ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis
USA - NASDAQ:ROP - US7766961061 - Common Stock
505.68 USD
+1.69 (+0.34%)
505.68 USD
0 (0%)
ROP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 279 industry peers in the Software industry. While ROP belongs to the best of the industry regarding profitability, there are concerns on its financial health. ROP is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
In the past 5 years ROP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.63%, ROP is in the better half of the industry, outperforming 72.04% of the companies in the same industry.
The Return On Equity of ROP (7.84%) is better than 72.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.56%, ROP is in the better half of the industry, outperforming 74.55% 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 11.86%.
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
ROP has a Profit Margin of 20.62%. This is amongst the best in the industry. ROP outperforms 85.30% of its industry peers.
In the last couple of years the Profit Margin of ROP has declined.
ROP has a Operating Margin of 28.06%. This is amongst the best in the industry. ROP outperforms 91.76% of its industry peers.
ROP's Operating Margin has been stable in the last couple of years.
ROP's Gross Margin of 68.87% is in line compared to the rest of the industry. ROP outperforms 50.54% of its industry peers.
ROP's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, ROP has more shares outstanding
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
An Altman-Z score of 3.46 indicates that ROP is not in any danger for bankruptcy at the moment.
ROP has a Altman-Z score (3.46) which is comparable to the rest of the industry.
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 has a Debt to FCF ratio of 3.88. This is in the better half of the industry: ROP outperforms 60.93% of its industry peers.
ROP has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.40, ROP is not doing good in the industry: 62.01% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 3.88 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.51
WACC11%
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 90.68% 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 91.40% of the companies in the same industry.
| 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.
ROP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.02% yearly.
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.
The Revenue is expected to grow by 12.64% on average over the next years. This is quite good.
EPS Next Y10.37%
EPS Next 2Y9.51%
EPS Next 3Y8.79%
EPS Next 5Y12.21%
Revenue Next Year13.34%
Revenue Next 2Y10.83%
Revenue Next 3Y9.86%
Revenue Next 5Y12.64%
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.
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 26.50.
Compared to the rest of the industry, the Price/Earnings ratio of ROP indicates a somewhat cheap valuation: ROP is cheaper than 69.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.29, ROP is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.02, the valuation of ROP can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROP indicates a somewhat cheap valuation: ROP is cheaper than 70.61% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ROP to the average of the S&P500 Index (22.80), we can say ROP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.5 | ||
| Fwd PE | 23.02 |
4.2 Price Multiples
79.57% of the companies in the same industry are more expensive than ROP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROP indicates a somewhat cheap valuation: ROP is cheaper than 77.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.84 | ||
| EV/EBITDA | 21.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ROP does not grow enough to justify the current Price/Earnings ratio.
ROP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.56
PEG (5Y)3.78
EPS Next 2Y9.51%
EPS Next 3Y8.79%
5. Dividend
5.1 Amount
ROP has a yearly dividend return of 0.65%, which is pretty low.
ROP's Dividend Yield is rather good when compared to the industry average which is at 39.91. ROP pays more dividend than 90.68% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ROP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
The dividend of ROP is nicely growing with an annual growth rate of 10.22%!
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
ROP pays out 21.99% of its income as dividend. This is a 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 2Y9.51%
EPS Next 3Y8.79%
505.68
+1.69 (+0.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.19%
Inst Owner Change-4.93%
Ins Owners0.3%
Ins Owner Change0.01%
Market Cap54.42B
Analysts80
Price Target647.43 (28.03%)
Short Float %1.41%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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%
PT rev (3m)-0.34%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.5 | ||
| Fwd PE | 23.02 | ||
| P/S | 7.29 | ||
| P/FCF | 23.84 | ||
| P/OCF | 22.58 | ||
| P/B | 2.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.31 |
EPS(TTM)19.08
EY3.77%
EPS(NY)21.97
Fwd EY4.34%
FCF(TTM)21.22
FCFY4.2%
OCF(TTM)22.4
OCFY4.43%
SpS69.4
BVpS182.45
TBVpS-97.58
PEG (NY)2.56
PEG (5Y)3.78
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 | 3.46 |
F-Score4
WACC11%
ROIC/WACC0.51
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 Y10.37%
EPS Next 2Y9.51%
EPS Next 3Y8.79%
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 Year55.8%
EBIT Next 3Y21.39%
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%