T Rowe Price (TROW) AI Stock Analysis

• Market Cap: $22.17B
• Dividend Yield: 4.93%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.30
• Revenue Growth: 6.51%
• EPS Growth: 4.52%
• Country: US
• Employees: 8,084
• Sector: Financial
• Sector Strength: 75
• Industry: Asset Management
• EPS (TTM): 2.23
• Shares Outstanding: 220,316,090
• 10 Day Avg. Volume: 1,302,167
• 30 Day Avg. Volume: 1,379,825
• PEG Ratio: -3.03
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.38
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 5.32
• Enterprise Value/Ebitda: 1.79
• 1Y Price Target: $98.11
• Price Target Upside: -7.80% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 9

• Rating: 81 Outperform
• Price Target: $119.00 ▲(11.83%Upside)

T Rowe Price's overall stock score is driven by its strong financial health and attractive valuation. The company's robust profitability and low leverage provide stability, while the low P/E ratio and high dividend yield offer value to investors. However, technical indicators signal potential short-term risks, and market challenges highlighted in the earnings call could impact future performance.

Positive Factors

Partnerships

TROW announced a new insurance partnership with ARES’s insurance partner (Aspida), with TROW/OHA managing public/private credit for a portion of Aspida’s balance sheet.

Revenue Performance

Better revenue and other items partially offset the impact of elevated expenses for T. Rowe Price Group.

Negative Factors

Earnings Estimate

Analyst is lowering the 1Q25 EPS estimate to $2.21 from $2.33.

Market Impact

The market impact more than offset the better-than-expected flows.

Operating Expenses

Higher operating expenses have led to a reduction in the earnings estimate for T. Rowe Price Group.

T Rowe Price Business Overview & Revenue Model

Company Description

T. Rowe Price Group, Inc. is a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. It launches and manages equity and fixed income mutual funds. The firm invests in the public equity and fixed income markets across the globe. It employs fundamental and quantitative analysis with a bottom-up approach. The firm utilizes in-house and external research to make its investments. It employs socially responsible investing with a focus on environmental, social, and governance issues. It makes investment in late-stage venture capital transactions and usually invests between $3 million and $5 million. The firm was previously known as T. Rowe Group, Inc. and T. Rowe Price Associates, Inc. T. Rowe Price Group, Inc. was founded in 1937 and is based in Baltimore, Maryland, with additional offices in Colorado Springs, Colorado; Owings Mills, Maryland; San Francisco, California; New York, New York; Philadelphia, Pennsylvania; Tampa, Florida; Toronto, Ontario; Hellerup, Denmark; Amsterdam, The Netherlands; Luxembourg, Grand Duchy of Luxembourg; Zurich, Switzerland; Dubai, United Arab Emirates; London, United Kingdom; Sydney, New South Wales; Hong Kong; Tokyo, Japan; Singapore; Frankfurt, Germany, Madrid, Spain, Milan, Italy, Stockholm, Sweden, Melbourne, Australia, and Amsterdam, Netherlands.

How the Company Makes Money

T. Rowe Price generates revenue primarily through investment management fees, which are calculated as a percentage of assets under management (AUM). These fees vary depending on the investment product, such as mutual funds, subadvised accounts, or separate accounts. The company's AUM is influenced by market performance, client asset inflows and outflows, and strategic product offerings. Additionally, T. Rowe Price may earn performance-based fees for certain investment strategies that exceed predefined benchmarks. Significant partnerships with financial advisors, institutions, and retirement plan sponsors also contribute to the firm's earnings, as they help expand the client base and increase AUM. Furthermore, the firm benefits from its global presence, allowing it to tap into international markets and diversify its revenue streams.

T Rowe Price Financial Statement Overview

Summary

T Rowe Price exhibits strong financial health with high profitability margins, minimal leverage, and robust cash flows. The net profit margin is solid at 28.22%, and the balance sheet shows minimal financial risk with a debt-to-equity ratio of 0.045. While revenue growth is modest, the company's efficient operations ensure stability and resilience.

Income Statement

The company exhibits solid financial performance with a TTM (Trailing-Twelve-Months) gross profit margin of 64.23% and a net profit margin of 28.22%. Revenue growth is relatively flat, with a modest increase from the previous year. EBIT and EBITDA margins are strong at 32.96% and 36.76%, respectively, indicating efficient operations and robust profitability.

Balance Sheet

T Rowe Price maintains a healthy balance sheet with a low debt-to-equity ratio of 0.045, reflecting minimal leverage and financial risk. The return on equity stands at a commendable 19.29%, highlighting effective use of shareholders' funds. The equity ratio is strong at 74.29%, underscoring a solid financial position and asset base.

Cash Flow

The cash flow position is robust, with a TTM free cash flow growth of 1.27% and a strong operating cash flow to net income ratio of 0.87, indicating healthy cash generation. The free cash flow to net income ratio is 0.64, reflecting efficient capital expenditure management. Overall, the cash flow indicates stability and operational efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.09B	6.46B	6.49B	7.67B	6.21B
Gross Profit	3.68B	3.21B	3.57B	4.68B	3.59B
EBITDA	2.33B	2.55B	2.53B	3.95B	2.94B
Net Income	2.10B	1.79B	1.56B	3.08B	2.37B
Balance Sheet
Total Assets	13.47B	12.28B	11.64B	12.51B	10.66B
Cash, Cash Equivalents and Short-Term Investments	2.65B	2.07B	1.76B	1.52B	2.15B
Total Debt	278.70M	397.90M	329.60M	249.20M	154.10M
Total Liabilities	2.02B	1.99B	1.96B	2.26B	1.39B
Stockholders Equity	10.35B	9.51B	8.84B	9.02B	7.71B
Cash Flow
Free Cash Flow	1.26B	911.20M	2.12B	3.21B	1.70B
Operating Cash Flow	1.69B	1.22B	2.36B	3.45B	1.92B
Investing Cash Flow	-177.50M	-527.20M	-41.50M	-1.10B	-36.30M
Financing Cash Flow	-936.60M	-1.08B	-2.08B	-2.99B	-1.49B

T Rowe Price Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 106.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TROW, the sentiment is Positive. The current price of 106.41 is above the 20-day moving average (MA) of 98.69, above the 50-day MA of 95.46, and above the 200-day MA of 101.96, indicating a bullish trend. The MACD of 2.69 indicates Negative momentum. The RSI at 72.57 is Negative, neither overbought nor oversold. The STOCH value of 71.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TROW.

T Rowe Price Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TROW	81 Outperform	$22.17B	11.42	19.47%	4.93%	6.51%	4.52%
CRBG	72 Outperform	$18.87B	27.34	5.84%	2.76%	-23.47%	-67.03%
NTRS	71 Outperform	$24.04B	11.54	17.54%	2.40%	21.00%	137.62%
CG	70 Outperform	$21.01B	20.30	20.38%	2.40%	81.86%	―
Sector *	69 Neutral	€15.00B	11.82	14.88%	6.05%	7.26%	0.13%
STT	68 Neutral	$29.95B	12.04	10.94%	2.89%	13.08%	67.88%
BEN	64 Neutral	$12.80B	35.51	2.84%	5.26%	7.02%	-60.38%

T Rowe Price Corporate Events

T. Rowe Price Stockholders Meeting Approves Key Proposals

T. Rowe Price held its annual stockholders meeting on May 8, 2025, where several key proposals were voted on. The election of directors saw most nominees receiving strong support, while a proposal for a shareholder approval requirement for excessive golden parachutes was largely rejected. Additionally, the compensation for named executive officers was approved, and KPMG LLP was ratified as the independent registered public accounting firm for 2025.

The most recent analyst rating on (TROW) stock is a Sell with a $107.00 price target. To see the full list of analyst forecasts on T Rowe Price stock, see the TROW Stock Forecast page.

T Rowe Price to Discuss Q1 2025 Earnings

On May 2, 2025, T Rowe Price will hold an investor conference call and webcast to discuss its earnings results for the first quarter of 2025. The company has provided supplemental materials for the earnings call, but it does not commit to updating this information, which may impact stakeholder expectations and market perceptions.