ROPER TECHNOLOGIES INC (ROP) Stock Fundamental Analysis
USA - NASDAQ:ROP - US7766961061 - Common Stock
505.89 USD
+1.37 (+0.27%)
505.89 USD
0 (0%)
Taking everything into account, ROP scores 5 out of 10 in our fundamental rating. ROP was compared to 285 industry peers in the Software industry. ROP scores excellent on profitability, 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!
1. Profitability
1.1 Basic Checks
In the past year ROP was profitable.
ROP had a positive operating cash flow in the past year.
Each year in the past 5 years ROP has been profitable.
Each year in the past 5 years ROP had a positive operating cash flow.
1.2 Ratios
ROP's Return On Assets of 4.63% is fine compared to the rest of the industry. ROP outperforms 72.28% of its industry peers.
Looking at the Return On Equity, with a value of 7.84%, ROP is in the better half of the industry, outperforming 72.28% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.56%, ROP is doing good in the industry, outperforming 74.74% 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 11.90%.
The 3 year average ROIC (5.38%) for ROP is below the current ROIC(5.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 7.84% | ||
| ROIC | 5.56% |
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's Profit Margin of 20.62% is amongst the best of the industry. ROP outperforms 85.26% of its industry peers.
In the last couple of years the Profit Margin of ROP has declined.
With an excellent Operating Margin value of 28.06%, ROP belongs to the best of the industry, outperforming 91.93% of the companies in the same industry.
In the last couple of years the Operating Margin of ROP has remained more or less at the same level.
ROP has a Gross Margin of 68.87%. This is comparable to the rest of the industry: ROP outperforms 51.23% of its industry peers.
ROP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.06% | ||
| PM (TTM) | 20.62% | ||
| GM | 68.87% |
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
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
ROP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ROP has a worse debt to assets ratio.
2.2 Solvency
ROP has an Altman-Z score of 3.46. This indicates that ROP is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.46, ROP is doing good in the industry, outperforming 60.70% of the companies in the same industry.
The Debt to FCF ratio of ROP is 3.88, which is a good value as it means it would take ROP, 3.88 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.88, ROP is in the better half of the industry, outperforming 61.75% of the companies in the same industry.
ROP has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
ROP's Debt to Equity ratio of 0.40 is on the low side compared to the rest of the industry. ROP is outperformed by 61.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 3.88 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.52
WACC10.71%
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 91.23% of its industry peers.
A Quick Ratio of 0.43 indicates that ROP may have some problems paying its short term obligations.
The Quick ratio of ROP (0.43) is worse than 91.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
ROP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.53%, 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 13.59%.
The Revenue has been growing by 8.29% on average over the past years. This is quite good.
EPS 1Y (TTM)8.53%
EPS 3Y6.89%
EPS 5Y7.02%
EPS Q2Q%8.71%
Revenue 1Y (TTM)13.59%
Revenue growth 3Y13.35%
Revenue growth 5Y8.29%
Sales Q2Q%13.21%
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 12.64% on average per year.
EPS Next Y10.35%
EPS Next 2Y9.52%
EPS Next 3Y8.71%
EPS Next 5Y12.21%
Revenue Next Year13.34%
Revenue Next 2Y10.83%
Revenue Next 3Y9.86%
Revenue Next 5Y12.64%
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
Based on the Price/Earnings ratio of 26.51, the valuation of ROP can be described as expensive.
Based on the Price/Earnings ratio, ROP is valued a bit cheaper than the industry average as 69.12% of the companies are valued more expensively.
ROP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.69.
Based on the Price/Forward Earnings ratio of 23.02, the valuation of ROP can be described as rather expensive.
71.58% 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 similar valuation than the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.51 | ||
| Fwd PE | 23.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROP is valued a bit cheaper than 79.65% of the companies in the same industry.
ROP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROP is cheaper than 76.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.85 | ||
| EV/EBITDA | 21.33 |
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)2.56
PEG (5Y)3.78
EPS Next 2Y9.52%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
ROP has a yearly dividend return of 0.66%, which is pretty low.
Compared to an average industry Dividend Yield of 36.72, ROP pays a better dividend. On top of this ROP pays more dividend than 90.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, ROP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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
ROP pays out 21.99% of its income as dividend. This is a sustainable payout ratio.
The dividend of ROP is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP21.99%
EPS Next 2Y9.52%
EPS Next 3Y8.71%
505.89
+1.37 (+0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners96.99%
Inst Owner Change0.27%
Ins Owners0.3%
Ins Owner Change0.02%
Market Cap54.44B
Analysts80
Price Target644.92 (27.48%)
Short Float %1.27%
Short Ratio1.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend3.01
Dividend Growth(5Y)10.22%
DP21.99%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.17%
Min EPS beat(2)-0.22%
Max EPS beat(2)-0.11%
EPS beat(4)2
Avg EPS beat(4)0.32%
Min EPS beat(4)-0.22%
Max EPS beat(4)0.95%
EPS beat(8)4
Avg EPS beat(8)0.31%
EPS beat(12)8
Avg EPS beat(12)1.08%
EPS beat(16)12
Avg EPS beat(16)1.54%
Revenue beat(2)1
Avg Revenue beat(2)1.02%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)2.16%
Revenue beat(4)3
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)2.16%
Revenue beat(8)5
Avg Revenue beat(8)0.52%
Revenue beat(12)8
Avg Revenue beat(12)0.56%
Revenue beat(16)8
Avg Revenue beat(16)-3.67%
PT rev (1m)-0.39%
PT rev (3m)-0.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.57%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.51 | ||
| Fwd PE | 23.02 | ||
| P/S | 7.29 | ||
| P/FCF | 23.85 | ||
| P/OCF | 22.58 | ||
| P/B | 2.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.33 |
EPS(TTM)19.08
EY3.77%
EPS(NY)21.97
Fwd EY4.34%
FCF(TTM)21.22
FCFY4.19%
OCF(TTM)22.4
OCFY4.43%
SpS69.4
BVpS182.45
TBVpS-97.58
PEG (NY)2.56
PEG (5Y)3.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 7.84% | ||
| ROCE | 7.07% | ||
| ROIC | 5.56% | ||
| ROICexc | 5.6% | ||
| ROICexgc | N/A | ||
| OM | 28.06% | ||
| PM (TTM) | 20.62% | ||
| GM | 68.87% | ||
| FCFM | 30.57% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score4
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 3.88 | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 14.92% | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.73% | ||
| Profit Quality | 148.29% | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 3.46 |
F-Score4
WACC10.71%
ROIC/WACC0.52
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)8.53%
EPS 3Y6.89%
EPS 5Y7.02%
EPS Q2Q%8.71%
EPS Next Y10.35%
EPS Next 2Y9.52%
EPS Next 3Y8.71%
EPS Next 5Y12.21%
Revenue 1Y (TTM)13.59%
Revenue growth 3Y13.35%
Revenue growth 5Y8.29%
Sales Q2Q%13.21%
Revenue Next Year13.34%
Revenue Next 2Y10.83%
Revenue Next 3Y9.86%
Revenue Next 5Y12.64%
EBIT growth 1Y11.2%
EBIT growth 3Y14.35%
EBIT growth 5Y8.49%
EBIT Next Year55.94%
EBIT Next 3Y21.56%
EBIT Next 5Y22.69%
FCF growth 1Y123.6%
FCF growth 3Y5.4%
FCF growth 5Y10.28%
OCF growth 1Y117.78%
OCF growth 3Y5.96%
OCF growth 5Y10.36%