TROW Stock Intrinsic Value – T. Rowe Price Reports Non-GAAP EPS of $1.69, Revenue of $1.54B in Line with Expectations

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The company reported Non-GAAP earnings per share of $1.69, surpassing expectations by $0.06, while revenue of $1.54B was in line with forecasts. This marks the sixth consecutive quarter that T. Rowe Price ($NASDAQ:TROW) has reported above-average earnings and revenue figures. The company is well-known for its commitment to long-term growth and performance, as evidenced by their strong performance over the past few years. Though the current economic environment presents a challenging landscape for investments, T. Rowe Price has been able to consistently outperform its peers in terms of both revenues and profits. This is largely due to their expertise in managing portfolios and the constant monitoring of markets to ensure that their clients are always getting the best returns on their investments.

In addition to their stellar financial performance, T. Rowe Price also excels in providing comprehensive services to their clients. They strive to stay ahead of the curve in terms of technology and investor education, offering a full suite of services ranging from basic investing guidance to more in-depth portfolio management. Overall, T. Rowe Price continues to be a solid choice for investors looking for a reliable and successful asset management firm. With Non-GAAP earnings per share of $1.69 and revenue of $1.54B in line with expectations, the company is well-positioned to continue performing at a high level for the foreseeable future.

Earnings

T. Rowe Price recently released its FY2022 Q4 earnings report ending December 31 2022, revealing a total revenue of $1.54B and a net income of $266.0M. Despite the decreases, these earnings were in line with expectations.

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…

Market Price

The stock opened at $110.8 and closed at $106.0, representing a 4.7% decrease from the prior closing price of 111.3. This drop in price indicates that investors may be worried about the company’s performance in the coming quarters. However, T. Rowe Price remains a strong player in the financial services industry and is well-positioned to capitalize on any opportunities that arise. Live Quote…

Analysis – TROW Stock Intrinsic Value

At GoodWhale, we have conducted an analysis of the wellbeing of T. ROWE PRICE. We have used our proprietary Valuation Line to calculate the intrinsic value of T. ROWE PRICE share at around $159.8. However, at the current trading rate of $106.0, this value is 33.7% lower than what it should be. This presents a great opportunity for investors looking to purchase T. ROWE PRICE stock as it is currently undervalued. 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 Group Inc. recently reported its non-GAAP earnings per share (EPS) of $1.69, which exceeded the analyst consensus estimate by $0.06. Revenue of $1.54 billion was in line with expectations. Despite the better-than-expected performance, the company’s stock price declined on the same day. This suggests investors were not impressed with the quarterly results and may have priced in future performance.

However, investors should also consider the long-term trends and outlook for T. Rowe Price before making a decision to invest. Analysts are generally positive on the company, pointing out its strong financial position, broad product offering and stable earnings. Overall, those looking to invest in T. Rowe Price should do so with an understanding of the risks involved and the long-term trends that may impact the stock.