T. Rowe Price features an exceptionally durable business model anchored by its industry-leading retirement franchise, one where approximately two-thirds of managed assets reside in sticky, long-term 401(k) and target-date vehicles. This captive retirement base generates steady recurring advisory fees and insulates the company better than most traditional peers from rapid redemptions during volatile market cycles.
The firm also possesses a pristine balance sheet characterized by zero long-term debt, substantial liquid reserves, and consistently superior free cash flow conversion. This financial flexibility affords management the capacity to fund organic growth in private alternatives and active ETFs while maintaining an exceptional track record of returning capital through uninterrupted annual dividend increases and programmatic share repurchases.
The stock trades at just 10.7 times the company’s forward earnings forecast. That seems undervalued as the market is heavily discounting the business due to structural headwinds in active equity flows. The market also appears to be overlooking the company’s double-digit revenue growth, record overall assets under management, and dominant position in retirement planning.
T. ROWE PRICE GROUP INC. (Nasdaq symbol TROW; www.troweprice.com) is a leading seller of mutual funds and wealth management services.
The company recently formed an alliance with banking firm Goldman Sachs Group Inc. (New York symbol GS). Under the terms of the deal, both firms will co-create and cross-market financial services and portfolios to their high-net-worth clients. Goldman will also purchase up to $1 billion worth of T. Rowe Price’s shares. That would give it a roughly 4% stake.
Meantime, T. Rowe Price recently paid an undisclosed sum for F/m Investments. Based in Washington, D.C., this firm specializes in fixed-income products with $19 billion in assets under management across ETFs, mutual funds, and separately managed accounts. The acquisition increases T. Rowe Price’s fixed-income assets under management by 9%.
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T. Rowe Price’s shares at just 10.7 times earnings as the firm continues expanding
T. Rowe Price’s fee income rises and falls with the value of the mutual funds and other securities it manages. Rising stock markets lifted the company’s revenue in the second quarter of 2026 by 10.7%, to $1.91 billion from $1.72 billion a year earlier.
Earnings before unusual items increased 11.5%, to $565.0 million from $506.8 million. On fewer shares outstanding, earnings per share improved at a faster pace, rising 14.7%, to $2.57 from $2.24.
T. Rowe Price last raised your quarterly dividend by 2.4% with the March 2026 payment. The new annual rate of $5.20 a share yields a high 4.8%.
The company should earn $10.18 a share in 2026. It trades at a low 10.7 times that earnings forecast.
Recommendation in Dividend Advisor: T. Rowe Price Group Inc. is a buy.
