ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis
NASDAQ:ROP - Nasdaq - US7766961061 - Common Stock - Currency: USD
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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 4.09 |
ROIC/WACC0.55
WACC10.55%
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 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 8.54%, 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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.28 | ||
| Fwd PE | 25.94 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.73 | ||
| EV/EBITDA | 23.65 |
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%
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 Rank | Sector 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
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%
566
-7 (-1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend3.01
Dividend Growth(5Y)10.17%
DP22.02%
Div Incr Years11
Div Non Decr Years11
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%