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ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis

NASDAQ:ROP - Nasdaq - US7766961061 - Common Stock - Currency: USD

566  -7 (-1.22%)

After market: 566 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to ROP. ROP was compared to 282 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! Finally ROP also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

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.
Each year in the past 5 years ROP had a positive operating cash flow.
ROP Yearly Net Income VS EBIT VS OCF VS FCFROP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

1.2 Ratios

ROP's Return On Assets of 4.77% is fine compared to the rest of the industry. ROP outperforms 75.53% of its industry peers.
Looking at the Return On Equity, with a value of 7.79%, ROP is in the better half of the industry, outperforming 74.82% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.79%, ROP is doing good in the industry, outperforming 76.24% of the companies in the same industry.
ROP had an Average Return On Invested Capital over the past 3 years of 5.38%. This is significantly below the industry average of 12.26%.
The last Return On Invested Capital (5.79%) for ROP is above the 3 year average (5.38%), which is a sign of increasing profitability.
Industry RankSector 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%
ROP Yearly ROA, ROE, ROICROP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

ROP has a Profit Margin of 20.69%. This is amongst the best in the industry. ROP outperforms 88.65% of its industry peers.
In the last couple of years the Profit Margin of ROP has declined.
Looking at the Operating Margin, with a value of 28.19%, ROP belongs to the top of the industry, outperforming 93.62% of the companies in the same industry.
ROP's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 68.92%, ROP is in line with its industry, outperforming 50.00% of the companies in the same industry.
ROP's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
ROP Yearly Profit, Operating, Gross MarginsROP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

3

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.
Compared to 5 years ago, ROP has more shares outstanding
The debt/assets ratio for ROP is higher compared to a year ago.
ROP Yearly Shares OutstandingROP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
ROP Yearly Total Debt VS Total AssetsROP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

ROP has an Altman-Z score of 4.09. This indicates that ROP is financially healthy and has little risk of bankruptcy at the moment.
ROP's Altman-Z score of 4.09 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.
Looking at the Debt to FCF ratio, with a value of 3.28, ROP is in the better half of the industry, outperforming 63.48% of the companies in the same industry.
ROP has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
ROP has a Debt to Equity ratio of 0.34. This is in the lower half of the industry: ROP underperforms 60.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 3.28
Altman-Z 4.09
ROIC/WACC0.55
WACC10.55%
ROP Yearly LT Debt VS Equity VS FCFROP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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.
Looking at the Current ratio, with a value of 0.46, ROP is doing worse than 91.84% of the companies in the same industry.
A Quick Ratio of 0.43 indicates that ROP may have some problems paying its short term obligations.
ROP's Quick ratio of 0.43 is on the low side compared to the rest of the industry. ROP is outperformed by 91.49% of its industry peers.
Industry RankSector Rank
Current Ratio 0.46
Quick Ratio 0.43
ROP Yearly Current Assets VS Current LiabilitesROP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

7

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.
ROP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.02% yearly.
The Revenue has grown by 13.34% in the past year. This is quite good.
Measured over the past years, ROP shows a quite strong growth in Revenue. The Revenue has been growing by 8.29% on average per year.
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

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.
ROP Yearly Revenue VS EstimatesROP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B 10B
ROP Yearly EPS VS EstimatesROP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10 20 30 40

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 30.28, the valuation of ROP can be described as expensive.
Based on the Price/Earnings ratio, ROP is valued a bit cheaper than 71.28% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.29, ROP is valued at the same level.
A Price/Forward Earnings ratio of 25.94 indicates a quite expensive valuation of ROP.
Based on the Price/Forward Earnings ratio, ROP is valued a bit cheaper than 69.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.74, ROP is valued at the same level.
Industry RankSector Rank
PE 30.28
Fwd PE 25.94
ROP Price Earnings VS Forward Price EarningsROP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ROP is valued cheaply inside the industry as 80.14% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ROP is valued a bit cheaper than 76.60% of the companies in the same industry.
Industry RankSector Rank
P/FCF 26.73
EV/EBITDA 23.65
ROP Per share dataROP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 100 150

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)3.06
PEG (5Y)4.31
EPS Next 2Y9.13%
EPS Next 3Y9.67%

7

5. Dividend

5.1 Amount

With a yearly dividend of 0.58%, 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 33.28. ROP pays more dividend than 91.13% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ROP's dividend is way lower than the S&P500 average.
Industry RankSector 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.17%
Div Incr Years11
Div Non Decr Years11
ROP Yearly Dividends per shareROP Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

ROP pays out 22.02% of its income as dividend. This is a sustainable payout ratio.
The dividend of ROP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.02%
EPS Next 2Y9.13%
EPS Next 3Y9.67%
ROP Yearly Income VS Free CF VS DividendROP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
ROP Dividend Payout.ROP Dividend Payout, showing the Payout Ratio.ROP Dividend Payout.PayoutRetained Earnings

ROPER TECHNOLOGIES INC

NASDAQ:ROP (7/7/2025, 8:00:02 PM)

After market: 566 0 (0%)

566

-7 (-1.22%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)04-28 2025-04-28/bmo
Earnings (Next)07-21 2025-07-21/bmo
Inst Owners96.84%
Inst Owner Change0.15%
Ins Owners0.3%
Ins Owner Change-0.07%
Market Cap60.86B
Analysts79.13
Price Target649.64 (14.78%)
Short Float %1.29%
Short Ratio2.59
Dividend
Industry RankSector Rank
Dividend Yield 0.58%
Yearly Dividend3.01
Dividend Growth(5Y)10.17%
DP22.02%
Div Incr Years11
Div Non Decr Years11
Ex-Date07-08 2025-07-08 (0.825)
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)0.45%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-0.76%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.44%
Valuation
Industry RankSector Rank
PE 30.28
Fwd PE 25.94
P/S 8.4
P/FCF 26.73
P/OCF 25.46
P/B 3.17
P/tB N/A
EV/EBITDA 23.65
EPS(TTM)18.69
EY3.3%
EPS(NY)21.82
Fwd EY3.85%
FCF(TTM)21.17
FCFY3.74%
OCF(TTM)22.23
OCFY3.93%
SpS67.35
BVpS178.79
TBVpS-84.65
PEG (NY)3.06
PEG (5Y)4.31
Profitability
Industry RankSector 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 RankSector 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 4.09
F-Score5
WACC10.55%
ROIC/WACC0.55
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%