T ROWE PRICE GROUP INC (TROW) Stock Fundamental Analysis
USA - NASDAQ:TROW - US74144T1088 - Common Stock
104.86 USD
+1.17 (+1.13%)
104.86 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TROW. TROW was compared to 237 industry peers in the Capital Markets industry. TROW has an excellent financial health rating, but there are some minor concerns on its profitability. TROW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TROW had positive earnings in the past year.
TROW had a positive operating cash flow in the past year.
In the past 5 years TROW has always been profitable.
In the past 5 years TROW always reported a positive cash flow from operatings.
1.2 Ratios
TROW's Return On Assets of 13.85% is amongst the best of the industry. TROW outperforms 94.94% of its industry peers.
TROW has a Return On Equity of 18.81%. This is amongst the best in the industry. TROW outperforms 86.08% of its industry peers.
TROW has a Return On Invested Capital of 13.25%. This is amongst the best in the industry. TROW outperforms 87.76% of its industry peers.
TROW had an Average Return On Invested Capital over the past 3 years of 15.27%. This is significantly above the industry average of 7.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.85% | ||
| ROE | 18.81% | ||
| ROIC | 13.25% |
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 27.99%, TROW is in the better half of the industry, outperforming 71.31% of the companies in the same industry.
TROW's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 32.45%, TROW perfoms like the industry average, outperforming 56.96% of the companies in the same industry.
In the last couple of years the Operating Margin of TROW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.45% | ||
| PM (TTM) | 27.99% | ||
| 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
TROW has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TROW has been reduced compared to 5 years ago.
TROW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.87 indicates that TROW is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.87, TROW belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
The Debt to FCF ratio of TROW is 0.04, which is an excellent value as it means it would take TROW, only 0.04 years of fcf income to pay off all of its debts.
TROW has a better Debt to FCF ratio (0.04) than 92.41% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that TROW is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, TROW belongs to the top of the industry, outperforming 86.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.87 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TROW has a Current Ratio of 2.81. This indicates that TROW is financially healthy and has no problem in meeting its short term obligations.
TROW has a Current ratio of 2.81. This is amongst the best in the industry. TROW outperforms 80.17% of its industry peers.
TROW has a Quick Ratio of 2.81. This indicates that TROW is financially healthy and has no problem in meeting its short term obligations.
TROW has a better Quick ratio (2.81) than 80.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.81 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.39% over the past year.
The Earnings Per Share has been growing slightly by 2.42% on average over the past years.
TROW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.43%.
The Revenue has been growing slightly by 4.78% on average over the past years.
EPS 1Y (TTM)7.39%
EPS 3Y-9.91%
EPS 5Y2.42%
EPS Q2Q%-0.88%
Revenue 1Y (TTM)4.43%
Revenue growth 3Y-2.58%
Revenue growth 5Y4.78%
Sales Q2Q%-0.58%
3.2 Future
TROW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.10% yearly.
TROW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.47% yearly.
EPS Next Y0.34%
EPS Next 2Y2.53%
EPS Next 3Y2.13%
EPS Next 5Y5.1%
Revenue Next Year1.25%
Revenue Next 2Y3.1%
Revenue Next 3Y2.97%
Revenue Next 5Y1.47%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.45, the valuation of TROW can be described as very reasonable.
67.93% of the companies in the same industry are more expensive than TROW, based on the Price/Earnings ratio.
TROW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
TROW is valuated reasonably with a Price/Forward Earnings ratio of 10.69.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TROW indicates a somewhat cheap valuation: TROW is cheaper than 68.35% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. TROW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 10.69 |
4.2 Price Multiples
TROW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TROW is cheaper than 90.72% of the companies in the same industry.
TROW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.67 | ||
| EV/EBITDA | 7.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TROW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)33.42
PEG (5Y)4.74
EPS Next 2Y2.53%
EPS Next 3Y2.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.81%, TROW is a good candidate for dividend investing.
TROW's Dividend Yield is comparable with the industry average which is at 7.96.
Compared to an average S&P500 Dividend Yield of 2.38, TROW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
5.2 History
The dividend of TROW is nicely growing with an annual growth rate of 10.37%!
TROW has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TROW decreased in the last 3 years.
Dividend Growth(5Y)10.37%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
57.43% 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.
DP57.43%
EPS Next 2Y2.53%
EPS Next 3Y2.13%
104.86
+1.17 (+1.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.48%
Inst Owner Change2.27%
Ins Owners1.67%
Ins Owner Change0.23%
Market Cap23.04B
Analysts49.47
Price Target105.8 (0.9%)
Short Float %4.27%
Short Ratio5.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
Yearly Dividend5.08
Dividend Growth(5Y)10.37%
DP57.43%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.77%
Min EPS beat(2)2.66%
Max EPS beat(2)2.88%
EPS beat(4)3
Avg EPS beat(4)2.05%
Min EPS beat(4)-5.31%
Max EPS beat(4)7.98%
EPS beat(8)6
Avg EPS beat(8)5.63%
EPS beat(12)10
Avg EPS beat(12)5.14%
EPS beat(16)10
Avg EPS beat(16)2.02%
Revenue beat(2)0
Avg Revenue beat(2)-2.59%
Min Revenue beat(2)-2.98%
Max Revenue beat(2)-2.2%
Revenue beat(4)0
Avg Revenue beat(4)-3.58%
Min Revenue beat(4)-4.82%
Max Revenue beat(4)-2.2%
Revenue beat(8)2
Avg Revenue beat(8)-2.63%
Revenue beat(12)3
Avg Revenue beat(12)-1.82%
Revenue beat(16)3
Avg Revenue beat(16)-2.81%
PT rev (1m)0.71%
PT rev (3m)11.74%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)17.01%
EPS NY rev (1m)7.14%
EPS NY rev (3m)11.53%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)6.61%
Revenue NY rev (1m)1.86%
Revenue NY rev (3m)4.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 10.69 | ||
| P/S | 3.25 | ||
| P/FCF | 19.67 | ||
| P/OCF | 15.03 | ||
| P/B | 2.18 | ||
| P/tB | 3.03 | ||
| EV/EBITDA | 7.69 |
EPS(TTM)9.16
EY8.74%
EPS(NY)9.81
Fwd EY9.35%
FCF(TTM)5.33
FCFY5.09%
OCF(TTM)6.98
OCFY6.66%
SpS32.3
BVpS48.06
TBVpS34.59
PEG (NY)33.42
PEG (5Y)4.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.85% | ||
| ROE | 18.81% | ||
| ROCE | 17.79% | ||
| ROIC | 13.25% | ||
| ROICexc | 17.33% | ||
| ROICexgc | 27.49% | ||
| OM | 32.45% | ||
| PM (TTM) | 27.99% | ||
| GM | N/A | ||
| FCFM | 16.51% |
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-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 138.78% | ||
| Cap/Sales | 5.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.81% | ||
| Profit Quality | 58.97% | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.81 | ||
| Altman-Z | 5.87 |
F-Score5
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)7.39%
EPS 3Y-9.91%
EPS 5Y2.42%
EPS Q2Q%-0.88%
EPS Next Y0.34%
EPS Next 2Y2.53%
EPS Next 3Y2.13%
EPS Next 5Y5.1%
Revenue 1Y (TTM)4.43%
Revenue growth 3Y-2.58%
Revenue growth 5Y4.78%
Sales Q2Q%-0.58%
Revenue Next Year1.25%
Revenue Next 2Y3.1%
Revenue Next 3Y2.97%
Revenue Next 5Y1.47%
EBIT growth 1Y5.96%
EBIT growth 3Y-13.78%
EBIT growth 5Y-0.07%
EBIT Next Year-0.8%
EBIT Next 3Y3.03%
EBIT Next 5Y2.47%
FCF growth 1Y-9.3%
FCF growth 3Y-26.76%
FCF growth 5Y-0.86%
OCF growth 1Y-0.36%
OCF growth 3Y-21.25%
OCF growth 5Y2.05%