T. Rowe Price Group Inc

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TROW : NASDAQ : Financial
$74.12 | %
Today's Range: 73.61 - 74.20
Avg. Daily Volume: 1,390,300
07/22/16 - 4:00 PM ET

Financial Analysis


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

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.76% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)994.11027.0
EBITDA ($mil)443.1506.9
EBIT ($mil)410.9477.8
Net Income ($mil)295.2309.5


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)1322.91810.4
Total Assets ($mil)6203.95962.0
Total Debt ($mil)0.00.0
Equity ($mil)4763.85002.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin44.5749.36
EBITDA Margin44.5749.35
Operating Margin41.3346.52
Sales Turnover0.670.68
Return on Assets19.4820.71
Return on Equity25.3724.68
Debt Q1 FY16 Q1 FY15
Current Ratio0.00.0
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)248.13260.58
Div / share0.540.52
EPS1.151.13
Book value / share19.219.2
Institutional Own % n/a n/a
Avg Daily Volume1406884.01650760.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 18.71 for the Capital Markets industry and a discount compared to the S&P 500 average of 25.03. To use another comparison, its price-to-book ratio of 3.86 indicates a premium versus the S&P 500 average of 2.80 and a significant premium versus the industry average of 1.66. 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 16.05 Peers 18.71   TROW 17.72 Peers 14.23

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 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 14.71 Peers 15.75   TROW NM Peers 1.90

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.

 

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 3.86 Peers 1.66   TROW 1.31 Peers -44.11

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.

 

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

TROW is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TROW 4.41 Peers 2.94   TROW 2.79 Peers -1.73

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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