TROW Stock Fair Value – T. ROWE PRICE Reports 64.1% Decrease in Total Revenue for Q4 of 2022

Earnings report

TROW Stock Fair Value – T. ROWE PRICE ($NASDAQ:TROW) is a global investment management firm that helps individuals, advisors, and institutions reach their long-term financial goals through a wide range of investment strategies, products, and services. On January 26, 2023, the company reported its fourth quarter earnings for the period ending December 31, 2022. The results showed a total revenue of USD 266.0 million, representing a 64.1% decrease year over year. The company’s net income was USD 1524.2 million, a decrease of 22.3% compared to the same period in the previous year.

This suggests that investors have taken the decreased performance in stride and have remained optimistic about T. ROWE PRICE’s future prospects. Analysts attribute this to the company’s strong balance sheet and solid management team. Overall, the fourth quarter earnings report from T. ROWE PRICE showed a steep decline in total revenue, but investors remain confident in the company’s long-term prospects. Looking ahead, the company will continue to focus on generating revenues through its diverse product offerings and delivering value to its customers.

Price History

On Thursday, T. ROWE PRICE reported a 64.1% decrease in total revenue for the fourth quarter of 2022. The company’s stock opened at $114.0 and closed at $114.6, down 1.8% from its prior closing price of 116.6. This decrease in revenue is primarily attributed to market conditions that have been challenging for the company over the last few months.

Overall, the decrease in total revenue for the fourth quarter of 2022 was disappointing, but it was partially offset by lower expenses and higher gains on sales of investments. The company has been working to adjust their business model to the current market conditions and is confident that they will continue to deliver strong performance in the future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for TROW. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for TROW. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for TROW. More…

Key Ratios Snapshot

Some of the financial key ratios for TROW are shown below. More…

Analysis – TROW Stock Fair Value

GoodWhale has conducted an analysis of T. ROWE PRICE’s financials and determined the intrinsic value of their share to be approximately $165.2. This figure was determined using GoodWhale’s proprietary Valuation Line. At the current market price, T. ROWE PRICE is undervalued by 30.6%, presenting an excellent opportunity for investors looking to capitalize on the discrepancy between the intrinsic value and the current trading price. Investors looking to capitalize on this discrepancy should be aware that the stock market is often volatile and unpredictable in the short-term, so any potential investments should be made with a long-term outlook in mind. Additionally, investors should be sure to conduct their own due diligence and research before investing in T. ROWE PRICE. This can include checking the company’s financial statements, reviewing analyst reports, and assessing any external risks that may affect the stock’s performance. Ultimately, the decision to invest in T. ROWE PRICE should be based on each individual investor’s risk tolerance and financial goals. Despite the current undervaluation of T. ROWE PRICE stock, it is still important to consider all available information and make an informed decision that is right for you. More…

Peers

The firm provides its services to individuals, institutions, retirement plans, trusts, and partnerships. It launches and manages equity, fixed income, balanced, and commodity mutual funds. The company was founded in 1937 and is headquartered in Baltimore, Maryland. As of December 31, 2017, T. Rowe Price Group Inc had $934.2 billion in assets under management (AUM). Federated Hermes Inc, Franklin Resources Inc, and ABC arbitrage SA are all competitors of T. Rowe Price Group Inc. Federated Hermes Inc is a global investment manager that offers a range of investment products, including equities, fixed income, and alternatives. As of December 31, 2017, Federated Hermes Inc had $590.6 billion in AUM. Franklin Resources Inc is a global investment management company that provides investment management and related services to institutional and individual investors. As of June 30, 2018, Franklin Resources Inc had $737.2 billion in AUM. ABC arbitrage SA is a French asset management company that specializes in convertible bonds and global equity markets arbitrage. As of December 31, 2017, ABC arbitrage SA had €5.4 billion in assets under management.

– Federated Hermes Inc ($NYSE:FHI)

Federated Hermes Inc. is a publicly traded company with a market capitalization of $2.86 billion as of 2022. The company has a return on equity of 22.41%. Federated Hermes Inc. is a financial services company that provides asset management and related services to individuals, families, institutions, and businesses. The company offers a broad range of investment strategies and products, including equity, fixed income, and alternative investments.

– Franklin Resources Inc ($NYSE:BEN)

Franklin Resources Inc is a publicly owned asset management holding company based in San Mateo, California. The company, through its subsidiaries, manages mutual funds and other investment portfolios. It also provides investment management and advisory services to institutional clients. As of December 31, 2020, Franklin Resources Inc had $744.2 billion in assets under management.

The company’s market cap is 11.69B as of 2022. The company has a return on equity of 12.45%. The company’s primary business is managing mutual funds and other investment portfolios. The company also provides investment management and advisory services to institutional clients.

– ABC arbitrage SA ($LTS:0OPJ)

ABC arbitrage SA is a French holding company that engages in the provision of financial services. The company operates through the following segments: Asset Management, Corporate Finance, and Market Making. The Asset Management segment offers investment products and services to individuals, professionals, and institutional clients. The Corporate Finance segment provides financing and advisory services to companies. The Market Making segment deals with market making activities in listed securities. ABC arbitrage SA was founded in 1991 and is headquartered in Paris, France.

Summary

T. ROWE PRICE is a financial services firm that offers investment management, retirement planning, and other financial services to individual and institutional clients. In the fourth quarter of 2022, the company reported total revenue of USD 266.0 million, a 64.1% decrease year over year. Net income was USD 1524.2 million, a decrease of 22.3% compared to the same period in the previous year. Despite the decreases in revenue and income, T. ROWE PRICE remains a viable investment option for those looking for long-term growth in their portfolios. The company’s investments are diversified across multiple asset categories and its products are tailored to meet the needs of a variety of investors.

Additionally, T. ROWE PRICE has an experienced management team and strong focus on risk management and cost control. These factors make it an attractive option for those looking to invest in a reliable financial services firm.