Roper Technologies (ROP) AI Stock Analysis

• Market Cap: $60.86B
• Dividend Yield: 0.58%
• Average Volume (3M): 487.81K
• Price to Earnings (P/E): 40.8
• Beta (1Y): 0.62
• Revenue Growth: 13.34%
• EPS Growth: 1.98%
• Country: US
• Employees: 18,200
• Sector: Technology
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 4.78
• Shares Outstanding: 107,515,396
• 10 Day Avg. Volume: 599,770
• 30 Day Avg. Volume: 487,811
• PEG Ratio: -11.86
• Price to Book (P/B): 3.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.27
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 2.44
• Enterprise Value/Gross Profit: 13.53
• Enterprise Value/Ebitda: 6.27
• 1Y Price Target: $638.60
• Price Target Upside: 12.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 74 Outperform
• Price Target: $634.00 ▲(12.00%Upside)

Roper Technologies' strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. Despite a high valuation and some technical weakness, the company's robust revenue growth, strategic acquisitions, and increased revenue guidance support a favorable outlook.

Positive Factors

Acquisition Strategy

Roper has $5 billion in capital to deploy in an attractive M&A environment, with software valuations at a low point, presenting an opportunity for growth.

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'.

Valuation

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

Negative Factors

Deal Dilution

Taking a point off of Deltek while raising full year and absorbing 15c of deal dilution.

Economic Uncertainty

As economic and policy uncertainty increase, the ROP story incrementally resonates.

Growth Outlook

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.

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 makes money primarily through the sale of software, engineered products, and industrial technology solutions. The company's revenue streams are diversified across its segments, which include Application Software, Network Software & Systems, Measurement & Analytical Solutions, and Process Technologies. Roper generates a significant portion of its revenue from recurring software licenses and subscriptions, alongside sales of engineered products and related services. Key factors contributing to its earnings include its strategic acquisitions that expand its product offerings and its ability to maintain long-term relationships with customers in specialized markets.

Roper Technologies Financial Statement Overview

Summary

Roper Technologies exhibits strong financial performance with consistent revenue and profit growth. The company maintains a solid balance sheet, though its debt levels require monitoring. Robust cash flow supports operations and growth opportunities, reflecting resilience in the industrial machinery sector.

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
EBITDA	2.66B	3.04B	2.66B	2.12B	1.95B	1.78B
Net Income	1.50B	1.55B	1.38B	985.60M	1.15B	949.70M
Balance Sheet
Total Assets	31.42B	31.33B	28.17B	26.98B	23.71B	24.02B
Cash, Cash Equivalents and Short-Term Investments	372.80M	188.20M	214.30M	792.80M	351.50M	308.30M
Total Debt	7.46B	7.67B	6.37B	6.66B	7.92B	9.57B
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: 566.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 566.08 is below the 20-day moving average (MA) of 567.13, below the 50-day MA of 567.41, and above the 200-day MA of 557.17, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 67.48 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
HWM	80 Outperform	$71.14B	57.46	28.29%	0.23%	10.01%	47.87%
PH	77 Outperform	$90.91B	27.38	27.16%	1.01%	-0.23%	22.41%
ITW	77 Outperform	$74.77B	22.46	107.62%	2.35%	-1.85%	12.04%
ROP	74 Outperform	$60.86B	40.83	8.09%	0.58%	13.34%	1.98%
CMI	70 Outperform	$45.93B	16.59	27.78%	2.18%	-0.39%	47.31%
ROK	69 Neutral	$38.63B	43.15	25.86%	1.53%	-11.19%	-22.50%
Sector *	63 Neutral	$33.61B	6.06	-11.53%	1.82%	5.53%	-18.79%

Roper Technologies Corporate Events

Roper Technologies Holds 2025 Annual Shareholders Meeting

Roper Technologies held its 2025 Annual Meeting of Shareholders on June 10, 2025, in Sarasota, Florida, where all director nominees were elected, and two key proposals were approved. The meeting resulted in the election of directors for a one-year term, approval of executive compensation, and ratification of PricewaterhouseCoopers LLP as the independent accounting firm, indicating continued stability and governance alignment within the company.

The most recent analyst rating on (ROP) stock is a Buy with a $655.00 price target. To see the full list of analyst forecasts on Roper Technologies stock, see the ROP Stock Forecast page.

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.