ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis
NASDAQ:ROP - Nasdaq - US7766961061 - Common Stock - Currency: USD
Overall ROP gets a fundamental rating of 5 out of 10. We evaluated ROP against 283 industry peers in the Software industry. ROP scores excellent on profitability, but there are concerns on its financial health. ROP has a decent growth rate and is not valued too expensively. 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.
In the past 5 years ROP has always been profitable.
In the past 5 years ROP always reported a positive cash flow from operatings.
1.2 Ratios
ROP has a Return On Assets of 4.94%. This is in the better half of the industry: ROP outperforms 75.27% of its industry peers.
ROP has a Return On Equity of 8.21%. This is in the better half of the industry: ROP outperforms 77.09% of its industry peers.
With a decent Return On Invested Capital value of 5.71%, ROP is doing good in the industry, outperforming 76.73% 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 11.63%.
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
The Profit Margin of ROP (22.01%) is better than 88.36% of its industry peers.
ROP's Profit Margin has declined in the last couple of years.
ROP has a Operating Margin of 28.37%. This is amongst the best in the industry. ROP outperforms 93.82% of its industry peers.
ROP's Operating Margin has been stable in the last couple of years.
ROP has a Gross Margin (69.30%) which is comparable to the rest of the 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 | 28.37% | ||
| 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
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.
Compared to 1 year ago, ROP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.08 indicates that ROP is not in any danger for bankruptcy at the moment.
ROP has a better Altman-Z score (4.08) than 61.82% 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.
ROP has a Debt to FCF ratio of 3.34. This is comparable to the rest of the industry: ROP outperforms 59.64% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that ROP is not too dependend on debt financing.
ROP has a worse Debt to Equity ratio (0.35) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.08 |
ROIC/WACC0.42
WACC13.68%
2.3 Liquidity
A Current Ratio of 0.40 indicates that ROP may have some problems paying its short term obligations.
ROP has a worse Current ratio (0.40) than 94.91% of its industry peers.
A Quick Ratio of 0.37 indicates that ROP may have some problems paying its short term obligations.
ROP's Quick ratio of 0.37 is on the low side compared to the rest of the industry. ROP is outperformed by 95.27% 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.
ROP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.02% yearly.
ROP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.94%.
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 16.04% on average per year.
The Revenue is expected to grow by 8.56% on average over the next years. This is quite good.
EPS Next Y9.94%
EPS Next 2Y9.07%
EPS Next 3Y9.16%
EPS Next 5Y16.04%
Revenue Next Year10.74%
Revenue Next 2Y8.76%
Revenue Next 3Y8.56%
Revenue Next 5YN/A
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ROP is valuated quite expensively with a Price/Earnings ratio of 31.96.
Based on the Price/Earnings ratio, ROP is valued a bit cheaper than 68.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of ROP to the average of the S&P500 Index (29.98), we can say ROP is valued inline with the index average.
The Price/Forward Earnings ratio is 29.07, which means the current valuation is very expensive for ROP.
68.36% of the companies in the same industry are more expensive than ROP, based on the Price/Forward Earnings ratio.
ROP's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.96 | ||
| Fwd PE | 29.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROP is valued a bit cheaper than the industry average as 76.73% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ROP is valued a bit cheaper than 75.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.51 | ||
| EV/EBITDA | 24.95 |
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)3.21
PEG (5Y)4.55
EPS Next 2Y9.07%
EPS Next 3Y9.16%
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 12.93. ROP pays more dividend than 90.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, ROP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
ROP pays out 20.78% 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.
DP20.78%
EPS Next 2Y9.07%
EPS Next 3Y9.16%
NASDAQ:ROP (3/3/2025, 3:10:08 PM)
585.51
+1.01 (+0.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.14%
Inst Owner Change0.01%
Ins Owners0.35%
Ins Owner Change-2.38%
Market Cap62.78B
Analysts77.14
Price Target636.72 (8.75%)
Short Float %0.97%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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)2.62%
PT rev (3m)1.91%
EPS NQ rev (1m)-2.13%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.96 | ||
| Fwd PE | 29.07 | ||
| P/S | 8.92 | ||
| P/FCF | 27.51 | ||
| P/OCF | 26.23 | ||
| P/B | 3.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.95 |
EPS(TTM)18.32
EY3.13%
EPS(NY)20.14
Fwd EY3.44%
FCF(TTM)21.28
FCFY3.63%
OCF(TTM)22.32
OCFY3.81%
SpS65.65
BVpS175.95
TBVpS-88.64
PEG (NY)3.21
PEG (5Y)4.55
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 | 250 | ||
| Cash Conversion | 85.18% | ||
| Profit Quality | 147.31% | ||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 4.08 |
F-Score5
WACC13.68%
ROIC/WACC0.42
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 Y9.94%
EPS Next 2Y9.07%
EPS Next 3Y9.16%
EPS Next 5Y16.04%
Revenue 1Y (TTM)13.94%
Revenue growth 3Y6.8%
Revenue growth 5Y8.29%
Sales Q2Q%16.34%
Revenue Next Year10.74%
Revenue Next 2Y8.76%
Revenue Next 3Y8.56%
Revenue Next 5YN/A
EBIT growth 1Y14.42%
EBIT growth 3Y8.12%
EBIT growth 5Y8.49%
EBIT Next Year50.25%
EBIT Next 3Y23.28%
EBIT Next 5Y23.26%
FCF growth 1Y18.43%
FCF growth 3Y5.4%
FCF growth 5Y10.28%
OCF growth 1Y17.6%
OCF growth 3Y5.96%
OCF growth 5Y10.36%