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T. Rowe Price Group Inc
🇺🇸 TROW · NYSE/NASDAQ
Bank
Price at analysis: USD 101.17 Current price: USD 100.50 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
10.0
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: 101.17 ÷ 10.11 = 10.0
TTM period through: 2026-06-30
Forward P/E (estimated): 10.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 10.2
Net Debt/EBITDA (TTM)
-0.9x
Latest quarter: -4.5x
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: 2026-06-30
Latest quarter (2026-06-30): -4.5x
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
19.4%
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
6.3x
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)
4.77%
TTM: 5.16%
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): 4.77%
Trailing Yield (TTM, last 12 months): 5.16%
Payout Ratio (Fwd)
51.5%
TTM: 51.6%
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): 51.5%
Payout (TTM): 51.6%
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 Sep 2027 | — | USD | 1.3 |
| Forecast* | Quarterly | — | 15 Jun 2027 | — | USD | 1.3 |
| Forecast* | Quarterly | — | 16 Mar 2027 | — | USD | 1.3 |
| Forecast* | Quarterly | — | 15 Dec 2026 | — | USD | 1.27 |
| Paid | Quarterly | 06 Aug 2026 | 15 Sep 2026 | 29 Sep 2026 | USD | 1.3 |
| 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 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
T. Rowe Price offers a pristine balance sheet and a well-covered 5.16% dividend at a cheap 10.01x P/E, making it look like a classic value play. However, persistent outflows and a declining 5-year EPS trajectory indicate a permanent structural decline in its legacy active-management model rather than a temporary dislocation. Not recommended for new DGI positions, as the business lacks the essential-service resilience required for core long-term compounding.
Sector Context
Asset Management (Financials). While highly cash-generative in bull markets, traditional active asset managers are non-essential and highly cyclical. The industry is undergoing a secular transition as capital migrates toward lower-cost passive index funds, applying permanent structural pressure to legacy active mutual fund margins and net flows.
📊 Strategy Analysis
- • Pristine balance sheet with minimal leverage (0.04 Debt/Equity) and highly profitable operations producing a 19.4% ROE.
- • Attractive valuation at a 10.01x P/E, significantly lower than broader market averages.
- • Secure and substantial 5.16% dividend yield, comfortably covered by a 50.0% TTM payout ratio.
- • The multi-year ERISA class-action lawsuit (Feinberg v. T. Rowe Price) has been formally settled for $7 million, removing a known legal overhang.
⚠ What to Watch
- • The core active-management business model faces permanent structural headwinds from the secular shift to passive indexing and ETFs, driving persistent net outflows ($12.2 billion in September alone).
- • Industry-wide fee compression has materially impacted the bottom line, reflected in a negative 5-year EPS CAGR of -7.1%.
- • Earnings and AUM are highly cyclical and heavily dependent on global equity market performance rather than resilient, essential-service demand.
📊 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.
Analysis date: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.