THE BUSINESSWEEK 50 RANKINGS + 25

35

T. Rowe Price Group

Money management firm T. Rowe Price is sometimes overshadowed by its more famous Baltimore neighbor, Legg Mason. But last year, T. Rowe stole the spotlight. New CEO James Kennedy takes control as assets under management reach a record $335 billion, up 24% from the end of 2005. That growth helped the company post a 23% gain in net income. The gain didn’t come courtesy of star fund managers but from building on consistently good performance across a wide array of mutual funds. At the end of 2006, 80% of the firm’s funds surpassed the average performance of their fund peers over the past five years, and at least 70% have been doing so since 1996. T. Rowe’s Capital Appreciation Fund is the only domestic equity or balanced fund that has made money in each of the past 16 years, says fund tracker Morningstar.

Overall Grade

A

Market Data

TROW

Market Value
(2/28/2007)

$12.3 Billion

Profitability*

36.3%

A

Sales Growth Rate**

21.7%

B

12-Month Sales

$1.8 Billion

12-Month Net Income

$0.5 Billion

Total Return Past 12 Months

22.8%

Past 36 Months

84.6%

Economic SectorFinancials
IndustryAsset Management & Custody Banks
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.
$FOOTNOTE

James  A. C. Kennedy

James A. C. Kennedy, 53

CEO since Jan. 1, 2007


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Data as of 2/28/07 provided by Standard & Poor's Compustat