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T. Rowe Price Group Inc
🇺🇸 TROW · NYSE/NASDAQ · US74144T1088
Bank
USD 117.33 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
12.4
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: 117.33 ÷ 9.45 = 12.4
TTM period through: 2026-03-31
Forward P/E (estimated): 12.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 12.7
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).
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
6.8x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
4.43%
TTM: 4.40%
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.
Forward Yield (estimated): 4.43%
Trailing Yield (TTM, last 12 months): 4.40%
Payout Ratio (Fwd)
55.0%
TTM: 54.5%
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 (Fwd): 55.0%
Payout (TTM): 54.5%
Cash Flow Payout (TTM): 46.7%
FCF Coverage (TTM): 2.05x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
7.1%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 15 Jun 2027 | — | USD | 1.3 |
| Forecast* | Quarterly | — | 16 Mar 2027 | — | USD | 1.3 |
| Forecast* | Quarterly | — | 15 Dec 2026 | — | USD | 1.27 |
| Forecast* | Quarterly | — | 15 Sep 2026 | — | USD | 1.27 |
| Paid | Quarterly | 07 May 2026 | 15 Jun 2026 | 29 Jun 2026 | USD | 1.3 |
| Paid | Quarterly | 09 Feb 2026 | 16 Mar 2026 | 30 Mar 2026 | USD | 1.3 |
| Paid | Quarterly | 28 Oct 2025 | 15 Dec 2025 | 30 Dec 2025 | USD | 1.27 |
| Paid | Quarterly | 11 Aug 2025 | 15 Sep 2025 | 29 Sep 2025 | USD | 1.27 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
T. Rowe Price is a well-capitalized asset manager featuring a pristine, debt-free balance sheet and a highly secure 4.4% dividend yield. However, the structural industry shift toward passive investing and the inherently cyclical nature of AUM-based earnings make it a poor fit for conservative dividend strategies that prioritize predictable essential services. While the current valuation is tempting, the long-term structural headwinds make this unsuitable for core dividend-focused portfolios.
Sector Context
T. Rowe Price is a premier global asset management firm providing mutual funds, subadvisory services, and separate account management. For dividend investors, asset managers present a mixed profile: while they often generate excellent cash flow and require minimal capital expenditures, their revenues are inherently cyclical, tied directly to broader equity market performance rather than the predictable demand of essential services.
📊 Strategy Analysis
- • Pristine, debt-free balance sheet with a Net Debt/EBITDA of -1.14x, providing massive financial flexibility and insulation against high interest rates.
- • Highly secure 4.4% dividend yield, perfectly supported by a conservative 46.7% free cash flow payout ratio.
- • Trades at an attractive P/E of 12.41, supported by robust share repurchases and consistent dividend increases.
- • Actively adapting to industry trends by expanding into the alternative assets and CLO markets, leveraging the integration of Oak Hill Advisors.
⚠ What to Watch
- • Business model lacks essential-service predictability; revenues are highly cyclical and directly tied to global equity market performance.
- • Faces ongoing structural headwinds from the secular industry shift toward passive indexing and ETF tax advantages over traditional mutual funds, reflected in the negative 5-year EPS CAGR of -7.1%.
- • Persistent ERISA litigation exposure surrounding its actively managed target-date funds, though recent settlements ($7M) remain financially manageable.
📊 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: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.