Price T Rowe Group Inc (TROW) stock analysis
Close on Nov 11, 2026Market cap $23.61BP/E 11.2Yield 4.59%
StockData Score
Prices as of Nov 11, 2026How the score works
Strong23 of 30 checks passed
Price T Rowe passes 23 of the 30 checks behind our score; 2 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 6/6
- Growth
- 2/6
- Past performance
- 4/6
- Financial health
- 5/6
- Dividend
- 6/6
What stands out
Margin of safety over 20%
The price is 28.1% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $110.69 is below our fair value estimate of $153.87.
Return on equity over 15%
Return on equity was 19.7% over the last twelve months and averaged 22.9% over five years.
Return on capital over 10%
Return on invested capital was 25.4%, above the 10% that usually covers the cost of capital.
What to watch
Earnings shrank over 5 years
Net income shrank 2.5% a year on average over the last five fiscal years.
Revenue growing under 10% a year
Revenue grew 4.1% a year over the last three fiscal years, short of the 10% we look for.
Guidance lowered
Price T Rowe lowered its full year 2026 effective tax rate outlook on Jul 31, 2026.
Growing slower than the industry
Revenue grew 6.9% over the last twelve months; the Services Allied with the Exchange of Securities median is 8.7%.
Valuation6/6
P/E below its 5-year median
Price T Rowe's P/E of 11.2 is below its own 5-year median of 12.2.
P/E below the industry
Price T Rowe's P/E of 11.2 is below the Services Allied with the Exchange of Securities median of 21.0.
EV/EBITDA below its 5-year median
Price T Rowe's EV/EBITDA of 8.1 is below its 5-year median of 9.1.
P/B below the industry
Price T Rowe's price-to-book of 2.08 is below the Services Allied with the Exchange of Securities median of 3.70.
Trading below fair value
The share price of $110.69 is below our fair value estimate of $153.87.
Margin of safety over 20%
The price is 28.1% below fair value, more than the 20% cushion we look for.
Growth2/6
Revenue growing under 10% a year
Revenue grew 4.1% a year over the last three fiscal years, short of the 10% we look for.
EPS growing 10%+ a year
Diluted EPS grew 11.3% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 5.1% over the last twelve months, against a 5-year average of -2.5% a year.
Growing slower than the industry
Revenue grew 6.9% over the last twelve months; the Services Allied with the Exchange of Securities median is 8.7%.
Guidance lowered
Price T Rowe lowered its full year 2026 effective tax rate outlook on Jul 31, 2026.
Gross margin trend
This company does not report gross profit.
Past performance4/6
Return on equity over 15%
Return on equity was 19.7% over the last twelve months and averaged 22.9% over five years.
Return on capital over 10%
Return on invested capital was 25.4%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Price T Rowe's return on equity of 19.7% is above the Services Allied with the Exchange of Securities median of 15.7%.
Earnings shrank over 5 years
Net income shrank 2.5% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 28.4% over the last twelve months, against a 5-year average of 30.0%.
Net margin above the industry
Price T Rowe's net margin of 28.4% is above the Services Allied with the Exchange of Securities median of 16.3%.
Financial health5/6
No debt
Price T Rowe has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term liquidity
The balance sheet is not split into current and non-current items.
Low bankruptcy risk
The Altman Z-score is 4.99; above 3 is the safe zone and below 1.8 the distress zone.
Dividend6/6
Pays a dividend
Price T Rowe paid dividends worth 4.7% of the share price over the last twelve months.
Yield above Treasuries
The 4.7% yield is above the 4.4% on a 1-year Treasury.
Yield in the top quarter
The top quarter of US dividend payers yield 3.8% or more; Price T Rowe yields 4.7%.
Dividend not cut
The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.
Covered by earnings
Dividends take 52.2% of net income.
Covered by free cash flow
Dividends take 71.4% of free cash flow.
Fair value
How we estimate itOur estimate per share
$153.87
The share price is 28% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 16.5× | 12.2× | 21.0× | $163.59 | 47% |
| EV/EBITDA | 10.5× | 9.1× | 12.0× | $138.98 | 41% |
| P/B | 3.1× | 2.6× | 3.7× | $167.08 | 12% |
| Earnings powerleft out, too far from the others | 11.7% cost of equity | – | – | $48.88 | – |
| Fair value | $153.87 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 12.2
- Services Allied with the Exchange of Securities median 21.0
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $223.19M
- Value traded per 1% price move
- $181.82M
Downside
Low risk
- Typical loss in a bad month
- 11.9%
- Volatility (annualized)
- 25%
- Sharpe ratio, 1 year
- 0.12
- Beta to the S&P 500 (5Y)
- 1.36
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +3.1% | +4.1% | +3.3% | +5.7% | |
| Operating income | -6.2% | -2.7% | -4.4% | +1.4% | |
| Net income | -0.6% | +10.2% | -2.5% | +5.5% | |
| EPS, diluted | +1.0% | +11.3% | -1.5% | +7.2% | |
| Free cash flow | +17.2% | -11.3% | -2.8% | +0.7% | |
| Dividend per share | +2.4% | +1.9% | +7.1% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 24.9% | 32.0% | 19.7% | |
| Return on assets | 21.4% | 23.7% | 15.0% | |
| Capex to revenue | 3.5% | 3.5% | 3.7% | |
| Diluted shares | 250M | 231M | 220M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Price T Rowe generated $10.47B from operations and spent $10.89B on capital expenditure, dividends and share buybacks. 14% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 28.5% | 0.53× | 1.31× | 19.7% |
| FY2024 | 29.6% | 0.55× | 1.30× | 21.2% |
| FY2023 | 27.7% | 0.54× | 1.30× | 19.5% |
| FY2022 | 24.0% | 0.54× | 1.35× | 17.4% |
| FY2021 | 40.2% | 0.66× | 1.38× | 36.9% |
| FY2020 | 38.2% | 0.62× | 1.35× | 32.0% |
| FY2019 | 37.9% | 0.66× | 1.29× | 32.2% |
| FY2018 | 34.2% | 0.71× | 1.27× | 30.8% |
| FY2017 | 30.9% | 0.71× | 1.27× | 27.7% |
| FY2016 | 28.4% | 0.76× | 1.16× | 24.9% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$2.09B
- Cash generatingOperating cash flow above zero$1.75B
- Return on assets improvedROA up on the prior year17.1% → 15.5%
- Earnings backed by cashOperating cash flow above net income$1.75B vs $2.09B
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose– → –
- No dilutionShare count did not rise223M → 220M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.58 → 0.54
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