Roper Technologies, Inc.
Roper Technologies, Inc. Fundamental Analysis
Roper Technologies, Inc. (ROP) shows moderate financial fundamentals with a PE ratio of 23.38, profit margin of 19.44%, and ROE of 7.81%. The company generates $7.9B in annual revenue with strong year-over-year growth of 13.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ROP's fundamental strength across five key dimensions:
Efficiency Score
WeakROP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentROP trades at attractive valuation levels.
Growth Score
ExcellentROP delivers strong and consistent growth momentum.
Financial Health Score
ModerateROP shows balanced financial health with some risks.
Profitability Score
ModerateROP maintains healthy but balanced margins.
Key Financial Metrics
Is ROP Expensive or Cheap?
P/E Ratio
ROP trades at 23.38 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ROP's PEG of -11.03 indicates potential undervaluation.
Price to Book
The market values Roper Technologies, Inc. at 1.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.05 times EBITDA. This is generally considered low.
How Well Does ROP Make Money?
Net Profit Margin
For every $100 in sales, Roper Technologies, Inc. keeps $19.44 as profit after all expenses.
Operating Margin
Core operations generate 28.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.81 in profit for every $100 of shareholder equity.
ROA
Roper Technologies, Inc. generates $4.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Roper Technologies, Inc. generates strong operating cash flow of $2.55B, reflecting robust business health.
Free Cash Flow
Roper Technologies, Inc. generates strong free cash flow of $2.50B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $23.25 in free cash annually.
FCF Yield
ROP converts 6.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-11.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How ROP Stacks Against Its Sector Peers
| Metric | ROP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.38 | 26.76 | Better (Cheaper) |
| ROE | 7.81% | 1300.00% | Weak |
| Net Margin | 19.44% | -29570.00% (disorted) | Strong |
| Debt/Equity | 0.47 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 0.52 | 10.68 | Weak Liquidity |
| ROA | 4.44% | -1545134.00% (disorted) | Weak |
ROP outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Roper Technologies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.24%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-14.98%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
58.82%
Industry Style: Cyclical, Value, Infrastructure
High Growth