Roper Technologies Inc
Exchange: NASDAQSector: TechnologyIndustry: Software - Application
Roper Industries, Inc. (Roper) designs, manufactures and distributes radio frequency (RF) products, services and application software, industrial technology products, energy systems and controls and medical and scientific imaging products and software. The Company markets these products and services to a range of markets, including RF applications, medical, water, energy, research, education, software-as-a-service (SaaS)-based information networks, security and other niche markets. The Company operates in four segments: Medical and Scientific Imaging, Energy Systems and Controls, Industrial Technology and RF Technology. On August 22, 2012, the Company acquired Sunquest Information Systems, Inc. (Sunquest), a provider of diagnostic and laboratory software solutions to healthcare providers. In May 2013, Roper Industries Inc acquired Managed Health Care Associates Inc.
Current Price
$352.44
+0.62%GoodMoat Value
$425.96
20.9% undervaluedProfile
Valuation (TTM)
Market Cap$36.28B
P/E21.16
EV$47.05B
P/B1.82
Shares Out102.93M
P/Sales4.47
Revenue$8.12B
EV/EBITDA18.14
Roper Technologies Inc (ROP) Stock Analysis
GoodMoat Analysis
Roper Technologies is a high-quality, acquisitive software company with a durable moat built on mission-critical, niche software products. It exhibits strong financial quality with high margins and consistent cash flow, but its current valuation appears to be full, offering only a marginal margin of safety.
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Roper Technologies is a diversified technology company that operates through a portfolio of highly specialized, asset-light software businesses. Its primary strategy involves acquiring and holding niche, mission-critical software providers in vertical markets like healthcare, transportation, and education. This model creates a durable competitive moat, scoring highly on criteria such as switching costs (mission-critical products), niche dominance, and an asset-light model. The company's financial quality is strong, with an operating margin of 28.3%, a robust free cash flow yield of 6.5%, and a manageable debt profile. Applying the GoodMoat Decision Framework, the business passes the Moat & Quality Gate with a likely high X-Ray Business Score. However, the Valuation & Risk Gate presents a more nuanced picture. The GoodMoat Target of $425.96 implies a potential upside, but at a current P/E of 24.3x and with revenue growth at 9.7% YoY, the valuation is not deeply discounted. This suggests a marginal margin of safety, placing the stock in the 'with caution' category for a value investor. It warrants further investigation to confirm the durability of its acquisition-driven growth and the precise calculation of its intrinsic value. Analysis based on data as of 2024-05-15.
Market Cap$36.28B
Current Price$352.44
P/E Ratio21.16
Forward P/E—
PEG Ratio0.36
EPS$14.20
Book Value$193.16
P/B Ratio1.82
ROP Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 9.6% FCF growth (CAGR)
Cash vs Debt
Net Debt: 9.0B
Revenue
4.7B
FY19
4.0B
FY20
4.8B
FY21
5.4B
FY22
6.2B
FY23
7.0B
FY24
7.9B
FY25
Net Income
1.8B
FY19
950M
FY20
1.2B
FY21
4.5B
FY22
1.4B
FY23
1.5B
FY24
1.5B
FY25
ROP 52-Week Range
$314.73
$578.40
50-Day MA: $354.60200-Day MA: $434.25
Did you know?
Net income compounded at -2.3% annually over 6 years.
Roper Technologies Inc (ROP) Financial Summary
Roper Technologies Inc (ROP) is a Technology company in the Software - Application industry, listed on NASDAQ. The stock currently trades at $352.44 with a market capitalization of $36.28B.
Key valuation metrics include a P/E ratio of 21.16, price-to-book ratio of 1.82, and EPS of $14.20. The company reports a profit margin of 21.1% and return on equity of 8.6%.
ROP Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $36.28B |
| P/E Ratio | 21.16 |
| EPS | $14.20 |
| P/B Ratio | 1.82 |
| P/S Ratio | 4.47 |
| EV/EBITDA | 18.14 |
| Dividend Yield | 0.98% |
| Profit Margin | 21.1% |
| Return on Equity | 8.6% |
| Debt/Equity | 0.47 |
ROP Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $4.73B | $1.77B |
| FY20 | $4.02B | $949.70M |
| FY21 | $4.83B | $1.15B |
| FY22 | $5.37B | $4.54B |
| FY23 | $6.18B | $1.38B |
| FY24 | $7.04B | $1.55B |
| FY25 | $7.90B | $1.54B |
Roper Technologies Inc (ROP) Valuation
Based on GoodMoat's DCF model, Roper Technologies Inc has a fair value estimate of $425.96. At the current price of $352.44, the stock appears 17.3% undervalued relative to our intrinsic value estimate.
ROP Quality Indicators
Roper Technologies Inc maintains a profit margin of 21.1% and an operating margin of 28.3%. Return on equity stands at 8.6%. The current ratio is 0.52. Debt-to-equity ratio is 0.47.
About Roper Technologies Inc
Roper Industries, Inc. (Roper) designs, manufactures and distributes radio frequency (RF) products, services and application software, industrial technology products, energy systems and controls and medical and scientific imaging products and software. The Company markets these products and services to a range of markets, including RF applications, medical, water, energy, research, education, software-as-a-service (SaaS)-based information networks, security and other niche markets. The Company operates in four segments: Medical and Scientific Imaging, Energy Systems and Controls, Industrial Technology and RF Technology. On August 22, 2012, the Company acquired Sunquest Information Systems, Inc. (Sunquest), a provider of diagnostic and laboratory software solutions to healthcare providers. In May 2013, Roper Industries Inc acquired Managed Health Care Associates Inc.
ROP Free Cash Flow
Roper Technologies Inc generated $2.44B in trailing twelve-month free cash flow, representing an FCF yield of 6.71%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
ROP Shares Outstanding
Roper Technologies Inc has 0.10 billion shares outstanding at a share price of $352.44, giving it a market capitalization of $36.28B.
ROP Recent Insider Trades
Recent insider transactions at Roper Technologies Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Joyce Thomas Patrick JR (Director) | BUY | 1,400 | $501844.00 |