T. Rowe Price GroupTROW +3.70%80 Gross Margin % is 55.13% as of Mar. 2026, which is 3% below its 10-year median of 56.86. GuruFocus rates TROW with a GF Score™ of 80/100 and a GF Value™ of $121.23 (Fairly Valued). The stock has 6 warning signs investors should review. Among 553 Asset Management companies, T. Rowe Price Group ranks worse than 56.06% on this metric.
T. Rowe Price Group Inc gross margin has been in long-term decline. The average rate of decline per year is -3.3%.
The historical rank and industry rank for T. Rowe Price Group's Gross Margin % or its related term are showing as below:
TROW'
s Gross Margin % Range Over the Past 10 Years
Min: 49.63 Med: 56.86 Max: 60.98
Current: 52
During the past 13 years, the highestGross Margin % of T. Rowe Price Group was 60.98%. The lowest was 49.63%. And the median was 56.86%.
TROW's Gross Margin % is ranked worse than 56.06% of 553
companies
in the Asset Management industry
Industry Median: 58.4
vs TROW: 52.00
T. Rowe Price Group had a gross margin of 55.13% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for T. Rowe Price Group was -3.30% per year.
T. Rowe Price Group (NAS:TROW) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
T. Rowe Price Group had a gross margin of 55.13% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
T. Rowe Price Group Gross Margin % Related Terms
T. Rowe Price Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for T. Rowe Price Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Asset Management subindustry, T. Rowe Price Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
T. Rowe Price Group Gross Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, T. Rowe Price Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where T. Rowe Price Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
T. Rowe Price Group (TROW) has a Gross Margin % of 55.13% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on T. Rowe Price Group and its competitors. This is near median its historical median of 56.86. Over the past decade, T. Rowe Price Group's Gross Margin % has ranged from 49.63 to 60.98. According to the industry distribution chart, T. Rowe Price Group ranks #310 out of 553 companies in the Asset Management industry, placing it in the top 56.1%.
Is T. Rowe Price Group's Gross Margin % too high?
T. Rowe Price Group's current Gross Margin % of 55.13% is near median its 10-year median of 56.86. Over the past 10 years, this metric has ranged from a low of 49.63 to a high of 60.98. The Asset Management industry median Gross Margin % is 58.40. T. Rowe Price Group's value of 55.13% is 5.6% below this industry median. Based on the distribution chart, T. Rowe Price Group ranks #310 out of 553 companies in the Asset Management industry, which is below the industry midpoint. Overall, T. Rowe Price Group has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does T. Rowe Price Group's Gross Margin % compare to PFG and RJF?
According to the Asset Management industry distribution chart, T. Rowe Price Group ranks #310 out of 553 companies for Gross Margin %. This places T. Rowe Price Group in the lower half of its industry. The industry median Gross Margin % is 58.40. T. Rowe Price Group's value of 55.13% is 5.6% below this benchmark. Historically, T. Rowe Price Group's own Gross Margin % has ranged from 49.63 to 60.98 over the past decade. While the company's 10-year median is 56.86 vs. the industry median of 58.40, T. Rowe Price Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Asset Management company?
The median Gross Margin % among Asset Management companies is 58.40, based on 553 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. T. Rowe Price Group's current Gross Margin % of 55.13% is 5.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on T. Rowe Price Group and its competitors. For the Asset Management industry, the median Gross Margin % is 58.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. T. Rowe Price Group's current Gross Margin % is 55.13%, which is near median its own 10-year median of 56.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is T. Rowe Price Group stock overvalued right now?
Based on GuruFocus' analysis, T. Rowe Price Group (TROW) is currently considered Fairly Valued. The stock's GF Value™ is $121.23, compared to a current price of $110.27 — trading 9% below its estimated fair value. The current Gross Margin % is 55.13%, which is near median its 10-year median of 56.86 and 5.6% below the Asset Management industry median of 58.40. T. Rowe Price Group's overall GF Score™ is 80/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For T. Rowe Price Group (TROW), the current Gross Margin % is 55.13% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is T. Rowe Price Group (TROW) Overvalued in 2026?
Based on GuruFocus' analysis, T. Rowe Price Group stock appears to be undervalued.
The current stock price of $110.27 is trading 9% below its estimated GF Value™ of $121.23.
GuruFocus considers T. Rowe Price Group to be Fairly Valued.
Key valuation signals for TROW:
Gross Margin %: 55.13% (near median its 10-year median of 56.86)
GF Value™: $121.23 vs. price of $110.27 (9% below fair value)
Industry Position: 5.6% below the Asset Management median (#310 of 553)
No single metric tells the full story. See the TROW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
T. Rowe Price provides asset management services for individual and institutional investors. It offers a broad range of no-load US and international stock, hybrid, bond, and money market funds. At the end of May 2026, the firm had $1.892 trillion in managed assets, composed of equity (49%), balanced (37%), fixed-income and money market (11%), and alternative (3%) offerings. Approximately two-thirds of managed assets are held in retirement-based accounts, which provide T. Rowe Price with a somewhat stickier client base than most of its peers. The firm also manages private accounts, provides retirement planning advice, and offers discount brokerage and trust services. The company is primarily a US-based asset manager, deriving less than 10% of its AUM from overseas.
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