Roper Technologies (ROP) AI Stock Analysis

• Market Cap: $38.79B
• Dividend Yield: 0.73%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.52
• Revenue Growth: 13.95%
• EPS Growth: 6.80%
• Country: US
• Employees: 18,200
• Sector: Technology
• Sector Strength: 88
• Industry: Industrial - Machinery
• EPS (TTM): 5.21
• Shares Outstanding: 107,637,430
• 10 Day Avg. Volume: 1,653,463
• 30 Day Avg. Volume: 1,126,262
• PEG Ratio: 2.75
• Price to Book (P/B): 2.95
• Price to Sales (P/S): 7.91
• P/FCF Ratio: 23.92
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 5.14
• Enterprise Value/Gross Profit: 7.45
• Enterprise Value/Ebitda: 11.74
• 1Y Price Target: $461.77
• Price Target Upside: 26.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $408.00 ▲(11.78% Upside)

The score is driven primarily by strong financial performance (high margins and strong free-cash-flow conversion) and a generally constructive, cash-flow-focused 2026 outlook, offset by very weak technicals (price below major moving averages and negative momentum). Valuation is modestly supportive but not cheap given the premium P/E and low dividend yield.

Positive Factors

Very strong cash conversion

Roper converts nearly all reported earnings into cash (FCF-to-net income ~0.97) and generated ~31% of revenue as FCF in FY2025. Durable high cash conversion underpins repeatable funding for M&A, buybacks, debt service and reinvestment without relying on external financing.

High and sustainable margins

Consistently high gross and net margins reflect differentiated products, pricing power in niche verticals, and operational leverage. Such structural profitability supports reinvestment, resilience through cycles, and sustained free cash flow generation even if top-line growth moderates.

Ample liquidity and disciplined capital deployment

Roper’s balance of active M&A ($3.3B deployed) plus meaningful buyback capacity and revolver availability gives strategic optionality. Durable access to capital and a proven M&A track record enable bolt‑on growth in high-margin vertical software franchises over multiple years.

Negative Factors

Organic growth shortfall

Repeatedly missing organic growth targets signals potential demand softness or execution gaps in core end markets. Slower organic compounding limits the company’s ability to rely solely on internal growth for long‑term revenue expansion and increases dependence on acquisitions to hit targets.

GovCon/Deltek exposure

Significant exposure to government contracting through Deltek introduces structural cyclicality and policy risk. Prolonged GovCon weakness can persistently depress perpetual license and services revenue, making a chunk of Roper’s software growth more vulnerable to external funding cycles.

Operational execution risk at ProCare

Implementation delays and execution issues at ProCare and related payments businesses reduce customer retention, slow monetization, and compress near‑term margins. If execution fixes take multiple quarters, these operational problems can erode recurring revenue growth and hamper long‑term margin sustainability.

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 through multiple streams, primarily by offering specialized software and engineered products that command premium pricing due to their advanced technology and unique applications. The company's revenue model is heavily reliant on recurring revenues from software subscriptions and maintenance contracts, which provide a stable income base. Additionally, Roper benefits from selling high-margin engineered products and solutions across its various business segments. Strategic acquisitions of complementary businesses have also played a significant role in enhancing its revenue base, allowing Roper to expand its market reach and product offerings. Partnerships with key players in various industries further contribute to its earnings by facilitating access to new markets and enhancing product distribution.

Roper Technologies Financial Statement Overview

Summary

Strong overall fundamentals: consistent revenue growth, very high profitability (gross margin ~69%, net margin ~20%) and solid cash conversion (FCF-to-net income ~0.97). Balance sheet leverage appears manageable (debt-to-equity ~0.46), though ROE (~8.1%) and slight gross margin pressure temper the score.

Income Statement

Roper Technologies has demonstrated consistent revenue growth with a 3.39% increase in the TTM period. The company maintains strong profitability with a gross profit margin of 68.96% and a net profit margin of 20.34%. The EBIT and EBITDA margins are also robust at 29.90% and 43.93%, respectively, indicating efficient operational management. However, the slight decline in gross profit margin compared to previous periods suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.46, indicating prudent leverage. The return on equity is at 8.08%, showcasing effective utilization of shareholder funds, though slightly lower than previous years. The equity ratio stands at 57.80%, suggesting a solid equity base relative to total assets.

Cash Flow

Roper Technologies exhibits strong cash flow management with a 5.98% growth in free cash flow. The operating cash flow to net income ratio is 0.81, indicating healthy cash generation relative to earnings. The free cash flow to net income ratio is high at 0.97, reflecting efficient conversion of earnings into cash. These metrics highlight the company's ability to generate cash and sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.72B	7.04B	6.18B	5.37B	4.83B	4.85B
Gross Profit	5.32B	4.88B	4.31B	3.75B	3.41B	3.27B
EBITDA	3.38B	3.04B	2.66B	2.12B	1.88B	1.78B
Net Income	1.57B	1.55B	1.36B	1.19B	1.10B	949.70M
Balance Sheet
Total Assets	34.58B	31.33B	28.17B	26.98B	23.71B	24.02B
Cash, Cash Equivalents and Short-Term Investments	320.00M	188.20M	214.30M	792.80M	351.50M	308.30M
Total Debt	9.45B	7.67B	6.37B	6.71B	7.96B	9.62B
Total Liabilities	14.59B	12.47B	10.72B	10.94B	12.15B	13.54B
Stockholders Equity	19.99B	18.87B	17.44B	16.04B	11.56B	10.48B
Cash Flow
Free Cash Flow	2.46B	2.33B	1.93B	664.30M	1.95B	1.48B
Operating Cash Flow	2.52B	2.39B	2.04B	734.60M	2.01B	1.53B
Investing Cash Flow	-3.29B	-3.47B	-2.13B	1.21B	-142.90M	-6.07B
Financing Cash Flow	822.10M	1.07B	-499.50M	-1.47B	-1.81B	4.14B

Roper Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 365.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 365 is below the 20-day moving average (MA) of 414.70, below the 50-day MA of 432.93, and below the 200-day MA of 506.49, indicating a bearish trend. The MACD of -18.04 indicates Positive momentum. The RSI at 17.99 is Positive, neither overbought nor oversold. The STOCH value of 24.51 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
PH	80 Outperform	$115.62B	33.41	27.30%	0.79%	0.22%	26.66%
AME	79 Outperform	$51.22B	35.10	14.63%	0.59%	3.67%	10.44%
EMR	76 Outperform	$83.38B	36.68	10.91%	1.58%	2.97%	18.14%
ROP	71 Outperform	$38.79B	25.38	7.93%	0.73%	13.95%	6.80%
ITW	71 Outperform	$74.92B	25.06	91.71%	2.43%	-0.41%	-10.88%
ROK	71 Outperform	$46.65B	54.12	24.24%	1.33%	0.98%	-7.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%