ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis
USA - NASDAQ:ROP - US7766961061 - Common Stock
502.44 USD
-2.79 (-0.55%)
502.44 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ROP. ROP was compared to 280 industry peers in the Software industry. ROP scores excellent on profitability, 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
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
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 72.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.56%, ROP is in the better half of the industry, outperforming 74.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ROP is significantly below the industry average of 11.85%.
The last Return On Invested Capital (5.56%) for ROP is above the 3 year average (5.38%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 20.62%, ROP belongs to the top of the industry, outperforming 85.36% 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 (28.06%) than 91.79% of its industry peers.
In the last couple of years the Operating Margin of ROP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 68.87%, ROP is in line with its industry, outperforming 50.36% 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 | 28.06% | ||
| 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
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.
Compared to 1 year ago, ROP has a worse debt to assets ratio.
2.2 Solvency
ROP has an Altman-Z score of 3.45. This indicates that ROP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.45, ROP is in line with its industry, outperforming 59.64% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.88, ROP is in the better half of the industry, outperforming 61.07% of the companies in the same industry.
ROP has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
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 62.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 3.88 | ||
| Altman-Z | 3.45 |
ROIC/WACC0.52
WACC10.67%
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.
With a Current ratio value of 0.46, ROP is not doing good in the industry: 90.71% of the companies in the same industry are doing better.
ROP has a Quick 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 worse Quick ratio (0.43) than 91.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
ROP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.53%, 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 7.02% on average per year.
Looking at the last year, ROP shows a quite strong growth in Revenue. The Revenue has grown by 13.59% in the last year.
ROP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.29% yearly.
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
Based on estimates for the next years, ROP will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.21% on average per year.
The Revenue is expected to grow by 12.64% on average over the next years. This is quite good.
EPS Next Y10.37%
EPS Next 2Y9.51%
EPS Next 3Y8.79%
EPS Next 5Y12.21%
Revenue Next Year13.34%
Revenue Next 2Y10.83%
Revenue Next 3Y9.86%
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.
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
Based on the Price/Earnings ratio of 26.33, the valuation of ROP can be described as expensive.
Based on the Price/Earnings ratio, ROP is valued a bit cheaper than 69.64% of the companies in the same industry.
When comparing the Price/Earnings ratio of ROP to the average of the S&P500 Index (27.20), we can say ROP is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.87, the valuation of ROP can be described as rather expensive.
72.14% of the companies in the same industry are more expensive than ROP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ROP to the average of the S&P500 Index (22.71), we can say ROP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.33 | ||
| Fwd PE | 22.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROP is valued a bit cheaper than the industry average as 78.93% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ROP is valued a bit cheaper than 77.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.68 | ||
| EV/EBITDA | 21.25 |
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.
ROP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.54
PEG (5Y)3.75
EPS Next 2Y9.51%
EPS Next 3Y8.79%
5. Dividend
5.1 Amount
ROP has a yearly dividend return of 0.64%, which is pretty low.
ROP's Dividend Yield is rather good when compared to the industry average which is at 40.28. ROP pays more dividend than 90.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ROP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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 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
21.99% of the earnings are spent on dividend by ROP. This is a low number and 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%
502.44
-2.79 (-0.55%)
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 Cap54.07B
Analysts80
Price Target647.43 (28.86%)
Short Float %1.41%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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%
PT rev (3m)-0.34%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0.31%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.33 | ||
| Fwd PE | 22.87 | ||
| P/S | 7.24 | ||
| P/FCF | 23.68 | ||
| P/OCF | 22.43 | ||
| P/B | 2.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.25 |
EPS(TTM)19.08
EY3.8%
EPS(NY)21.97
Fwd EY4.37%
FCF(TTM)21.22
FCFY4.22%
OCF(TTM)22.4
OCFY4.46%
SpS69.4
BVpS182.45
TBVpS-97.58
PEG (NY)2.54
PEG (5Y)3.75
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 | 3.45 |
F-Score4
WACC10.67%
ROIC/WACC0.52
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 2Y10.83%
Revenue Next 3Y9.86%
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%