363.16 USD
-6.11 (-1.65%)
ROP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. There are concerns on the financial health of ROP while its profitability can be described as average. ROP has a decent growth rate and is not valued too expensively. 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.
- Of the past 5 years ROP 4 years were profitable.
- Of the past 5 years ROP 4 years had a positive operating cash flow.
1.2 Ratios
- ROP's Return On Assets of 4.54% is fine compared to the rest of the industry. ROP outperforms 71.58% of its industry peers.
- ROP has a Return On Equity of 7.85%. This is in the better half of the industry: ROP outperforms 70.50% of its industry peers.
- ROP has a Return On Invested Capital of 5.43%. This is in the better half of the industry: ROP outperforms 73.38% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ROP is significantly below the industry average of 10.76%.
- The 3 year average ROIC (5.38%) for ROP is below the current ROIC(5.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.54% | ||
| ROE | 7.85% | ||
| ROIC | 5.43% |
ROA(3y)8.9%
ROA(5y)7.1%
ROE(3y)14.83%
ROE(5y)12.7%
ROIC(3y)5.38%
ROIC(5y)5.04%
1.3 Margins
- ROP has a better Profit Margin (20.34%) than 84.17% of its industry peers.
- ROP's Profit Margin has declined in the last couple of years.
- The Operating Margin of ROP (28.13%) is better than 91.37% of its industry peers.
- ROP's Operating Margin has been stable in the last couple of years.
- ROP's Gross Margin of 68.96% is in line compared to the rest of the industry. ROP outperforms 51.08% of its industry peers.
- ROP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.13% | ||
| PM (TTM) | 20.34% | ||
| GM | 68.96% |
OM growth 3Y0.88%
OM growth 5Y0.19%
PM growth 3Y-2.63%
PM growth 5Y-10.06%
GM growth 3Y-0.57%
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.
- There is no outstanding debt for ROP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- ROP has an Altman-Z score of 2.70. This is not the best score and indicates that ROP is in the grey zone with still only limited risk for bankruptcy at the moment.
- ROP has a Altman-Z score (2.70) which is comparable to the rest of the industry.
- ROP has a debt to FCF ratio of 3.93. This is a good value and a sign of high solvency as ROP would need 3.93 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 3.93, ROP is doing good in the industry, outperforming 61.87% of the companies in the same industry.
- ROP has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
- ROP's Debt to Equity ratio of 0.46 is on the low side compared to the rest of the industry. ROP is outperformed by 64.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.51
WACC10.63%
2.3 Liquidity
- ROP has a Current Ratio of 0.58. This is a bad value and indicates that ROP is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.58, ROP is doing worse than 91.73% of the companies in the same industry.
- A Quick Ratio of 0.53 indicates that ROP may have some problems paying its short term obligations.
- ROP's Quick ratio of 0.53 is on the low side compared to the rest of the industry. ROP is outperformed by 92.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.17% over the past year.
- ROP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.47% yearly.
EPS 1Y (TTM)9.17%
EPS 3Y9.32%
EPS 5Y9.47%
EPS Q2Q%8.32%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.67%
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 13.10% on average per year.
- The Revenue is expected to grow by 13.14% on average over the next years. This is quite good.
EPS Next Y9.32%
EPS Next 2Y8.89%
EPS Next 3Y13.63%
EPS Next 5Y13.1%
Revenue Next Year8.65%
Revenue Next 2Y8.06%
Revenue Next 3Y13%
Revenue Next 5Y13.14%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 18.16, which indicates a rather expensive current valuation of ROP.
- Based on the Price/Earnings ratio, ROP is valued a bit cheaper than 76.26% of the companies in the same industry.
- ROP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.82.
- Based on the Price/Forward Earnings ratio of 16.61, the valuation of ROP can be described as correct.
- ROP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ROP is cheaper than 78.42% of the companies in the same industry.
- ROP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.16 | ||
| Fwd PE | 16.61 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROP indicates a rather cheap valuation: ROP is cheaper than 82.73% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ROP is valued cheaper than 82.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.25 | ||
| EV/EBITDA | 16.02 |
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.
- A more expensive valuation may be justified as ROP's earnings are expected to grow with 13.63% in the coming years.
PEG (NY)1.95
PEG (5Y)1.92
EPS Next 2Y8.89%
EPS Next 3Y13.63%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.89%, 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 0.54. ROP pays more dividend than 91.73% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ROP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
- On average, the dividend of ROP grows each year by 10.22%, 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)10.22%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- 22.09% 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.
DP22.09%
EPS Next 2Y8.89%
EPS Next 3Y13.63%
ROPER TECHNOLOGIES INC / ROP FAQ
Can you provide the ChartMill fundamental rating for ROPER TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 6 / 10 to ROP.
Can you provide the valuation status for ROPER TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 5 / 10 to ROPER TECHNOLOGIES INC (ROP). This can be considered as Fairly Valued.
How profitable is ROPER TECHNOLOGIES INC (ROP) stock?
ROPER TECHNOLOGIES INC (ROP) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ROPER TECHNOLOGIES INC (ROP) stock?
The Price/Earnings (PE) ratio for ROPER TECHNOLOGIES INC (ROP) is 18.16 and the Price/Book (PB) ratio is 1.96.
Can you provide the expected EPS growth for ROP stock?
The Earnings per Share (EPS) of ROPER TECHNOLOGIES INC (ROP) is expected to grow by 9.32% in the next year.