407.61 USD
+0.13 (+0.03%)
407.61 USD
0 (0%)
ROP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 278 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
- In the past year ROP was profitable.
- 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 (4.54%) than 71.58% of its industry peers.
- ROP's Return On Equity of 7.85% is fine compared to the rest of the industry. ROP outperforms 70.50% of its industry peers.
- The Return On Invested Capital of ROP (5.43%) is better than 73.38% 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 10.74%.
- The 3 year average ROIC (5.38%) for ROP is below the current ROIC(5.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.54% | ||
| ROE | 7.85% | ||
| ROIC | 5.43% |
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
- Looking at the Profit Margin, with a value of 20.34%, ROP belongs to the top of the industry, outperforming 84.17% of the companies in the same industry.
- ROP's Profit Margin has declined in the last couple of years.
- ROP has a better Operating Margin (28.13%) than 91.37% 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 68.96%, ROP perfoms like the industry average, outperforming 51.08% of the companies in the same industry.
- ROP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.13% | ||
| PM (TTM) | 20.34% | ||
| GM | 68.96% |
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
- 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.
- ROP has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for ROP is higher compared to a year ago.
2.2 Solvency
- ROP has an Altman-Z score of 2.87. This is not the best score and indicates that ROP is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of ROP (2.87) is comparable to the rest of the industry.
- ROP has a debt to FCF ratio of 3.93. This is a good value and a sign of high solvency as ROP would need 3.93 years to pay back of all of its debts.
- The Debt to FCF ratio of ROP (3.93) is better than 62.23% of its industry peers.
- ROP has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.46, ROP is not doing good in the industry: 64.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.51
WACC10.69%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that ROP may have some problems paying its short term obligations.
- With a Current ratio value of 0.58, ROP is not doing good in the industry: 91.73% of the companies in the same industry are doing better.
- A Quick Ratio of 0.53 indicates that ROP may have some problems paying its short term obligations.
- ROP has a Quick ratio of 0.53. This is amonst the worse of the industry: ROP underperforms 92.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.62% over the past year.
- Measured over the past 5 years, ROP shows a small growth in Earnings Per Share. The EPS has been growing by 7.02% on average per year.
- The Revenue has grown by 13.95% 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)9.62%
EPS 3Y6.89%
EPS 5Y7.02%
EPS Q2Q%11.26%
Revenue 1Y (TTM)13.95%
Revenue growth 3Y13.35%
Revenue growth 5Y8.29%
Sales Q2Q%14.33%
3.2 Future
- The Earnings Per Share is expected to grow by 12.21% on average over the next years. This is quite good.
- The Revenue is expected to grow by 13.30% on average over the next years. This is quite good.
EPS Next Y10.07%
EPS Next 2Y9.24%
EPS Next 3Y8.98%
EPS Next 5Y12.21%
Revenue Next Year13.3%
Revenue Next 2Y10.95%
Revenue Next 3Y9.78%
Revenue Next 5Y13.3%
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.
- 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
- A Price/Earnings ratio of 20.80 indicates a rather expensive valuation of ROP.
- ROP's Price/Earnings ratio is a bit cheaper when compared to the industry. ROP is cheaper than 73.74% of the companies in the same industry.
- When comparing the Price/Earnings ratio of ROP to the average of the S&P500 Index (27.21), we can say ROP is valued slightly cheaper.
- ROP is valuated rather expensively with a Price/Forward Earnings ratio of 18.64.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ROP indicates a somewhat cheap valuation: ROP is cheaper than 75.18% of the companies listed in the same industry.
- ROP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 18.64 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ROP is valued cheaply inside the industry as 80.22% of the companies are valued more expensively.
- 79.14% 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 | 18.24 | ||
| EV/EBITDA | 17.38 |
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)2.06
PEG (5Y)2.96
EPS Next 2Y9.24%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
- ROP has a yearly dividend return of 0.89%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.54, ROP pays a better dividend. On top of this ROP pays more dividend than 91.73% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, ROP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
- On average, the dividend of ROP grows each year by 10.22%, 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)10.22%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- 22.09% of the earnings are spent on dividend by ROP. This is a low number and 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.
DP22.09%
EPS Next 2Y9.24%
EPS Next 3Y8.98%
ROPER TECHNOLOGIES INC / ROP FAQ
Can you provide the ChartMill fundamental rating for ROPER TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 6 / 10 to ROP.
Can you provide the valuation status for ROPER TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 5 / 10 to ROPER TECHNOLOGIES INC (ROP). This can be considered as Fairly Valued.
How profitable is ROPER TECHNOLOGIES INC (ROP) stock?
ROPER TECHNOLOGIES INC (ROP) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ROPER TECHNOLOGIES INC (ROP) stock?
The Price/Earnings (PE) ratio for ROPER TECHNOLOGIES INC (ROP) is 20.8 and the Price/Book (PB) ratio is 2.19.
Can you provide the expected EPS growth for ROP stock?
The Earnings per Share (EPS) of ROPER TECHNOLOGIES INC (ROP) is expected to grow by 10.07% in the next year.