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T. Rowe Price Group Inc
TROW : NASDAQ : Financial
$87.19 | %
Today's Range: 87.16 - 87.92
Avg. Daily Volume: 1,432,800
12/26/14 - 3:59 PM ET

Financial Analysis


PRICE (T. ROWE) GROUP's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not.

During the same period, stockholders' equity ("net worth") has increased by 15.12% from the same quarter last year.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)1020.8884.4
EBITDA ($mil)517.0448.1
EBIT ($mil)488.7425.9
Net Income ($mil)303.6270.3


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)1644.51693.3
Total Assets ($mil)5768.05126.8
Total Debt ($mil)0.00.0
Equity ($mil)5227.54540.6


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin50.6550.67
EBITDA Margin50.6450.66
Operating Margin47.8748.16
Sales Turnover0.670.65
Return on Assets20.8219.34
Return on Equity22.9821.84
Debt Q3 FY14 Q3 FY13
Current Ratio0.00.0
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)260.66260.87
Div / share0.440.38
EPS1.121.0
Book value / share20.0617.41
Institutional Own % n/a n/a
Avg Daily Volume1461833.01420651.0

Valuation


BUY. PRICE (T. ROWE) GROUP's P/E ratio indicates a discount compared to an average of 22.83 for the Capital Markets industry and a value on par with the S&P 500 average of 19.99. For additional comparison, its price-to-book ratio of 4.31 indicates a significant premium versus the S&P 500 average of 2.76 and a significant premium versus the industry average of 2.14. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TROW 19.50 Peers 22.83   TROW 17.52 Peers 12.13

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

TROW is trading at a discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TROW is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TROW 17.81 Peers 17.20   TROW 1.27 Peers 1.72

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

TROW is trading at a premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

TROW trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TROW 4.31 Peers 2.14   TROW 19.40 Peers 142.42

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TROW is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, TROW is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TROW 5.79 Peers 3.57   TROW 16.39 Peers 5.65

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TROW is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

TROW has a sales growth rate that significantly exceeds its peers.

 

 

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