T Rowe Price (TROW) AI Stock Analysis

• Market Cap: $22.53B
• Dividend Yield: 4.81%
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.18
• Revenue Growth: 4.43%
• EPS Growth: 5.55%
• Country: US
• Employees: 8,084
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 2.81
• Shares Outstanding: 219,715,240
• 10 Day Avg. Volume: 1,632,329
• 30 Day Avg. Volume: 1,481,642
• PEG Ratio: 0.67
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 3.55
• P/FCF Ratio: 19.96
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $112.00
• Price Target Upside: 9.24% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: $114.00 ▲(11.19% Upside)

T Rowe Price's overall stock score reflects strong financial stability and attractive valuation, with a solid dividend yield. However, technical indicators suggest bearish momentum, and the earnings call highlighted challenges such as equity outflows and expense growth. Despite these challenges, the company's strong performance in retirement and fixed income segments provides a positive outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing resilience against economic downturns and flexibility for strategic investments.

Growing ETF Business

Growth in the ETF segment indicates successful product diversification, which can attract new clients and increase AUM, supporting long-term revenue growth.

Retirement Solutions Success

Strong performance in retirement solutions solidifies T. Rowe Price's market position, leveraging demographic trends and increasing demand for retirement planning.

Negative Factors

Equity Outflows

Significant equity outflows can reduce AUM and revenue, posing a challenge to maintaining growth and profitability in the competitive asset management industry.

Expense Growth Challenges

Rising expenses, particularly in technology and facilities, may pressure margins and require careful management to sustain profitability and competitive positioning.

Client Outflows

Continued client outflows could signal dissatisfaction or competitive pressures, potentially impacting future revenue and necessitating strategic client retention efforts.

T Rowe Price Business Overview & Revenue Model

Company Description

T. Rowe Price Group, Inc. is a global investment management firm headquartered in Baltimore, Maryland. Established in 1937, the company primarily offers a range of investment solutions including mutual funds, sub-advisory services, and separate account management for institutional and individual investors. T. Rowe Price operates across various sectors, including equity, fixed income, and multi-asset strategies, catering to a diverse clientele that ranges from retirement plans to individual investors.

How the Company Makes Money

T. Rowe Price generates revenue primarily through investment management fees charged to clients based on the assets under management (AUM). The firm earns a percentage of the AUM across its various mutual funds and investment accounts. Additionally, T. Rowe Price may receive performance fees for funds that exceed certain benchmarks. The company also benefits from advisory fees for institutional clients and sub-advisory relationships. Significant partnerships with financial advisors and institutions further enhance its distribution capabilities, contributing to its overall earnings. The firm's strong reputation and investment performance help it attract and retain clients, which is critical for sustaining its revenue streams.

T Rowe Price Financial Statement Overview

Summary

T Rowe Price demonstrates strong profitability with a solid balance sheet and low leverage, providing financial stability. However, the decline in revenue growth rate is a concern that needs addressing. The company is well-positioned in terms of operational efficiency and equity strength, but should focus on reigniting revenue growth to sustain its financial performance.

Income Statement

T Rowe Price's income statement shows a strong profitability profile with a net profit margin of 28.72% for TTM (Trailing-Twelve-Months), indicating efficient cost management. However, the revenue growth rate has declined by 14.1% in the TTM, reflecting potential challenges in revenue generation. The EBIT and EBITDA margins remain robust at 33.62% and 41.58% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.045, suggesting conservative leverage. Return on equity is healthy at 19.63%, indicating effective use of equity capital. The equity ratio stands at 73.63%, highlighting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 2.93% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is strong at 4.28, reflecting good cash conversion. However, the free cash flow to net income ratio is slightly lower at 0.86, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.21B	7.09B	6.46B	6.49B	7.67B	6.21B
Gross Profit	947.60M	3.68B	3.21B	3.57B	4.68B	3.59B
EBITDA	2.90B	2.98B	2.52B	3.14B	3.91B	2.94B
Net Income	2.08B	2.10B	1.79B	1.56B	3.08B	2.37B
Balance Sheet
Total Assets	14.73B	13.47B	12.28B	11.64B	12.51B	10.66B
Cash, Cash Equivalents and Short-Term Investments	3.63B	2.65B	2.07B	1.76B	1.52B	2.15B
Total Debt	455.10M	337.80M	308.50M	329.60M	249.20M	154.10M
Total Liabilities	2.76B	2.02B	1.99B	1.96B	2.26B	1.39B
Stockholders Equity	10.81B	10.35B	9.51B	8.84B	9.02B	7.71B
Cash Flow
Free Cash Flow	1.52B	1.26B	911.20M	2.12B	3.21B	1.70B
Operating Cash Flow	1.49B	1.69B	1.22B	2.36B	3.45B	1.92B
Investing Cash Flow	-41.40M	-177.50M	128.20M	-41.50M	-1.10B	-36.30M
Financing Cash Flow	-994.00M	-936.60M	-1.08B	-2.08B	-2.99B	-1.49B

T Rowe Price Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 102.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TROW, the sentiment is Negative. The current price of 102.53 is below the 20-day moving average (MA) of 104.21, below the 50-day MA of 104.70, and above the 200-day MA of 98.75, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 44.84 is Neutral, neither overbought nor oversold. The STOCH value of 33.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TROW.

T Rowe Price Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BK	―	$75.26B	15.57	―	1.85%	-9.40%	―
SEIC	―	$9.87B	14.82	29.38%	1.22%	9.33%	33.17%
STT	―	$32.31B	12.24	11.14%	2.70%	5.62%	49.49%
TROW	―	$22.53B	11.46	19.39%	4.81%	4.43%	5.55%
BEN	―	$11.74B	43.36	2.16%	5.66%	4.72%	-67.85%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NTRS	―	$24.33B	15.00	13.31%	2.43%	-4.52%	7.01%

T Rowe Price Corporate Events

T Rowe Price Expands Board with Two New Directors

On October 13, 2025, T. Rowe Price Group, Inc. expanded its Board of Directors from 11 to 13 members by electing Allan Golston and Richard Verma as independent directors. Golston, with a background in finance and leadership roles at the Gates Foundation and other organizations, joins the Audit and Executive Compensation and Management Development Committees. Verma, who has held significant positions at Mastercard and in the U.S. government, will serve on the Nominating and Corporate Governance and Executive Compensation and Management Development Committees. This strategic move aims to enhance the company’s governance and leverage the extensive experience of the new directors.

The most recent analyst rating on (TROW) stock is a Sell with a $109.00 price target. To see the full list of analyst forecasts on T Rowe Price stock, see the TROW Stock Forecast page.

T. Rowe Price Reports Q2 2025 Financial Results

T. Rowe Price Group, Inc. is a global asset management firm specializing in retirement-related investments, managing $1.68 trillion in client assets as of June 30, 2025. Known for its investment excellence and independent research, the company serves millions of investors worldwide.

T. Rowe Price Earnings Call: Mixed Sentiments and Strategic Shifts

The recent earnings call for T. Rowe Price Group presented a mixed sentiment, highlighting both achievements and challenges. While the company celebrated strong performances in long-term investments, retirement solutions, and ETF growth, it also faced significant net outflows, challenges in equity strategies, and pressure on fee rates, indicating some ongoing hurdles.