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 282 industry peers in the Software industry. While ROP has a great profitability rating, there are quite some concerns on its financial health. ROP is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! Finally 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.
ROP had positive earnings in each of the past 5 years.
ROP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ROP has a better Return On Assets (4.77%) than 75.53% of its industry peers.
With a decent Return On Equity value of 7.79%, ROP is doing good in the industry, outperforming 74.82% of the companies in the same industry.
ROP's Return On Invested Capital of 5.79% is fine compared to the rest of the industry. ROP outperforms 76.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ROP is significantly below the industry average of 12.26%.
The 3 year average ROIC (5.38%) for ROP is below the current ROIC(5.79%), indicating increased profibility in the last year.
| 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
The Profit Margin of ROP (20.69%) is better than 88.65% of its industry peers.
ROP's Profit Margin has declined in the last couple of years.
ROP's Operating Margin of 28.19% is amongst the best of the industry. ROP outperforms 93.62% of its industry peers.
ROP's Operating Margin has been stable in the last couple of years.
ROP's Gross Margin of 68.92% is in line compared to the rest of the industry. ROP outperforms 50.35% of its industry peers.
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.
ROP has more shares outstanding than it did 5 years ago.
ROP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.13 indicates that ROP is not in any danger for bankruptcy at the moment.
ROP's Altman-Z score of 4.13 is fine compared to the rest of the industry. ROP outperforms 63.48% 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.
The Debt to FCF ratio of ROP (3.28) is better than 63.48% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that ROP is not too dependend on debt financing.
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 60.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 4.13 |
ROIC/WACC0.69
WACC8.35%
2.3 Liquidity
A Current Ratio of 0.46 indicates that ROP may have some problems paying its short term obligations.
ROP has a Current ratio of 0.46. This is amonst the worse of the industry: ROP underperforms 91.84% 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.
Looking at the Quick ratio, with a value of 0.43, ROP is doing worse than 91.49% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 7.02% on average over the past years.
ROP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.34%.
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
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 11.36% yearly.
EPS Next Y9.91%
EPS Next 2Y9.13%
EPS Next 3Y9.67%
EPS Next 5Y12.21%
Revenue Next Year12.35%
Revenue Next 2Y9.98%
Revenue Next 3Y9.88%
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.
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
Based on the Price/Earnings ratio of 30.66, the valuation of ROP can be described as expensive.
Based on the Price/Earnings ratio, ROP is valued a bit cheaper than the industry average as 71.63% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.45. ROP is around the same levels.
Based on the Price/Forward Earnings ratio of 26.26, the valuation of ROP can be described as expensive.
ROP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ROP is cheaper than 69.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ROP to the average of the S&P500 Index (21.90), we can say ROP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.66 | ||
| Fwd PE | 26.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROP is valued a bit cheaper than 79.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ROP is valued a bit cheaper than the industry average as 76.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.06 | ||
| EV/EBITDA | 23.91 |
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)3.1
PEG (5Y)4.37
EPS Next 2Y9.13%
EPS Next 3Y9.67%
5. Dividend
5.1 Amount
ROP has a yearly dividend return of 0.58%, which is pretty low.
ROP's Dividend Yield is rather good when compared to the industry average which is at 16.21. ROP pays more dividend than 91.13% of the companies in the same industry.
With a Dividend Yield of 0.58, ROP pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
22.02% of the earnings are spent on dividend by ROP. This is a low number and sustainable payout ratio.
ROP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.02%
EPS Next 2Y9.13%
EPS Next 3Y9.67%
573
+6.92 (+1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners96.84%
Inst Owner Change2.14%
Ins Owners0.3%
Ins Owner Change-0.07%
Market Cap61.61B
Analysts79.13
Price Target649.64 (13.38%)
Short Float %1.29%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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)0.4%
PT rev (3m)1.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.7%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.66 | ||
| Fwd PE | 26.26 | ||
| P/S | 8.51 | ||
| P/FCF | 27.06 | ||
| P/OCF | 25.77 | ||
| P/B | 3.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.91 |
EPS(TTM)18.69
EY3.26%
EPS(NY)21.82
Fwd EY3.81%
FCF(TTM)21.17
FCFY3.69%
OCF(TTM)22.23
OCFY3.88%
SpS67.35
BVpS178.79
TBVpS-84.65
PEG (NY)3.1
PEG (5Y)4.37
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 | 4.13 |
F-Score5
WACC8.35%
ROIC/WACC0.69
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 Y9.91%
EPS Next 2Y9.13%
EPS Next 3Y9.67%
EPS Next 5Y12.21%
Revenue 1Y (TTM)13.34%
Revenue growth 3Y6.8%
Revenue growth 5Y8.29%
Sales Q2Q%12.02%
Revenue Next Year12.35%
Revenue Next 2Y9.98%
Revenue Next 3Y9.88%
Revenue Next 5Y11.36%
EBIT growth 1Y11.82%
EBIT growth 3Y8.12%
EBIT growth 5Y8.49%
EBIT Next Year53.98%
EBIT Next 3Y19.95%
EBIT Next 5Y19.24%
FCF growth 1Y251.51%
FCF growth 3Y5.4%
FCF growth 5Y10.28%
OCF growth 1Y230.62%
OCF growth 3Y5.96%
OCF growth 5Y10.36%