T. Rowe Price Group, Inc. Fundamental Analysis
T. Rowe Price Group, Inc. (TR1.DU) shows moderate financial fundamentals with a PE ratio of 12.62, profit margin of 27.93%, and ROE of 19.24%. The company generates $8.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 98.5/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze TR1.DU's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTR1.DU demonstrates superior asset utilization.
Valuation Score
ModerateTR1.DU shows balanced valuation metrics.
Growth Score
ModerateTR1.DU shows steady but slowing expansion.
Financial Health Score
ExcellentTR1.DU maintains a strong and stable balance sheet.
Profitability Score
ExcellentTR1.DU achieves industry-leading margins.
Key Financial Metrics
Is TR1.DU Expensive or Cheap?
P/E Ratio
TR1.DU trades at 12.62 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TR1.DU's PEG of 20.47 indicates potential overvaluation.
Price to Book
The market values T. Rowe Price Group, Inc. at 2.06 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.84 times EBITDA. This is generally considered low.
How Well Does TR1.DU Make Money?
Net Profit Margin
For every $100 in sales, T. Rowe Price Group, Inc. keeps $27.93 as profit after all expenses.
Operating Margin
Core operations generate 34.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.24 in profit for every $100 of shareholder equity.
ROA
T. Rowe Price Group, Inc. generates $14.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
T. Rowe Price Group, Inc. generates strong operating cash flow of $2.36B, reflecting robust business health.
Free Cash Flow
T. Rowe Price Group, Inc. generates strong free cash flow of $2.30B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.75 in free cash annually.
FCF Yield
TR1.DU converts 8.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
20.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How TR1.DU Stacks Against Its Sector Peers
| Metric | TR1.DU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.62 | 21.38 | Better (Cheaper) |
| ROE | 19.24% | 647.00% | Weak |
| Net Margin | 27.93% | -823.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 1.47 | Strong (Low Leverage) |
| Current Ratio | 7.40 | 886.74 | Strong Liquidity |
| ROA | 14.42% | 13795.00% | Weak |
TR1.DU outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews T. Rowe Price Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical