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What Are T. Rowe Price’s Plans for the Future?

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Outlook

Based on its investor presentation on February 21, 2018, T. Rowe Price’s (TROW) current vision is more or less the same as its vision in 2017. The company continues to focus on becoming a leader in active investment management. It also plans to generate and deliver long-term value to customers.

T. Rowe Price is focusing on becoming customers’ preferred option by delivering desired results. Moreover, it plans to increase its reach and diversification.

Whereas T. Rowe Price has a last-12-month EBITDA (earnings before interest, tax, depreciation, and amortization) margin of 46.0%, peers (XLF) Financial Engines (FNGN), Franklin Resources (BEN), and BlackRock (BLK) have margins of 23.1%, 36.3%, and 44.0%, respectively.

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Other goals

T. Rowe Price plans to target retirement-oriented investors globally and aims to become their preferred option. The company also plans to maintain its position as a preferred employer with strong ethics, attracting talent easily.

T. Rowe Price aims to change itself according to prevailing market conditions as quickly as possible, which could help meet clients’ needs effectively. It plans to strengthen its balance sheet and report strong financial results in the long term.

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