T. Rowe Price Group, Inc. (TROW)

FairStock Score: 80/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns, convert profits into cash, and carry little debt. T. Rowe Price fits much of that. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.9B and net income was $632.0M, or diluted EPS of $2.88; a year earlier in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $1.7B and diluted EPS was $2.24. For fiscal year 2025, ended 2025-12-31, revenue was $7.3B, net income $2.1B, and diluted EPS $9.24, versus $7.1B, $2.1B, and $9.15 in fiscal year 2024. At the 2026-10-26 close of $103.49, FairStock calculates a P/E of 10.39, P/B of 2.01, FCF yield of 7.6%, EV/EBITDA of 6.03, and Graham Number of $107.51, leaving a 3.08% margin of safety. Debt/equity is 0.04, Altman Z-score is 5.73, and Piotroski is 6/9. The balance sheet and cash generation are comforting. The weakness is growth: FairStock's computed Lynch category is SLOW GROWER — Shrinking, with profit -2.5% a year over five years and revenue 3.3%. The latest quarter was better, but one quarter does not make a trend. The stock is modestly priced against earnings and cash flow, yet the slow record means I would demand a margin of safety rather than pay for optimism. I see a financially sound business at a fair-to-cheap price, not a fast compounder.

In plain English: T. Rowe Price is an investment manager that runs mutual funds and serves individuals, institutions, and retirement plans. The business looks financially strong: it earns solid profits, produces plenty of cash, and carries very little debt. Compared with its earnings and cash flow, the share price looks modestly cheap to fair, while growth has been slow.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer