T ROWE PRICE GROUP INC (TROW) Stock Fundamental Analysis
NASDAQ:TROW - Nasdaq - US74144T1088 - Common Stock - Currency: USD
Overall TROW gets a fundamental rating of 6 out of 10. We evaluated TROW against 232 industry peers in the Capital Markets industry. TROW has an excellent financial health rating, but there are some minor concerns on its profitability. TROW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TROW had positive earnings in the past year.
In the past year TROW had a positive cash flow from operations.
Each year in the past 5 years TROW has been profitable.
Each year in the past 5 years TROW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.04%, TROW belongs to the top of the industry, outperforming 95.69% of the companies in the same industry.
TROW has a better Return On Equity (18.90%) than 86.64% of its industry peers.
The Return On Invested Capital of TROW (14.17%) is better than 87.93% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TROW is significantly above the industry average of 7.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.04% | ||
| ROE | 18.9% | ||
| ROIC | 14.17% |
ROA(3y)14.15%
ROA(5y)17.62%
ROE(3y)18.44%
ROE(5y)23.71%
ROIC(3y)15.27%
ROIC(5y)18%
1.3 Margins
Looking at the Profit Margin, with a value of 27.64%, TROW is in the better half of the industry, outperforming 71.55% of the companies in the same industry.
In the last couple of years the Profit Margin of TROW has declined.
The Operating Margin of TROW (33.61%) is better than 60.78% of its industry peers.
TROW's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.61% | ||
| PM (TTM) | 27.64% | ||
| GM | N/A |
OM growth 3Y-11.5%
OM growth 5Y-4.63%
PM growth 3Y-9.7%
PM growth 5Y-4.85%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, TROW has less shares outstanding
The number of shares outstanding for TROW has been reduced compared to 5 years ago.
Compared to 1 year ago, TROW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.78 indicates that TROW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.78, TROW belongs to the top of the industry, outperforming 86.64% of the companies in the same industry.
TROW has a debt to FCF ratio of 0.03. This is a very positive value and a sign of high solvency as it would only need 0.03 years to pay back of all of its debts.
The Debt to FCF ratio of TROW (0.03) is better than 92.24% of its industry peers.
TROW has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
TROW has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. TROW outperforms 85.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 5.78 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TROW has a Current Ratio of 2.61. This indicates that TROW is financially healthy and has no problem in meeting its short term obligations.
TROW's Current ratio of 2.61 is fine compared to the rest of the industry. TROW outperforms 77.16% of its industry peers.
A Quick Ratio of 2.61 indicates that TROW has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.61, TROW is in the better half of the industry, outperforming 77.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.74% over the past year.
TROW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.42% yearly.
The Revenue has been growing slightly by 6.51% in the past year.
Measured over the past years, TROW shows a small growth in Revenue. The Revenue has been growing by 4.78% on average per year.
EPS 1Y (TTM)10.74%
EPS 3Y-9.91%
EPS 5Y2.42%
EPS Q2Q%-6.3%
Revenue 1Y (TTM)6.51%
Revenue growth 3Y-2.58%
Revenue growth 5Y4.78%
Sales Q2Q%0.78%
3.2 Future
TROW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.23% yearly.
The Revenue is expected to grow by 1.03% on average over the next years.
EPS Next Y-9.41%
EPS Next 2Y-3.61%
EPS Next 3Y-1.14%
EPS Next 5Y4.23%
Revenue Next Year-2.57%
Revenue Next 2Y-0.03%
Revenue Next 3Y0.97%
Revenue Next 5Y1.03%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TROW is valuated reasonably with a Price/Earnings ratio of 10.34.
Compared to the rest of the industry, the Price/Earnings ratio of TROW indicates a somewhat cheap valuation: TROW is cheaper than 70.69% of the companies listed in the same industry.
TROW is valuated cheaply when we compare the Price/Earnings ratio to 26.69, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.95, which indicates a very decent valuation of TROW.
Based on the Price/Forward Earnings ratio, TROW is valued a bit cheaper than the industry average as 65.09% of the companies are valued more expensively.
TROW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.34 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TROW is valued cheaper than 92.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TROW is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.36 | ||
| EV/EBITDA | 6.84 |
4.3 Compensation for Growth
TROW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.28
EPS Next 2Y-3.61%
EPS Next 3Y-1.14%
5. Dividend
5.1 Amount
TROW has a Yearly Dividend Yield of 5.51%, which is a nice return.
Compared to an average industry Dividend Yield of 8.07, TROW has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, TROW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
5.2 History
On average, the dividend of TROW grows each year by 10.37%, which is quite nice.
TROW has paid a dividend for at least 10 years, which is a reliable track record.
TROW has decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.37%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
57.96% of the earnings are spent on dividend by TROW. This is a bit on the high side, but may be sustainable.
TROW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP57.96%
EPS Next 2Y-3.61%
EPS Next 3Y-1.14%
94.95
-0.15 (-0.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.73%
Inst Owner Change1.18%
Ins Owners1.67%
Ins Owner Change0.64%
Market Cap20.92B
Analysts50
Price Target95.2 (0.26%)
Short Float %4.54%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
Yearly Dividend5.08
Dividend Growth(5Y)10.37%
DP57.96%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.33%
Min EPS beat(2)-5.31%
Max EPS beat(2)2.66%
EPS beat(4)2
Avg EPS beat(4)0.76%
Min EPS beat(4)-5.31%
Max EPS beat(4)7.98%
EPS beat(8)6
Avg EPS beat(8)7.08%
EPS beat(12)9
Avg EPS beat(12)3.35%
EPS beat(16)10
Avg EPS beat(16)1.9%
Revenue beat(2)0
Avg Revenue beat(2)-3.65%
Min Revenue beat(2)-4.33%
Max Revenue beat(2)-2.98%
Revenue beat(4)0
Avg Revenue beat(4)-4.31%
Min Revenue beat(4)-5.13%
Max Revenue beat(4)-2.98%
Revenue beat(8)2
Avg Revenue beat(8)-2.39%
Revenue beat(12)3
Avg Revenue beat(12)-2.9%
Revenue beat(16)3
Avg Revenue beat(16)-2.69%
PT rev (1m)1.82%
PT rev (3m)-14.63%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-13.12%
EPS NY rev (1m)0.69%
EPS NY rev (3m)-10.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.2%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-6.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.34 | ||
| Fwd PE | 10.95 | ||
| P/S | 2.94 | ||
| P/FCF | 16.36 | ||
| P/OCF | 12.44 | ||
| P/B | 2.01 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | 6.84 |
EPS(TTM)9.18
EY9.67%
EPS(NY)8.67
Fwd EY9.13%
FCF(TTM)5.8
FCFY6.11%
OCF(TTM)7.63
OCFY8.04%
SpS32.26
BVpS47.18
TBVpS33.62
PEG (NY)N/A
PEG (5Y)4.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.04% | ||
| ROE | 18.9% | ||
| ROCE | 19.03% | ||
| ROIC | 14.17% | ||
| ROICexc | 18.29% | ||
| ROICexgc | 29.81% | ||
| OM | 33.61% | ||
| PM (TTM) | 27.64% | ||
| GM | N/A | ||
| FCFM | 17.99% |
ROA(3y)14.15%
ROA(5y)17.62%
ROE(3y)18.44%
ROE(5y)23.71%
ROIC(3y)15.27%
ROIC(5y)18%
ROICexc(3y)18.71%
ROICexc(5y)21.89%
ROICexgc(3y)30.22%
ROICexgc(5y)33.06%
ROCE(3y)20.58%
ROCE(5y)24.24%
ROICexcg growth 3Y-16.2%
ROICexcg growth 5Y-1.08%
ROICexc growth 3Y-13.37%
ROICexc growth 5Y-6.73%
OM growth 3Y-11.5%
OM growth 5Y-4.63%
PM growth 3Y-9.7%
PM growth 5Y-4.85%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 157.94% | ||
| Cap/Sales | 5.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.6% | ||
| Profit Quality | 65.07% | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.61 | ||
| Altman-Z | 5.78 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)130.91%
Cap/Depr(5y)124.54%
Cap/Sales(3y)4.8%
Cap/Sales(5y)4.19%
Profit Quality(3y)84.47%
Profit Quality(5y)86.86%
High Growth Momentum
Growth
EPS 1Y (TTM)10.74%
EPS 3Y-9.91%
EPS 5Y2.42%
EPS Q2Q%-6.3%
EPS Next Y-9.41%
EPS Next 2Y-3.61%
EPS Next 3Y-1.14%
EPS Next 5Y4.23%
Revenue 1Y (TTM)6.51%
Revenue growth 3Y-2.58%
Revenue growth 5Y4.78%
Sales Q2Q%0.78%
Revenue Next Year-2.57%
Revenue Next 2Y-0.03%
Revenue Next 3Y0.97%
Revenue Next 5Y1.03%
EBIT growth 1Y11.46%
EBIT growth 3Y-13.78%
EBIT growth 5Y-0.07%
EBIT Next Year-6.5%
EBIT Next 3Y0.33%
EBIT Next 5Y1.49%
FCF growth 1Y-16.14%
FCF growth 3Y-26.76%
FCF growth 5Y-0.86%
OCF growth 1Y-4.89%
OCF growth 3Y-21.25%
OCF growth 5Y2.05%