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T. Rowe Price Group Inc TROW

Morningstar Rating
$112.84 +0.49 (0.44%)
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Company Report

US-Based Asset Managers: Equity Market Rally Erased Margin of Safety Needed to Consider the Group

All the US-based asset managers we cover have reported their December-quarter earnings, and in some cases revealed assets under management, or AUM, data for January 2024. We now have a better sense of how recent market activity has been affecting results. In our third-quarter earnings wrap, we had assumed that the malaise that had crept into the markets during August-October 2023 might continue through the rest of the year.

Price vs Fair Value

TROW is trading at a 2% discount.
Price
$112.35
Fair Value
$189.00
Uncertainty
High
1-Star Price
$781.42
5-Star Price
$16.00
Economic Moat
Kbrt
Capital Allocation
Nbhkbrls

Bulls Say, Bears Say

Bulls

With $1.450 trillion in AUM at the end of January 2024, T. Rowe Price is one of the larger U.S.-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 really weak, with just 34% and 31% of fund AUM beating passive peer medians on a 3- and 5-year basis, respectively, at the end of December 2023.

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News

Trading Information

Previous Close Price
$112.35
Day Range
$112.74113.39
52-Week Range
$87.48132.75
Bid/Ask
$112.83 / $112.88
Market Cap
$25.25 Bil
Volume/Avg
146,324 / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
14.78
Price/Sales
3.91
Dividend Yield (Trailing)
4.34%
Dividend Yield (Forward)
4.41%
Total Yield
5.36%

Company Profile

T. Rowe Price provides asset-management services for individual and institutional investors. It offers a broad range of no-load U.S. and international stock, hybrid, bond, and money market funds. At the end of January 2024, the firm had $1.450 trillion in managed assets, composed of equity (52%), balanced (33%), 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 U.S.-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
IVZ
Price/Earnings (Normalized)
14.7821.4310.13
Price/Book Value
2.653.060.65
Price/Sales
3.916.831.22
Price/Cash Flow
24.6327.054.73
Price/Earnings
TROW
BLK
IVZ

Financial Strength

Metric
TROW
BLK
IVZ
Quick Ratio
6.0411.712.30
Current Ratio
6.0415.462.30
Interest Coverage
23.88−3.05
Quick Ratio
TROW
BLK
IVZ

Profitability

Metric
TROW
BLK
IVZ
Return on Assets (Normalized)
14.28%4.72%2.34%
Return on Equity (Normalized)
19.00%14.85%6.19%
Return on Invested Capital (Normalized)
15.96%11.29%2.82%
Return on Assets
TROW
BLK
IVZ
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Economic Moat
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