T ROWE PRICE GROUP INC (TROW) Stock Fundamental Analysis
USA - NASDAQ:TROW - US74144T1088 - Common Stock
102.66 USD
+0.51 (+0.5%)
102.66 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TROW. TROW was compared to 237 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.
TROW had a positive operating cash flow in the past year.
TROW had positive earnings in each of the past 5 years.
TROW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TROW has a Return On Assets of 13.85%. This is amongst the best in the industry. TROW outperforms 94.09% of its industry peers.
Looking at the Return On Equity, with a value of 18.81%, TROW belongs to the top of the industry, outperforming 86.08% of the companies in the same industry.
TROW's Return On Invested Capital of 13.25% is amongst the best of the industry. TROW outperforms 88.19% of its industry peers.
TROW had an Average Return On Invested Capital over the past 3 years of 15.27%. This is significantly above the industry average of 7.63%.
| 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
TROW's Profit Margin of 27.99% is fine compared to the rest of the industry. TROW outperforms 71.73% of its industry peers.
TROW's Profit Margin has declined in the last couple of years.
The Operating Margin of TROW (32.45%) is better than 60.34% 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
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
An Altman-Z score of 5.82 indicates that TROW is not in any danger for bankruptcy at the moment.
TROW's Altman-Z score of 5.82 is amongst the best of the industry. TROW outperforms 87.34% 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 better Debt to FCF ratio (0.04) than 92.83% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that TROW is not too dependend on debt financing.
TROW has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. TROW outperforms 85.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.82 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TROW has a Current Ratio of 2.81. This indicates that TROW is financially healthy and has no problem in meeting its short term obligations.
TROW has a better Current ratio (2.81) than 78.90% of its industry peers.
TROW has a Quick Ratio of 2.81. This indicates that TROW is financially healthy and has no problem in meeting its short term obligations.
TROW's Quick ratio of 2.81 is fine compared to the rest of the industry. TROW outperforms 79.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.81 |
3. Growth
3.1 Past
TROW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.26%.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.80%.
The Revenue has been growing slightly by 4.78% on average over the past years.
EPS 1Y (TTM)5.26%
EPS 3Y-9.91%
EPS 5Y2.42%
EPS Q2Q%9.34%
Revenue 1Y (TTM)9.8%
Revenue growth 3Y-2.58%
Revenue growth 5Y4.78%
Sales Q2Q%6.04%
3.2 Future
The Earnings Per Share is expected to grow by 4.23% on average over the next years.
TROW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.47% yearly.
EPS Next Y3.56%
EPS Next 2Y5.37%
EPS Next 3Y4.1%
EPS Next 5Y4.23%
Revenue Next Year2.47%
Revenue Next 2Y4.35%
Revenue Next 3Y3.47%
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
Based on the Price/Earnings ratio of 10.92, the valuation of TROW can be described as reasonable.
Based on the Price/Earnings ratio, TROW is valued a bit cheaper than the industry average as 67.51% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.83, TROW is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.91, 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 70.04% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TROW to the average of the S&P500 Index (32.68), we can say TROW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 9.91 |
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 89.87% of the companies listed 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 | 19.25 | ||
| EV/EBITDA | 7.56 |
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.
The decent profitability rating of TROW may justify a higher PE ratio.
PEG (NY)3.07
PEG (5Y)4.52
EPS Next 2Y5.37%
EPS Next 3Y4.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.97%, TROW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.39, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
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
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 2Y5.37%
EPS Next 3Y4.1%
102.66
+0.51 (+0.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners80.56%
Inst Owner Change0.09%
Ins Owners1.67%
Ins Owner Change0.31%
Market Cap22.56B
Revenue(TTM)7.09B
Net Income(TTM)1.99B
Analysts50
Price Target110 (7.15%)
Short Float %5.1%
Short Ratio7.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
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)3.97%
PT rev (3m)7.22%
EPS NQ rev (1m)3.05%
EPS NQ rev (3m)8.58%
EPS NY rev (1m)2.12%
EPS NY rev (3m)9.61%
Revenue NQ rev (1m)1.48%
Revenue NQ rev (3m)4.59%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 9.91 | ||
| P/S | 3.18 | ||
| P/FCF | 19.25 | ||
| P/OCF | 14.71 | ||
| P/B | 2.14 | ||
| P/tB | 2.97 | ||
| EV/EBITDA | 7.56 |
EPS(TTM)9.4
EY9.16%
EPS(NY)10.36
Fwd EY10.09%
FCF(TTM)5.33
FCFY5.19%
OCF(TTM)6.98
OCFY6.8%
SpS32.3
BVpS48.06
TBVpS34.59
PEG (NY)3.07
PEG (5Y)4.52
Graham Number100.82
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 | 5.82 |
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)5.26%
EPS 3Y-9.91%
EPS 5Y2.42%
EPS Q2Q%9.34%
EPS Next Y3.56%
EPS Next 2Y5.37%
EPS Next 3Y4.1%
EPS Next 5Y4.23%
Revenue 1Y (TTM)9.8%
Revenue growth 3Y-2.58%
Revenue growth 5Y4.78%
Sales Q2Q%6.04%
Revenue Next Year2.47%
Revenue Next 2Y4.35%
Revenue Next 3Y3.47%
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 5Y0.98%
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 10.92 and the Price/Book (PB) ratio is 2.14.
Can you provide the financial health for TROW stock?
The financial health rating of T ROWE PRICE GROUP INC (TROW) is 9 / 10.