T Rowe Price (TROW) AI Stock Analysis

• Market Cap: $23.65B
• Dividend Yield: 4.66%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 12.0
• Beta (1Y): 1.24
• Revenue Growth: 4.43%
• EPS Growth: 5.55%
• Country: US
• Employees: 8,084
• Sector: Financial
• Sector Strength: 78
• Industry: Asset Management
• EPS (TTM): 2.24
• Shares Outstanding: 219,715,240
• 10 Day Avg. Volume: 1,101,198
• 30 Day Avg. Volume: 1,375,860
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 5.49
• Enterprise Value/Ebitda: 6.77
• 1Y Price Target: $104.88
• Price Target Upside: -2.55% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• Price Target: $125.00 ▲(16.15% Upside)

T Rowe Price's overall stock score is driven by strong financial stability and favorable valuation metrics. The positive technical indicators suggest a bullish trend, although caution is warranted due to potential overbought conditions. Mixed sentiment from the earnings call highlights both strengths in strategic growth areas and challenges in equity strategies and fee pressures.

Positive Factors

Earnings

Better operating expenses have led to an increase in the expected earnings per share for T. Rowe Price Group.

Investment Flows

Momentum in ETFs and target date funds is promising, with well-flowed performance in Jan and Feb'25.

Revenue

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

Negative Factors

Asset Management

TROW's emphasis on growth-equity exposures has been a relative headwind due to March's stock market weakness.

Financial Results

There is mention of a modest shortfall in financial results versus consensus for T. Rowe Price Group.

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 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 financial health with high profitability margins, minimal leverage, and robust cash flows. While revenue growth is modest, the company's efficient operations and financial management ensure stability and resilience. The low debt levels reduce financial risk, making the company's financial outlook positive.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.10B	7.09B	6.46B	6.49B	7.67B	6.21B
Gross Profit	3.64B	3.68B	3.21B	3.57B	4.68B	3.59B
EBITDA	2.95B	2.98B	2.52B	3.14B	3.91B	2.94B
Net Income	2.04B	2.10B	1.79B	1.56B	3.08B	2.37B
Balance Sheet
Total Assets	14.34B	13.47B	12.28B	11.64B	12.51B	10.66B
Cash, Cash Equivalents and Short-Term Investments	3.06B	2.65B	2.07B	1.76B	1.52B	2.15B
Total Debt	475.20M	278.70M	308.50M	329.60M	249.20M	154.10M
Total Liabilities	2.53B	2.02B	1.99B	1.96B	2.26B	1.39B
Stockholders Equity	10.56B	10.35B	9.51B	8.84B	9.02B	7.71B
Cash Flow
Free Cash Flow	1.32B	1.26B	911.20M	2.12B	3.21B	1.70B
Operating Cash Flow	1.53B	1.69B	1.22B	2.36B	3.45B	1.92B
Investing Cash Flow	-140.90M	-177.50M	-527.20M	-41.50M	-1.10B	-36.30M
Financing Cash Flow	-1.05B	-936.60M	-1.08B	-2.08B	-2.99B	-1.49B

T Rowe Price Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 107.62
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 107.62 is above the 20-day moving average (MA) of 106.90, above the 50-day MA of 103.55, and above the 200-day MA of 101.83, indicating a bullish trend. The MACD of 1.28 indicates Positive momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 76.82 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
BK	79 Outperform	$74.47B	16.13	11.75%	1.84%	7.41%	51.70%
TROW	78 Outperform	$23.65B	12.03	19.39%	4.66%	4.43%	5.55%
SEIC	77 Outperform	$10.91B	16.58	30.06%	1.11%	10.55%	40.74%
BEN	75 Outperform	$13.32B	49.20	2.16%	4.95%	4.72%	-67.85%
NTRS	73 Outperform	$25.11B	15.43	13.47%	2.29%	3.44%	16.76%
STT	71 Outperform	$32.62B	12.88	10.94%	2.64%	11.66%	67.88%
Sector *	68 Neutral	$17.89B	11.95	10.28%	3.72%	9.74%	1.61%

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.