T ROWE PRICE GROUP INC (TROW) Stock Fundamental Analysis
NASDAQ:TROW - Nasdaq - US74144T1088 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TROW. TROW was compared to 233 industry peers in the Capital Markets industry. While TROW has a great health rating, its profitability is only average at the moment. 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.
In the past year TROW had a positive cash flow from operations.
Each year in the past 5 years TROW has been profitable.
TROW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TROW's Return On Assets of 14.04% is amongst the best of the industry. TROW outperforms 95.71% of its industry peers.
TROW has a better Return On Equity (18.90%) than 86.70% of its industry peers.
With an excellent Return On Invested Capital value of 14.17%, TROW belongs to the best of the industry, outperforming 87.98% 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 7.84%.
| 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 71.67% of the companies in the same industry.
TROW's Profit Margin has declined in the last couple of years.
TROW's Operating Margin of 33.61% is fine compared to the rest of the industry. TROW outperforms 60.94% of its industry peers.
In the last couple of years the Operating Margin of TROW has declined.
| 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
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.
Compared to 1 year ago, TROW has an improved debt to assets ratio.
2.2 Solvency
TROW has an Altman-Z score of 5.92. This indicates that TROW is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.92, TROW belongs to the best of the industry, outperforming 86.70% 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.
TROW's Debt to FCF ratio of 0.03 is amongst the best of the industry. TROW outperforms 92.27% 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 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 5.92 |
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 has a Current ratio of 2.61. This is in the better half of the industry: TROW outperforms 76.82% of its industry peers.
A Quick Ratio of 2.61 indicates that TROW has no problem at all paying its short term obligations.
TROW has a Quick ratio of 2.61. This is in the better half of the industry: TROW outperforms 77.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.61 |
3. Growth
3.1 Past
TROW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.74%, which is quite good.
TROW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.42% yearly.
TROW shows a small growth in Revenue. In the last year, the Revenue has grown by 6.51%.
The Revenue has been growing slightly by 4.78% on average over the past years.
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.
Based on estimates for the next years, TROW will show a small growth in Revenue. The Revenue will grow by 1.03% on average per year.
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
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
TROW is valuated reasonably with a Price/Earnings ratio of 10.75.
Compared to the rest of the industry, the Price/Earnings ratio of TROW indicates a somewhat cheap valuation: TROW is cheaper than 69.53% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. TROW is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.38, the valuation of TROW can be described as reasonable.
Based on the Price/Forward Earnings ratio, TROW is valued a bit cheaper than 63.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.70. TROW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
TROW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TROW is cheaper than 92.70% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TROW indicates a somewhat cheap valuation: TROW is cheaper than 62.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.01 | ||
| EV/EBITDA | 7.15 |
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)4.45
EPS Next 2Y-3.61%
EPS Next 3Y-1.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.28%, TROW is a good candidate for dividend investing.
TROW's Dividend Yield is comparable with the industry average which is at 8.00.
Compared to an average S&P500 Dividend Yield of 2.42, TROW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.28% |
5.2 History
The dividend of TROW is nicely growing with an annual growth rate of 10.37%!
TROW has paid a dividend for at least 10 years, which is 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
TROW pays out 57.96% 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.
DP57.96%
EPS Next 2Y-3.61%
EPS Next 3Y-1.14%
98.67
+2.17 (+2.25%)
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 Change0.66%
Market Cap21.74B
Analysts50
Price Target95.2 (-3.52%)
Short Float %5.42%
Short Ratio6.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.28% |
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 | 10.75 | ||
| Fwd PE | 11.38 | ||
| P/S | 3.06 | ||
| P/FCF | 17.01 | ||
| P/OCF | 12.93 | ||
| P/B | 2.09 | ||
| P/tB | 2.93 | ||
| EV/EBITDA | 7.15 |
EPS(TTM)9.18
EY9.3%
EPS(NY)8.67
Fwd EY8.79%
FCF(TTM)5.8
FCFY5.88%
OCF(TTM)7.63
OCFY7.73%
SpS32.26
BVpS47.18
TBVpS33.62
PEG (NY)N/A
PEG (5Y)4.45
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 | 5.92 |
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%