Now trading at a price of $107.02, T. Rowe Price has moved -2.9% so far today.
Over the last year, T. Rowe Price logged a -4.1% change, with its stock price reaching a high of $134.64 and a low of $93.53. Over the same period, the stock underperformed the S&P 500 index by -19.0%. As of April 2023, the company's 50-day average price was $109.46. T. Rowe Price Group, Inc. is a publicly owned investment manager. Based in Baltimore, MD, the large-cap Finance company has 7,837 full time employees. T. Rowe Price has offered a 4.4% dividend yield over the last 12 months.
An Exceptionally Strong Balance Sheet:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $5,618 | $6,207 | $7,672 | $6,488 |
| Operating Margins | 42.5% | 44.2% | 48.4% | 38.5% |
| Net Margins | 37.94% | 38.23% | 40.18% | 24.01% |
| Net Income (MM) | $2,131 | $2,373 | $3,083 | $1,558 |
| Depreciation & Amort. (MM) | -$191 | -$190 | -$205 | -$646 |
| Earnings Per Share | $8.7 | $9.98 | $13.12 | $6.12 |
| EPS Growth | n/a | 14.71% | 31.46% | -53.35% |
| Diluted Shares (MM) | 239 | 231 | 229 | 225 |
| Free Cash Flow (MM) | $1,318 | $1,704 | $3,213 | $2,359 |
| Capital Expenditures (MM) | -$205 | -$215 | -$239 | -$238 |
| Net Current Assets (MM) | $1,321 | $1,624 | $326 | $548 |
| Current Ratio | 9.86 | 11.06 | 5.07 | 5.53 |
| Net Debt / EBITDA | -0.88 | -0.89 | -0.37 | -0.47 |
T. Rowe Price benefits from growing revenues and increasing reinvestment in the business, strong margins with a stable trend, and an excellent current ratio. The company's financial statements show low leverage and consistent free cash flow. However, the firm has declining EPS growth.
T. Rowe Price's Valuation Is in Line With Its Sector Averages:
T. Rowe Price has a trailing twelve month P/E ratio of 17.9, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of $6.99, the company has a forward P/E ratio of 15.7. The -4.3% compound average growth rate of T. Rowe Price's historical and projected earnings per share yields a PEG ratio of -4.18. This indicates that its shares are overvalued.Furthermore, T. Rowe Price is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.66 is higher than the sector average of 1.57. The company's shares are currently trading 15.4% above their Graham number. In conclusion, T. Rowe Price's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.
T. Rowe Price Has an Average Rating of Hold:
The 11 analysts following T. Rowe Price have set target prices ranging from $73.0 to $108.0 per share, for an average of $94.14 with a hold rating. As of April 2023, the company is trading 16.3% away from its average target price, indicating that there is an analyst belief that shares are overpriced.
T. Rowe Price has an above average percentage of its shares sold short because 9.8% of the company's shares are sold short. Institutions own 80.0% of the company's shares, and the insider ownership rate stands at 1.99%, suggesting a large amount of insider shareholders. The largest shareholder is the Vanguard Group, Inc., whose 12% stake in the company is worth $2,853,200,953.
