T Rowe Price (TROW) AI Stock Analysis

• Market Cap: $21.89B
• Dividend Yield: 4.81%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.13
• 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: 1,658,164
• 30 Day Avg. Volume: 1,659,114
• 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: 0.94
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 4.42
• Enterprise Value/Ebitda: 6.59
• 1Y Price Target: $111.44
• Price Target Upside: 11.10% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 9
• EPS Forecast (FY): 9.71
• Revenue Forecast (FY): $7.37B

• Rating: 75 Outperform
• Price Target: $115.00 ▲(14.64% Upside)

T Rowe Price's overall stock score is driven by strong financial performance and attractive valuation metrics. The company's strategic initiatives and robust dividend yield are positive factors. However, technical indicators suggest short-term challenges, and the earnings call revealed some concerns about net outflows and equity performance.

Positive Factors

Strong Financial Position

A robust financial position with significant cash reserves provides T. Rowe Price with flexibility to invest in growth opportunities and weather economic downturns, ensuring long-term stability.

Strategic Collaboration

The partnership with Goldman Sachs enhances T. Rowe Price's product offerings and market reach, potentially driving growth and competitive advantage in the asset management industry.

Investment Performance

Strong investment performance across multiple time periods reinforces T. Rowe Price's reputation and ability to attract and retain clients, supporting sustained revenue growth.

Negative Factors

Net Outflows

Significant net outflows, particularly in U.S. equities, may indicate challenges in client retention and competitive pressures, potentially impacting future revenue and growth.

Equity Performance Challenges

Weaker short-term equity performance could affect client confidence and investment inflows, posing a risk to maintaining competitive positioning in the asset management sector.

Leadership Change

Leadership changes, particularly in key operational roles, can disrupt strategic initiatives and impact operational efficiency, potentially affecting long-term business execution and growth.

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 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: Negative
• Last Price: 100.31
• 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 100.31 is below the 20-day moving average (MA) of 101.75, below the 50-day MA of 103.16, and above the 200-day MA of 98.12, indicating a neutral trend. The MACD of -1.35 indicates Positive momentum. The RSI at 45.19 is Neutral, neither overbought nor oversold. The STOCH value of 25.84 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	78 Outperform	$74.22B	15.36	12.21%	1.88%	4.22%	51.01%
SEIC	76 Outperform	$9.80B	14.71	29.38%	1.22%	9.33%	33.17%
TROW	75 Outperform	$21.89B	10.93	19.28%	4.81%	4.26%	0.42%
STT	74 Outperform	$31.94B	12.10	11.14%	2.73%	5.62%	49.49%
NTRS	73 Outperform	$24.04B	14.82	13.31%	2.43%	-4.52%	7.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BEN	64 Neutral	$11.29B	23.78	3.84%	5.90%	2.31%	5.71%

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.