T ROWE PRICE GROUP INC (TROW) Stock Fundamental Analysis
NASDAQ:TROW - Nasdaq - US74144T1088 - Common Stock - Currency: USD
TROW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 229 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 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
With an excellent Return On Assets value of 14.04%, TROW belongs to the best of the industry, outperforming 96.07% of the companies in the same industry.
TROW's Return On Equity of 18.90% is amongst the best of the industry. TROW outperforms 86.03% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.17%, TROW belongs to the top of the industry, outperforming 89.52% 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 7.23%.
| 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 has a Profit Margin of 27.64%. This is in the better half of the industry: TROW outperforms 67.69% of its industry peers.
TROW's Profit Margin has declined in the last couple of years.
TROW has a Operating Margin of 33.61%. This is in the better half of the industry: TROW outperforms 60.26% 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
The number of shares outstanding for TROW has been reduced compared to 1 year ago.
TROW has less shares outstanding than it did 5 years ago.
TROW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.73 indicates that TROW is not in any danger for bankruptcy at the moment.
TROW has a better Altman-Z score (5.73) than 87.34% of its industry peers.
The Debt to FCF ratio of TROW is 0.03, which is an excellent value as it means it would take TROW, only 0.03 years of fcf income to pay off 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 91.70% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that TROW is not too dependend on debt financing.
The Debt to Equity ratio of TROW (0.00) is better than 85.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 5.73 |
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.
TROW's Current ratio of 2.61 is fine compared to the rest of the industry. TROW outperforms 78.60% of its industry peers.
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 79.04% 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.
Looking at the last year, TROW shows a small growth in Revenue. The Revenue has grown by 6.51% in the last year.
Measured over the past years, TROW shows a small growth in Revenue. The Revenue has been growing by 4.78% on average per year.
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
The Earnings Per Share is expected to grow by 3.59% on average over the next years.
The Revenue is expected to grow by 2.79% on average over the next years.
EPS Next Y-6.08%
EPS Next 2Y-1.5%
EPS Next 3Y-0.96%
EPS Next 5Y3.59%
Revenue Next Year-1.74%
Revenue Next 2Y0.55%
Revenue Next 3Y1.21%
Revenue Next 5Y2.79%
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
TROW is valuated reasonably with a Price/Earnings ratio of 10.58.
TROW's Price/Earnings ratio is a bit cheaper when compared to the industry. TROW is cheaper than 69.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.83. TROW is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.73, the valuation of TROW can be described as reasonable.
Based on the Price/Forward Earnings ratio, TROW is valued a bit cheaper than 66.38% of the companies in the same industry.
TROW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
92.58% of the companies in the same industry are more expensive than TROW, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TROW is valued a bit cheaper than the industry average as 63.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.88 | ||
| EV/EBITDA | 6.72 |
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)4.38
EPS Next 2Y-1.5%
EPS Next 3Y-0.96%
5. Dividend
5.1 Amount
TROW has a Yearly Dividend Yield of 5.48%, which is a nice return.
TROW's Dividend Yield is comparable with the industry average which is at 8.42.
Compared to an average S&P500 Dividend Yield of 2.41, TROW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
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.
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-1.5%
EPS Next 3Y-0.96%
97.09
+4.35 (+4.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.04%
Inst Owner Change-0.57%
Ins Owners1.67%
Ins Owner Change1.2%
Market Cap21.58B
Analysts50
Price Target93.5 (-3.7%)
Short Float %4.2%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
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)-14.2%
PT rev (3m)-18.49%
EPS NQ rev (1m)-6.36%
EPS NQ rev (3m)-15.71%
EPS NY rev (1m)-6.73%
EPS NY rev (3m)-8.3%
Revenue NQ rev (1m)-4.3%
Revenue NQ rev (3m)-7.71%
Revenue NY rev (1m)-3.4%
Revenue NY rev (3m)-6.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 10.73 | ||
| P/S | 3.04 | ||
| P/FCF | 16.88 | ||
| P/OCF | 12.83 | ||
| P/B | 2.08 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 6.72 |
EPS(TTM)9.18
EY9.46%
EPS(NY)9.05
Fwd EY9.32%
FCF(TTM)5.75
FCFY5.92%
OCF(TTM)7.56
OCFY7.79%
SpS31.98
BVpS46.77
TBVpS33.33
PEG (NY)N/A
PEG (5Y)4.38
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 | 5.73 |
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-6.08%
EPS Next 2Y-1.5%
EPS Next 3Y-0.96%
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-1.74%
Revenue Next 2Y0.55%
Revenue Next 3Y1.21%
Revenue Next 5Y2.79%
EBIT growth 1Y11.46%
EBIT growth 3Y-13.78%
EBIT growth 5Y-0.07%
EBIT Next Year3.67%
EBIT Next 3Y4.03%
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%