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T. Rowe Price (NasdaqGS:TROW)

US74144T1088

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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

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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.

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T. Rowe Price stock research in summary

troweprice.com

ANALYSIS: With an Obermatt Combined Rank of 23 (worse than 77% 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 75 (better than 75% of alternatives) but show below-average growth (Growth Rank of 29), and are riskily financed (Safety Rank of 30), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 23, 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 75) but low growth (Obermatt Growth Rank of 29) and risky financing practices (Obermatt Safety Rank of 30), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 75% of comparable companies, may indicate 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. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	75
Growth Rank	29
Safety Rank	30
Combined Rank	23

Country	USA
Industry	Asset Management & Custody
Index	Dividends USA, Diversity USA, NASDAQ, S&P 500
Size class	X-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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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	75
GROWTH
GROWTH	81	31	7	29
SAFETY
SAFETY	54	74	74	30
SENTIMENT
SENTIMENT	n/a	72	42	^new
360° VIEW
360° VIEW	n/a	34	22	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better T. Rowe Price is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	26	32	51	75
GROWTH
GROWTH	81	31	7	29
SAFETY
SAFETY	54	74	74	30
COMBINED
COMBINED	50	14	14	23

Last update of combined financial performance: 4-Jul-2024. Stock analysis on combined financial performance: The higher the rank of T. Rowe Price the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 75 (better than 75% compared with alternatives) for 2024, T. Rowe Price shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for T. Rowe Price. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 65 which means that the stock price compared with what market professionals expect for future profits is lower than for 65% of comparable companies, indicating a good value concerning T. Rowe Price's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 62, and for Dividend Yield with a Dividend Yield Rank of 89. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 56% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 44). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 75, is a buy recommendation based on T. Rowe Price's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that T. Rowe Price has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing T. Rowe Price shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	30	25	30	44
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	54	48	40	65
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	14	17	42	62
DIVIDEND YIELD
DIVIDEND YIELD	55	91	90	89
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	26	32	51	75

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of T. Rowe Price; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 29 (better than 29% 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, with three out of four metrics below average for T. Rowe Price. While Profit Growth has a good rank of 63, as professionals currently expect the company to grow its profits more than 63% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 26, which means that currently professionals expect the company to grow less than 74% of its competitors, while Capital Growth has a rank of 48 and Stock Returns have been below market median, with a rank of 23 (77% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 29, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. 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 limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	38	42	6	26
PROFIT GROWTH
PROFIT GROWTH	13	60	37	63
CAPITAL GROWTH
CAPITAL GROWTH	n/a	36	38	48
STOCK RETURNS
STOCK RETURNS	80	34	19	23
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	81	31	7	29

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of T. Rowe Price.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 30 (better than 30% compared with alternatives), the company T. Rowe Price has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of T. Rowe Price is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for T. Rowe Price and the other two below average. Leverage is at a rank of 91 meaning the company has a below-average debt-to-equity ratio. It has less debt than 91% of its competitors.Refinancing is at a rank of 41, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 59% of its competitors. Liquidity is at a rank of 12, meaning that the company generates less profit to service its debt than 88% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 30 (worse than 70% compared with alternatives), T. Rowe Price has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of T. Rowe Price are on the safer side. Investors may have a short-term debt challenge and liquidity issues 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	91
REFINANCING
REFINANCING	37	22	27	41
LIQUIDITY
LIQUIDITY	69	91	91	12
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	54	74	74	30

Last update of Safety Rank: 4-Jul-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of T. Rowe Price and the more cash is available to service its debt.

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

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for T. Rowe Price.
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