Price T Rowe
NASDAQ: TROW
$116.52 ▲ +1.57  (+1.37%)
At close: Jul 24, 2026 · 3:59 PM UTC
Financial Ratios
Market Cap24.70 Bn
P/E11.43
P/S3.33
Div. Yield0.05
Revenue Growth (1y) (Qtr)5.28
Add ratio to table…

About

Sector: Financial Services Industry: Asset Management CIK: 0001113169

Investment Thesis

▲ Bull case
  • T. Rowe Price's growth in higher-margin alternatives and ETFs represents a structural shift that management underplayed, with OHA's assets under management rising to $112 billion from $88 billion year-end 2024 and over $30 billion in dry powder, positioning the firm to capitalize on widened credit spreads and favorable lending terms as institutional demand for private credit persists despite retail outflows, while the ETF business generated $2.8 billion in net inflows and surpassed $25 billion in AUM with 8 products exceeding $1 billion AUM, indicating successful expansion into new client segments not previously reached by mutual funds and signaling durable growth beyond traditional equity strategies.
  • The Target Date franchise's blend product momentum, delivering $4.9 billion in net inflows and driving 98% of fund AUM to outperform peers on a 10-year basis, combined with the planned launch of an interval fund and Target Date sister series with Goldman Sachs later in 2026, creates a self-reinforcing cycle of inflows and performance that management did not fully connect to long-term retirement asset growth, especially as two-thirds of T. Rowe Price's $1.83 trillion AUM is retirement-related and the firm is deepening its capabilities in outcome-oriented solutions through enhanced multi-asset integration.
  • Expense discipline and capital return flexibility provide a durable tailwind, with Q1 adjusted operating expenses down 7% sequentially and 2026 guidance for a 3%-6% increase from 2025 levels supporting margin expansion, while the $4.1 billion in cash and discretionary investments enables continued $340 million quarterly share repurchases and a 40th consecutive dividend increase to $1.30 per share, reflecting confidence in intrinsic value and the ability to self-fund strategic investments in ETFs, SMAs, and alternatives without compromising shareholder returns during periods of market dislocation.
Read more
▼ Bear case
  • T. Rowe Price faces persistent structural headwinds in its core equity and mutual fund businesses, with $13.7 billion in net outflows for Q1 driven by equities, especially U.S. growth strategies, and management's acknowledgment that outflows in these segments continue unabated, signaling that the shift to lower-fee vehicles like Target Date and ETFs is not generating sufficient net new assets to offset the decline in higher-fee active equity strategies, which remains a drag on overall revenue growth and fee rate stability.
  • The annualized effective fee rate declined to 38.4 basis points sequentially due to growth in lower-fee Target Date products and outflows from higher-fee equity strategies, a trend management admitted is ongoing and aligned with client demand for lower-cost solutions, suggesting that even as AUM grows, revenue per dollar of assets under management is structurally deteriorating, and without a commensurate increase in higher-margin alternatives or alternatives' contribution to total revenue, margin pressure will persist despite expense controls.
  • Retail alternatives products like OCREDIT and OFlex, while showing positive net flows and redemptions below the 5% limit, represent only a small fraction of OHA's $112 billion AUM and remain vulnerable to industry-wide liquidity concerns in non-traded BDCs, with management acknowledging elevated redemption requests across the retail alternatives sector, indicating that growth in this channel may be constrained by investor sentiment and redemption pressures, limiting its ability to meaningfully diversify revenue or offset institutional fee compression in the near term.
Read more

Customer Breakdown of Revenue (2025)

Customer Breakdown of Revenue (2025)

Peer Comparison

Companies in the Asset Management
S.No. Ticker Company Market CapP/EP/STotal Debt (Qtr)
1 BN BROOKFIELD Corp /ON/ 1,236.60 Bn1,022.8316.3315.06 Bn
2 BLK BlackRock, Inc. 161.01 Bn25.756.2820.18 Bn
3 BX Blackstone Inc. 97.77 Bn16.046.6213.28 Bn
4 APO Apollo Global Management, Inc. 70.80 Bn67.622.6514.22 Bn
5 STT State Street Corp 51.30 Bn18.163.55-
6 AMP Ameriprise Financial Inc 48.54 Bn12.461.740.20 Bn
7 NTRS Northern Trust Corp 32.93 Bn18.056.407.84 Bn
8 RJF Raymond James Financial Inc 32.59 Bn15.212.374.66 Bn