ROPER TECHNOLOGIES INC (ROP)
US7766961061 - Common Stock
We assign a fundamental rating of 6 out of 10 to ROP. ROP was compared to 277 industry peers in the Software industry. While ROP has a great profitability rating, there are some minor concerns on its financial health. ROP has a correct valuation and a medium growth rate. ROP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ROP was profitable.
ROP had a positive operating cash flow in the past year.
Each year in the past 5 years ROP has 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 4.95%, ROP is doing good in the industry, outperforming 79.20% of the companies in the same industry.
With an excellent Return On Equity value of 8.33%, ROP belongs to the best of the industry, outperforming 80.29% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.24%, ROP belongs to the best of the industry, outperforming 80.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ROP is below the industry average of 10.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 8.33% | ||
| ROIC | 5.24% |
ROA(3y)8.87%
ROA(5y)8.07%
ROE(3y)15.41%
ROE(5y)14.79%
ROIC(3y)5.42%
ROIC(5y)5.48%
1.3 Margins
Looking at the Profit Margin, with a value of 23.21%, ROP belongs to the top of the industry, outperforming 92.70% of the companies in the same industry.
In the last couple of years the Profit Margin of ROP has grown nicely.
ROP has a better Operating Margin (28.57%) than 95.62% of its industry peers.
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 69.96%, ROP perfoms like the industry average, outperforming 58.39% of the companies in the same industry.
ROP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.57% | ||
| PM (TTM) | 23.21% | ||
| GM | 69.96% |
OM growth 3Y2.5%
OM growth 5Y0.98%
PM growth 3Y4.62%
PM growth 5Y4.25%
GM growth 3Y1.14%
GM growth 5Y1.99%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.79 indicates that ROP is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.79, ROP is doing good in the industry, outperforming 61.68% of the companies in the same industry.
ROP has a debt to FCF ratio of 3.87. This is a good value and a sign of high solvency as ROP would need 3.87 years to pay back of all of its debts.
ROP's Debt to FCF ratio of 3.87 is fine compared to the rest of the industry. ROP outperforms 64.60% of its industry peers.
ROP has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
ROP has a worse Debt to Equity ratio (0.41) than 60.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.79 |
ROIC/WACC0.54
WACC9.7%
2.3 Liquidity
ROP has a Current Ratio of 0.49. 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's Current ratio of 0.49 is on the low side compared to the rest of the industry. ROP is outperformed by 94.16% of its industry peers.
ROP has a Quick Ratio of 0.49. 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 0.45. This is amonst the worse of the industry: ROP underperforms 94.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
ROP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.53%, which is quite good.
Measured over the past 5 years, ROP shows a small growth in Earnings Per Share. The EPS has been growing by 7.19% on average per year.
Looking at the last year, ROP shows a quite strong growth in Revenue. The Revenue has grown by 14.87% in the last year.
The Revenue has been growing slightly by 3.54% on average over the past years.
EPS 1Y (TTM)11.53%
EPS 3Y9.52%
EPS 5Y7.19%
EPS growth Q2Q13.08%
Revenue 1Y (TTM)14.87%
Revenue growth 3Y8.37%
Revenue growth 5Y3.54%
Revenue growth Q2Q14.36%
3.2 Future
Based on estimates for the next years, ROP will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.75% on average per year.
ROP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.46% yearly.
EPS Next Y10.39%
EPS Next 2Y9.81%
EPS Next 3Y12.04%
EPS Next 5Y14.75%
Revenue Next Year12.48%
Revenue Next 2Y9.95%
Revenue Next 3Y10.47%
Revenue Next 5YN/A
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 29.94 indicates a quite expensive valuation of ROP.
Compared to the rest of the industry, the Price/Earnings ratio of ROP indicates a somewhat cheap valuation: ROP is cheaper than 75.18% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ROP to the average of the S&P500 Index (28.02), we can say ROP is valued inline with the index average.
ROP is valuated quite expensively with a Price/Forward Earnings ratio of 25.59.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROP indicates a somewhat cheap valuation: ROP is cheaper than 75.91% of the companies listed in the same industry.
ROP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.94 | ||
| Fwd PE | 25.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROP is valued cheaper than 82.12% of the companies in the same industry.
78.10% of the companies in the same industry are more expensive than ROP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.65 | ||
| EV/EBITDA | 24.27 |
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.
ROP's earnings are expected to grow with 12.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.88
PEG (5Y)4.17
EPS Next 2Y9.81%
EPS Next 3Y12.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, 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 11.43. ROP pays more dividend than 91.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ROP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
On average, the dividend of ROP grows each year by 10.43%, 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)10.43%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
20.12% 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.
DP20.12%
EPS Next 2Y9.81%
EPS Next 3Y12.04%
ROPER TECHNOLOGIES INC
NASDAQ:ROP (5/6/2024, 7:25:14 PM)
After market: 515.54 0 (0%)515.54
-1.67 (-0.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap55.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.94 | ||
| Fwd PE | 25.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.88
PEG (5Y)4.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 8.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.57% | ||
| PM (TTM) | 23.21% | ||
| GM | 69.96% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.53%
EPS 3Y9.52%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.87%
Revenue growth 3Y8.37%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y