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ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis

NASDAQ:ROP - Nasdaq - US7766961061 - Common Stock - Currency: USD

550.4  -1.94 (-0.35%)

After market: 550.4 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to ROP. ROP was compared to 281 industry peers in the Software industry. While ROP has a great profitability rating, there are quite some concerns on its financial health. ROP is not overvalued while it is showing excellent growth. This is an interesting combination.


Dividend Valuation Growth Profitability Health

7

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.
In the past 5 years ROP always reported a positive cash flow from operatings.
ROP Yearly Net Income VS EBIT VS OCF VS FCFROP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

1.2 Ratios

ROP's Return On Assets of 4.63% is fine compared to the rest of the industry. ROP outperforms 75.44% of its industry peers.
Looking at the Return On Equity, with a value of 7.84%, ROP is in the better half of the industry, outperforming 75.09% of the companies in the same industry.
ROP's Return On Invested Capital of 5.56% is fine compared to the rest of the industry. ROP outperforms 76.51% of its industry peers.
ROP had an Average Return On Invested Capital over the past 3 years of 5.38%. This is significantly below the industry average of 12.19%.
The 3 year average ROIC (5.38%) for ROP is below the current ROIC(5.56%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.63%
ROE 7.84%
ROIC 5.56%
ROA(3y)8.9%
ROA(5y)7.1%
ROE(3y)14.83%
ROE(5y)12.7%
ROIC(3y)5.38%
ROIC(5y)5.04%
ROP Yearly ROA, ROE, ROICROP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

With an excellent Profit Margin value of 20.62%, ROP belongs to the best of the industry, outperforming 88.97% of the companies in the same industry.
In the last couple of years the Profit Margin of ROP has declined.
Looking at the Operating Margin, with a value of 28.06%, ROP belongs to the top of the industry, outperforming 93.95% of the companies in the same industry.
In the last couple of years the Operating Margin of ROP has remained more or less at the same level.
With a Gross Margin value of 68.87%, ROP perfoms like the industry average, outperforming 50.18% of the companies in the same industry.
ROP's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 28.06%
PM (TTM) 20.62%
GM 68.87%
OM growth 3Y0.88%
OM growth 5Y0.19%
PM growth 3Y-2.63%
PM growth 5Y-10.06%
GM growth 3Y-0.57%
GM growth 5Y0.85%
ROP Yearly Profit, Operating, Gross MarginsROP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

3

2. Health

2.1 Basic Checks

ROP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ROP has been increased compared to 1 year ago.
The number of shares outstanding for ROP has been increased compared to 5 years ago.
ROP has a worse debt/assets ratio than last year.
ROP Yearly Shares OutstandingROP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
ROP Yearly Total Debt VS Total AssetsROP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

An Altman-Z score of 3.68 indicates that ROP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.68, ROP is in the better half of the industry, outperforming 63.35% of the companies in the same industry.
ROP has a debt to FCF ratio of 3.88. This is a good value and a sign of high solvency as ROP would need 3.88 years to pay back of all of its debts.
ROP's Debt to FCF ratio of 3.88 is fine compared to the rest of the industry. ROP outperforms 61.57% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that ROP is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.40, ROP is not doing good in the industry: 62.28% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 3.88
Altman-Z 3.68
ROIC/WACC0.5
WACC11.09%
ROP Yearly LT Debt VS Equity VS FCFROP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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 91.46% of its industry peers.
A Quick Ratio of 0.43 indicates that ROP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.43, ROP is doing worse than 92.17% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.46
Quick Ratio 0.43
ROP Yearly Current Assets VS Current LiabilitesROP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

7

3. Growth

3.1 Past

ROP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.53%, 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.
ROP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.59%.
Measured over the past years, ROP shows a quite strong growth in Revenue. The Revenue has been growing by 8.29% on average per year.
EPS 1Y (TTM)8.53%
EPS 3Y6.89%
EPS 5Y7.02%
EPS Q2Q%8.71%
Revenue 1Y (TTM)13.59%
Revenue growth 3Y13.35%
Revenue growth 5Y8.29%
Sales Q2Q%13.21%

3.2 Future

The Earnings Per Share is expected to grow by 12.21% on average over the next years. This is quite good.
Based on estimates for the next years, ROP will show a quite strong growth in Revenue. The Revenue will grow by 11.36% on average per year.
EPS Next Y10.02%
EPS Next 2Y9.07%
EPS Next 3Y9%
EPS Next 5Y12.21%
Revenue Next Year13.24%
Revenue Next 2Y10.78%
Revenue Next 3Y10.06%
Revenue Next 5Y11.36%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ROP Yearly Revenue VS EstimatesROP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B 10B
ROP Yearly EPS VS EstimatesROP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10 20 30 40

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 28.85, the valuation of ROP can be described as expensive.
71.17% of the companies in the same industry are more expensive than ROP, based on the Price/Earnings ratio.
ROP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.61.
With a Price/Forward Earnings ratio of 25.25, ROP can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ROP is valued a bit cheaper than the industry average as 69.39% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ROP to the average of the S&P500 Index (37.13), we can say ROP is valued slightly cheaper.
Industry RankSector Rank
PE 28.85
Fwd PE 25.25
ROP Price Earnings VS Forward Price EarningsROP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 79.36% of the companies listed in the same industry.
76.16% of the companies in the same industry are more expensive than ROP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 25.92
EV/EBITDA 23.06
ROP Per share dataROP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 100 150

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)2.88
PEG (5Y)4.11
EPS Next 2Y9.07%
EPS Next 3Y9%

6

5. Dividend

5.1 Amount

With a yearly dividend of 0.59%, ROP is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 31.80, ROP pays a better dividend. On top of this ROP pays more dividend than 91.10% of the companies listed in the same industry.
With a Dividend Yield of 0.59, ROP pays less dividend than the S&P500 average, which is at 2.32.
Industry RankSector Rank
Dividend Yield 0.59%

5.2 History

The dividend of ROP is nicely growing with an annual growth rate of 10.22%!
ROP has paid a dividend for at least 10 years, which is a reliable track record.
ROP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.22%
Div Incr Years11
Div Non Decr Years11
ROP Yearly Dividends per shareROP Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

21.99% of the earnings are spent on dividend by ROP. This is a low number and sustainable payout ratio.
ROP's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP21.99%
EPS Next 2Y9.07%
EPS Next 3Y9%
ROP Yearly Income VS Free CF VS DividendROP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
ROP Dividend Payout.ROP Dividend Payout, showing the Payout Ratio.ROP Dividend Payout.PayoutRetained Earnings

ROPER TECHNOLOGIES INC

NASDAQ:ROP (7/31/2025, 4:31:36 PM)

After market: 550.4 0 (0%)

550.4

-1.94 (-0.35%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)07-21 2025-07-21/bmo
Earnings (Next)10-21 2025-10-21/bmo
Inst Owners96.84%
Inst Owner Change-0.42%
Ins Owners0.3%
Ins Owner Change-0.3%
Market Cap59.18B
Analysts79.13
Price Target649.64 (18.03%)
Short Float %1.41%
Short Ratio2.71
Dividend
Industry RankSector Rank
Dividend Yield 0.59%
Yearly Dividend3.01
Dividend Growth(5Y)10.22%
DP21.99%
Div Incr Years11
Div Non Decr Years11
Ex-Date07-08 2025-07-08 (0.825)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.17%
Min EPS beat(2)-0.22%
Max EPS beat(2)-0.11%
EPS beat(4)2
Avg EPS beat(4)0.32%
Min EPS beat(4)-0.22%
Max EPS beat(4)0.95%
EPS beat(8)4
Avg EPS beat(8)0.31%
EPS beat(12)8
Avg EPS beat(12)1.08%
EPS beat(16)12
Avg EPS beat(16)1.54%
Revenue beat(2)1
Avg Revenue beat(2)1.02%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)2.16%
Revenue beat(4)3
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)2.16%
Revenue beat(8)5
Avg Revenue beat(8)0.52%
Revenue beat(12)8
Avg Revenue beat(12)0.56%
Revenue beat(16)8
Avg Revenue beat(16)-3.67%
PT rev (1m)0%
PT rev (3m)0.51%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)1.29%
Revenue NQ rev (3m)3.76%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.55%
Valuation
Industry RankSector Rank
PE 28.85
Fwd PE 25.25
P/S 7.92
P/FCF 25.92
P/OCF 24.55
P/B 3.01
P/tB N/A
EV/EBITDA 23.06
EPS(TTM)19.08
EY3.47%
EPS(NY)21.79
Fwd EY3.96%
FCF(TTM)21.23
FCFY3.86%
OCF(TTM)22.42
OCFY4.07%
SpS69.46
BVpS182.61
TBVpS-97.67
PEG (NY)2.88
PEG (5Y)4.11
Profitability
Industry RankSector Rank
ROA 4.63%
ROE 7.84%
ROCE 7.07%
ROIC 5.56%
ROICexc 5.6%
ROICexgc N/A
OM 28.06%
PM (TTM) 20.62%
GM 68.87%
FCFM 30.57%
ROA(3y)8.9%
ROA(5y)7.1%
ROE(3y)14.83%
ROE(5y)12.7%
ROIC(3y)5.38%
ROIC(5y)5.04%
ROICexc(3y)5.46%
ROICexc(5y)5.12%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6.84%
ROCE(5y)6.4%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y3.47%
ROICexc growth 5Y-3.76%
OM growth 3Y0.88%
OM growth 5Y0.19%
PM growth 3Y-2.63%
PM growth 5Y-10.06%
GM growth 3Y-0.57%
GM growth 5Y0.85%
F-Score4
Asset Turnover0.22
Health
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 3.88
Debt/EBITDA 2.66
Cap/Depr 14.92%
Cap/Sales 1.71%
Interest Coverage 250
Cash Conversion 81.73%
Profit Quality 148.29%
Current Ratio 0.46
Quick Ratio 0.43
Altman-Z 3.68
F-Score4
WACC11.09%
ROIC/WACC0.5
Cap/Depr(3y)12.92%
Cap/Depr(5y)11.61%
Cap/Sales(3y)1.54%
Cap/Sales(5y)1.43%
Profit Quality(3y)100.38%
Profit Quality(5y)125.14%
High Growth Momentum
Growth
EPS 1Y (TTM)8.53%
EPS 3Y6.89%
EPS 5Y7.02%
EPS Q2Q%8.71%
EPS Next Y10.02%
EPS Next 2Y9.07%
EPS Next 3Y9%
EPS Next 5Y12.21%
Revenue 1Y (TTM)13.59%
Revenue growth 3Y13.35%
Revenue growth 5Y8.29%
Sales Q2Q%13.21%
Revenue Next Year13.24%
Revenue Next 2Y10.78%
Revenue Next 3Y10.06%
Revenue Next 5Y11.36%
EBIT growth 1Y11.2%
EBIT growth 3Y14.35%
EBIT growth 5Y8.49%
EBIT Next Year53.98%
EBIT Next 3Y19.95%
EBIT Next 5Y19.24%
FCF growth 1Y123.6%
FCF growth 3Y5.4%
FCF growth 5Y10.28%
OCF growth 1Y117.78%
OCF growth 3Y5.96%
OCF growth 5Y10.36%