$2.94b
Gross ProfitUS$4.51b
ExpensesUS$1.46b
EarningsUS$3.04b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)13.54
Gross Margin60.55%
Net Profit Margin40.88%
Debt/Equity Ratio0%

How did TROW perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

31%

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 DateDec 15 2021
Dividend Pay DateDec 30 2021
Days until Ex dividend14 days
Days until Dividend pay date29 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?

36.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TROW ($199.95) is trading below our estimate of fair value ($312.82)

Significantly Below Fair Value: TROW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TROW is poor value based on its PE Ratio (14.8x) compared to the US Capital Markets industry average (14.6x).

PE vs Market: TROW is good value based on its PE Ratio (14.8x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: TROW is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: TROW is good value based on its PB Ratio (5.4x) compared to the US Capital Markets industry average (50x).


Future Growth

How is T. Rowe Price Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TROW's forecast earnings growth (5.4% per year) is above the savings rate (2%).

Earnings vs Market: TROW's earnings (5.4% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: TROW's revenue (6.7% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: TROW's revenue (6.7% 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 (35.2%)


Past Performance

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

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TROW has high quality earnings.

Growing Profit Margin: TROW's current net profit margins (40.9%) are higher than last year (34.9%).


Past Earnings Growth Analysis

Earnings Trend: TROW's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: TROW's earnings growth over the past year (46.6%) exceeds its 5-year average (17.1% per year).

Earnings vs Industry: TROW earnings growth over the past year (46.6%) underperformed the Capital Markets industry 89%.


Return on Equity

High ROE: TROW's Return on Equity (35.2%) is considered high.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: TROW's short term assets ($4.4B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: TROW's short term assets ($4.4B) exceed its long term liabilities ($234.2M).


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


Dividend

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

2.16%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 01 2021Ex Dividend DateDec 15 2021Dividend Pay DateDec 30 202115 days from Ex DividendBuy in the next 14 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: TROW's dividend (2.16%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: TROW's dividend (2.16%) is low compared to the top 25% of dividend payers in the US market (3.63%).


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 (30.9%), 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 (36.8% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Bill Stromberg (61 yo)

5.83yrs

Tenure

US$15,337,274

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 Chief Exe...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD15.34M) is above average for companies of similar size in the US market ($USD11.14M).

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


Leadership Team

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


Board Members

Experienced Board: TROW's board of directors are considered experienced (5.1 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
  • Market Cap: US$44.939b
  • Shares outstanding: 224.75m
  • 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 Analysis2021/11/30 23:52
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.