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T. Rowe Price Group Inc TROW

Morningstar Rating
$118.42 +0.23 (0.19%)
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Company Report

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

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.

Price vs Fair Value

TROW is trading at a 375% premium.
Price
$118.19
Fair Value
$561.00
Uncertainty
High
1-Star Price
$226.37
5-Star Price
$32.00
Economic Moat
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Capital Allocation
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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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News

Trading Information

Previous Close Price
$118.19
Day Range
$117.42118.56
52-Week Range
$87.43132.76
Bid/Ask
$112.00 / $120.00
Market Cap
$26.44 Bil
Volume/Avg
1.7 Mil / 1.3 Mil

Key Statistics

Price/Earnings (Normalized)
14.26
Price/Sales
3.98
Dividend Yield (Trailing)
4.16%
Dividend Yield (Forward)
4.20%
Total Yield
5.41%

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

Competitors

Valuation

Metric
TROW
BLK
BEN
Price/Earnings (Normalized)
14.2619.748.43
Price/Book Value
2.702.930.92
Price/Sales
3.986.421.39
Price/Cash Flow
21.6327.287.96
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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Asset Management Industry Comparables

1-Day Chart
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Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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BLK
KcknvcltffBsqy$116.3 Bil
KKR & Co Inc Ordinary Shares
KKR
KlgpjnlryYshck$97.7 Bil
Blackstone Inc
BX
KtfvzthzKpdryqy$93.7 Bil
Bank of New York Mellon Corp
BK
QryxvkjcMvwq$44.0 Bil
Ameriprise Financial Inc
AMP
GnlyfwbynTsqwnz$43.9 Bil
State Street Corporation
STT
ZkpwnpqtBjsz$21.8 Bil
Northern Trust Corp
NTRS
SpvddvdzfDygsn$16.8 Bil
The Carlyle Group Inc
CG
GbpglbdlmMjrcjb$14.8 Bil
Franklin Resources Inc
BEN
ZbtkqmgdrGgdmry$11.9 Bil

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