Stock fact sheet · data as of
T. Rowe Price Target Retirement 2040 Fund (TRHRX): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · High Yield Income
Is TRHRX undervalued?
T. Rowe Price Target Retirement 2040 Fund (TRHRX) closed at 19.04 on 16 Oct 2026. The GLS average fair value - the simple average of the 3 valuation models that produced a positive number - is 7,960.37, which puts the price 100% below it. 2 of the 3 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
Only 3 of the nine models produced a value (DCF, 10 Cap, DDM); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
The nightly engine files TRHRX under High Yield Income: a dividend yield above 4%.
Nine valuation models for TRHRX
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 24.83 | +30% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 23,840.51 | +125113% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 15.76 | -17% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -11,597.88 | -61013% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health TRHRX scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 3.7 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are moderate - ROIC 5.4%, ROE 13.7%, ROA 3.5% - with debt at 1.53 times equity and a free-cash-flow yield of 4961.8%.
The dividend yield is high at 5.62% (payout ratio 57%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 5.4% |
|---|---|---|---|
| GLS Moat | 3.7 / 10 | ROE | 13.7% |
| Debt / equity | 1.53 | ROA | 3.5% |
| Free-cash-flow yield | 4961.8% | Payout ratio | 57% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 39: No options
TRHRX has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at - a day on a market cap of $412M, with a beta of 1.03; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 100% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 6 / 15 | moat 3.7/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 6 / 20 | 0k shares/day, $412M cap, beta 1.03 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for TRHRX in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to T. Rowe Price Target Retirement 2040 Fund by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| MCEMX ClearBridge Emerging Markets IS | 19.29 | 6.70 | -188% | 16No options | $412M |
| KIO KKR Income Opportunities Fund | 9.96 | 23.34 | +57% | 39No options | $408M |
| CICC CION Investment Corp. 7.5 % Notes 2026-31.03.31 | 24.45 | 13.06 | -87% | 6No options | $419M |
| PRNYX T. Rowe Price NY Tax-Free Bond | 10.06 | 5.78 | -74% | 21No options | $420M |
| FSCHX Fidelity Select Chemical Pt | 13.64 | 5.92 | -131% | 18No options | $402M |
| MEFIX ClearBridge Emerging Markets Fund - Class FI | 19.12 | 0.8592 | -2125% | 16No options | $402M |
| SAV Saratoga Investment Corp 7.50% | 24.79 | 47.82 | +48% | 31No options | $401M |
| AEDVX American Century Emerging Markets Debt Fund;Investor | 9.01 | 16.43 | +45% | 39No options | $426M |
| TRFOX T. Rowe Price Target Retirement 2050 Fund | 22.32 | 9,783.44 | +100% | 39No options | $393M |
| VOLT Tema Electrification ETF | 35.14 | 3.73 | -843% | 27Weak | $392M |
| GLAD Gladstone Capital Corporation | 19.33 | 105.74 | +82% | 45Weak | $437M |
| EAALX Eaton Vance-Atlanta Capital Focused Growth | 20.63 | 1,448.28 | +99% | 36No options | $438M |
⚖ Compare TRHRX with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about TRHRX
Is TRHRX undervalued right now?
By the GLS models, yes: at 19.04 the stock is 100% below the average fair value of 7,960.37 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of TRHRX and what does it mean?
TRHRX has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for TRHRX?
7,960.37 per share as of 16 Oct 2026 - the simple average of the 3 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does T. Rowe Price Target Retirement 2040 Fund report earnings next?
No upcoming earnings date is recorded for TRHRX in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does TRHRX have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on TRHRX, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.