ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis
USA - NASDAQ:ROP - US7766961061 - Common Stock
449.5 USD
+1.75 (+0.39%)
450.5 USD
+1 (+0.22%)
Overall ROP gets a fundamental rating of 5 out of 10. We evaluated ROP against 281 industry peers in the Software industry. ROP has an excellent profitability rating, but there are concerns on its financial health. ROP is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
ROP had positive earnings in the past year.
ROP had a positive operating cash flow in the past year.
In the past 5 years ROP has always been profitable.
In the past 5 years ROP always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.54%, ROP is doing good in the industry, outperforming 72.24% of the companies in the same industry.
ROP has a better Return On Equity (7.85%) than 72.60% of its industry peers.
ROP has a better Return On Invested Capital (5.43%) than 74.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ROP is significantly below the industry average of 11.92%.
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 84.70% of the companies in the same industry.
ROP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 28.13%, ROP belongs to the top of the industry, outperforming 91.81% of the companies in the same industry.
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 68.96%, ROP is in line with its industry, outperforming 51.25% of the companies in the same industry.
In the last couple of years the Gross Margin of ROP has remained more or less at the same level.
| 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
ROP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, ROP has a worse debt to assets ratio.
2.2 Solvency
ROP has an Altman-Z score of 3.05. This indicates that ROP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ROP (3.05) is better than 60.14% of its industry peers.
The Debt to FCF ratio of ROP is 3.93, which is a good value as it means it would take ROP, 3.93 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.93, ROP is in the better half of the industry, outperforming 61.21% of the companies in the same industry.
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: 62.28% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | 3.05 |
ROIC/WACC0.51
WACC10.61%
2.3 Liquidity
A Current Ratio of 0.58 indicates that ROP may have some problems paying its short term obligations.
The Current ratio of ROP (0.58) is worse than 89.68% of its industry peers.
A Quick Ratio of 0.53 indicates that ROP may have some problems paying its short term obligations.
ROP has a worse Quick ratio (0.53) than 90.04% 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.
ROP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.95%.
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
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.
Based on estimates for the next years, ROP will show a quite strong growth in Revenue. The Revenue will grow by 13.30% on average per year.
EPS Next Y9.91%
EPS Next 2Y8.91%
EPS Next 3Y8.34%
EPS Next 5Y12.21%
Revenue Next Year13.32%
Revenue Next 2Y10.93%
Revenue Next 3Y9.55%
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.
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
With a Price/Earnings ratio of 22.93, ROP is valued on the expensive side.
Based on the Price/Earnings ratio, ROP is valued a bit cheaper than the industry average as 70.11% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.89, ROP is valued at the same level.
A Price/Forward Earnings ratio of 20.69 indicates a rather expensive valuation of ROP.
71.89% of the companies in the same industry are more expensive than ROP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, ROP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.93 | ||
| Fwd PE | 20.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROP indicates a rather cheap valuation: ROP is cheaper than 80.43% of the companies listed in the same industry.
79.00% 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 | 20.11 | ||
| EV/EBITDA | 18.79 |
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)2.31
PEG (5Y)3.27
EPS Next 2Y8.91%
EPS Next 3Y8.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, 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 41.08. ROP pays more dividend than 91.46% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ROP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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
ROP pays out 22.09% of its income as dividend. This is a 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 2Y8.91%
EPS Next 3Y8.34%
449.5
+1.75 (+0.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners96.99%
Inst Owner Change0.35%
Ins Owners0.3%
Ins Owner Change0.04%
Market Cap48.37B
Revenue(TTM)7.72B
Net Income(TTM)1.57B
Analysts79.13
Price Target580.69 (29.19%)
Short Float %1.38%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend3.01
Dividend Growth(5Y)10.22%
DP22.09%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.33%
Min EPS beat(2)-0.44%
Max EPS beat(2)-0.22%
EPS beat(4)1
Avg EPS beat(4)-0.02%
Min EPS beat(4)-0.44%
Max EPS beat(4)0.68%
EPS beat(8)3
Avg EPS beat(8)0.08%
EPS beat(12)7
Avg EPS beat(12)0.62%
EPS beat(16)11
Avg EPS beat(16)1.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)-0.12%
Revenue beat(4)2
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)2.16%
Revenue beat(8)5
Avg Revenue beat(8)0.37%
Revenue beat(12)7
Avg Revenue beat(12)0.31%
Revenue beat(16)8
Avg Revenue beat(16)-2.23%
PT rev (1m)-9.96%
PT rev (3m)-10.31%
EPS NQ rev (1m)-2.1%
EPS NQ rev (3m)-2.18%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.93 | ||
| Fwd PE | 20.69 | ||
| P/S | 6.26 | ||
| P/FCF | 20.11 | ||
| P/OCF | 19.16 | ||
| P/B | 2.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.79 |
EPS(TTM)19.6
EY4.36%
EPS(NY)21.73
Fwd EY4.83%
FCF(TTM)22.36
FCFY4.97%
OCF(TTM)23.46
OCFY5.22%
SpS71.75
BVpS185.79
TBVpS-105.1
PEG (NY)2.31
PEG (5Y)3.27
Graham Number286.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.54% | ||
| ROE | 7.85% | ||
| ROCE | 6.9% | ||
| ROIC | 5.43% | ||
| ROICexc | 5.48% | ||
| ROICexgc | N/A | ||
| OM | 28.13% | ||
| PM (TTM) | 20.34% | ||
| GM | 68.96% | ||
| FCFM | 31.16% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.93 | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | 13.52% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.75% | ||
| Profit Quality | 153.21% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 3.05 |
F-Score5
WACC10.61%
ROIC/WACC0.51
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)9.62%
EPS 3Y6.89%
EPS 5Y7.02%
EPS Q2Q%11.26%
EPS Next Y9.91%
EPS Next 2Y8.91%
EPS Next 3Y8.34%
EPS Next 5Y12.21%
Revenue 1Y (TTM)13.95%
Revenue growth 3Y13.35%
Revenue growth 5Y8.29%
Sales Q2Q%14.33%
Revenue Next Year13.32%
Revenue Next 2Y10.93%
Revenue Next 3Y9.55%
Revenue Next 5Y13.3%
EBIT growth 1Y12.24%
EBIT growth 3Y14.35%
EBIT growth 5Y8.49%
EBIT Next Year55.94%
EBIT Next 3Y21.56%
EBIT Next 5Y22.69%
FCF growth 1Y71.82%
FCF growth 3Y5.4%
FCF growth 5Y10.28%
OCF growth 1Y70%
OCF growth 3Y5.96%
OCF growth 5Y10.36%
ROPER TECHNOLOGIES INC / ROP FAQ
Can you provide the ChartMill fundamental rating for ROPER TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 5 / 10 to ROP.
What is the valuation status for ROP stock?
ChartMill assigns a valuation rating of 4 / 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.
How financially healthy is ROPER TECHNOLOGIES INC?
The financial health rating of ROPER TECHNOLOGIES INC (ROP) is 3 / 10.
Can you provide the dividend sustainability for ROP stock?
The dividend rating of ROPER TECHNOLOGIES INC (ROP) is 6 / 10 and the dividend payout ratio is 22.09%.