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TROW Stock Analysis: Hold (Score 57.1/100) | Blank Capital Research | Blank Capital Research
TROW
PRICE T ROWE GROUP INC
$92.16
+0.00 (+0.00%)
Score57.1
Data as of Apr 6, 2026
TROW
PRICE T ROWE GROUP INC
FinancialsTrading
$92.16
+0.00 (+0.00%)
Open ---High ---Low ---Prev $92.16Vol ---52W: $77.85 – $118.22
Hold
Composite score
01234567890123456789.0123456789
Global rank
#411
Percentile
Top 9%
Business quality
88th
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 87.8GRADE A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
21.7%
Sector: 8.5%
Dividend Analysis audit
INCOME
4.92%
Trailing Yield
$4.92
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
40%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, PRICE T ROWE GROUP INC (TROW) receives a "Hold" rating with a composite score of 57.1/100, ranked #411 out of 4446 stocks. Key factor scores: Quality 88/100, Value 74/100, Momentum 36/100. This is quantitative analysis only — not investment advice.
PRICE T ROWE GROUP INC (TROW) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does PRICE T ROWE GROUP INC Do?
T. Rowe Price Group, Inc. is a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. It launches and manages equity and fixed income mutual funds. The firm invests in the public equity and fixed income markets across the globe. It employs fundamental and quantitative analysis with a bottom-up approach. The firm utilizes in-house and external research to make its investments. It employs socially responsible investing with a focus on environmental, social, and governance issues. It makes investment in late-stage venture capital transactions and usually invests between $3 million and $5 million. The firm was previously known as T. Rowe Group, Inc. and T. Rowe Price Associates, Inc. T. Rowe Price Group, Inc. was founded in 1937 and is based in Baltimore, Maryland, with additional offices in Colorado Springs, Colorado; Owings Mills, Maryland; San Francisco, California; New York, New York; Philadelphia, Pennsylvania; Tampa, Florida; Toronto, Ontario; Hellerup, Denmark; Amsterdam, The Netherlands; Luxembourg, Grand Duchy of Luxembourg; Zurich, Switzerland; Dubai, United Arab Emirates; London, United Kingdom; Sydney, New South Wales; Hong Kong; Tokyo, Japan; Singapore; Frankfurt, Germany, Madrid, Spain, Milan, Italy, Stockholm, Sweden, Melbourne, Australia, and Amsterdam, Netherlands. PRICE T ROWE GROUP INC (TROW) is classified as a large-cap stock in the Financials sector, specifically within the Trading industry. The company is led by CEO Robert W. Sharps and employs approximately 7,870 people, headquartered in BALTIMORE, Maryland. With a market capitalization of $19.6B, TROW is one of the prominent companies in the Financials sector.
PRICE T ROWE GROUP INC (TROW) Stock Rating — Hold (April 2026)
As of April 2026, PRICE T ROWE GROUP INC receives a Hold rating with a composite score of 57.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.TROW ranks #411 out of 4,446 stocks in our coverage universe. Within the Financials sector, PRICE T ROWE GROUP INC ranks #138 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
TROW Stock Price and 52-Week Range
PRICE T ROWE GROUP INC (TROW) currently trades at $92.16. The 52-week high for TROW is $118.22, which means the stock is currently trading -22.0% from its annual peak. The 52-week low is $77.85, putting the stock 18.4% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is TROW Overvalued or Undervalued? — Valuation Analysis
PRICE T ROWE GROUP INC (TROW) carries a value factor score of 74/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 8.13x, compared to the Financials sector average of 14.88x — a discount of 45%. The price-to-book ratio stands at 1.76x, versus the sector average of 1.22x. The price-to-sales ratio is 2.71x, compared to 0.90x for the average Financials stock. On an enterprise value basis, TROW trades at 7.25x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, PRICE T ROWE GROUP INC appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
PRICE T ROWE GROUP INC Profitability — ROE, Margins, and Quality Score
PRICE T ROWE GROUP INC (TROW) earns a quality factor score of 88/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is 21.7%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 16.7% versus the sector average of 1.2%.
On a margin basis, PRICE T ROWE GROUP INC reports gross margins of 62.0%. The operating margin is 32.5% (sector: 21.8%). Net profit margin stands at 33.3%, versus 17.7% for the average Financials stock. Revenue growth is running at 9.2% on a trailing basis, compared to 9.4% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.
TROW Debt, Balance Sheet, and Financial Health
PRICE T ROWE GROUP INC has a debt-to-equity ratio of 21.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 6.27x, indicating strong short-term liquidity. Total debt on the balance sheet is $0. Cash and equivalents stand at $3.63B.
TROW has a beta of 1.17, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for PRICE T ROWE GROUP INC is 75/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
PRICE T ROWE GROUP INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, PRICE T ROWE GROUP INC reported revenue of $7.17B and earnings per share (EPS) of $9.26. Net income for the quarter was $2.39B. Gross margin was 62.0%. Operating income came in at $2.33B.
In FY 2025, PRICE T ROWE GROUP INC reported revenue of $7.31B and earnings per share (EPS) of $9.26. Net income for the quarter was $2.21B. Revenue grew 3.1% year-over-year compared to FY 2024. Operating income came in at $2.19B.
In Q3 2025, PRICE T ROWE GROUP INC reported revenue of $1.89B and earnings per share (EPS) of $2.88. Net income for the quarter was $687M. Revenue grew 6.0% year-over-year compared to Q3 2024. Operating income came in at $643M.
In Q2 2025, PRICE T ROWE GROUP INC reported revenue of $1.72B and earnings per share (EPS) of $2.24. Net income for the quarter was $556M. Revenue grew -0.6% year-over-year compared to Q2 2024. Operating income came in at $478M.
Over the past 8 quarters, PRICE T ROWE GROUP INC has demonstrated a growth trajectory, with revenue expanding from $1.73B to $7.17B. Investors analyzing TROW stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
TROW Dividend Yield and Income Analysis
PRICE T ROWE GROUP INC (TROW) currently pays a dividend yield of 4.9%. At this yield, a $10,000 investment in TROW stock would generate approximately $$492.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning TROW offers above-average income for its sector. With a net margin of 33.3%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
TROW Momentum and Technical Analysis Profile
PRICE T ROWE GROUP INC (TROW) has a momentum factor score of 36/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 29/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 3/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
TROW vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing TROW against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full TROW vs S&P 500 (SPY) comparison to assess how PRICE T ROWE GROUP INC stacks up against the broader market across all factor dimensions.
TROW Next Earnings Date
No upcoming earnings date has been announced for PRICE T ROWE GROUP INC (TROW) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy TROW? — Investment Thesis Summary
PRICE T ROWE GROUP INC presents a balanced picture with arguments on both sides. The quality score of 88/100 indicates above-average profitability and business fundamentals. The value score of 74/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 36/100, a headwind for near-term performance. Low volatility (stability score 75/100) reduces downside risk.
In summary, PRICE T ROWE GROUP INC (TROW) earns a Hold rating with a composite score of 57.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on TROW stock.
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Institutional Research Dossier
PRICE T ROWE GROUP INC (TROW) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
T. Rowe Price Group, Inc. (TROW) currently holds a 'Hold' rating, reflecting a balanced view of its strong profitability and attractive valuation against a backdrop of weakening momentum and investment. While the company exhibits robust financial health and operates within a sector where it demonstrates superior margins and returns, concerns regarding future growth prospects and capital allocation efficiency temper enthusiasm. The primary takeaway is that TROW represents a stable, value-oriented investment, but its potential for significant capital appreciation appears limited in the near term.
The company's impressive profitability metrics, coupled with a conservative balance sheet, provide a solid foundation. However, the investment score, reflecting capital allocation and growth, raises questions about the firm's ability to adapt to evolving market dynamics and generate substantial future returns. The 'Hold' rating acknowledges TROW's inherent strengths while recognizing the headwinds it faces in a rapidly changing investment management landscape. Investors should closely monitor the company's strategic initiatives and capital deployment decisions to assess its long-term growth trajectory.
Business Strategy & Overview
T. Rowe Price Group operates as a global investment management firm, generating revenue primarily through investment advisory fees. These fees are directly correlated to the assets under management (AUM), making market performance and net client flows critical drivers of revenue. The company offers a diverse range of investment products, including equity, fixed income, and multi-asset strategies, catering to individual and institutional investors. A significant portion of their business is derived from retirement plans, highlighting their expertise in long-term investment solutions.
The firm's strategic positioning emphasizes active management, relying on in-house research and a bottom-up investment approach. This strategy differentiates them from passive investment providers, such as Vanguard and BlackRock, and appeals to investors seeking alpha generation. T. Rowe Price also focuses on building strong relationships with financial intermediaries, expanding its distribution network and reaching a broader client base. The company's commitment to socially responsible investing (ESG) further enhances its appeal to a growing segment of investors.
T. Rowe Price's global presence is a key aspect of its business strategy, with offices and investment teams located in major financial centers worldwide. This allows them to access local market expertise and cater to the specific needs of international clients. The company also invests in technology and infrastructure to enhance its investment capabilities and improve client service. Their venture capital arm, while small, provides exposure to innovative companies and potential future investment opportunities.
The competitive landscape for T. Rowe Price is intense, with numerous asset managers vying for market share. Key competitors include large, diversified firms like Fidelity and Capital Group, as well as specialized boutiques. To maintain its competitive edge, T. Rowe Price must continue to deliver strong investment performance, innovate its product offerings, and adapt to changing client preferences. The shift towards passive investing and the increasing demand for lower fees pose ongoing challenges to the active management industry, requiring T. Rowe Price to demonstrate its value proposition and justify its higher fee structure.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
9.2%
Sector: 9.4%
IN LINE
Economic Moat Analysis
T. Rowe Price possesses a narrow economic moat, primarily derived from its brand reputation and established track record of investment performance. The investment management industry is characterized by high competition and relatively low barriers to entry, limiting the potential for a wide moat. However, T. Rowe Price has cultivated a strong brand over decades, earning the trust of investors and financial advisors. This reputation provides a competitive advantage in attracting and retaining clients.
The company's consistent investment performance, particularly in certain asset classes, has contributed to its brand strength. While past performance is not indicative of future results, a long history of delivering competitive returns enhances investor confidence and loyalty. This performance is supported by a robust research process and experienced investment professionals. The firm's commitment to fundamental analysis and a bottom-up approach differentiates it from some competitors and contributes to its ability to generate alpha.
Switching costs in the investment management industry are relatively low, as investors can easily move their assets to other firms. However, the complexity of managing investments and the desire for continuity can create some stickiness. T. Rowe Price's strong client relationships and personalized service further enhance client retention. The company's focus on retirement plans also contributes to its moat, as these accounts tend to be more stable and less prone to frequent turnover.
The increasing pressure on fees in the investment management industry poses a threat to T. Rowe Price's moat. As passive investing gains popularity and investors become more fee-conscious, the company must demonstrate the value of its active management strategies. The ability to generate consistent alpha and provide superior client service will be crucial in maintaining its competitive advantage. While the moat is not wide, the company's brand, performance track record, and client relationships provide a defensible position in a competitive market.
Financial Health & Profitability
T. Rowe Price exhibits strong financial health, characterized by consistent profitability, a conservative balance sheet, and robust cash flow generation. The company's revenue is primarily driven by investment advisory fees, which are directly linked to assets under management (AUM). Revenue has shown growth, with FY2025 revenue at $7.31B compared to $7.09B in FY2024 and $6.46B in FY2023. This growth reflects both market appreciation and net client inflows.
The company's profitability metrics are impressive, with a net margin of 33.3% and an operating margin of 32.5%. These margins are significantly higher than the sector averages, indicating T. Rowe Price's efficient cost structure and strong pricing power. The company's return on equity (ROE) of 21.7% is also substantially higher than the sector average, demonstrating its ability to generate profits from shareholders' equity. The gross margin of 62.0% further highlights the company's ability to control costs and maintain profitability.
T. Rowe Price's balance sheet is exceptionally strong, with $3.63B in total cash and no debt. This provides the company with significant financial flexibility to pursue strategic acquisitions, invest in growth initiatives, and return capital to shareholders. The current ratio of 6.27 indicates a strong ability to meet short-term obligations. The absence of debt also reduces the company's financial risk and enhances its ability to weather economic downturns.
Free cash flow generation has been somewhat volatile, with $129.36M TTM. However, FY2024 saw a FCF of $1.28B. The company has a history of returning capital to shareholders through dividends and share repurchases. The strong financial position allows T. Rowe Price to maintain a consistent dividend payout and opportunistically repurchase shares when the stock is undervalued. Overall, T. Rowe Price's financial health is a significant strength, providing a solid foundation for future growth and shareholder value creation.
Valuation Assessment
T. Rowe Price's valuation appears attractive relative to its peers and historical averages, but the 'Hold' rating suggests that the market has already priced in much of this value. The company's P/E ratio of 9.3x is significantly lower than the sector average of 15.5x, indicating that the stock is undervalued based on its earnings. Similarly, the EV/EBITDA ratio of 2.1x is well below the sector average of 3.5x, further supporting the undervaluation thesis.
However, the low P/E and EV/EBITDA multiples may reflect concerns about future growth prospects. While the company has demonstrated consistent profitability and strong financial health, the investment score of 29/100 suggests that the market is skeptical about its ability to generate substantial future returns. The momentum score of 34/100 also indicates that the stock has been underperforming relative to its peers, reflecting investor sentiment.
A discounted cash flow (DCF) analysis would be necessary to determine the intrinsic value of the stock. However, based on the available data, it appears that the market is pricing in a relatively low growth rate for T. Rowe Price. This may be due to concerns about the increasing competition in the investment management industry, the shift towards passive investing, and the pressure on fees.
While the stock appears cheap based on current earnings, investors should consider the potential for future earnings growth. If T. Rowe Price can successfully navigate the challenges facing the industry and maintain its competitive edge, the stock could be undervalued. However, if growth stagnates or declines, the current valuation may be justified. The 'Hold' rating reflects this uncertainty and suggests that investors should wait for more clarity on the company's future prospects before making a significant investment.
Risk & Uncertainty
T. Rowe Price faces several risks and uncertainties that could impact its future performance. One of the most significant risks is the increasing competition in the investment management industry. The rise of passive investing and the proliferation of low-cost ETFs have put pressure on active managers to justify their higher fees. T. Rowe Price must continue to deliver strong investment performance and differentiate its product offerings to maintain its competitive edge.
Market volatility and economic downturns can also negatively impact T. Rowe Price's AUM and revenue. A significant decline in the stock market could lead to lower investment advisory fees and client outflows. The company's reliance on retirement plans also exposes it to regulatory changes and demographic shifts. Changes in retirement savings patterns or government policies could impact the demand for its services.
Key person risk is another concern, as the company relies on the expertise and experience of its investment professionals. The loss of key portfolio managers or analysts could negatively impact investment performance and client relationships. T. Rowe Price must have a robust succession planning process in place to mitigate this risk.
Regulatory risk is also a factor, as the investment management industry is subject to extensive regulation. Changes in regulations could increase compliance costs and impact the company's business model. Cybersecurity risks are also a growing concern, as a data breach or cyberattack could damage the company's reputation and lead to financial losses. T. Rowe Price must invest in cybersecurity measures to protect its data and systems.
Bulls Say / Bears Say
The Bull Case
BULL VIEWT. Rowe Price's strong balance sheet and consistent profitability provide a solid foundation for future growth and shareholder returns, making it a safe and reliable investment.
BULL VIEWThe company's attractive valuation, with a low P/E ratio and EV/EBITDA multiple, suggests that the stock is undervalued and has significant upside potential.
BULL VIEWT. Rowe Price's focus on active management and its strong track record of investment performance will allow it to outperform passive strategies and attract investors seeking alpha.
The Bear Case
BEAR VIEWThe increasing competition in the investment management industry and the shift towards passive investing will put pressure on T. Rowe Price's fees and profitability, limiting its growth potential.
BEAR VIEWThe company's weakening momentum and investment score suggest that it is struggling to adapt to changing market dynamics and generate substantial future returns.
BEAR VIEWT. Rowe Price's reliance on retirement plans exposes it to regulatory changes and demographic shifts, which could negatively impact its AUM and revenue.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score TROW and 4,400+ other equities.
PRICE T ROWE GROUP INC exhibits a 81% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
16.7%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
62.0%
Sector: 0.0%
Operating Margin
Core business profitability
32.5%
Sector: 21.8%
Net Margin
Bottom-line profitability
33.3%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+98%
Income Projection audit
A $10,000 investment would generate approximately $492 annually in dividends at the current trailing rate.
