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T. Rowe Price Group Inc TROW

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Stock XNAS Rating as of
$116.33 −1.87 (1.58%)
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As of Delayed Price Pre-Open: $115.83 −0.50
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Company Report

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US-Based Asset Managers: Recovery in AUM, Revenue, and Profitability Already Baked Into Share Prices

Greggory Warren

All the US-based asset managers we cover have reported their first-quarter 2024 earnings, and in some cases revealed managed asset levels for April 2024, and we now have a better sense of how recent market activity has been affecting results. The rally in the US equity markets since the middle of November 2023 has lifted most traditional and alternative-asset manager valuations closer to our fair value estimates.

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Price vs Fair Value

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TROW is trading at a 284% premium.
Price
$116.35
Fair Value
$332.00
Uncertainty
High
1-Star Price
$257.39
5-Star Price
$43.00
Economic Moat
Wybkx
Capital Allocation
Bfcwdkkr

Bulls Say, Bears Say

Bulls

With $1.485 trillion in AUM at the end of April 2024, T. Rowe Price is one of the larger US-based asset managers. Retirement accounts and variable-annuity portfolios, which are stickier than retail assets, account for two thirds of managed assets.

Bears

The company's equity performance has been weak, with just 32% and 37% of fund AUM beating passive peer medians on a 3- and 5-year basis, respectively, at the end of March 2024.

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Trading Information

Previous Close Price
$118.20
Day Range
$115.86–118.20
52-Week Range
$87.43–132.76
Bid/Ask
$104.88 / $116.14
Market Cap
$25.98 Bil
Volume/Avg
4 / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
14.03
Price/Sales
3.92
Dividend Yield (Trailing)
4.21%
Dividend Yield (Forward)
4.26%
Total Yield
5.48%

Company Profile

T. Rowe Price provides asset-management services for individual and institutional investors. It offers a broad range of no-load US and international stock, hybrid, bond, and money market funds. At the end of April 2024, the firm had $1.485 trillion in managed assets, composed of equity (51%), balanced (34%), fixed-income and money market (12%), and alternative (3%) offerings. Approximately two thirds of managed assets are held in retirement-based accounts, which provides T. Rowe Price with a somewhat stickier client base than most of its peers. The firm also manages private accounts, provides retirement planning advice, and offers discount brokerage and trust services. The company is primarily a US-based asset manager, deriving just under 9% of its AUM from overseas.
Sector
Financial Services
Industry
Asset Management
Stock Style Box
Mid Value
Total Number of Employees
7,906
Website
https://www.troweprice.com

Competitors

Valuation

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Metric
TROW
BLK
BEN
Price/Earnings (Normalized)
 14.0319.458.61
Price/Book Value
 2.662.890.94
Price/Sales
 3.926.321.42
Price/Cash Flow
 21.2926.888.12
Price/Earnings
TROW
BLK
BEN

Financial Strength

Metric
TROW
BLK
BEN
Quick Ratio
 6.0710.393.38
Current Ratio
 6.0713.223.38
Interest Coverage
 —22.5013.52
Quick Ratio
TROW
BLK
BEN

Profitability

Metric
TROW
BLK
BEN
Return on Assets (Normalized)
 15.28%4.89%4.56%
Return on Equity (Normalized)
 20.31%15.40%11.46%
Return on Invested Capital (Normalized)
 17.10%11.52%5.16%
Return on Assets
TROW
BLK
BEN
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