Roper Technologies (ROP) AI Stock Analysis

• Market Cap: $60.96B
• Dividend Yield: 0.55%
• Average Volume (3M): 559.49K
• Price to Earnings (P/E): 40.9
• Beta (1Y): 0.64
• Revenue Growth: 13.34%
• EPS Growth: 1.98%
• Country: US
• Employees: 18,200
• Sector: Technology
• Sector Strength: 77
• Industry: Industrial - Machinery
• EPS (TTM): 4.78
• Shares Outstanding: 107,515,396
• 10 Day Avg. Volume: 516,143
• 30 Day Avg. Volume: 559,486
• PEG Ratio: -12.04
• Price to Book (P/B): 3.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.66
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 12.21
• Enterprise Value/Ebitda: 5.66
• 1Y Price Target: $645.08
• Price Target Upside: 13.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 80 Outperform
• Price Target: $655.00 ▲( 15.51% Upside)

Roper Technologies exhibits strong financial performance and positive earnings call highlights, contributing to a robust outlook. The technical analysis supports a bullish trend, though caution is warranted due to the high valuation and potential overbought conditions. Overall, the company is well-positioned for continued growth, though investors should monitor debt levels and macroeconomic factors affecting specific segments.

Positive Factors

Acquisitions

Roper is set to deploy $4 billion to $5 billion annually towards acquiring mission-critical industry-leading assets in niche submarkets, supporting both organic and inorganic opportunities.

Financial Performance

Roper maintains an investment-grade credit rating, providing a sustainable cost-of-capital advantage relative to other potential acquirers, leading to outsized cash returns.

Growth Opportunities

Roper's US-centric portfolio with over 85% US exposure and negligible tariff risk becomes increasingly attractive potentially to both industrial and tech investors.

Negative Factors

Government Exposure

Deltek's organic growth outlook has been lowered by 1-2 percentage points due to exposure to federal government contractors and current cost-cutting initiatives.

Valuation

Current valuation is attractive at 19x CY26 EV/EBITDA, which is about a 15% discount compared to serial acquirer peers.

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 is in a solid financial position, marked by consistent revenue and profit growth, efficient operations, and a stable balance sheet. While debt levels warrant monitoring, the company's strong cash flow and profitability metrics suggest it is well-equipped to manage its obligations and pursue growth opportunities. The industrial machinery sector's cyclical nature should be considered, but Roper's financials indicate resilience and potential for continued success.

Income Statement

Roper Technologies demonstrates strong profitability with a consistent increase in gross profit margin, reaching 68.9% in the TTM period. The net profit margin is solid at 20.7% TTM, indicating effective cost management. Revenue growth is robust, with a 17.2% increase from 2023 to 2024 and a 2.9% growth in the TTM period. EBIT and EBITDA margins reflect operational efficiency, standing at 28.2% and 36.7% TTM, respectively. Overall, Roper's income statement shows a strong upward trajectory in revenue and profitability.

Balance Sheet

The company's balance sheet reflects a stable financial position. The debt-to-equity ratio is moderate at 0.39 TTM, suggesting manageable leverage. Return on equity is impressive at 7.8% TTM, indicating effective use of shareholder funds. The equity ratio is healthy at 61.2% TTM, showing a strong capital structure. However, the total debt level has increased slightly, which could pose a risk if not monitored.

Cash Flow

Roper's cash flow is strong, with a substantial operating cash flow to net income ratio of 1.59 TTM, highlighting efficient cash generation relative to profitability. The free cash flow to net income ratio is favorable at 1.54 TTM, indicating good cash retention. Although free cash flow growth has seen minor fluctuations, the overall cash flow management remains robust and supports ongoing operations and potential investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.24B	7.04B	6.18B	5.37B	5.78B	5.53B
	Gross Profit
4.99B	4.88B	4.31B	3.75B	3.92B	3.54B
	EBIT
2.04B	2.00B	1.75B	1.52B	1.48B	1.43B
	EBITDA
2.66B	3.04B	2.66B	2.12B	1.95B	1.78B
	Net Income Common Stockholders
1.50B	1.55B	1.38B	985.60M	1.15B	949.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
372.80M	188.20M	214.30M	792.80M	351.50M	308.30M
	Total Assets
31.42B	31.33B	28.17B	26.98B	23.71B	24.02B
	Total Debt
7.46B	7.67B	6.37B	6.66B	7.92B	9.57B
	Net Debt
7.08B	7.48B	6.16B	5.87B	7.57B	9.26B
	Total Liabilities
12.20B	12.47B	10.72B	10.94B	12.15B	13.54B
	Stockholders Equity
19.22B	18.87B	17.44B	16.04B	11.56B	10.48B
Cash Flow		Free Cash Flow
2.30B	2.33B	1.93B	664.30M	1.95B	1.48B
	Operating Cash Flow
2.39B	2.39B	2.04B	734.60M	2.01B	1.53B
	Investing Cash Flow
-1.74B	-3.47B	-2.13B	1.21B	-142.90M	-6.07B
	Financing Cash Flow
-475.20M	1.07B	-499.50M	-1.47B	-1.81B	4.14B

Roper Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 567.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 567.03 is below the 20-day moving average (MA) of 569.81, below the 50-day MA of 567.15, and above the 200-day MA of 553.85, indicating a neutral trend. The MACD of 2.65 indicates Positive momentum. The RSI at 48.44 is Neutral, neither overbought nor oversold. The STOCH value of 29.93 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	80 Outperform	$60.96B	40.90	8.09%	0.55%	13.34%	1.98%
ITW	80 Outperform	$71.70B	21.54	107.62%	2.41%	-1.85%	12.04%
HWM	79 Outperform	$65.80B	53.15	28.29%	0.19%	10.01%	47.87%
PH	76 Outperform	$83.99B	25.30	27.16%	0.99%	-0.23%	22.41%
CMI	70 Outperform	$44.33B	16.01	27.78%	2.22%	-0.39%	47.31%
ROK	68 Neutral	$34.44B	38.47	25.86%	1.67%	-11.19%	-22.50%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%

Roper Technologies Corporate Events

Roper Technologies Board Member Announces Retirement

On April 8, 2025, Christopher Wright announced his retirement from Roper Technologies‘ Board of Directors, effective at the 2025 Annual Meeting of Shareholders on June 10, 2025. Wright, who has been a director since 1991, is stepping down without any disagreements with the company, leading to a reduction of the board size to nine directors.