T ROWE PRICE GROUP INC (TROW) Stock Fundamental Analysis
USA - NASDAQ:TROW - US74144T1088 - Common Stock
102.13 USD
-1.38 (-1.33%)
103.3 USD
+1.17 (+1.15%)
TROW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 235 industry peers in the Capital Markets industry. TROW has an excellent financial health rating, but there are some minor concerns on its profitability. TROW has a correct valuation and a medium 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.
Each year in the past 5 years TROW has been profitable.
In the past 5 years TROW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TROW (13.85%) is better than 94.04% of its industry peers.
The Return On Equity of TROW (18.81%) is better than 85.53% of its industry peers.
The Return On Invested Capital of TROW (13.25%) is better than 88.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TROW is significantly above the industry average of 7.61%.
| 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
The Profit Margin of TROW (27.99%) is better than 71.91% of its industry peers.
TROW's Profit Margin has declined in the last couple of years.
TROW has a better Operating Margin (32.45%) than 60.43% of its industry peers.
TROW's Operating Margin has declined in the last couple of years.
| 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
Compared to 1 year ago, TROW has less shares outstanding
Compared to 5 years ago, TROW has less shares outstanding
The debt/assets ratio for TROW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.87 indicates that TROW is not in any danger for bankruptcy at the moment.
The Altman-Z score of TROW (5.87) is better than 87.23% 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.
Looking at the Debt to FCF ratio, with a value of 0.04, TROW belongs to the top of the industry, outperforming 92.77% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that TROW is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, TROW belongs to the best of the industry, outperforming 85.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.87 |
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.
TROW has a better Current ratio (2.81) than 79.15% of its industry peers.
A Quick Ratio of 2.81 indicates that TROW has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.81, TROW is in the better half of the industry, outperforming 79.57% of the companies in the same industry.
| 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.
TROW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.43%.
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)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
TROW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.10% yearly.
TROW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.47% yearly.
EPS Next Y2.66%
EPS Next 2Y5.16%
EPS Next 3Y3.68%
EPS Next 5Y5.1%
Revenue Next Year2.4%
Revenue Next 2Y4.3%
Revenue Next 3Y3.45%
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.
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
A Price/Earnings ratio of 11.15 indicates a reasonable valuation of TROW.
65.53% of the companies in the same industry are more expensive than TROW, based on the Price/Earnings ratio.
TROW is valuated cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.90, the valuation of TROW can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TROW is valued a bit cheaper than the industry average as 70.21% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TROW to the average of the S&P500 Index (22.50), we can say TROW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.15 | ||
| Fwd PE | 9.9 |
4.2 Price Multiples
TROW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TROW is cheaper than 89.79% of the companies in the same industry.
TROW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.15 | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TROW does not grow enough to justify the current Price/Earnings ratio.
TROW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.2
PEG (5Y)4.61
EPS Next 2Y5.16%
EPS Next 3Y3.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.96%, TROW is a good candidate for dividend investing.
TROW's Dividend Yield is comparable with the industry average which is at 8.34.
TROW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
5.2 History
On average, the dividend of TROW grows each year by 10.37%, which is quite nice.
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 57.43% of its income as dividend. This is a bit on the high side, but may be sustainable.
TROW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP57.43%
EPS Next 2Y5.16%
EPS Next 3Y3.68%
102.13
-1.38 (-1.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners80.56%
Inst Owner Change0.35%
Ins Owners1.67%
Ins Owner Change0.24%
Market Cap22.44B
Revenue(TTM)7.10B
Net Income(TTM)1.99B
Analysts49.47
Price Target105.8 (3.59%)
Short Float %5.1%
Short Ratio7.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
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%
PT rev (3m)3.13%
EPS NQ rev (1m)3.09%
EPS NQ rev (3m)13.22%
EPS NY rev (1m)2.12%
EPS NY rev (3m)9.61%
Revenue NQ rev (1m)1.48%
Revenue NQ rev (3m)6.39%
Revenue NY rev (1m)1.14%
Revenue NY rev (3m)3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.15 | ||
| Fwd PE | 9.9 | ||
| P/S | 3.16 | ||
| P/FCF | 19.15 | ||
| P/OCF | 14.63 | ||
| P/B | 2.12 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 7.68 |
EPS(TTM)9.16
EY8.97%
EPS(NY)10.32
Fwd EY10.1%
FCF(TTM)5.33
FCFY5.22%
OCF(TTM)6.98
OCFY6.83%
SpS32.3
BVpS48.06
TBVpS34.59
PEG (NY)4.2
PEG (5Y)4.61
Graham Number99.53
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%
ROICexgc growth 3Y-16.2%
ROICexgc 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 | 5.87 |
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 Y2.66%
EPS Next 2Y5.16%
EPS Next 3Y3.68%
EPS Next 5Y5.1%
Revenue 1Y (TTM)4.43%
Revenue growth 3Y-2.58%
Revenue growth 5Y4.78%
Sales Q2Q%-0.58%
Revenue Next Year2.4%
Revenue Next 2Y4.3%
Revenue Next 3Y3.45%
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%
T ROWE PRICE GROUP INC / TROW FAQ
What is the fundamental rating for TROW stock?
ChartMill assigns a fundamental rating of 6 / 10 to TROW.
Can you provide the valuation status for T ROWE PRICE GROUP INC?
ChartMill assigns a valuation rating of 6 / 10 to T ROWE PRICE GROUP INC (TROW). This can be considered as Fairly Valued.
Can you provide the profitability details for T ROWE PRICE GROUP INC?
T ROWE PRICE GROUP INC (TROW) has a profitability rating of 6 / 10.
What is the valuation of T ROWE PRICE GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for T ROWE PRICE GROUP INC (TROW) is 11.15 and the Price/Book (PB) ratio is 2.12.
Can you provide the financial health for TROW stock?
The financial health rating of T ROWE PRICE GROUP INC (TROW) is 9 / 10.