ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis
NASDAQ:ROP - US7766961061 - Common Stock
524.13 USD
+5.14 (+0.99%)
520.794 USD
-3.34 (-0.64%)
Taking everything into account, ROP scores 5 out of 10 in our fundamental rating. ROP was compared to 280 industry peers in the Software industry. ROP has an excellent profitability rating, but there are concerns on its financial health. ROP is growing strongly while it is still valued neutral. This is a good combination!
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.
In the past 5 years ROP has always been profitable.
ROP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.63%, ROP is doing good in the industry, outperforming 72.14% of the companies in the same industry.
ROP has a Return On Equity of 7.84%. This is in the better half of the industry: ROP outperforms 72.14% of its industry peers.
ROP's Return On Invested Capital of 5.56% is fine compared to the rest of the industry. ROP outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ROP is significantly below the industry average of 12.00%.
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 better Profit Margin (20.62%) than 85.00% of its industry peers.
In the last couple of years the Profit Margin of ROP has declined.
ROP's Operating Margin of 28.06% is amongst the best of the industry. ROP outperforms 91.79% of its industry peers.
ROP's Operating Margin has been stable in the last couple of years.
The Gross Margin of ROP (68.87%) is comparable to the rest of the industry.
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
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.
Compared to 1 year ago, ROP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.55 indicates that ROP is not in any danger for bankruptcy at the moment.
ROP has a Altman-Z score of 3.55. This is in the better half of the industry: ROP outperforms 62.14% 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 has a better Debt to FCF ratio (3.88) than 61.43% 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 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 3.88 | ||
| Altman-Z | 3.55 |
ROIC/WACC0.51
WACC10.94%
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.
ROP has a Current ratio of 0.46. This is amonst the worse of the industry: ROP underperforms 90.71% of its industry peers.
A Quick Ratio of 0.43 indicates that ROP may have some problems paying its short term obligations.
ROP has a Quick ratio of 0.43. This is amonst the worse of the industry: ROP underperforms 91.79% 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.
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%.
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 Y10.37%
EPS Next 2Y9.51%
EPS Next 3Y8.79%
EPS Next 5Y12.21%
Revenue Next Year13.34%
Revenue Next 2Y10.81%
Revenue Next 3Y9.93%
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
A Price/Earnings ratio of 27.47 indicates a quite expensive valuation of ROP.
67.86% of the companies in the same industry are more expensive than ROP, based on the Price/Earnings ratio.
ROP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.86, 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 69.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.48, ROP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.47 | ||
| Fwd PE | 23.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROP is valued a bit cheaper than the industry average as 77.86% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ROP is valued a bit cheaper than the industry average as 76.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.71 | ||
| EV/EBITDA | 22.05 |
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.
The decent profitability rating of ROP may justify a higher PE ratio.
PEG (NY)2.65
PEG (5Y)3.91
EPS Next 2Y9.51%
EPS Next 3Y8.79%
5. Dividend
5.1 Amount
ROP has a yearly dividend return of 0.63%, which is pretty low.
ROP's Dividend Yield is rather good when compared to the industry average which is at 57.16. ROP pays more dividend than 90.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, ROP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
On average, the dividend of ROP grows each year by 10.22%, which is quite nice.
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)10.22%
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.
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 2Y9.51%
EPS Next 3Y8.79%
524.13
+5.14 (+0.99%)
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%
Market Cap56.40B
Analysts79.13
Price Target647.43 (23.52%)
Short Float %1.3%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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)-0.34%
PT rev (3m)0.06%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)0.31%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.97%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.47 | ||
| Fwd PE | 23.86 | ||
| P/S | 7.55 | ||
| P/FCF | 24.71 | ||
| P/OCF | 23.4 | ||
| P/B | 2.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.05 |
EPS(TTM)19.08
EY3.64%
EPS(NY)21.97
Fwd EY4.19%
FCF(TTM)21.22
FCFY4.05%
OCF(TTM)22.4
OCFY4.27%
SpS69.4
BVpS182.45
TBVpS-97.58
PEG (NY)2.65
PEG (5Y)3.91
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 | 3.55 |
F-Score4
WACC10.94%
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 2Y10.81%
Revenue Next 3Y9.93%
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%