T Rowe Price (TROW) AI Stock Analysis

• Market Cap: $22.89B
• Dividend Yield: 4.84%
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.11
• Revenue Growth: 4.26%
• EPS Growth: 0.42%
• Country: US
• Employees: 8,084
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 2.81
• Shares Outstanding: 218,237,000
• 10 Day Avg. Volume: 1,887,837
• 30 Day Avg. Volume: 1,668,042
• 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: 0.90
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 4.42
• Enterprise Value/Ebitda: 6.59
• 1Y Price Target: $112.37
• Price Target Upside: 7.12% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $118.00 ▲(12.49% Upside)

T Rowe Price's strong financial performance and attractive valuation are the most significant factors contributing to its score. The company's strategic initiatives and governance improvements further bolster its position. However, technical indicators suggest caution due to potential overbought conditions, and challenges in equity performance and market headwinds are notable risks.

Positive Factors

Strong Financial Position

A robust cash position provides T. Rowe Price with the flexibility to invest in growth opportunities, weather economic downturns, and return capital to shareholders, supporting long-term stability.

Strategic Collaboration

The partnership with Goldman Sachs enhances T. Rowe Price's product offerings and market reach, potentially driving future growth and reinforcing its competitive position in the investment management industry.

Board Expansion

Adding experienced directors strengthens governance and strategic oversight, which can improve decision-making and support sustainable long-term growth.

Negative Factors

Net Outflows

Significant net outflows indicate potential challenges in retaining clients and assets, which could pressure revenue and profitability if not addressed.

Equity Performance Challenges

Underperformance in equity products can impact client satisfaction and retention, potentially leading to further outflows and affecting long-term revenue growth.

COO Departure

The departure of a key executive could disrupt ongoing initiatives and strategic continuity, potentially impacting operational efficiency and innovation efforts.

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 management fees charged on the assets it manages on behalf of clients. These fees are typically a percentage of the assets under management (AUM) and vary by investment product. In addition to management fees, the company also earns performance fees when certain investment funds exceed specific benchmarks. Key revenue streams include the firm's mutual funds, separate accounts, and institutional investment products. Furthermore, T. Rowe Price benefits from a strong brand reputation and a commitment to long-term investment strategies, which help attract and retain clients. The company's partnerships with various financial institutions and platforms also contribute to its earnings by expanding distribution channels for its investment products.

T Rowe Price Financial Statement Overview

Summary

T Rowe Price demonstrates strong profitability and financial stability, with effective cost management and low leverage. While revenue growth is modest, the company maintains a solid cash flow position. The decrease in gross profit margin and operating cash flow conversion are areas to monitor for potential risks.

Income Statement

T Rowe Price exhibits strong profitability with a net profit margin of 28.89% TTM, indicating efficient cost management. However, the gross profit margin has significantly decreased to 13.15% TTM from 51.93% in 2024, suggesting increased cost pressures. Revenue growth is modest at 1.52% TTM, showing stability but limited expansion.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.042 TTM, reflecting prudent financial leverage. Return on equity is healthy at 19.83% TTM, indicating effective use of equity capital. The equity ratio remains strong, showcasing financial stability.

Cash Flow

Cash flow performance is solid with a free cash flow to net income ratio of 1.02 TTM, indicating strong cash generation relative to earnings. However, the operating cash flow to net income ratio has decreased, suggesting potential challenges in converting earnings to cash. Free cash flow growth is positive at 15.63% TTM, showing improvement.

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	4.65B	3.68B	3.21B	3.57B	4.68B	3.59B
EBITDA	3.12B	2.98B	2.52B	3.14B	3.91B	2.94B
Net Income	2.07B	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	278.70M	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: Positive
• Last Price: 104.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 104.9 is above the 20-day moving average (MA) of 102.12, above the 50-day MA of 103.10, and above the 200-day MA of 98.15, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 56.07 is Neutral, neither overbought nor oversold. The STOCH value of 55.78 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
NTRS	78 Outperform	$26.20B	16.15	13.31%	2.24%	-4.52%	7.01%
SEIC	77 Outperform	$10.16B	15.26	29.38%	1.18%	9.33%	33.17%
STT	75 Outperform	$36.20B	13.72	11.14%	2.44%	5.62%	49.49%
TROW	75 Outperform	$22.89B	11.43	19.28%	4.84%	4.26%	0.42%
BK	75 Outperform	$81.61B	16.89	12.21%	1.71%	4.22%	51.01%
BEN	72 Outperform	$12.23B	25.75	3.84%	5.45%	2.31%	5.71%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.