Roper Technologies (ROP) AI Stock Analysis

• Market Cap: $58.18B
• Dividend Yield: 0.57%
• Average Volume (3M): 670.39K
• Price to Earnings (P/E): 37.8
• Beta (1Y): 0.68
• Revenue Growth: 13.94%
• EPS Growth: 13.02%
• Country: US
• Employees: 18,200
• Sector: Technology
• Sector Strength: 40
• Industry: Industrial - Machinery
• EPS (TTM): 14.34
• Shares Outstanding: 107,385,210
• 10 Day Avg. Volume: 765,743
• 30 Day Avg. Volume: 670,390
• PEG Ratio: 2.90
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.73
• Price to Cash Flow (P/CF): 21.30
• P/FCF Ratio: 22.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $658.60
• Price Target Upside: 21.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Roper Technologies scores well due to its strong financial performance and positive earnings call, highlighting significant cash flow and revenue growth. Technical analysis supports a positive price trend, although valuation concerns arise from a high P/E ratio. The company's strategic focus on acquisitions and organic growth provides confidence in future performance, despite some segment challenges and restructuring costs.

Positive Factors

Acquisitions

Roper Technologies is well-positioned to capitalize on increased M&A activity with $5 billion in deployable capital.

Organic Growth

Roper's organic growth has dramatically improved, exiting FY24 at ~6% organic growth vs. 3% in 2019 and -1% in 2016, driven by management’s operational focus as well as portfolio 'pruning'.

Revenue Growth

Strong case for revenue acceleration into 2025 as several important businesses had distinct headwinds in 2024 that should not repeat.

Negative Factors

EBITDA Margins

Core EBITDA margins are anticipated to be slightly down in the first half before turning positive in the second half.

Market Conditions

Network Software is expected to build momentum throughout the year following tough comparisons in the first quarter.

Roper Technologies Business Overview & Revenue Model

Company Description

Roper Technologies, Inc. designs and develops software, and engineered products and solutions. The company offers management, campus solutions, diagnostic and laboratory information management, enterprise management, information solutions, transportation management, financial and compliance management, and cloud-based financial analytics and performance management software; cloud-based software to the property and casualty insurance industry; and software, services, and technologies for foodservice operations. It also provides cloud-based data, collaboration, and estimating automation software; electronic marketplace; visual effects and 3D content software; wireless sensor network and solutions; cloud-based software for the life insurance and financial services industries; supply chain software; health care service and software; RFID card readers; data analytics and information; and pharmacy software solutions. In addition, the company offers precision rubber and polymer testing instruments, and data analysis software; ultrasound accessories; testing and analyzing plastic solutions; dispensers and metering pumps; control valves; precision weighing equipment; automated surgical scrub and linen dispensing equipment; water meters; optical and electromagnetic measurement systems; automated leak detection equipment; medical devices; products and services for water and gas utilities; and equipment and consumables. It also provides temperature control and emergency shutoff valves; turbomachinery control hardware, software, and services; specialized pumps; flow meter calibrators and controllers; vibration monitoring systems and controls; analytical instrument; drilling power section; and pressure and level sensors. The company was formerly known as Roper Industries, Inc. and changed its name to Roper Technologies, Inc. in April 2015. The company was incorporated in 1981 and is based in Sarasota, Florida.

How the Company Makes Money

Roper Technologies generates revenue primarily through the sale of software, engineered products, and various technology solutions across its four main business segments: Application Software, Network Software & Systems, Measurement & Analytical Solutions, and Process Technologies. The company follows a business model that emphasizes acquiring niche technology businesses with strong cash flow and growth potentials. Revenue streams include licensing fees, subscription services, product sales, and maintenance and support services. Roper leverages significant partnerships and customer relationships to enhance its earnings, focusing on high-value, recurring revenue models, particularly in its software divisions. The company's strategic acquisitions are a critical driver of revenue growth, allowing Roper to expand its portfolio and market reach.

Roper Technologies Financial Statement Overview

Summary

Roper Technologies demonstrates strong financial health with consistent revenue and profit growth, robust profitability margins, and effective cash flow management. While leverage has increased, the company maintains a solid equity base to support its operations.

Income Statement

Roper Technologies shows impressive growth with a consistent increase in revenue over the years. The gross profit margin and net profit margin have improved, indicating strong profitability. The EBIT and EBITDA margins are robust, reflecting efficient operational management. However, the revenue growth rate has been moderate, suggesting room for accelerated market expansion.

Balance Sheet

The company's balance sheet is stable, with a solid equity base. The debt-to-equity ratio has increased slightly, indicating higher leverage, which could pose a risk if not managed carefully. The return on equity is healthy, demonstrating effective utilization of shareholders' funds. Equity ratio shows a strong asset base, providing a cushion against liabilities.

Cash Flow

Roper Technologies has shown strong free cash flow generation, with a positive growth trend. The operating cash flow to net income ratio suggests good cash conversion from profits. Free cash flow to net income ratio is favorable, highlighting effective cash management. However, the significant investing cash flow outlay could impact future cash reserves.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.04B	6.18B	5.37B	5.78B	5.53B
	Gross Profit
4.88B	4.31B	3.75B	3.92B	3.54B
	EBIT
2.00B	1.75B	1.52B	1.48B	1.43B
	EBITDA
2.00B	2.66B	2.12B	1.95B	1.78B
	Net Income Common Stockholders
1.55B	1.38B	985.60M	1.15B	949.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
188.20M	214.30M	792.80M	351.50M	308.30M
	Total Assets
31.33B	28.17B	26.98B	23.71B	24.02B
	Total Debt
7.62B	6.37B	6.66B	7.92B	9.57B
	Net Debt
7.43B	6.16B	5.87B	7.57B	9.26B
	Total Liabilities
12.47B	10.72B	10.94B	12.15B	13.54B
	Stockholders Equity
18.87B	17.44B	16.04B	11.56B	10.48B
Cash Flow		Free Cash Flow
2.33B	1.93B	664.30M	1.95B	1.48B
	Operating Cash Flow
2.39B	2.04B	734.60M	2.01B	1.53B
	Investing Cash Flow
-3.47B	-2.13B	1.21B	-142.90M	-6.07B
	Financing Cash Flow
1.07B	-499.50M	-1.47B	-1.81B	4.14B

Roper Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 541.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROP, the sentiment is Negative. The current price of 541.8 is below the 20-day moving average (MA) of 575.45, below the 50-day MA of 574.00, and below the 200-day MA of 552.17, indicating a bearish trend. The MACD of 4.36 indicates Negative momentum. The RSI at 59.62 is Neutral, neither overbought nor oversold. The STOCH value of 78.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ROP.

Roper Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROP	78 Outperform	$58.18B	37.77	8.53%	0.57%	13.94%	13.02%
ITW	74 Outperform	$70.24B	20.44	110.24%	2.62%	-1.30%	20.26%
PH	74 Outperform	$71.68B	23.03	25.87%	1.26%	0.41%	19.76%
CMI	73 Outperform	$38.24B	9.79	41.27%	2.57%	0.14%	444.36%
HWM	73 Outperform	$45.50B	39.94	26.89%	0.28%	11.90%	52.65%
ROK	69 Neutral	$25.68B	28.26	26.22%	2.25%	-11.28%	-23.69%
Sector *	57 Neutral	$18.57B	9.42	-13.42%	2.72%	5.01%	-23.43%