T. Rowe Price Group: Reasonable Valuation And Strong Balance Sheet

UFD Capital
1.46K Followers

Summary

  • T. Rowe Price has seen a sizable decline in AUM, but this has more to do with the macro environment than company specific factors.
  • They have a strong track record of dividend increases and have consistently grown earnings over the long term.
  • They have no debt and a pristine balance sheet.
  • The valuation looks compelling here, especially if capital markets begin to rebound in a reasonable time frame.
  • Overall, we view the risk/reward in T. Rowe Price stock to be favorable.

T. Rowe Price

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Thesis

Shares of T. Rowe Price (NASDAQ:TROW) have taken a beating, but we view the severity of the decline as unwarranted. The macro environment has caused a decline in AUM, but once capital markets improve T. Rowe Price will again be able

This article was written by

1.46K Followers
UFD Capital is the general partner and investment manager of the UFD Capital Value Fund, a value-oriented hedge fund. www.ufdcapital.com

Analyst’s Disclosure:I/we have a beneficial long position in the shares of TROW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

UFD Capital Value Fund, LP owns shares of TROW.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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