T ROWE PRICE GROUP INC (TROW)
US74144T1088 - Common Stock
Overall TROW gets a fundamental rating of 6 out of 10. We evaluated TROW against 219 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 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.
TROW had positive earnings in each of the past 5 years.
In the past 5 years TROW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TROW (14.49%) is better than 96.28% of its industry peers.
Looking at the Return On Equity, with a value of 19.11%, TROW belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
TROW has a Return On Invested Capital of 13.50%. This is amongst the best in the industry. TROW outperforms 88.84% of its industry peers.
TROW had an Average Return On Invested Capital over the past 3 years of 18.36%. This is in line with the industry average of 17.66%.
The last Return On Invested Capital (13.50%) for TROW is well below the 3 year average (18.36%), which needs to be investigated, but indicates that TROW had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.49% | ||
| ROE | 19.11% | ||
| ROIC | 13.5% |
ROA(3y)17.09%
ROA(5y)19.04%
ROE(3y)22.95%
ROE(5y)25.6%
ROIC(3y)18.36%
ROIC(5y)19.05%
1.3 Margins
Looking at the Profit Margin, with a value of 27.91%, TROW is in the better half of the industry, outperforming 67.91% of the companies in the same industry.
In the last couple of years the Profit Margin of TROW has declined.
TROW has a Operating Margin (31.98%) which is in line with its industry peers.
TROW's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.98% | ||
| PM (TTM) | 27.91% | ||
| GM | N/A |
OM growth 3Y-10.61%
OM growth 5Y-6.27%
PM growth 3Y-10.11%
PM growth 5Y-4.16%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, TROW has about the same amount of shares outstanding.
The number of shares outstanding for TROW has been reduced compared to 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 6.78 indicates that TROW is not in any danger for bankruptcy at the moment.
The Altman-Z score of TROW (6.78) is better than 90.23% of its industry peers.
TROW has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
TROW has a Debt to FCF ratio of 0.06. This is amongst the best in the industry. TROW outperforms 90.70% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that TROW is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.01, TROW belongs to the top of the industry, outperforming 85.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 6.78 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.86 indicates that TROW has no problem at all paying its short term obligations.
TROW has a Current ratio of 2.86. This is in the better half of the industry: TROW outperforms 77.67% of its industry peers.
TROW has a Quick Ratio of 2.86. This indicates that TROW is financially healthy and has no problem in meeting its short term obligations.
TROW's Quick ratio of 2.86 is fine compared to the rest of the industry. TROW outperforms 77.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.69% over the past year.
Measured over the past 5 years, TROW shows a small growth in Earnings Per Share. The EPS has been growing by 0.95% on average per year.
The Revenue has grown by 8.56% in the past year. This is quite good.
The Revenue has been growing slightly by 3.76% on average over the past years.
EPS 1Y (TTM)16.69%
EPS 3Y-7.49%
EPS 5Y0.95%
EPS Q2Q%11.88%
Revenue 1Y (TTM)8.56%
Revenue growth 3Y1.34%
Revenue growth 5Y3.76%
Sales Q2Q%7.65%
3.2 Future
The Earnings Per Share is expected to grow by 5.22% 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 0.95% yearly.
EPS Next Y21.81%
EPS Next 2Y10.57%
EPS Next 3Y9.1%
EPS Next 5Y5.22%
Revenue Next Year10.47%
Revenue Next 2Y7.11%
Revenue Next 3Y6.32%
Revenue Next 5Y0.95%
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.
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
The Price/Earnings ratio is 12.41, which indicates a correct valuation of TROW.
The rest of the industry has a similar Price/Earnings ratio as TROW.
The average S&P500 Price/Earnings ratio is at 30.71. TROW is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.39, the valuation of TROW can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TROW is on the same level as its industry peers.
TROW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 11.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TROW is valued cheaper than 89.30% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TROW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.91 | ||
| EV/EBITDA | 8.56 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TROW may justify a higher PE ratio.
PEG (NY)0.57
PEG (5Y)13.1
EPS Next 2Y10.57%
EPS Next 3Y9.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.73%, TROW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.61, TROW has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.26, TROW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
5.2 History
On average, the dividend of TROW grows each year by 11.74%, 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 recently.
Dividend Growth(5Y)11.74%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TROW pays out 59.52% 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.
DP59.52%
EPS Next 2Y10.57%
EPS Next 3Y9.1%
T ROWE PRICE GROUP INC
NASDAQ:TROW (9/16/2024, 8:00:02 PM)
After market: 105.865 0 (0%)105.865
+1.3 (+1.25%)
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 Cap23.57B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 11.39 | ||
| 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)0.57
PEG (5Y)13.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.49% | ||
| ROE | 19.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.98% | ||
| PM (TTM) | 27.91% | ||
| 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.86 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)16.69%
EPS 3Y-7.49%
EPS 5Y
EPS Q2Q%
EPS Next Y21.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.56%
Revenue growth 3Y1.34%
Revenue growth 5Y
Sales 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