T ROWE PRICE GROUP INC (TROW)

US74144T1088 - Common Stock

110.97  +1.64 (+1.5%)

Fundamental Rating

4

Overall TROW gets a fundamental rating of 4 out of 10. We evaluated TROW against 208 industry peers in the Capital Markets industry. TROW has an average financial health and profitability rating. TROW has a valuation in line with the averages, but it does not seem to be growing.



4

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.
TROW had positive earnings in each of the past 5 years.
Each year in the past 5 years TROW had a positive operating cash flow.

1.2 Ratios

TROW has a Return On Assets of 14.21%. This is amongst the best in the industry. TROW outperforms 95.07% of its industry peers.
TROW's Return On Equity of 18.35% is amongst the best of the industry. TROW outperforms 83.74% of its industry peers.
Industry RankSector Rank
ROA 14.21%
ROE 18.35%
ROIC N/A
ROA(3y)17.09%
ROA(5y)19.04%
ROE(3y)22.95%
ROE(5y)25.6%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

TROW has a better Profit Margin (27.00%) than 62.56% of its industry peers.
TROW's Profit Margin has declined in the last couple of years.
TROW has a Operating Margin (31.87%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TROW has declined.
Industry RankSector Rank
OM 31.87%
PM (TTM) 27%
GM N/A
OM growth 3Y-10.66%
OM growth 5Y-6.3%
PM growth 3Y-10.11%
PM growth 5Y-4.16%
GM growth 3YN/A
GM growth 5YN/A

4

2. Health

2.1 Basic Checks

TROW has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TROW has less shares outstanding
TROW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

There is no outstanding debt for TROW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z N/A
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

2

3. Growth

3.1 Past

The earnings per share for TROW have decreased by -5.12% in the last year.
The Earnings Per Share has been growing slightly by 0.95% on average over the past years.
The Revenue has decreased by -0.43% in the past year.
The Revenue has been growing slightly by 3.76% on average over the past years.
EPS 1Y (TTM)-5.12%
EPS 3Y-7.49%
EPS 5Y0.95%
EPS growth Q2Q-1.15%
Revenue 1Y (TTM)-0.43%
Revenue growth 3Y1.34%
Revenue growth 5Y3.76%
Revenue growth Q2Q7.73%

3.2 Future

Based on estimates for the next years, TROW will show a small growth in Earnings Per Share. The EPS will grow by 1.33% on average per year.
The Revenue is expected to decrease by -1.23% on average over the next years.
EPS Next Y-0.04%
EPS Next 2Y1.58%
EPS Next 3Y-4.83%
EPS Next 5Y1.33%
Revenue Next Year3.07%
Revenue Next 2Y3.4%
Revenue Next 3Y-3.98%
Revenue Next 5Y-1.23%

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

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.60 indicates a correct valuation of TROW.
The rest of the industry has a similar Price/Earnings ratio as TROW.
TROW is valuated rather cheaply when we compare the Price/Earnings ratio to 26.00, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.61, TROW is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TROW is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, TROW is valued a bit cheaper.
Industry RankSector Rank
PE 14.6
Fwd PE 14.61

4.2 Price Multiples

TROW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TROW is cheaper than 82.76% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TROW.
Industry RankSector Rank
P/FCF 20.34
EV/EBITDA 9.67

4.3 Compensation for Growth

A cheap valuation may be justified as TROW's earnings are expected to decrease with -4.83% in the coming years.
PEG (NY)N/A
PEG (5Y)15.41
EPS Next 2Y1.58%
EPS Next 3Y-4.83%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.58%, TROW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.98, TROW has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.48, TROW pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.58%

5.2 History

The dividend of TROW is nicely growing with an annual growth rate of 16.30%!
TROW has paid a dividend for at least 10 years, which is a reliable track record.
TROW has decreased its dividend recently.
Dividend Growth(5Y)16.3%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

TROW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP0%
EPS Next 2Y1.58%
EPS Next 3Y-4.83%

T ROWE PRICE GROUP INC

NASDAQ:TROW (2/22/2024, 2:57:04 PM)

110.97

+1.64 (+1.5%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.80B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.58%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 14.6
Fwd PE 14.61
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)15.41
Profitability
Industry RankSector Rank
ROA 14.21%
ROE 18.35%
ROCE
ROIC
ROICexc
ROICexgc
OM 31.87%
PM (TTM) 27%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio N/A
Quick Ratio N/A
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-5.12%
EPS 3Y-7.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.43%
Revenue growth 3Y1.34%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y