ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis
NASDAQ:ROP - Nasdaq - US7766961061 - Common Stock - Currency: USD
Taking everything into account, ROP scores 5 out of 10 in our fundamental rating. ROP was compared to 286 industry peers in the Software industry. ROP has an excellent profitability rating, but there are concerns on its financial health. ROP has a decent growth rate and is not valued too expensively. 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.
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 4.68%, ROP is doing good in the industry, outperforming 74.91% of the companies in the same industry.
ROP's Return On Equity of 7.97% is fine compared to the rest of the industry. ROP outperforms 75.99% of its industry peers.
The Return On Invested Capital of ROP (5.32%) is better than 75.27% 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 12.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 7.97% | ||
| ROIC | 5.32% |
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 21.78%, ROP belongs to the top of the industry, outperforming 89.61% of the companies in the same industry.
In the last couple of years the Profit Margin of ROP has grown nicely.
The Operating Margin of ROP (28.56%) is better than 94.62% of its industry peers.
ROP's Operating Margin has been stable in the last couple of years.
The Gross Margin of ROP (69.68%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ROP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.56% | ||
| PM (TTM) | 21.78% | ||
| GM | 69.68% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ROP 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 an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.73 indicates that ROP is not in any danger for bankruptcy at the moment.
ROP has a Altman-Z score (3.73) which is comparable to the rest of the industry.
ROP has a debt to FCF ratio of 3.84. This is a good value and a sign of high solvency as ROP would need 3.84 years to pay back of all of its debts.
ROP has a Debt to FCF ratio of 3.84. This is in the better half of the industry: ROP outperforms 60.57% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that ROP is not too dependend on debt financing.
ROP has a Debt to Equity ratio of 0.41. This is in the lower half of the industry: ROP underperforms 65.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.73 |
ROIC/WACC0.5
WACC10.67%
2.3 Liquidity
A Current Ratio of 0.48 indicates that ROP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.48, ROP is doing worse than 93.19% of the companies in the same industry.
A Quick Ratio of 0.44 indicates that ROP may have some problems paying its short term obligations.
ROP has a Quick ratio of 0.44. This is amonst the worse of the industry: ROP underperforms 93.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.96% over the past year.
ROP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.19% yearly.
Looking at the last year, ROP shows a quite strong growth in Revenue. The Revenue has grown by 13.02% in the last year.
Measured over the past years, ROP shows a small growth in Revenue. The Revenue has been growing by 3.54% on average per year.
EPS 1Y (TTM)9.96%
EPS 3Y9.52%
EPS 5Y7.19%
EPS Q2Q%6.94%
Revenue 1Y (TTM)13.02%
Revenue growth 3Y8.37%
Revenue growth 5Y3.54%
Sales Q2Q%12.87%
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 14.94% on average per year.
The Revenue is expected to grow by 13.32% on average over the next years. This is quite good.
EPS Next Y10.28%
EPS Next 2Y10.11%
EPS Next 3Y9.91%
EPS Next 5Y14.94%
Revenue Next Year13.95%
Revenue Next 2Y11.75%
Revenue Next 3Y10.43%
Revenue Next 5Y13.32%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.91, ROP can be considered very expensive at the moment.
ROP's Price/Earnings ratio is a bit cheaper when compared to the industry. ROP is cheaper than 72.04% of the companies in the same industry.
ROP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.16, ROP can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ROP is valued a bit cheaper than 72.40% of the companies in the same industry.
ROP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.91 | ||
| Fwd PE | 28.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROP indicates a somewhat cheap valuation: ROP is cheaper than 79.21% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROP indicates a somewhat cheap valuation: ROP is cheaper than 78.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.08 | ||
| 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.
The decent profitability rating of ROP may justify a higher PE ratio.
PEG (NY)3.11
PEG (5Y)4.44
EPS Next 2Y10.11%
EPS Next 3Y9.91%
5. Dividend
5.1 Amount
ROP has a yearly dividend return of 0.62%, which is pretty low.
ROP's Dividend Yield is rather good when compared to the industry average which is at 12.40. ROP pays more dividend than 90.68% of the companies in the same industry.
With a Dividend Yield of 0.62, ROP pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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 Years11
Div Non Decr Years11
5.3 Sustainability
21.26% of the earnings are spent on dividend by ROP. This is a low number and sustainable payout ratio.
The dividend of ROP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.26%
EPS Next 2Y10.11%
EPS Next 3Y9.91%
ROPER TECHNOLOGIES INC
NASDAQ:ROP (1/30/2025, 4:20:05 PM)
After market: 570.6 0 (0%)570.6
+27.58 (+5.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.77%
Inst Owner Change-0.11%
Ins Owners0.38%
Ins Owner Change-2.06%
Market Cap61.19B
Analysts76.19
Price Target623.23 (9.22%)
Short Float %1.13%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend2.72
Dividend Growth(5Y)10.43%
DP21.26%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.17%
Min EPS beat(2)-0.6%
Max EPS beat(2)0.95%
EPS beat(4)2
Avg EPS beat(4)0.18%
Min EPS beat(4)-0.6%
Max EPS beat(4)0.95%
EPS beat(8)6
Avg EPS beat(8)0.94%
EPS beat(12)10
Avg EPS beat(12)1.94%
EPS beat(16)14
Avg EPS beat(16)2.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-1.84%
Max Revenue beat(2)1.12%
Revenue beat(4)3
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)1.12%
Revenue beat(8)5
Avg Revenue beat(8)0.22%
Revenue beat(12)6
Avg Revenue beat(12)-1.73%
Revenue beat(16)7
Avg Revenue beat(16)-4.03%
PT rev (1m)-0.24%
PT rev (3m)2.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)0%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.91 | ||
| Fwd PE | 28.16 | ||
| P/S | 9.03 | ||
| P/FCF | 28.08 | ||
| P/OCF | 26.69 | ||
| P/B | 3.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.27 |
EPS(TTM)17.88
EY3.13%
EPS(NY)20.26
Fwd EY3.55%
FCF(TTM)20.32
FCFY3.56%
OCF(TTM)21.38
OCFY3.75%
SpS63.19
BVpS172.67
TBVpS-92.93
PEG (NY)3.11
PEG (5Y)4.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 7.97% | ||
| ROCE | 6.85% | ||
| ROIC | 5.32% | ||
| ROICexc | 5.37% | ||
| ROICexgc | N/A | ||
| OM | 28.56% | ||
| PM (TTM) | 21.78% | ||
| GM | 69.68% | ||
| FCFM | 32.16% |
ROA(3y)8.87%
ROA(5y)8.07%
ROE(3y)15.41%
ROE(5y)14.79%
ROIC(3y)5.42%
ROIC(5y)5.48%
ROICexc(3y)5.52%
ROICexc(5y)5.62%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6.97%
ROCE(5y)7.06%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y5.27%
ROICexc growth 5Y-7.64%
OM growth 3Y2.5%
OM growth 5Y0.98%
PM growth 3Y4.62%
PM growth 5Y4.25%
GM growth 3Y1.14%
GM growth 5Y1.99%
F-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.84 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 14.3% | ||
| Cap/Sales | 1.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.9% | ||
| Profit Quality | 147.61% | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 3.73 |
F-Score4
WACC10.67%
ROIC/WACC0.5
Cap/Depr(3y)11.66%
Cap/Depr(5y)11.9%
Cap/Sales(3y)1.38%
Cap/Sales(5y)1.3%
Profit Quality(3y)107.65%
Profit Quality(5y)111.51%
High Growth Momentum
Growth
EPS 1Y (TTM)9.96%
EPS 3Y9.52%
EPS 5Y7.19%
EPS Q2Q%6.94%
EPS Next Y10.28%
EPS Next 2Y10.11%
EPS Next 3Y9.91%
EPS Next 5Y14.94%
Revenue 1Y (TTM)13.02%
Revenue growth 3Y8.37%
Revenue growth 5Y3.54%
Sales Q2Q%12.87%
Revenue Next Year13.95%
Revenue Next 2Y11.75%
Revenue Next 3Y10.43%
Revenue Next 5Y13.32%
EBIT growth 1Y14.16%
EBIT growth 3Y11.07%
EBIT growth 5Y4.56%
EBIT Next Year59.13%
EBIT Next 3Y23.94%
EBIT Next 5Y23.36%
FCF growth 1Y85.78%
FCF growth 3Y9.29%
FCF growth 5Y7.04%
OCF growth 1Y84.55%
OCF growth 3Y10.09%
OCF growth 5Y7.31%