ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis
NASDAQ:ROP - Nasdaq - US7766961061 - Common Stock - Currency: USD
ROP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 282 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! 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.
In the past 5 years ROP has always been profitable.
ROP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ROP has a better Return On Assets (4.77%) than 75.62% 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 74.91% of the companies in the same industry.
ROP has a better Return On Invested Capital (5.79%) than 76.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ROP is significantly below the industry average of 12.26%.
The 3 year average ROIC (5.38%) for ROP is below the current ROIC(5.79%), indicating increased profibility in the last year.
| 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 88.69% of its industry peers.
In the last couple of years the Profit Margin of ROP has declined.
The Operating Margin of ROP (28.19%) is better than 93.64% of its industry peers.
In the last couple of years the Operating Margin of ROP has remained more or less at the same level.
With a Gross Margin value of 68.92%, ROP perfoms like the industry average, outperforming 50.18% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ROP is destroying value.
Compared to 1 year ago, ROP has more shares outstanding
The number of shares outstanding for ROP has been increased compared to 5 years ago.
The debt/assets ratio for ROP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.13 indicates that ROP is not in any danger for bankruptcy at the moment.
ROP's Altman-Z score of 4.13 is fine compared to the rest of the industry. ROP outperforms 63.60% 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.
The Debt to FCF ratio of ROP (3.28) is better than 63.60% 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.
With a Debt to Equity ratio value of 0.34, ROP is not doing good in the industry: 60.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 4.13 |
ROIC/WACC0.54
WACC10.66%
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.
ROP's Current ratio of 0.46 is on the low side compared to the rest of the industry. ROP is outperformed by 91.87% of its industry peers.
A Quick Ratio of 0.43 indicates that ROP may have some problems paying its short term obligations.
ROP has a worse Quick ratio (0.43) than 91.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.54% over the past year.
The Earnings Per Share has been growing slightly by 7.02% on average over the past years.
The Revenue has grown by 13.34% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 12.21% on average over the next years. This is quite good.
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 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
With a Price/Earnings ratio of 30.66, ROP can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ROP is valued a bit cheaper than 71.73% 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 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 26.26, ROP can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ROP is valued a bit cheaper than the industry average as 69.26% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ROP to the average of the S&P500 Index (21.90), we can say ROP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.66 | ||
| Fwd PE | 26.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROP is valued a bit cheaper than 79.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ROP is valued a bit cheaper than the industry average as 76.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.06 | ||
| EV/EBITDA | 23.91 |
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)3.1
PEG (5Y)4.37
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.
Compared to an average industry Dividend Yield of 16.17, ROP pays a better dividend. On top of this ROP pays more dividend than 91.17% of the companies listed 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 | 0.58% |
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 their dividend for at least 10 years, which is a reliable track record.
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%
573
+6.92 (+1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners96.84%
Inst Owner Change-48.37%
Ins Owners0.3%
Ins Owner Change-0.07%
Market Cap61.61B
Analysts79.13
Price Target649.64 (13.38%)
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 | 30.66 | ||
| Fwd PE | 26.26 | ||
| P/S | 8.51 | ||
| P/FCF | 27.06 | ||
| P/OCF | 25.77 | ||
| P/B | 3.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.91 |
EPS(TTM)18.69
EY3.26%
EPS(NY)21.82
Fwd EY3.81%
FCF(TTM)21.17
FCFY3.69%
OCF(TTM)22.23
OCFY3.88%
SpS67.35
BVpS178.79
TBVpS-84.65
PEG (NY)3.1
PEG (5Y)4.37
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 | 4.13 |
F-Score5
WACC10.66%
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)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%