T. Rowe Price Group Inc

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TROW : NASDAQ : Financial
$65.56 up 0.36 | 0.55%
Today's Range: 64.76 - 65.86
Avg. Daily Volume: 1,397,100
09/27/16 - 4:14 PM ET

Financial Analysis


PRICE (T. ROWE) GROUP's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.13% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)1044.71072.4
EBITDA ($mil)483.5540.0
EBIT ($mil)449.7507.8
Net Income ($mil)195.3333.2


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1275.21269.2
Total Assets ($mil)6581.75415.5
Total Debt ($mil)0.00.0
Equity ($mil)4860.94967.1


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin46.2850.35
EBITDA Margin46.2850.35
Operating Margin43.0547.35
Sales Turnover0.630.76
Return on Assets16.2623.3
Return on Equity22.0225.41
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)248.5257.43
Div / share0.542.52
EPS0.761.24
Book value / share19.5619.3
Institutional Own % n/a n/a
Avg Daily Volume1434018.01370210.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 22.00 for the Capital Markets industry and a discount compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 3.42 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 5.51. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, PRICE (T. ROWE) GROUP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TROW 16.14 Peers 22.00   TROW 27.35 Peers 15.22

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

TROW is trading at a significant 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 13.78 Peers 19.21   TROW NM Peers 1.46

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

TROW is trading at a discount to its peers.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TROW 3.42 Peers 5.51   TROW -11.35 Peers 6.96

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

TROW is trading at a significant discount 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 4.01 Peers 4.60   TROW -0.07 Peers -0.86

Discount. 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 discount to its industry on this measurement.

 

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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