Returns Breakdown
22.59
Return on Assets
27.78
Return on Equity
| Return on Investment | 34.57 | |
| Return on Assets | 22.59 | |
| Return on Equity | 27.78 | |
| Return Capital | 0.6 | |
| Return on Sales | 0.39 |
Will holding T Rowe (NASDAQ:TROW) be justified in November 2020?
 | By Ellen Johnson | Macroaxis Story |
T Rowe Operating Margin is fairly stable at the moment as compared to the past year. T Rowe reported Operating Margin of 42.49 in 2019. Revenue to Assets is likely to climb to 0.72 in 2020, whereas Revenue Per Employee is likely to drop slightly above 672.5 K in 2020. The primary intend behind this review is to break down T Rowe potential for November. We are going to recap if T Rowe is reasonably priced going into November.
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Reviewed by Michael Smolkin
T Rowe Price has a beta of -0.0316. Let's try to break down what T Rowe's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, T Rowe will likely underperform. The beta indicator helps investors understand whether T Rowe moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if T Rowe deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as T Rowe. Your research has to be compared to or analyzed against T Rowe's peers to derive any actionable benefits. When done correctly, T Rowe's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in T Rowe Price.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as T Rowe Price. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for T Rowe
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of T Rowe's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is T Rowe's Liquidity
T Rowe financial leverage refers to using borrowed capital as a funding source to finance T Rowe Price ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. T Rowe financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to T Rowe's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of T Rowe's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between T Rowe's total debt and its cash.
T Rowe Gross Profit
T Rowe Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing T Rowe previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show T Rowe Gross Profit growth over the last 10 years. Please check T Rowe's gross profit and other fundamental indicators for more details.
A Deeper look at TROW
T Rowe Price has relatively low volatility with skewness of -0.47 and kurtosis of 0.86. However, we advise all investors to independently investigate T Rowe Price to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.
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