Price T Rowe Group Inc (NASDAQ: TROW)

Sector: Financial Services Industry: Asset Management CIK: 0001113169
Market Cap 21.14 Bn
P/B 1.95
P/E 10.13
P/S 2.89
ROIC (Qtr) 14.44
Div Yield % 5.42
Rev 1y % (Qtr) 6.01
Total Debt (Qtr) 447.20 Mn
Debt/Equity (Qtr) 0.04
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About

Investment thesis

Bull case

  • Strong operating cash flow of 1.75B provides robust 3.92x coverage of total debt 447.20M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 11.42B provides 25.55x coverage of total debt 447.20M, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 1.75B provides 3.19x coverage of SG&A expenses 549.30M, showing efficient operational cost management.
  • Robust free cash flow of 1.48B exceeds capital expenditure of 274.20M by 5.39x, indicating strong organic growth funding capability.
  • Cash position of 3.38B provides exceptional 27.87x coverage of minority interest expenses 121.20M, indicating strong liquidity.

Bear case

  • Operating cash flow of 1.75B provides thin coverage of dividend payments of (1.14B) with a -1.53 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Retained earnings of 10.87B provide limited buffer against comprehensive income items of (50.50M), which is -215.18x, indicating elevated exposure to market risks.
  • Operating cash flow of 1.75B is outpaced by equity issuance of (643.20M) (-2.73 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tax assets of 0 provide limited offset against tax liabilities of 54.90M, which is 0x, indicating potential future cash flow pressure from tax obligations.
  • R&D investment of 0 represents just 0x of SG&A expenses of 549.30M, indicating potential underinvestment in innovation relative to administrative overhead.

Customer Breakdown of Revenue (2025)

Customer Breakdown of Revenue (2025)

Peer comparison

Companies in the Asset Management
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BLK BlackRock, Inc. 199.59 Bn 85.40 21.98 15.04 Bn
2 BN BROOKFIELD Corp /ON/ 103.94 Bn 31.52 5.64 262.97 Bn
3 AMP Ameriprise Financial Inc 88.69 Bn 55.02 7.20 5.89 Bn
4 BX Blackstone Inc. 88.51 Bn 49.39 10.93 12.89 Bn
5 KKR KKR & Co. Inc. 55.86 Bn 28.33 13.23 53.12 Bn
6 STT State Street Corp 46.52 Bn 21.77 3.91 34.72 Bn
7 NTRS Northern Trust Corp 34.14 Bn 33.31 6.71 15.64 Bn
8 RJF Raymond James Financial Inc 32.89 Bn 37.63 4.14 5.10 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.25 0.94
EV to Cash from Ops. EV/CFO 10.25 41.10
EV to Debt EV to Debt 40.17 15.28
EV to EBIT EV/EBIT 6.52 23.47
EV to EBITDA EV/EBITDA 6.92 47.80
EV to Free Cash Flow [EV/FCF] EV/FCF 12.14 38.62
EV to Market Cap EV to Market Cap 0.85 7.81
EV to Revenue EV/Rev 2.46 27.38
Price to Book Value [P/B] P/B 1.95 2.34
Price to Earnings [P/E] P/E 10.13 11.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.83 4.66
Dividend Payout Ratio % Div Payout % (Qtr) 54.90 -5.56
Dividend per Basic Share Div per Share (Qtr) 5.08 1.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 74.95 49.83
Interest Coverage Interest Coverage 0.00 25.16
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 35.24 -35.10
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 27.49 15.43
Dividend Growth (1y) % Div 1y % (Qtr) 2.42 1.65
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -0.62 -90.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.80 35.24
EBIT Growth (1y) % EBIT 1y % (Qtr) -1.06 -22.13
EBT Growth (1y) % EBT 1y % (Qtr) -1.06 -163.05
EPS Growth (1y) % EPS 1y % (Qtr) 0.87 -20.61
FCF Growth (1y) % FCF 1y % (Qtr) 17.19 220.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.05 -53.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.51 0.22
Cash Payout Ratio Cash Payout (Qtr) 0.56 0.36
Cash Ratio Cash Ratio 0.00 0.38
Current Ratio Current Ratio 0.00 0.86
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 0.70
Interest Cover Ratio Interest Cover Ratio 0.00 25.16
Times Interest Earned Times Interest Earned 0.00 25.16
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 43.20 -114.76
EBIT Margin % EBIT Margin % (Qtr) 37.65 -127.24
EBT Margin % EBT Margin % (Qtr) 37.65 -150.97
Gross Margin % Gross Margin % (Qtr) 55.50 67.88
Net Profit Margin % Net Margin % (Qtr) 28.50 -148.68