ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis
NASDAQ:ROP - Nasdaq - US7766961061 - Common Stock - Currency: USD
Taking everything into account, ROP scores 5 out of 10 in our fundamental rating. ROP was compared to 282 industry peers in the Software industry. ROP scores excellent on profitability, but there are concerns on its financial health. ROP is not overvalued while it is showing excellent growth. This is an interesting combination. Finally ROP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ROP was profitable.
ROP had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 4.77%, ROP is doing good in the industry, outperforming 75.53% of the companies in the same industry.
ROP has a better Return On Equity (7.79%) than 74.82% of its industry peers.
ROP's Return On Invested Capital of 5.79% is fine compared to the rest of the industry. ROP outperforms 76.24% 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 12.17%.
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's Profit Margin of 20.69% is amongst the best of the industry. ROP outperforms 88.65% of its industry peers.
ROP's Profit Margin has declined in the last couple of years.
ROP has a Operating Margin of 28.19%. This is amongst the best in the industry. ROP outperforms 93.62% of its industry peers.
ROP's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 68.92%, ROP perfoms like the industry average, outperforming 50.00% 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 | 28.19% | ||
| 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
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.
Compared to 5 years ago, ROP has more shares outstanding
Compared to 1 year ago, ROP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.98 indicates that ROP is not in any danger for bankruptcy at the moment.
ROP has a better Altman-Z score (3.98) than 63.12% of its industry peers.
The Debt to FCF ratio of ROP is 3.28, which is a good value as it means it would take ROP, 3.28 years of fcf income to pay off all of its debts.
ROP's Debt to FCF ratio of 3.28 is fine compared to the rest of the industry. ROP outperforms 63.48% of its industry peers.
ROP has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
ROP's Debt to Equity ratio of 0.34 is on the low side compared to the rest of the industry. ROP is outperformed by 60.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 3.98 |
ROIC/WACC0.55
WACC10.49%
2.3 Liquidity
A Current Ratio of 0.46 indicates that ROP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.46, ROP is doing worse than 91.49% of the companies in the same industry.
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 Quick ratio of 0.43. This is amonst the worse of the industry: ROP underperforms 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.
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 13.34% 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)8.54%
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.
Based on estimates for the next years, ROP will show a quite strong growth in Revenue. The Revenue will grow by 11.36% on average per year.
EPS Next Y10.02%
EPS Next 2Y9.07%
EPS Next 3Y9%
EPS Next 5Y12.21%
Revenue Next Year12.37%
Revenue Next 2Y10.01%
Revenue Next 3Y10%
Revenue Next 5Y11.36%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
ROP is valuated quite expensively with a Price/Earnings ratio of 29.15.
Based on the Price/Earnings ratio, ROP is valued a bit cheaper than 71.63% of the companies in the same industry.
ROP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.50.
The Price/Forward Earnings ratio is 25.00, which indicates a rather expensive current valuation of ROP.
Based on the Price/Forward Earnings ratio, ROP is valued a bit cheaper than the industry average as 70.57% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, ROP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.15 | ||
| Fwd PE | 25 |
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.
ROP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROP is cheaper than 77.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.73 | ||
| EV/EBITDA | 22.91 |
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)2.91
PEG (5Y)4.15
EPS Next 2Y9.07%
EPS Next 3Y9%
5. Dividend
5.1 Amount
ROP has a yearly dividend return of 0.60%, which is pretty low.
ROP's Dividend Yield is rather good when compared to the industry average which is at 24.07. ROP pays more dividend than 91.13% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, ROP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
On average, the dividend of ROP grows each year by 10.17%, 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)10.17%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
22.02% of the earnings are spent on dividend by ROP. This is a low number and sustainable payout ratio.
The dividend of ROP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.02%
EPS Next 2Y9.07%
EPS Next 3Y9%
544.79
-1.56 (-0.29%)
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 Cap58.58B
Analysts79.13
Price Target649.64 (19.25%)
Short Float %1.34%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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%
PT rev (3m)0.45%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.56%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.15 | ||
| Fwd PE | 25 | ||
| P/S | 8.09 | ||
| P/FCF | 25.73 | ||
| P/OCF | 24.5 | ||
| P/B | 3.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.91 |
EPS(TTM)18.69
EY3.43%
EPS(NY)21.79
Fwd EY4%
FCF(TTM)21.17
FCFY3.89%
OCF(TTM)22.23
OCFY4.08%
SpS67.35
BVpS178.79
TBVpS-84.65
PEG (NY)2.91
PEG (5Y)4.15
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 | 3.98 |
F-Score5
WACC10.49%
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 Y10.02%
EPS Next 2Y9.07%
EPS Next 3Y9%
EPS Next 5Y12.21%
Revenue 1Y (TTM)13.34%
Revenue growth 3Y6.8%
Revenue growth 5Y8.29%
Sales Q2Q%12.02%
Revenue Next Year12.37%
Revenue Next 2Y10.01%
Revenue Next 3Y10%
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%