T Rowe Stock Story


USD 125.04  2.73  2.14%   

T Rowe Price is scheduled to announce its earnings tomorrow. T Rowe Calculated Tax Rate is fairly stable at the moment as compared to the past year. T Rowe reported Calculated Tax Rate of 22.43 in 2021. Receivables Turnover is likely to climb to 9.46 in 2022, whereas Average Equity is likely to drop slightly above 3.5 B in 2022. As many millenniums are trying to avoid financial services space, it makes sense to focus on T Rowe Price a little further and try to understand its current market patterns. I will address a few possible reasons sophisticated investors do not currently respect this stock.
Published over a week ago
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Should I short my T Rowe (NASDAQ:TROW) holdings?

T Rowe Price currently holds 211.8 M in liabilities with Debt to Equity (D/E) ratio of 0.02, which may suggest the entity is not taking enough advantage from borrowing.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. T Rowe has an asset utilization ratio of 150.97 percent. This indicates that the company is making $1.51 for each dollar of assets. An increasing asset utilization means that T Rowe Price is more efficient with each dollar of assets it utilizes for everyday operations.
T Rowe financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of T Rowe, including all of T Rowe's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of T Rowe assets, the company is considered highly leveraged. Understanding the composition and structure of overall T Rowe debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding T Rowe Total Liabilities

T Rowe Price liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. T Rowe Price has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on T Rowe balance sheet include debt obligations and money owed to different T Rowe vendors, workers, and loan providers. Below is the chart of T Rowe short long-term liabilities accounts currently reported on its balance sheet.
You can use T Rowe Price financial leverage analysis tool to get a better grip on understanding its financial position

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. Please check the breakdown between T Rowe's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for T Rowe, but it might be worth checking our own buy vs. sell analysis

A Deeper look at T Rowe

The entity reported the previous year's revenue of 7.71 B. Net Income was 2.82 B with profit before overhead, payroll, taxes, and interest of 4.68 B.

Asset Breakdown

788.5 M
2.2 B
Current Assets
Total Assets13.5 Billion
Current Assets2.17 Billion
Goodwill788.46 Million

Our perspective of the latest T Rowe climb

Latest Total Risk Alpha is up to 0.04. Price may fall again.
As of the 27th of July, T Rowe has the risk adjusted performance of (0.11), and Market Risk Adjusted Performance of (0.13). In connection with fundamental indicators, the technical analysis model makes it possible for you to check potential technical drivers of T Rowe Price, as well as the relationship between them. In other words, you can use this information to find out if the entity will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for T Rowe Price, which can be compared to its competition. Please validate T Rowe Price information ratio and downside variance to decide if T Rowe is priced some-what accurately, providing market reflects its prevalent price of 120.44 per share. Given that T Rowe Price has jensen alpha of (0.002505), we advise you to double-check T Rowe Price's current market performance to make sure the company can sustain itself at some future date.

Our Final Perspective on T Rowe

While many other companies in the asset management industry are either recovering or due for a correction, T Rowe may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 27th of July 2022, we believe that at this point, T Rowe is very steady with very small odds of financial turmoil within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our ongoing 90 days buy-sell recommendation on the venture is Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of T Rowe Price. Please refer to our Terms of Use for any information regarding our disclosure principles.

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