Fact based stock research
T. Rowe Price (NasdaqGS:TROW)
US74144T1088
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
T. Rowe Price stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 14 (worse than 86% compared with investment alternatives), T. Rowe Price (Asset Management & Custody, USA) shares have lower financial characteristics compared with similar stocks. Shares of T. Rowe Price are a good value (attractively priced) with a consolidated Value Rank of 62 (better than 62% of alternatives), are safely financed (Safety Rank of 74, which means low debt burdens), but show below-average growth (Growth Rank of 25). ...read more
RECOMMENDATION: A Combined Rank of 14, is a sell recommendation based on T. Rowe Price's financial characteristics. As the company T. Rowe Price's key financial metrics exhibit good value (Obermatt Value Rank of 62) but low growth (Obermatt Growth Rank of 25) while being safely financed (Obermatt Safety Rank of 74), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 62% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Asset Management & Custody |
| Index | Dividends USA, Diversity USA, NASDAQ, S&P 500 |
| Size class | X-Large |
18-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: T. Rowe Price
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 26 |
|
32 |
|
51 |
|
62 |
|
| GROWTH | ||||||||
| GROWTH | 81 |
|
31 |
|
7 |
|
25 |
|
| SAFETY | ||||||||
| SAFETY | 54 |
|
74 |
|
74 |
|
74 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
72 |
|
42 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
34 |
|
22 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 14 (worse than 86% compared with investment alternatives), T. Rowe Price (Asset Management & Custody, USA) shares have lower financial characteristics compared with similar stocks. Shares of T. Rowe Price are a good value (attractively priced) with a consolidated Value Rank of 62 (better than 62% of alternatives), are safely financed (Safety Rank of 74, which means low debt burdens), but show below-average growth (Growth Rank of 25). ...read more
RECOMMENDATION: A Combined Rank of 14, is a sell recommendation based on T. Rowe Price's financial characteristics. As the company T. Rowe Price's key financial metrics exhibit good value (Obermatt Value Rank of 62) but low growth (Obermatt Growth Rank of 25) while being safely financed (Obermatt Safety Rank of 74), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 62% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 26 |
|
32 |
|
51 |
|
62 |
|
| GROWTH | ||||||||
| GROWTH | 81 |
|
31 |
|
7 |
|
25 |
|
| SAFETY | ||||||||
| SAFETY | 54 |
|
74 |
|
74 |
|
74 |
|
| COMBINED | ||||||||
| COMBINED | 50 |
|
14 |
|
14 |
|
14 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 62 (better than 62% compared with alternatives), T. Rowe Price shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for T. Rowe Price. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 83% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 34 which means that the stock price compared with what market professionals expect for future profits is higher than 66% of comparable companies, indicating a low value concerning T. Rowe Price's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 49 which means that the stock price compared with what market professionals expect for future profit levels is higher than 51% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 42 is also low. Compared with invested capital, the stock price is higher than for 58% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 62, is a buy recommendation based on T. Rowe Price's stock price compared with the company's operational size and dividend yields. Should dividend investors pick T. Rowe Price? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose T. Rowe Price only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 30 |
|
25 |
|
30 |
|
34 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 54 |
|
48 |
|
40 |
|
49 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 14 |
|
17 |
|
42 |
|
42 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 55 |
|
91 |
|
90 |
|
83 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 26 |
|
32 |
|
51 |
|
62 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 25 (better than 25% compared with alternatives), T. Rowe Price shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for T. Rowe Price. Profit Growth, with a rank of 51 (better than 51% of its competitors), and Capital Growth, with a rank of 52, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 19, which means that, currently, professionals expect the company to grow less than 81% of its competitors, and Stock Returns are at a rank of 28. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 25, is a hold recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 38 |
|
42 |
|
6 |
|
19 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 13 |
|
60 |
|
37 |
|
51 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
36 |
|
38 |
|
52 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 80 |
|
34 |
|
19 |
|
28 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 81 |
|
31 |
|
7 |
|
25 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 74 (better than 74% compared with alternatives), the company T. Rowe Price has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of T. Rowe Price is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for T. Rowe Price. Leverage is at a rank of 89, meaning the company has a below-average debt-to-equity ratio. It has less debt than 89% of its competitors. Liquidity is also good at a rank of 91, meaning the company generates more profit to service its debt than 91% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 37, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 63% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 74 (better than 74% compared with alternatives), T. Rowe Price has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for T. Rowe Price. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with T. Rowe Price and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 55 |
|
100 |
|
87 |
|
89 |
|
| REFINANCING | ||||||||
| REFINANCING | 37 |
|
22 |
|
27 |
|
37 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 69 |
|
91 |
|
91 |
|
91 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 54 |
|
74 |
|
74 |
|
74 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
3 |
|
7 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
92 |
|
60 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
88 |
|
73 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
50 |
|
67 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
72 |
|
42 |
|
new |
|
Stock analysis by the purely fact based Obermatt Method for T. Rowe Price from April 18, 2024.
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