ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis
USA - NASDAQ:ROP - US7766961061 - Common Stock
443.27 USD
-6.55 (-1.46%)
444.8 USD
+1.53 (+0.35%)
We assign a fundamental rating of 5 out of 10 to ROP. ROP was compared to 281 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!
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.
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 4.54%. This is in the better half of the industry: ROP outperforms 72.24% of its industry peers.
The Return On Equity of ROP (7.85%) is better than 72.60% of its industry peers.
With a decent Return On Invested Capital value of 5.43%, ROP is doing good in the industry, outperforming 74.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ROP is significantly below the industry average of 11.95%.
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 84.70% 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 91.81% 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 68.96%, ROP perfoms like the industry average, outperforming 51.25% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ROP 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.
The debt/assets ratio for ROP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.06 indicates that ROP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.06, ROP is in line with its industry, outperforming 59.43% of the companies in the same 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 61.21% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that ROP is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, ROP is doing worse than 62.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.51
WACC10.6%
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.
ROP has a Current ratio of 0.58. This is amonst the worse of the industry: ROP underperforms 89.68% of its industry peers.
A Quick Ratio of 0.53 indicates that ROP may have some problems paying its short term obligations.
With a Quick ratio value of 0.53, ROP is not doing good in the industry: 90.04% of the companies in the same industry are doing better.
| 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 9.62% 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 13.95% in the past year. This is quite good.
Measured over the past years, ROP shows a quite strong growth in Revenue. The Revenue has been growing by 8.29% on average per year.
EPS 1Y (TTM)9.62%
EPS 3Y6.89%
EPS 5Y7.02%
EPS Q2Q%11.26%
Revenue 1Y (TTM)13.95%
Revenue growth 3Y13.35%
Revenue growth 5Y8.29%
Sales Q2Q%14.33%
3.2 Future
ROP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.21% yearly.
The Revenue is expected to grow by 13.30% on average over the next years. This is quite good.
EPS Next Y9.91%
EPS Next 2Y8.91%
EPS Next 3Y8.34%
EPS Next 5Y12.21%
Revenue Next Year13.32%
Revenue Next 2Y10.93%
Revenue Next 3Y9.55%
Revenue Next 5Y13.3%
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
A Price/Earnings ratio of 22.62 indicates a rather expensive valuation of ROP.
ROP's Price/Earnings ratio is a bit cheaper when compared to the industry. ROP is cheaper than 70.11% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. ROP is around the same levels.
Based on the Price/Forward Earnings ratio of 20.40, the valuation of ROP can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ROP is valued a bit cheaper than 71.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.72, ROP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 20.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROP is valued cheaply inside the industry as 80.78% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ROP is valued a bit cheaper than the industry average as 79.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.83 | ||
| EV/EBITDA | 18.86 |
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.
ROP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.28
PEG (5Y)3.22
EPS Next 2Y8.91%
EPS Next 3Y8.34%
5. Dividend
5.1 Amount
ROP has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 41.10, ROP pays a better dividend. On top of this ROP pays more dividend than 91.46% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ROP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
On average, the dividend of ROP grows each year by 10.22%, which is quite nice.
ROP has paid a dividend for at least 10 years, which is 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)10.22%
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.
ROP's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP22.09%
EPS Next 2Y8.91%
EPS Next 3Y8.34%
443.27
-6.55 (-1.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners96.99%
Inst Owner Change0.35%
Ins Owners0.3%
Ins Owner Change0.04%
Market Cap47.70B
Revenue(TTM)7.72B
Net Income(TTM)1.57B
Analysts79.13
Price Target580.69 (31%)
Short Float %1.38%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend3.01
Dividend Growth(5Y)10.22%
DP22.09%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.33%
Min EPS beat(2)-0.44%
Max EPS beat(2)-0.22%
EPS beat(4)1
Avg EPS beat(4)-0.02%
Min EPS beat(4)-0.44%
Max EPS beat(4)0.68%
EPS beat(8)3
Avg EPS beat(8)0.08%
EPS beat(12)7
Avg EPS beat(12)0.62%
EPS beat(16)11
Avg EPS beat(16)1.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)-0.12%
Revenue beat(4)2
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)2.16%
Revenue beat(8)5
Avg Revenue beat(8)0.37%
Revenue beat(12)7
Avg Revenue beat(12)0.31%
Revenue beat(16)8
Avg Revenue beat(16)-2.23%
PT rev (1m)-9.96%
PT rev (3m)-10.31%
EPS NQ rev (1m)-2.1%
EPS NQ rev (3m)-2.18%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 20.4 | ||
| P/S | 6.18 | ||
| P/FCF | 19.83 | ||
| P/OCF | 18.89 | ||
| P/B | 2.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.86 |
EPS(TTM)19.6
EY4.42%
EPS(NY)21.73
Fwd EY4.9%
FCF(TTM)22.36
FCFY5.04%
OCF(TTM)23.46
OCFY5.29%
SpS71.75
BVpS185.79
TBVpS-105.1
PEG (NY)2.28
PEG (5Y)3.22
Graham Number286.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.54% | ||
| ROE | 7.85% | ||
| ROCE | 6.9% | ||
| ROIC | 5.43% | ||
| ROICexc | 5.48% | ||
| ROICexgc | N/A | ||
| OM | 28.13% | ||
| PM (TTM) | 20.34% | ||
| GM | 68.96% | ||
| FCFM | 31.16% |
ROA(3y)8.9%
ROA(5y)7.1%
ROE(3y)14.83%
ROE(5y)12.7%
ROIC(3y)5.38%
ROIC(5y)5.04%
ROICexc(3y)5.46%
ROICexc(5y)5.12%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6.84%
ROCE(5y)6.4%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y3.47%
ROICexc growth 5Y-3.76%
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%
F-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.93 | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | 13.52% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.75% | ||
| Profit Quality | 153.21% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 3.06 |
F-Score5
WACC10.6%
ROIC/WACC0.51
Cap/Depr(3y)12.92%
Cap/Depr(5y)11.61%
Cap/Sales(3y)1.54%
Cap/Sales(5y)1.43%
Profit Quality(3y)100.38%
Profit Quality(5y)125.14%
High Growth Momentum
Growth
EPS 1Y (TTM)9.62%
EPS 3Y6.89%
EPS 5Y7.02%
EPS Q2Q%11.26%
EPS Next Y9.91%
EPS Next 2Y8.91%
EPS Next 3Y8.34%
EPS Next 5Y12.21%
Revenue 1Y (TTM)13.95%
Revenue growth 3Y13.35%
Revenue growth 5Y8.29%
Sales Q2Q%14.33%
Revenue Next Year13.32%
Revenue Next 2Y10.93%
Revenue Next 3Y9.55%
Revenue Next 5Y13.3%
EBIT growth 1Y12.24%
EBIT growth 3Y14.35%
EBIT growth 5Y8.49%
EBIT Next Year55.94%
EBIT Next 3Y21.56%
EBIT Next 5Y22.69%
FCF growth 1Y71.82%
FCF growth 3Y5.4%
FCF growth 5Y10.28%
OCF growth 1Y70%
OCF growth 3Y5.96%
OCF growth 5Y10.36%
ROPER TECHNOLOGIES INC / ROP FAQ
Can you provide the ChartMill fundamental rating for ROPER TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 5 / 10 to ROP.
What is the valuation status for ROP stock?
ChartMill assigns a valuation rating of 4 / 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.
How financially healthy is ROPER TECHNOLOGIES INC?
The financial health rating of ROPER TECHNOLOGIES INC (ROP) is 3 / 10.
Can you provide the dividend sustainability for ROP stock?
The dividend rating of ROPER TECHNOLOGIES INC (ROP) is 6 / 10 and the dividend payout ratio is 22.09%.