ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis
USA - NASDAQ:ROP - US7766961061 - Common Stock
513.12 USD
+7.23 (+1.43%)
We assign a fundamental rating of 5 out of 10 to ROP. ROP was compared to 285 industry peers in the Software industry. ROP scores excellent on profitability, 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!
1. Profitability
1.1 Basic Checks
ROP had positive earnings in the past year.
ROP had a positive operating cash flow in the past year.
ROP had positive earnings in each of the past 5 years.
Each year in the past 5 years ROP had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.63%, ROP is doing good in the industry, outperforming 72.28% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.84%, ROP is in the better half of the industry, outperforming 72.28% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.56%, ROP is in the better half of the industry, outperforming 74.74% 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 11.90%.
The 3 year average ROIC (5.38%) for ROP is below the current ROIC(5.56%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of ROP (20.62%) is better than 85.26% of its industry peers.
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 91.93% 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.
ROP has a Gross Margin (68.87%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ROP has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ROP is destroying value.
The number of shares outstanding for ROP has been increased compared to 1 year ago.
ROP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ROP has a worse debt to assets ratio.
2.2 Solvency
ROP has an Altman-Z score of 3.47. This indicates that ROP is financially healthy and has little risk of bankruptcy at the moment.
ROP's Altman-Z score of 3.47 is fine compared to the rest of the industry. ROP outperforms 60.35% of its industry peers.
The Debt to FCF ratio of ROP is 3.88, which is a good value as it means it would take ROP, 3.88 years of fcf income to pay off all of its debts.
ROP's Debt to FCF ratio of 3.88 is fine compared to the rest of the industry. ROP outperforms 61.75% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that ROP is not too dependend on debt financing.
ROP's Debt to Equity ratio of 0.40 is on the low side compared to the rest of the industry. ROP is outperformed by 61.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 3.88 | ||
| Altman-Z | 3.47 |
ROIC/WACC0.52
WACC10.71%
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.
With a Current ratio value of 0.46, ROP is not doing good in the industry: 91.23% of the companies in the same industry are doing better.
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.
ROP has a Quick ratio of 0.43. This is amonst the worse of the industry: ROP underperforms 91.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.53% over the past year.
Measured over the past 5 years, ROP shows a small growth in Earnings Per Share. The EPS has been growing by 7.02% on average per year.
The Revenue has grown by 13.59% in the past year. This is quite good.
The Revenue has been growing by 8.29% on average over the past years. This is quite good.
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
ROP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.21% yearly.
ROP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.64% yearly.
EPS Next Y10.35%
EPS Next 2Y9.52%
EPS Next 3Y8.71%
EPS Next 5Y12.21%
Revenue Next Year13.34%
Revenue Next 2Y10.83%
Revenue Next 3Y9.86%
Revenue Next 5Y12.64%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ROP is valuated quite expensively with a Price/Earnings ratio of 26.89.
Based on the Price/Earnings ratio, ROP is valued a bit cheaper than the industry average as 69.82% of the companies are valued more expensively.
ROP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
ROP is valuated rather expensively with a Price/Forward Earnings ratio of 23.35.
Based on the Price/Forward Earnings ratio, ROP is valued a bit cheaper than 71.58% of the companies in the same industry.
ROP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.89 | ||
| Fwd PE | 23.35 |
4.2 Price Multiples
79.65% of the companies in the same industry are more expensive than ROP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ROP is valued a bit cheaper than the industry average as 77.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.19 | ||
| EV/EBITDA | 21.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ROP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.6
PEG (5Y)3.83
EPS Next 2Y9.52%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, 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 36.72. ROP pays more dividend than 90.88% of the companies in the same industry.
With a Dividend Yield of 0.66, ROP pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
On average, the dividend of ROP grows each year by 10.22%, which is quite nice.
ROP has been paying a dividend for at least 10 years, so it has 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
5.3 Sustainability
21.99% of the earnings are spent on dividend by ROP. This is a low number and sustainable payout ratio.
The dividend of ROP is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP21.99%
EPS Next 2Y9.52%
EPS Next 3Y8.71%
NASDAQ:ROP (10/21/2025, 10:37:18 AM)
513.12
+7.23 (+1.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners96.99%
Inst Owner Change0.27%
Ins Owners0.3%
Ins Owner Change0.02%
Market Cap55.22B
Analysts80
Price Target644.92 (25.69%)
Short Float %1.27%
Short Ratio1.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend3.01
Dividend Growth(5Y)10.22%
DP21.99%
Div Incr Years11
Div Non Decr Years11
Ex-Date
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)-0.39%
PT rev (3m)-0.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.57%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.89 | ||
| Fwd PE | 23.35 | ||
| P/S | 7.39 | ||
| P/FCF | 24.19 | ||
| P/OCF | 22.91 | ||
| P/B | 2.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.38 |
EPS(TTM)19.08
EY3.72%
EPS(NY)21.97
Fwd EY4.28%
FCF(TTM)21.22
FCFY4.13%
OCF(TTM)22.4
OCFY4.37%
SpS69.4
BVpS182.45
TBVpS-97.58
PEG (NY)2.6
PEG (5Y)3.83
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.47 |
F-Score4
WACC10.71%
ROIC/WACC0.52
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 Y10.35%
EPS Next 2Y9.52%
EPS Next 3Y8.71%
EPS Next 5Y12.21%
Revenue 1Y (TTM)13.59%
Revenue growth 3Y13.35%
Revenue growth 5Y8.29%
Sales Q2Q%13.21%
Revenue Next Year13.34%
Revenue Next 2Y10.83%
Revenue Next 3Y9.86%
Revenue Next 5Y12.64%
EBIT growth 1Y11.2%
EBIT growth 3Y14.35%
EBIT growth 5Y8.49%
EBIT Next Year55.94%
EBIT Next 3Y21.56%
EBIT Next 5Y22.69%
FCF growth 1Y123.6%
FCF growth 3Y5.4%
FCF growth 5Y10.28%
OCF growth 1Y117.78%
OCF growth 3Y5.96%
OCF growth 5Y10.36%