ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis
NASDAQ:ROP - Nasdaq - US7766961061 - Common Stock - Currency: USD
Overall ROP gets a fundamental rating of 5 out of 10. We evaluated ROP against 283 industry peers in the Software industry. ROP has an excellent profitability rating, but there are concerns on its financial health. ROP is not priced too expensively while it is growing strongly. Keep and eye on this one! ROP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ROP had positive earnings in the past year.
In the past year ROP had a positive cash flow from operations.
Each year in the past 5 years ROP has been profitable.
Each year in the past 5 years ROP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.77%, ROP is in the better half of the industry, outperforming 74.20% of the companies in the same industry.
ROP has a better Return On Equity (7.79%) than 73.50% of its industry peers.
With a decent Return On Invested Capital value of 5.79%, ROP is doing good in the industry, outperforming 76.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ROP is significantly below the industry average of 12.21%.
The last Return On Invested Capital (5.79%) for ROP is above the 3 year average (5.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 7.79% | ||
| ROIC | 5.79% |
ROA(3y)8.9%
ROA(5y)7.1%
ROE(3y)14.83%
ROE(5y)12.7%
ROIC(3y)5.38%
ROIC(5y)5.36%
1.3 Margins
ROP has a better Profit Margin (20.69%) than 87.28% of its industry peers.
ROP's Profit Margin has declined in the last couple of years.
ROP has a Operating Margin of 28.19%. This is amongst the best in the industry. ROP outperforms 93.99% of its industry peers.
In the last couple of years the Operating Margin of ROP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 68.92%, ROP is in line with its industry, outperforming 52.65% of the companies in the same industry.
ROP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.19% | ||
| PM (TTM) | 20.69% | ||
| GM | 68.92% |
OM growth 3Y1.24%
OM growth 5Y0.19%
PM growth 3Y3.33%
PM growth 5Y-10.06%
GM growth 3Y0.73%
GM growth 5Y0.85%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ROP is destroying value.
ROP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ROP has been increased compared to 5 years ago.
The debt/assets ratio for ROP is higher compared to a year ago.
2.2 Solvency
ROP has an Altman-Z score of 4.15. This indicates that ROP is financially healthy and has little risk of bankruptcy at the moment.
ROP's Altman-Z score of 4.15 is fine compared to the rest of the industry. ROP outperforms 64.31% of its industry peers.
ROP has a debt to FCF ratio of 3.28. This is a good value and a sign of high solvency as ROP would need 3.28 years to pay back of all of its debts.
ROP's Debt to FCF ratio of 3.28 is fine compared to the rest of the industry. ROP outperforms 62.54% of its industry peers.
ROP has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
ROP's Debt to Equity ratio of 0.34 is on the low side compared to the rest of the industry. ROP is outperformed by 60.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 4.15 |
ROIC/WACC0.55
WACC10.61%
2.3 Liquidity
ROP has a Current Ratio of 0.46. This is a bad value and indicates that ROP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ROP (0.46) is worse than 91.17% of its industry peers.
ROP has a Quick Ratio of 0.46. This is a bad value and indicates that ROP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.43, ROP is not doing good in the industry: 91.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
ROP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.54%, which is quite good.
ROP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.02% yearly.
Looking at the last year, ROP shows a quite strong growth in Revenue. The Revenue has grown by 13.34% in the last year.
The Revenue has been growing by 8.29% on average over the past years. This is quite good.
EPS 1Y (TTM)8.54%
EPS 3Y6.89%
EPS 5Y7.02%
EPS Q2Q%8.39%
Revenue 1Y (TTM)13.34%
Revenue growth 3Y6.8%
Revenue growth 5Y8.29%
Sales Q2Q%12.02%
3.2 Future
Based on estimates for the next years, ROP will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.76% on average per year.
Based on estimates for the next years, ROP will show a quite strong growth in Revenue. The Revenue will grow by 11.66% on average per year.
EPS Next Y9.96%
EPS Next 2Y8.99%
EPS Next 3Y9%
EPS Next 5Y12.76%
Revenue Next Year12.32%
Revenue Next 2Y9.73%
Revenue Next 3Y8.68%
Revenue Next 5Y11.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ROP is valuated quite expensively with a Price/Earnings ratio of 30.77.
68.55% of the companies in the same industry are more expensive than ROP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.60. ROP is around the same levels.
With a Price/Forward Earnings ratio of 26.42, ROP can be considered very expensive at the moment.
67.84% of the companies in the same industry are more expensive than ROP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.43. ROP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.77 | ||
| Fwd PE | 26.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROP indicates a somewhat cheap valuation: ROP is cheaper than 78.80% of the companies listed in the same industry.
ROP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROP is cheaper than 74.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.16 | ||
| EV/EBITDA | 24.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ROP may justify a higher PE ratio.
PEG (NY)3.09
PEG (5Y)4.38
EPS Next 2Y8.99%
EPS Next 3Y9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, ROP is not a good candidate for dividend investing.
ROP's Dividend Yield is rather good when compared to the industry average which is at 14.22. ROP pays more dividend than 90.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ROP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of ROP is nicely growing with an annual growth rate of 10.17%!
ROP has paid a dividend for at least 10 years, which is a reliable track record.
ROP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.17%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
ROP pays out 22.02% of its income as dividend. This is a sustainable payout ratio.
The dividend of ROP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.02%
EPS Next 2Y8.99%
EPS Next 3Y9%
NASDAQ:ROP (5/21/2025, 12:56:43 PM)
575.04
-3.17 (-0.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.14%
Inst Owner Change2.13%
Ins Owners0.35%
Ins Owner Change-0.64%
Market Cap61.83B
Analysts78.18
Price Target647.03 (12.52%)
Short Float %1.53%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend3.01
Dividend Growth(5Y)10.17%
DP22.02%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.28%
Min EPS beat(2)-0.11%
Max EPS beat(2)0.68%
EPS beat(4)2
Avg EPS beat(4)0.23%
Min EPS beat(4)-0.6%
Max EPS beat(4)0.95%
EPS beat(8)5
Avg EPS beat(8)0.6%
EPS beat(12)9
Avg EPS beat(12)1.84%
EPS beat(16)13
Avg EPS beat(16)1.65%
Revenue beat(2)2
Avg Revenue beat(2)1.7%
Min Revenue beat(2)1.25%
Max Revenue beat(2)2.16%
Revenue beat(4)3
Avg Revenue beat(4)0.67%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)2.16%
Revenue beat(8)6
Avg Revenue beat(8)0.69%
Revenue beat(12)8
Avg Revenue beat(12)-0.26%
Revenue beat(16)8
Avg Revenue beat(16)-2.98%
PT rev (1m)0.05%
PT rev (3m)4.28%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-0.5%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0.88%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)1.51%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.77 | ||
| Fwd PE | 26.42 | ||
| P/S | 8.54 | ||
| P/FCF | 27.16 | ||
| P/OCF | 25.87 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.1 |
EPS(TTM)18.69
EY3.25%
EPS(NY)21.76
Fwd EY3.78%
FCF(TTM)21.17
FCFY3.68%
OCF(TTM)22.23
OCFY3.87%
SpS67.35
BVpS178.79
TBVpS-84.65
PEG (NY)3.09
PEG (5Y)4.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 7.79% | ||
| ROCE | 7.36% | ||
| ROIC | 5.79% | ||
| ROICexc | 5.87% | ||
| ROICexgc | N/A | ||
| OM | 28.19% | ||
| PM (TTM) | 20.69% | ||
| GM | 68.92% | ||
| FCFM | 31.44% |
ROA(3y)8.9%
ROA(5y)7.1%
ROE(3y)14.83%
ROE(5y)12.7%
ROIC(3y)5.38%
ROIC(5y)5.36%
ROICexc(3y)5.46%
ROICexc(5y)5.45%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6.84%
ROCE(5y)6.82%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-2.16%
ROICexc growth 5Y-3.76%
OM growth 3Y1.24%
OM growth 5Y0.19%
PM growth 3Y3.33%
PM growth 5Y-10.06%
GM growth 3Y0.73%
GM growth 5Y0.85%
F-Score5
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.28 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 13.71% | ||
| Cap/Sales | 1.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.2% | ||
| Profit Quality | 151.92% | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 4.15 |
F-Score5
WACC10.61%
ROIC/WACC0.55
Cap/Depr(3y)12.92%
Cap/Depr(5y)11.61%
Cap/Sales(3y)1.54%
Cap/Sales(5y)1.34%
Profit Quality(3y)100.38%
Profit Quality(5y)125.14%
High Growth Momentum
Growth
EPS 1Y (TTM)8.54%
EPS 3Y6.89%
EPS 5Y7.02%
EPS Q2Q%8.39%
EPS Next Y9.96%
EPS Next 2Y8.99%
EPS Next 3Y9%
EPS Next 5Y12.76%
Revenue 1Y (TTM)13.34%
Revenue growth 3Y6.8%
Revenue growth 5Y8.29%
Sales Q2Q%12.02%
Revenue Next Year12.32%
Revenue Next 2Y9.73%
Revenue Next 3Y8.68%
Revenue Next 5Y11.66%
EBIT growth 1Y11.82%
EBIT growth 3Y8.12%
EBIT growth 5Y8.49%
EBIT Next Year52.5%
EBIT Next 3Y21.09%
EBIT Next 5Y19.76%
FCF growth 1Y251.51%
FCF growth 3Y5.4%
FCF growth 5Y10.28%
OCF growth 1Y230.62%
OCF growth 3Y5.96%
OCF growth 5Y10.36%