T ROWE PRICE GROUP INC (TROW) Stock Fundamental Analysis
USA - NASDAQ:TROW - US74144T1088 - Common Stock
105.845 USD
+0.03 (+0.02%)
We assign a fundamental rating of 6 out of 10 to TROW. TROW was compared to 238 industry peers in the Capital Markets industry. TROW is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TROW has a correct valuation and a medium 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 13.85%, TROW belongs to the top of the industry, outperforming 94.54% of the companies in the same industry.
TROW has a Return On Equity of 18.81%. This is amongst the best in the industry. TROW outperforms 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.25%, TROW belongs to the top of the industry, outperforming 87.82% of the companies in the same industry.
TROW had an Average Return On Invested Capital over the past 3 years of 15.27%. This is significantly above the industry average of 7.64%.
| 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
With a decent Profit Margin value of 27.99%, TROW is doing good in the industry, outperforming 71.43% of the companies in the same industry.
TROW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 32.45%, TROW is in line with its industry, outperforming 57.56% 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
The number of shares outstanding for TROW has been reduced compared to 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 5.95 indicates that TROW is not in any danger for bankruptcy at the moment.
TROW's Altman-Z score of 5.95 is amongst the best of the industry. TROW outperforms 87.39% of its industry peers.
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 Debt to FCF ratio of 0.04. This is amongst the best in the industry. TROW outperforms 92.86% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that TROW is not too dependend on debt financing.
TROW has a better Debt to Equity ratio (0.00) than 86.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.95 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.81 indicates that TROW has no problem at all paying its short term obligations.
The Current ratio of TROW (2.81) is better than 79.83% of its industry peers.
A Quick Ratio of 2.81 indicates that TROW has no problem at all paying its short term obligations.
The Quick ratio of TROW (2.81) is better than 79.83% 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.
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 4.43% in the past year.
TROW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.78% yearly.
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
Based on estimates for the next years, TROW will show a small growth in Earnings Per Share. The EPS will grow by 5.10% on average per year.
The Revenue is expected to grow by 1.47% on average over the next years.
EPS Next Y0.53%
EPS Next 2Y2.68%
EPS Next 3Y2.15%
EPS Next 5Y5.1%
Revenue Next Year1.45%
Revenue Next 2Y3.35%
Revenue Next 3Y3.01%
Revenue Next 5Y1.47%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 11.56 indicates a reasonable valuation of TROW.
TROW's Price/Earnings ratio is a bit cheaper when compared to the industry. TROW is cheaper than 65.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of TROW to the average of the S&P500 Index (27.91), we can say TROW is valued rather cheaply.
TROW is valuated reasonably with a Price/Forward Earnings ratio of 10.76.
TROW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TROW is cheaper than 65.55% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TROW to the average of the S&P500 Index (23.30), we can say TROW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TROW is valued cheaply inside the industry as 90.34% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as TROW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.85 | ||
| EV/EBITDA | 7.88 |
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)21.91
PEG (5Y)4.78
EPS Next 2Y2.68%
EPS Next 3Y2.15%
5. Dividend
5.1 Amount
TROW has a Yearly Dividend Yield of 4.99%, which is a nice return.
Compared to an average industry Dividend Yield of 8.50, TROW has a dividend in line with its industry peers.
TROW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
5.2 History
On average, the dividend of TROW grows each year by 10.37%, which is quite nice.
TROW has been paying a dividend for at least 10 years, so it has 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
TROW pays out 57.43% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of TROW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP57.43%
EPS Next 2Y2.68%
EPS Next 3Y2.15%
NASDAQ:TROW (10/9/2025, 1:54:01 PM)
105.845
+0.03 (+0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners80.56%
Inst Owner Change0%
Ins Owners1.67%
Ins Owner Change0.24%
Market Cap23.26B
Analysts49.47
Price Target105.8 (-0.04%)
Short Float %5.48%
Short Ratio7.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
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)0.44%
PT rev (3m)11.14%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)17.01%
EPS NY rev (1m)0.18%
EPS NY rev (3m)10.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.61%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)4.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 10.76 | ||
| P/S | 3.28 | ||
| P/FCF | 19.85 | ||
| P/OCF | 15.17 | ||
| P/B | 2.2 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 7.88 |
EPS(TTM)9.16
EY8.65%
EPS(NY)9.84
Fwd EY9.29%
FCF(TTM)5.33
FCFY5.04%
OCF(TTM)6.98
OCFY6.59%
SpS32.3
BVpS48.06
TBVpS34.59
PEG (NY)21.91
PEG (5Y)4.78
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 | 5.95 |
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 Y0.53%
EPS Next 2Y2.68%
EPS Next 3Y2.15%
EPS Next 5Y5.1%
Revenue 1Y (TTM)4.43%
Revenue growth 3Y-2.58%
Revenue growth 5Y4.78%
Sales Q2Q%-0.58%
Revenue Next Year1.45%
Revenue Next 2Y3.35%
Revenue Next 3Y3.01%
Revenue Next 5Y1.47%
EBIT growth 1Y5.96%
EBIT growth 3Y-13.78%
EBIT growth 5Y-0.07%
EBIT Next Year2.03%
EBIT Next 3Y3.55%
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%