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 285 industry peers in the Software industry. While ROP has a great profitability rating, there are quite some concerns on its financial health. ROP is not priced too expensively while it is growing strongly. Keep and eye on this one! Finally ROP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ROP had positive earnings in the past year.
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
The Return On Assets of ROP (4.94%) is better than 74.56% of its industry peers.
The Return On Equity of ROP (8.21%) is better than 75.27% of its industry peers.
ROP has a Return On Invested Capital of 5.71%. This is in the better half of the industry: ROP outperforms 76.68% of its industry peers.
ROP had an Average Return On Invested Capital over the past 3 years of 5.38%. This is significantly below the industry average of 11.25%.
The 3 year average ROIC (5.38%) for ROP is below the current ROIC(5.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 8.21% | ||
| ROIC | 5.71% |
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 22.01% is amongst the best of the industry. ROP outperforms 87.63% of its industry peers.
In the last couple of years the Profit Margin of ROP has declined.
With an excellent Operating Margin value of 28.37%, ROP belongs to the best of the industry, outperforming 93.99% 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.
ROP has a Gross Margin of 69.30%. This is comparable to the rest of the industry: ROP outperforms 54.06% of its industry peers.
ROP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.37% | ||
| PM (TTM) | 22.01% | ||
| GM | 69.3% |
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
ROP has a worse debt/assets ratio than last year.
2.2 Solvency
ROP has an Altman-Z score of 3.94. This indicates that ROP is financially healthy and has little risk of bankruptcy at the moment.
ROP has a better Altman-Z score (3.94) than 67.84% of its industry peers.
ROP has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as ROP would need 3.34 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.34, ROP is doing good in the industry, outperforming 61.84% of the companies in the same industry.
ROP has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
ROP has a Debt to Equity ratio of 0.35. This is in the lower half of the industry: ROP underperforms 61.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 3.94 |
ROIC/WACC0.54
WACC10.58%
2.3 Liquidity
ROP has a Current Ratio of 0.40. 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's Current ratio of 0.40 is on the low side compared to the rest of the industry. ROP is outperformed by 93.29% of its industry peers.
A Quick Ratio of 0.37 indicates that ROP may have some problems paying its short term obligations.
ROP has a worse Quick ratio (0.37) than 93.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
ROP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.63%, which is quite good.
The Earnings Per Share has been growing slightly by 7.02% on average over the past years.
Looking at the last year, ROP shows a quite strong growth in Revenue. The Revenue has grown by 13.94% 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)9.63%
EPS 3Y6.89%
EPS 5Y7.02%
EPS Q2Q%10.07%
Revenue 1Y (TTM)13.94%
Revenue growth 3Y6.8%
Revenue growth 5Y8.29%
Sales Q2Q%16.34%
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 12.76% on average per year.
ROP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.66% yearly.
EPS Next Y9.95%
EPS Next 2Y9.16%
EPS Next 3Y9.84%
EPS Next 5Y12.76%
Revenue Next Year10.66%
Revenue Next 2Y8.78%
Revenue Next 3Y8.91%
Revenue Next 5Y11.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 30.42, ROP can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ROP is valued a bit cheaper than 64.66% of the companies in the same industry.
ROP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.66, the valuation of ROP can be described as expensive.
65.72% 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 (21.08), we can say ROP is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 27.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROP is valued a bit cheaper than 76.68% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ROP is valued a bit cheaper than 73.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.22 | ||
| EV/EBITDA | 23.95 |
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)4.33
EPS Next 2Y9.16%
EPS Next 3Y9.84%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, 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 14.87. ROP pays more dividend than 90.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, ROP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of ROP is nicely growing with an annual growth rate of 10.17%!
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
20.78% of the earnings are spent on dividend by ROP. This is a low number and sustainable payout ratio.
ROP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.78%
EPS Next 2Y9.16%
EPS Next 3Y9.84%
557.24
+0.97 (+0.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.14%
Inst Owner Change0%
Ins Owners0.35%
Ins Owner Change-1.63%
Market Cap59.84B
Analysts78.18
Price Target646.72 (16.06%)
Short Float %1.3%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend3.01
Dividend Growth(5Y)10.17%
DP20.78%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.82%
Min EPS beat(2)0.68%
Max EPS beat(2)0.95%
EPS beat(4)3
Avg EPS beat(4)0.41%
Min EPS beat(4)-0.6%
Max EPS beat(4)0.95%
EPS beat(8)6
Avg EPS beat(8)0.65%
EPS beat(12)10
Avg EPS beat(12)1.95%
EPS beat(16)14
Avg EPS beat(16)2.12%
Revenue beat(2)2
Avg Revenue beat(2)1.18%
Min Revenue beat(2)1.12%
Max Revenue beat(2)1.25%
Revenue beat(4)3
Avg Revenue beat(4)0.29%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)1.25%
Revenue beat(8)6
Avg Revenue beat(8)0.51%
Revenue beat(12)7
Avg Revenue beat(12)-1.62%
Revenue beat(16)8
Avg Revenue beat(16)-3.1%
PT rev (1m)1.17%
PT rev (3m)3.77%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)-2.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.58%
Revenue NQ rev (1m)-3.1%
Revenue NQ rev (3m)-2.44%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 27.66 | ||
| P/S | 8.5 | ||
| P/FCF | 26.22 | ||
| P/OCF | 25.01 | ||
| P/B | 3.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.95 |
EPS(TTM)18.32
EY3.29%
EPS(NY)20.14
Fwd EY3.61%
FCF(TTM)21.25
FCFY3.81%
OCF(TTM)22.29
OCFY4%
SpS65.55
BVpS175.69
TBVpS-88.51
PEG (NY)3.06
PEG (5Y)4.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 8.21% | ||
| ROCE | 7.26% | ||
| ROIC | 5.71% | ||
| ROICexc | 5.75% | ||
| ROICexgc | N/A | ||
| OM | 28.37% | ||
| PM (TTM) | 22.01% | ||
| GM | 69.3% | ||
| FCFM | 32.42% |
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 Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 2.34 | ||
| Cap/Depr | 13.66% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 8.32 | ||
| Cash Conversion | 85.18% | ||
| Profit Quality | 147.31% | ||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 3.94 |
F-Score5
WACC10.58%
ROIC/WACC0.54
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)9.63%
EPS 3Y6.89%
EPS 5Y7.02%
EPS Q2Q%10.07%
EPS Next Y9.95%
EPS Next 2Y9.16%
EPS Next 3Y9.84%
EPS Next 5Y12.76%
Revenue 1Y (TTM)13.94%
Revenue growth 3Y6.8%
Revenue growth 5Y8.29%
Sales Q2Q%16.34%
Revenue Next Year10.66%
Revenue Next 2Y8.78%
Revenue Next 3Y8.91%
Revenue Next 5Y11.66%
EBIT growth 1Y14.42%
EBIT growth 3Y8.12%
EBIT growth 5Y8.49%
EBIT Next Year52.5%
EBIT Next 3Y21.09%
EBIT Next 5Y19.76%
FCF growth 1Y18.43%
FCF growth 3Y5.4%
FCF growth 5Y10.28%
OCF growth 1Y17.6%
OCF growth 3Y5.96%
OCF growth 5Y10.36%