T ROWE PRICE GROUP INC (TROW)
US74144T1088 - Common Stock
Taking everything into account, TROW scores 6 out of 10 in our fundamental rating. TROW was compared to 209 industry peers in the Capital Markets industry. TROW has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TROW is valued correctly, but it does not seem to be growing.
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.
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
TROW's Return On Assets of 14.21% is amongst the best of the industry. TROW outperforms 95.65% of its industry peers.
The Return On Equity of TROW (18.35%) is better than 83.09% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.33%, TROW belongs to the top of the industry, outperforming 87.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TROW is significantly above the industry average of 8.35%.
The last Return On Invested Capital (13.33%) for TROW is well below the 3 year average (18.36%), which needs to be investigated, but indicates that TROW had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.21% | ||
| ROE | 18.35% | ||
| ROIC | 13.33% |
ROA(3y)17.09%
ROA(5y)19.04%
ROE(3y)22.95%
ROE(5y)25.6%
ROIC(3y)18.36%
ROIC(5y)19.05%
1.3 Margins
TROW has a better Profit Margin (27.00%) than 62.32% of its industry peers.
TROW's Profit Margin has declined in the last couple of years.
The Operating Margin of TROW (31.60%) is comparable to the rest of the industry.
TROW's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.6% | ||
| PM (TTM) | 27% | ||
| GM | N/A |
OM growth 3Y-10.61%
OM growth 5Y-6.27%
PM growth 3Y-10.11%
PM growth 5Y-4.16%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
TROW has about the same amout of shares outstanding than it did 1 year ago.
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 7.55 indicates that TROW is not in any danger for bankruptcy at the moment.
TROW has a better Altman-Z score (7.55) than 93.24% of its industry peers.
TROW has a debt to FCF ratio of 0.10. This is a very positive value and a sign of high solvency as it would only need 0.10 years to pay back of all of its debts.
TROW's Debt to FCF ratio of 0.10 is amongst the best of the industry. TROW outperforms 91.30% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that TROW is not too dependend on debt financing.
The Debt to Equity ratio of TROW (0.01) is better than 85.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.1 | ||
| Altman-Z | 7.55 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TROW has a Current Ratio of 2.80. This indicates that TROW is financially healthy and has no problem in meeting its short term obligations.
TROW has a Current ratio of 2.80. This is in the better half of the industry: TROW outperforms 74.88% of its industry peers.
A Quick Ratio of 2.80 indicates that TROW has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.80, TROW is doing good in the industry, outperforming 74.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.8 | ||
| Quick Ratio | 2.8 |
3. Growth
3.1 Past
The earnings per share for TROW have decreased by -5.12% in the last year.
The Earnings Per Share has been growing slightly by 0.95% on average over the past years.
The Revenue has decreased by -0.43% in the past year.
Measured over the past years, TROW shows a small growth in Revenue. The Revenue has been growing by 3.76% on average per year.
EPS 1Y (TTM)-5.12%
EPS 3Y-7.49%
EPS 5Y0.95%
EPS growth Q2Q-1.15%
Revenue 1Y (TTM)-0.43%
Revenue growth 3Y1.34%
Revenue growth 5Y3.76%
Revenue growth Q2Q7.73%
3.2 Future
Based on estimates for the next years, TROW will show a small growth in Earnings Per Share. The EPS will grow by 1.33% on average per year.
The Revenue is expected to decrease by -1.23% on average over the next years.
EPS Next Y8.55%
EPS Next 2Y4.9%
EPS Next 3Y4.53%
EPS Next 5Y1.33%
Revenue Next Year5.35%
Revenue Next 2Y4.38%
Revenue Next 3Y4.97%
Revenue Next 5Y-1.23%
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
The Price/Earnings ratio is 14.31, which indicates a correct valuation of TROW.
TROW's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.76, TROW is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.18 indicates a correct valuation of TROW.
The rest of the industry has a similar Price/Forward Earnings ratio as TROW.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.26, TROW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 13.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TROW indicates a rather cheap valuation: TROW is cheaper than 85.02% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TROW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.69 | ||
| EV/EBITDA | 9.69 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TROW may justify a higher PE ratio.
PEG (NY)1.67
PEG (5Y)15.1
EPS Next 2Y4.9%
EPS Next 3Y4.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.21%, TROW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.52, TROW has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, TROW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
On average, the dividend of TROW grows each year by 11.74%, which is quite nice.
TROW has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TROW decreased recently.
Dividend Growth(5Y)11.74%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
64.31% of the earnings are spent on dividend by TROW. This is not a sustainable payout ratio.
The dividend of TROW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP64.31%
EPS Next 2Y4.9%
EPS Next 3Y4.53%
T ROWE PRICE GROUP INC
NASDAQ:TROW (4/19/2024, 7:20:35 PM)
After market: 108.73 0 (0%)108.73
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.32B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 13.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.67
PEG (5Y)15.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.21% | ||
| ROE | 18.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.6% | ||
| PM (TTM) | 27% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.8 | ||
| Quick Ratio | 2.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-5.12%
EPS 3Y-7.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.43%
Revenue growth 3Y1.34%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y