Financial Services

T. Rowe Price Group, Inc. (TROW)

$104.31
+0.38%
$22.4B
Market Cap
11.2
P/E Ratio
1.53
Beta
4.97%
Dividend Yield
Piotroski 4/9Altman Z 7.7 SafeBeneish M -2.37 CleanROIC−WACC +0.1%

Quantitative Summary

Deterministic

At 11.2x earnings — a 42% discount to the sector average of 19.2x — TROW is in the lower valuation range. Financial health is average: Piotroski 4/9, Altman Z 7.7. DCF fair value of $69 implies 27% downside based on model assumptions.

Generated deterministically from quant metrics and financial statements. Not a recommendation.

Algorithmic Teardown

AI-Generated

The fundamental economics of T. Rowe Price Group reveal a capital allocation profile where the return on invested capital precisely matches the cost of equity, resulting in zero economic value creation beyond financing costs. Despite this neutral spread, earnings power is robustly supported by high profitability margins rather than asset efficiency or leverage; specifically, a net margin of 28.5% drives an ROE of 17.3%, while low turnover and minimal financial leverage constrain the equity multiplier to just 1.19x. Quality indicators present a mixed signal: the Altman Z-Score of 7.6 and Beneish M-Score of -2.37 suggest strong solvency and low earnings manipulation risk, yet the Piotroski F-Score of 4/9 indicates moderate financial health relative to peers. This divergence highlights an entity with stable balance sheet metrics but limited recent momentum in fundamental score improvements.

Valuation dynamics reflect a significant discount to historical norms and sector benchmarks, trading at a P/E ratio of 9.8x compared to the sector average of 18.0x. However, discounted cash flow analysis implies that current pricing embeds expectations for modest long-term free cash flow growth averaging only 6.1% over ten years, which translates into a fair value assessment suggesting downside potential rather than immediate reversionary upside. The market appears to be pricing in a scenario where the company's high margin structure cannot fully compensate for sluggish revenue expansion of just 3.1% year-over-year or the lack of superior capital efficiency relative to its cost of funds.

Risk-adjusted performance metrics further complicate the investment thesis, as the stock has generated negative alpha of -19.10% annually under Fama-French models, indicating it has underperformed when adjusted for market and size factors despite a clear value tilt evidenced by an HML score of 0.334. The neutrality regarding profitability factor exposure (RMW: 0.007) combined with zero insider flow over the last ninety days suggests no active management signaling or urgent capital deployment shifts are currently influencing shareholder sentiment.

Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.

DCF Sandbox

Interactive
Market Price
$104.31
Fair Value
$69
Implied Upside
-33.8%
$69IMPLIED FAIR VALUEOVERVALUEDOVERUNDER
Growth Rate (Y1–5)-1%
-10%20%50%
Discount Rate (WACC)13.9%
5%12.5%20%

5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.

Reverse DCFMarket-Implied
6.6%annual FCF growth priced in at $104.31

The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of 3% YoY revenue.

Sensitivity Matrix

TG ↓ / WACC →11.9%13.9%15.9%
2%$76$66$59
3%$81$69$61
4%$87$73$63

Center = base case. Green = >10% upside, Red = >10% downside vs $104.31.

Pre-computed DCF: WACC=13.9%, terminal growth 3%. Fair value $69 (-26.9%). Not investment advice.

Valuation Context

11.2x
TROW P/E
19.2x
Sector Avg
10.7x
5Y Avg P/E
-42%
vs Sector

Currently trading 7% below its 5-year average P/E of 10.7x.

Price Chart with Moving Averages

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SMA 50 SMA 200

Quant Health Deep Dive

4/9
Piotroski F-Score
Average — mixed operational signals
7.7
Altman Z-Score
Safe Zone — above 3.0 threshold per academic model. Thresholds: >3 safe, 1.8–3 grey, <1.8 distress.
-2.37
Beneish M-Score
Below threshold — no statistical earnings quality concern per Beneish model. Threshold: <-2.22 = below threshold.

Profitability & Value Creation

51.3%
Gross Margin
28.5%
Net Margin
14.1%
ROIC
13.9%
WACC
ROIC − WACC Spread: +0.1%— Positive spread.
+3.1%
Revenue Growth (YoY)
-0.6%
Earnings Growth (YoY)
1.5B
Free Cash Flow
77%
FCF Payout Ratio

✅ Conservative payout — room for dividend increases.

DuPont Analysis — ROE Decomposition

Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.

28.5%
Net Profit Margin
NI ÷ Revenue
×
0.51x
Asset Turnover
Revenue ÷ Assets
×
1.19x
Equity Multiplier
Assets ÷ Equity
=
17.3%
Return on Equity
✅ ROE driven primarily by strong profit margins — a sign of pricing power.

Balance Sheet Health

0.19x
Debt / Equity
10.57x
Current Ratio
-1.0x
Net Debt / EBITDA
8.69%
FCF Yield
3.1B
EBITDA

Earnings Surprise History

Q4
✓ Beat
Est: $2.13
Act: $2.23
+4.7%
Q3
✓ Beat
Est: $2.13
Act: $2.24
+4.9%
Q2
✓ Beat
Est: $2.54
Act: $2.81
+10.5%
Q1
✗ Miss
Est: $2.46
Act: $2.44
-1.0%

EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.

Dividend History

$1.3000
Latest Dividend
$5.08
2025 Total
+2.4%
YoY Growth
3 yrs
Consecutive Increases
Annual Dividends per Share
$1.08
2016
$2.28
2017
$2.80
2018
$3.04
2019
$3.60
2020
$7.32
2021
$4.80
2022
$4.88
2023
$4.96
2024
$5.08
2025
$1.30
2026
DateAmountChange
2026-03-16$1.3000+2.4%
2025-12-15$1.27000.0%
2025-09-15$1.27000.0%
2025-06-13$1.27000.0%
2025-03-14$1.2700+2.4%
2024-12-13$1.24000.0%
2024-09-13$1.24000.0%
2024-06-14$1.24000.0%
2024-03-14$1.2400+1.6%
2023-12-14$1.22000.0%
2023-09-14$1.22000.0%
2023-06-14$1.22000.0%
Stock Splits
2006-06-26: 2:11998-05-01: 2:11996-05-01: 2:11993-12-01: 2:11990-01-02: 2:1

Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.

Risk Profile

30.4%
Annual Volatility
0.32
Sharpe (1Y)
-0.06
Sharpe (3Y)
-34.1%
Max Drawdown (3Y)
-58.2%
Max Drawdown (5Y)

Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.

Underwater (Drawdown from Peak)

How far below the all-time high the price has been over time. Deeper = more pain for holders.

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Rolling 60-Day Beta vs S&P 500 (VOO)

How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.

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Rolling Beta Market (β = 1.0)

Fama-French 5-Factor Exposure

Academic factor model decomposition — what's really driving this stock's returns.

1.24
Market β
Mkt-RF
+0.352
Size (SMB)
Small-cap tilt
+0.334
Value (HML)
Value tilt
+0.007
Profit (RMW)
Neutral
+0.019
Invest (CMA)
Neutral
Alpha (annual): -19.10%
R²: 57.3%of variance explained by 5 factors

Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.

Fundamentals

10.9
Forward P/E
13.15
PEG Ratio
2.08
Price/Book
2M
Avg Volume
$118.22
52W High
$85.22
52W Low
58%
52W Range Position

Passive Flow Attribution

ETF Draft Effect
$4.6B
Tracked Passive Exposure
8
ETFs Holding TROW
0.07%
Avg Weight in ETFs
$6.3T
Total ETF AUM

When investors buy or sell ETFs like DVY or NOBL, the fund manager is mechanically forced to buy or sell TROW shares regardless of T. Rowe Price Group, Inc.'s individual fundamentals. We estimate $4.6B of passive capital is structurally linked to TROW through 8 tracked ETFs. Index rebalances and ETF creation/redemption cycles can create noticeable volume spikes unrelated to company news.

Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.

ETF Contagion Visualizer

Simulate a price drop in T. Rowe Price Group, Inc. to visualize passive redemption contagion across ETFs and collateral stocks.

TROW Shock
-0%
Est. Passive Redemption
$0
Systemic Risk
STABLE
TROWEpicenterVTIETFVOOETFIVVETFVZHigh RiskSTXLow RiskOHigh RiskEIXHigh RiskTGTLow Risk
TROW Price Drop (%)0

If T. Rowe Price Group, Inc. (TROW) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies VERIZON COMMUNICATIONS INC (VZ) as the most exposed collateral stock, sharing 2 ETFs with TROW. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.

Contagion model based on shared ETF exposure and constituent weights across 34 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.

TROW Ownership Dynamics

Passive funds hold 1 in every 4 TROW shares, reducing daily market volatility.

Ticker
TROW
Total Shares
214M
ETF Lock-Up
22.2%
Display Mode
Total Float Impact
22.2%Locked Float

T. Rowe Price Group, Inc. (TROW) exerts notable gravity on the passive index market, currently representing 1.4% of the iShares Select Dividend ETF (DVY) and 1.2% of the ProShares S&P 500 Dividend Aristocrats ETF (NOBL). Across 34 tracked ETFs, approximately 48M shares (22.2% of float) are held by passive funds and rarely trade on the open market. This high passive lock-up reduces the effective active float, which can amplify daily price volatility and momentum signals.

Float lock-up computed from 34 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).

TROW Institutional Volume Profile

252-day volume distribution by price level. The Point of Control (POC) marks the price where the most institutional volume transacted — an implicit support/resistance floor.

TICKER
TROW
PRICE
$104.31
FLOOR (POC)
$103.02
STRENGTH
High
$86$87$897%$90$92$93$94$96$97$997%$1009%$10215%$103POC 16%$1048%$104.31$106$107$109$110$112$113
Focus Zone
Point of Control (POC) Support (below price) Resistance (above price) Current Price

The highest-volume price zone for T. Rowe Price Group, Inc. over the past year sits near $103.02 (16% of 252-day volume). The current price of $104.31 trades 1.3% above this institutional floor — a sign of upside momentum, though a pullback to the POC zone is a common reversion target. The highly concentrated volume profile (16% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.

Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.

TROW Capital Efficiency

How efficiently does T. Rowe Price Group, Inc. convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.

Free Cash Flow
$1.5B
EBITDA
$3.1B
FCF Conversion
48%
Reinvestment Rate
52%
48% of EBITDA → Free Cash
0% (cash burn)25% (low)50% (efficient)100% (pure cash)
ROIC
14.1%
ROIC − WACC Spread
0.1%

T. Rowe Price Group, Inc. converts 48% of its EBITDA into free cash flow, a healthy conversion rate indicating efficient capital management — the business generates substantial cash after reinvestment. The 52% reinvestment rate signals aggressive capacity expansion. The positive ROIC-WACC spread of 0.1% confirms that reinvested capital creates shareholder value.

Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.

Fails-to-Deliver (FTD) History

SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.

DateFailed SharesClose PriceNotional Value
2026-05-01383$102.88$39,403.04
2026-04-28548$101.36$55,545.28
2026-04-22166,252$99.14$16.5M
2026-04-20624$96.98$60,515.52
2026-04-175$95.75$478.75
2026-04-1410$94.37$943.7
2026-04-0982$91.81$7,528.42
2026-04-07491$89.33$43,861.03
2026-03-312,150$89.03$191,414.5
2026-03-27404$90.23$36,452.92
2026-03-2522$88.80$1,953.6
2026-03-241$87.98$87.98
2026-03-239$86.19$775.71
2026-03-1061,736$90.55$5.6M
2026-03-09324,705$90.40$29.4M
2026-03-06327,924$92.04$30.2M
2026-03-05353$91.99$32,472.47
2026-03-049$93.42$840.78
2026-02-20675$94.36$63,693
2026-02-192,563$94.93$243,305.59
2026-02-1123,219$96.64$2.2M
2026-02-06289$92.02$26,593.78
2026-02-033,736$106.65$398,444.4
2026-02-0218,119$105.68$1.9M
2026-01-217,454$103.68$772,830.72
2026-01-1415,849$103.51$1.6M
2025-12-12222$104.96$23,301.12
2025-12-09434$104.52$45,361.68
2025-11-21281$97.31$27,344.11
2025-11-103$102.66$307.98

Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.

Price Correlations

Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.

Peer252-Day (1Y)126-Day (6M)Direction
WTGXXNaNNaN
BEN0.6690.621Moderate
BLK0.6650.631Moderate
BX0.6650.624Moderate
PRU0.6550.643Moderate
MC0.6500.609Moderate
IVZ0.6430.704Moderate
KKR0.6420.636Moderate
CFG0.6270.508Moderate
COF0.6250.607Moderate

Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.

Compare TROW to Peers

Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.

SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.