ROPER TECHNOLOGIES INC (ROP)
US7766961061 - Common Stock
Taking everything into account, ROP scores 5 out of 10 in our fundamental rating. ROP was compared to 280 industry peers in the Software industry. ROP has an excellent profitability rating, but there are concerns on its financial health. ROP has a correct valuation and a medium growth rate. ROP also has an excellent dividend rating.
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.
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 4.68%, ROP is doing good in the industry, outperforming 74.91% of the companies in the same industry.
ROP's Return On Equity of 7.97% is fine compared to the rest of the industry. ROP outperforms 76.34% of its industry peers.
With a decent Return On Invested Capital value of 5.32%, ROP is doing good in the industry, outperforming 75.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ROP is significantly below the industry average of 12.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 7.97% | ||
| ROIC | 5.32% |
ROA(3y)8.87%
ROA(5y)8.07%
ROE(3y)15.41%
ROE(5y)14.79%
ROIC(3y)5.42%
ROIC(5y)5.48%
1.3 Margins
With an excellent Profit Margin value of 21.78%, ROP belongs to the best of the industry, outperforming 89.96% of the companies in the same industry.
ROP's Profit Margin has improved in the last couple of years.
ROP's Operating Margin of 28.56% is amongst the best of the industry. ROP outperforms 94.27% of its industry peers.
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 69.68%, ROP is in line with its industry, outperforming 54.12% of the companies in the same industry.
ROP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.56% | ||
| PM (TTM) | 21.78% | ||
| GM | 69.68% |
OM growth 3Y2.5%
OM growth 5Y0.98%
PM growth 3Y4.62%
PM growth 5Y4.25%
GM growth 3Y1.14%
GM growth 5Y1.99%
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.
ROP has more shares outstanding than it did 1 year ago.
ROP has more shares outstanding than it did 5 years ago.
ROP has a better debt/assets ratio than last year.
2.2 Solvency
ROP has an Altman-Z score of 3.63. This indicates that ROP is financially healthy and has little risk of bankruptcy at the moment.
ROP has a Altman-Z score (3.63) which is in line with its industry peers.
ROP has a debt to FCF ratio of 3.84. This is a good value and a sign of high solvency as ROP would need 3.84 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.84, ROP is in the better half of the industry, outperforming 60.57% of the companies in the same industry.
ROP has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.41, ROP is doing worse than 65.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.63 |
ROIC/WACC0.56
WACC9.55%
2.3 Liquidity
A Current Ratio of 0.48 indicates that ROP may have some problems paying its short term obligations.
ROP has a worse Current ratio (0.48) than 93.55% of its industry peers.
ROP has a Quick Ratio of 0.48. 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 Quick ratio of 0.44 is on the low side compared to the rest of the industry. ROP is outperformed by 93.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.96% over the past year.
The Earnings Per Share has been growing slightly by 7.19% on average over the past years.
Looking at the last year, ROP shows a quite strong growth in Revenue. The Revenue has grown by 13.02% in the last year.
ROP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.54% yearly.
EPS 1Y (TTM)9.96%
EPS 3Y9.52%
EPS 5Y7.19%
EPS Q2Q%6.94%
Revenue 1Y (TTM)13.02%
Revenue growth 3Y8.37%
Revenue growth 5Y3.54%
Sales Q2Q%12.87%
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 14.94% on average per year.
The Revenue is expected to grow by 13.32% on average over the next years. This is quite good.
EPS Next Y10.28%
EPS Next 2Y10.11%
EPS Next 3Y9.91%
EPS Next 5Y14.94%
Revenue Next Year13.96%
Revenue Next 2Y11.68%
Revenue Next 3Y10.52%
Revenue Next 5Y13.32%
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.
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 29.03.
Based on the Price/Earnings ratio, ROP is valued a bit cheaper than 73.84% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.35, ROP is valued at the same level.
Based on the Price/Forward Earnings ratio of 25.62, the valuation of ROP can be described as expensive.
ROP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ROP is cheaper than 73.12% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.86, ROP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.03 | ||
| Fwd PE | 25.62 |
4.2 Price Multiples
ROP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ROP is cheaper than 78.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ROP is valued a bit cheaper than 78.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.54 | ||
| EV/EBITDA | 23.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ROP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.82
PEG (5Y)4.04
EPS Next 2Y10.11%
EPS Next 3Y9.91%
5. Dividend
5.1 Amount
ROP has a yearly dividend return of 0.63%, which is pretty low.
Compared to an average industry Dividend Yield of 13.69, ROP pays a better dividend. On top of this ROP pays more dividend than 91.04% of the companies listed in the same industry.
With a Dividend Yield of 0.63, ROP pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
On average, the dividend of ROP grows each year by 10.43%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.43%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
21.26% 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.
DP21.26%
EPS Next 2Y10.11%
EPS Next 3Y9.91%
ROPER TECHNOLOGIES INC
NASDAQ:ROP (12/30/2024, 12:04:37 PM)
519
-4.91 (-0.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.77%
Inst Owner Change-0.01%
Ins Owners0.38%
Ins Owner Change-2.06%
Market Cap55.65B
Analysts78.1
Price Target623.23 (20.08%)
Short Float %1.06%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Dividend Growth(5Y)10.43%
DP21.26%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.17%
Min EPS beat(2)-0.6%
Max EPS beat(2)0.95%
EPS beat(4)2
Avg EPS beat(4)0.18%
Min EPS beat(4)-0.6%
Max EPS beat(4)0.95%
EPS beat(8)6
Avg EPS beat(8)0.94%
EPS beat(12)10
Avg EPS beat(12)1.94%
EPS beat(16)14
Avg EPS beat(16)2.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-1.84%
Max Revenue beat(2)1.12%
Revenue beat(4)3
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)1.12%
Revenue beat(8)5
Avg Revenue beat(8)0.22%
Revenue beat(12)6
Avg Revenue beat(12)-1.73%
Revenue beat(16)7
Avg Revenue beat(16)-4.03%
PT rev (1m)-0.24%
PT rev (3m)1.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.04%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.14%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.03 | ||
| Fwd PE | 25.62 | ||
| P/S | 8.21 | ||
| P/FCF | 25.54 | ||
| P/OCF | 24.27 | ||
| P/B | 3.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.52 |
EPS(TTM)17.88
EY3.45%
EPS(NY)20.26
Fwd EY3.9%
FCF(TTM)20.32
FCFY3.91%
OCF(TTM)21.38
OCFY4.12%
SpS63.19
BVpS172.67
TBVpS-92.93
PEG (NY)2.82
PEG (5Y)4.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 7.97% | ||
| ROCE | 6.85% | ||
| ROIC | 5.32% | ||
| ROICexc | 5.37% | ||
| ROICexgc | N/A | ||
| OM | 28.56% | ||
| PM (TTM) | 21.78% | ||
| GM | 69.68% | ||
| FCFM | 32.16% |
ROA(3y)8.87%
ROA(5y)8.07%
ROE(3y)15.41%
ROE(5y)14.79%
ROIC(3y)5.42%
ROIC(5y)5.48%
ROICexc(3y)5.52%
ROICexc(5y)5.62%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6.97%
ROCE(5y)7.06%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y5.27%
ROICexc growth 5Y-7.64%
OM growth 3Y2.5%
OM growth 5Y0.98%
PM growth 3Y4.62%
PM growth 5Y4.25%
GM growth 3Y1.14%
GM growth 5Y1.99%
F-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.84 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 14.3% | ||
| Cap/Sales | 1.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.9% | ||
| Profit Quality | 147.61% | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 3.63 |
F-Score4
WACC9.55%
ROIC/WACC0.56
Cap/Depr(3y)11.66%
Cap/Depr(5y)11.9%
Cap/Sales(3y)1.38%
Cap/Sales(5y)1.3%
Profit Quality(3y)107.65%
Profit Quality(5y)111.51%
High Growth Momentum
Growth
EPS 1Y (TTM)9.96%
EPS 3Y9.52%
EPS 5Y7.19%
EPS Q2Q%6.94%
EPS Next Y10.28%
EPS Next 2Y10.11%
EPS Next 3Y9.91%
EPS Next 5Y14.94%
Revenue 1Y (TTM)13.02%
Revenue growth 3Y8.37%
Revenue growth 5Y3.54%
Sales Q2Q%12.87%
Revenue Next Year13.96%
Revenue Next 2Y11.68%
Revenue Next 3Y10.52%
Revenue Next 5Y13.32%
EBIT growth 1Y14.16%
EBIT growth 3Y11.07%
EBIT growth 5Y4.56%
EBIT Next Year58.33%
EBIT Next 3Y23.44%
EBIT Next 5Y23.36%
FCF growth 1Y85.78%
FCF growth 3Y9.29%
FCF growth 5Y7.04%
OCF growth 1Y84.55%
OCF growth 3Y10.09%
OCF growth 5Y7.31%