T. Rowe Price Group Inc
🇺🇸 TROW · NYSE/NASDAQ · US74144T1088
Bank
USD 102.01 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
10.8
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 102.01 ÷ 9.45 = 10.8
TTM period through: 2026-03-31
Forward P/E (estimated): 10.7
Based on analyst estimates
Reference: Provider P/E (Trailing): 11.0
Yield (Fwd)
5.10%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 4.96%
Div. Growth (5Y CAGR)
6.9%
Growth Streak
3 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
-1.1x
Latest quarter: -4.7x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): -4.7x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
55.0%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 54.5%
Cash Flow Payout (TTM): 46.7%
FCF Coverage (TTM): 2.05x
ROE
18.7%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
6.1x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
T. Rowe Price is a highly profitable asset manager featuring a pristine, debt-free balance sheet and an attractive 5.0% yield. However, structural industry headwinds from the secular shift to passive investing and highly cyclical earnings make it unsuitable for conservative strategies seeking predictable cash flows. Not recommended for new positions given the long-term structural risks, despite the optically attractive valuation.
Sector Context
T. Rowe Price is a global asset management firm that generates revenue primarily through investment advisory fees based on Assets Under Management (AUM). For dividend investors, asset managers differ significantly from commercial banks or regulated utilities, as their earnings are highly cyclical, sensitive to market downturns, and currently face secular pressures from the rise of passive indexing.
📊 Strategy Analysis
- • P/E of 10.8 represents an attractive valuation multiple for a historically strong financial firm
- • Pristine balance sheet with virtually zero debt (Debt/Equity of 0.04) provides substantial financial flexibility
- • Attractive 5.0% dividend yield that is currently well-covered by free cash flow (46.7% cash flow payout ratio)
⚠ What to Watch
- • Faces persistent structural headwinds from the secular industry shift toward passive investing, reflected in a negative 5-year EPS CAGR of -7.1%
- • Highly cyclical business model heavily dependent on global equity market performance, lacking the predictable, recession-resistant cash flows required by the strategy
- • History of dividend volatility, highlighted by a significant 34.4% reduction in total paid dividends during 2022 driven by fundamental business deterioration
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.