T ROWE PRICE GROUP INC (TROW) Stock Fundamental Analysis
NASDAQ:TROW - Nasdaq - US74144T1088 - Common Stock - Currency: USD
Taking everything into account, TROW scores 6 out of 10 in our fundamental rating. TROW was compared to 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
In the past year TROW was profitable.
In the past year TROW had a positive cash flow from operations.
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 has a Return On Assets of 14.04%. This is amongst the best in the industry. TROW outperforms 95.69% of its industry peers.
With an excellent Return On Equity value of 18.90%, TROW belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
The Return On Invested Capital of TROW (14.17%) is better than 87.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TROW is significantly above the industry average of 7.89%.
| 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
TROW's Profit Margin of 27.64% is fine compared to the rest of the industry. TROW outperforms 70.26% of its industry peers.
In the last couple of years the Profit Margin of TROW has declined.
The Operating Margin of TROW (33.61%) is better than 61.64% 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
TROW has less shares outstanding than it did 1 year ago.
TROW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TROW has been reduced compared to a year ago.
2.2 Solvency
TROW has an Altman-Z score of 5.68. This indicates that TROW is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TROW (5.68) is better than 87.50% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 0.03, TROW belongs to the top of the industry, outperforming 92.24% of the companies in the same industry.
TROW has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.00, TROW belongs to the best of the industry, outperforming 85.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 5.68 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.61 indicates that TROW has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.61, TROW is doing good in the industry, outperforming 77.16% of the companies in the same industry.
TROW has a Quick Ratio of 2.61. This indicates that TROW is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TROW (2.61) is better than 77.59% 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.
Measured over the past 5 years, TROW shows a small growth in Earnings Per Share. The EPS has been growing by 2.42% on average per year.
The Revenue has been growing slightly by 6.51% in the past year.
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 3.59% yearly.
The Revenue is expected to grow by 2.79% on average over the next years.
EPS Next Y-10.03%
EPS Next 2Y-3.99%
EPS Next 3Y-1.81%
EPS Next 5Y3.59%
Revenue Next Year-2.61%
Revenue Next 2Y0.03%
Revenue Next 3Y1.1%
Revenue Next 5Y2.79%
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.
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 10.04.
TROW's Price/Earnings ratio is a bit cheaper when compared to the industry. TROW is cheaper than 71.12% of the companies in the same industry.
TROW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.29.
With a Price/Forward Earnings ratio of 10.71, the valuation of TROW can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TROW indicates a somewhat cheap valuation: TROW is cheaper than 65.52% of the companies listed in the same industry.
TROW is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.17, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.04 | ||
| Fwd PE | 10.71 |
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 92.24% of the companies listed 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 62.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.88 | ||
| EV/EBITDA | 6.61 |
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)4.15
EPS Next 2Y-3.99%
EPS Next 3Y-1.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.39%, TROW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.15, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
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.
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.
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-3.99%
EPS Next 3Y-1.81%
92.15
-1.44 (-1.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.04%
Inst Owner Change1.17%
Ins Owners1.67%
Ins Owner Change1.42%
Market Cap20.30B
Analysts50
Price Target93.5 (1.47%)
Short Float %4.71%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
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)0.27%
PT rev (3m)-16.98%
EPS NQ rev (1m)-6.51%
EPS NQ rev (3m)-13.05%
EPS NY rev (1m)-4.2%
EPS NY rev (3m)-10.86%
Revenue NQ rev (1m)-4.62%
Revenue NQ rev (3m)-7.2%
Revenue NY rev (1m)-1.66%
Revenue NY rev (3m)-6.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.04 | ||
| Fwd PE | 10.71 | ||
| P/S | 2.86 | ||
| P/FCF | 15.88 | ||
| P/OCF | 12.08 | ||
| P/B | 1.95 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 6.61 |
EPS(TTM)9.18
EY9.96%
EPS(NY)8.6
Fwd EY9.33%
FCF(TTM)5.8
FCFY6.3%
OCF(TTM)7.63
OCFY8.28%
SpS32.26
BVpS47.18
TBVpS33.62
PEG (NY)N/A
PEG (5Y)4.15
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 | 5.68 |
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-10.03%
EPS Next 2Y-3.99%
EPS Next 3Y-1.81%
EPS Next 5Y3.59%
Revenue 1Y (TTM)6.51%
Revenue growth 3Y-2.58%
Revenue growth 5Y4.78%
Sales Q2Q%0.78%
Revenue Next Year-2.61%
Revenue Next 2Y0.03%
Revenue Next 3Y1.1%
Revenue Next 5Y2.79%
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 5Y4.53%
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%