Education
About Us
Working with TipRanks
Follow Us
Roper Technologies (ROP)
NASDAQ:ROP
Top Page
Roper Technologies
(NASDAQ:ROP)
Select Model
Select Model
Rating:70Outperform
Price Target:
$396.00
â–²(17.93% Upside)
Overall score reflects strong underlying financial quality (high margins and excellent free-cash-flow conversion) and a generally solid but conservative 2026 outlook that acknowledges meaningful operating headwinds. These positives are tempered by very weak technicals (price well below key moving averages with negative MACD) and only moderate valuation support given the low dividend yield.
Positive Factors
Free Cash Flow Quality
Very high free‑cash‑flow conversion (~98%) and FCF ~$2.49B in 2025 signal durable earnings quality and strong internal financing. This level of cash conversion supports repeatable buybacks, M&A funding, and dividend capacity over the next several quarters without overreliance on external financing.
Sustained High Margins
Consistently high gross and net margins reflect pricing power in niche software and engineered products. Margin durability provides a buffer against modest demand swings and funds reinvestment and product development, supporting steady profitability over a multi‑quarter horizon.
Recurring Revenue & Bookings Momentum
Low‑double‑digit software bookings and mid‑single‑digit recurring revenue growth indicate durable, subscription‑driven cash flows. Predictable recurring streams reduce revenue volatility, improve visibility for planning, and underpin long‑term product monetization and cross‑sell opportunities.
Negative Factors
Rising Leverage
Leverage increasing to ~0.47 D/E signals less conservatism on the balance sheet. Higher debt levels reduce financial flexibility for unexpected shocks and constrain appetite for large bolt‑on deals or buybacks if cash generation weakens, so debt servicing becomes a nearer‑term operational consideration.
Recent Margin Compression
Observed margin compression in 2025 versus 2024 suggests mix shifts, integration costs, or input‑cost pressure. If persistent, this erodes operating leverage and free cash flow margins, making it harder to sustain historical profitability and fund strategic initiatives without offsetting pricing or efficiency gains.
Portfolio Execution Headwinds
Multiple segment‑specific issues (Deltek, ProCare, Neptune, DAT) create durable execution risk across the portfolio. Management excluded recoveries from guidance, implying slower rebounds; these persistent headwinds can suppress organic growth and pressure segment margins until operational fixes fully take hold.
Roper Technologies (ROP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.26B
Dividend Yield0.73%
Average Volume (3M)1.95M
Price to Earnings (P/E)23.1
Beta (1Y)0.56
Revenue Growth13.95%
EPS Growth6.80%
CountryUS
Employees18,200
SectorTechnology
Sector Strength88
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)5.21
Shares Outstanding107,637,430
10 Day Avg. Volume1,873,397
30 Day Avg. Volume1,950,280
Financial Highlights & Ratios
PEG Ratio-28.09
Price to Book (P/B)2.40
Price to Sales (P/S)6.04
P/FCF Ratio19.14
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue5.71
Enterprise Value/Gross Profit8.25
Enterprise Value/Ebitda13.42
Forecast
1Y Price Target
$461.77Price Target Upside37.52% Upside
Rating ConsensusHold
Number of Analyst Covering16
EPS Forecast (FY)21.47
Revenue Forecast (FY)$8.52B
Roper Technologies Business Overview & Revenue Model
Company DescriptionRoper 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 MoneyRoper 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 Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue streams by business unit, showing which areas contribute most to sales and where there might be potential for expansion or risk.
Breaks down revenue streams by business unit, showing which areas contribute most to sales and where there might be potential for expansion or risk.
Data provided by:
The Fly
The FlyRoper Technologies Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Neutral
Balanced. The company delivered solid reported outcomes — double‑digit revenue and EBITDA growth, strong free cash flow, robust bookings and active capital deployment — and has meaningful balance sheet capacity and a clear AI and M&A strategy. Offsetting this are several material operating headwinds: organic growth came in below expectations, Deltek (GovCon exposure), ProCare execution delays, Neptune normalization and a muted freight market at DAT. Management is conservative in 2026 guidance (excluding assumed recoveries at key underperformers) while signaling steps to address execution issues and scale AI productization. Overall the call reflects steady underlying financial strength coupled with portfolio-specific challenges that temper near-term upside.Q4-2025 Updates
Positive Updates
Strong Full-Year Financial Performance
FY2025 revenue $7.9B, up 12% YoY; EBITDA $3.1B (39.8% margin), up 11% YoY; adjusted DEPS $20, up 9% YoY; free cash flow ~ $2.5B, up 8% YoY and representing ~31% of revenue.
Quarterly Outperformance and Margin Expansion
Q4 revenue $2.06B, up 10% YoY (acquisitions +5%, organic +4%); Q4 EBITDA $818M, up 10% YoY; adjusted DEPS $5.21, above guidance; core EBITDA margin expanded ~60 bps in Q4, with a ~54% incremental margin.
Bookings and Recurring Revenue Momentum
Enterprise software bookings grew in the low double-digit range for FY2025; recurring revenue trends: Application Software recurring grew ~7% organic for the year and recurring revenue grew ~6% in Q4 (Network recurring also ~6% in Q4).
Active Capital Deployment and Strong Liquidity
Deployed $3.3B on vertical software acquisitions in 2025 (including Central Reach and Subsplash); repurchased 1.1M shares for $500M in Q4 (avg ~ $446) with $2.5B remaining on a $3B authorization; entering 2026 with net leverage ~2.9x, ~$300M cash, ~$2.7B revolver availability and >$6B capacity for M&A and buybacks.
Application Software & Select Segment Strength
Application Software segment revenue grew 16% (FY), organic +5%, with EBITDA margins ~42.5% and core margin improvement ~80 bps; specific businesses showing strength include Aderant, Vertafore, PowerPlan, Central Reach (ahead of model) and Subsplash (strong start).
Focused AI Strategy and Dedicated Leadership
Management emphasized AI as a monetizable, workflow-embedded opportunity and hired Shane Luke and Eddie Raphael to lead a Roper AI accelerator to coach businesses, build a small strike team, and create reusable AI components; AI upside not included in base 2026 guidance (treated as incremental upside).
Negative Updates
Organic Growth Below Expectations
Organic growth underperformed management’s expectations in 2025: FY organic growth ~5.5% (below targets) and Q4 organic growth 4% (primary driver of missing the firm's internal outlook); nonrecurring revenue weakness was a headwind (Application Software nonrecurring down ~8% in Q4).
Deltek / GovCon Headwinds Impacting Results
Deltek underperformed due to prolonged government shutdown and related GovCon commercial weakness; perpetual license revenue was meaningfully impacted, leaving Deltek at the lower end of mid-single-digit growth for the year versus prior mid-single-digit-plus performance. Management did not bake an improvement at Deltek into 2026 guidance.
ProCare Execution and Implementation Delays
ProCare did not meet expectations in 2025 primarily due to implementation timing across software and payments which delayed customer time-to-value and weighed on payments volumes; leadership changes and operational fixes are underway but the business was a material underperformer.
Neptune / TEP Backlog Normalization and Cost Surcharge Effects
Neptune experienced backlog normalization and was modestly down; earlier tariff-related cost increases and copper-driven surcharges impacted the business in 2025 and management is conservatively underwriting limited recovery in 2026 (first half more challenged).
DAT & Freight Market Headwinds
DAT faced a muted freight market; while organic and recurring metrics showed improvement (organic ~5% for DAT, recurring ~6%), nonrecurring revenue was down (~3% in Network) and margins were pressured by recent bolt-on investments that are scaling into profitability. Guidance assumes no meaningful freight market recovery.
Recent Guidance Conservatism and Prior Misses
Management acknowledged organic growth shortfalls and has issued a conservative 2026 guide (total revenue growth ~8%, organic 5–6%, adjusted DEPS $21.30–$21.55) that explicitly excludes potential improvements at Deltek and DAT; the company noted it missed expectations in recent quarters and is taking a cautious posture in its outlook.
Company Guidance
Roper guided 2026 to roughly 8% full‑year revenue growth with 5–6% organic growth, adjusted DEPS of $21.30–$21.55 (Q1 DEPS $4.95–$5.00), a full‑year effective tax rate near 21% (about 22% in Q1), and expects free cash flow to be safely over 30% of revenue (driven by working‑capital and cash‑tax improvements); the guide does not assume improvement at Deltek (GovCon) or DAT (freight), underwrites modest top‑line weakness at Neptune, anticipates stronger second‑half organic growth as Central Reach and Subsplash turn organic, does not bake in meaningful AI revenue uplift, and reflects ample capital flexibility—entering 2026 with net leverage ~2.9x, roughly $300M cash, ~$2.7B available on the revolver (> $6B total deployment capacity), and $2.5B remaining on the $3B repurchase authorization after $500M (1.1M shares at just under $446) bought in Q4.Roper Technologies Financial Statement Overview
Summary
High-quality profitability and cash generation: gross margin ~69–70%, net margin ~19–22%, and free cash flow ~$2.49B in 2025 with ~98% conversion vs. net income. Offsets include 2025 margin compression vs. 2024 and rising leverage (debt-to-equity ~0.47 in 2025), with operating cash flow not fully covering total debt (OCF/total debt ~0.68).Income Statement
Revenue has grown steadily from 2022–2025 (with a modest +2.4% in 2025), while profitability remains a clear strength: gross margin is consistently ~69–70% and net margin remains healthy (~19–22%). A key watch item is margin compression in 2025 versus 2024 (lower net, EBIT, and EBITDA margins), suggesting either mix shift, higher costs, or integration/expense pressure despite higher sales.84
Very Positive
Balance Sheet
Leverage is moderate and has trended higher recently: debt-to-equity rose to ~0.47 in 2025 from ~0.37 in 2023, with total debt also increasing. Equity and assets have grown over time, supporting balance sheet scale, but returns on equity are modest (~7–9%) and slightly lower in 2025 versus 2024, implying incremental capital is not translating into improving shareholder returns.74
Positive
Cash Flow
Cash generation is strong and improving: operating cash flow rose to ~$2.54B in 2025 and free cash flow to ~$2.49B, with free cash flow closely matching net income (about 98%), indicating high earnings quality. The main concern is that cash flow still does not fully cover total debt (operating cash flow to total debt ~0.68 in 2025), and 2022 showed a notable dip in operating and free cash flow, highlighting some cyclicality or timing sensitivity.82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.90B | 7.04B | 6.18B | 5.37B | 4.83B |
| Gross Profit | 5.47B | 4.88B | 4.31B | 3.75B | 3.41B |
| EBITDA | 3.13B | 3.04B | 2.66B | 2.12B | 1.88B |
| Net Income | 1.54B | 1.55B | 1.36B | 1.19B | 1.10B |
Balance Sheet | |||||
| Total Assets | 34.58B | 31.33B | 28.17B | 26.98B | 23.71B |
| Cash, Cash Equivalents and Short-Term Investments | 297.40M | 188.20M | 214.30M | 792.80M | 351.50M |
| Total Debt | 9.30B | 7.67B | 6.37B | 6.71B | 7.96B |
| Total Liabilities | 14.70B | 12.47B | 10.72B | 10.94B | 12.15B |
| Stockholders Equity | 19.88B | 18.87B | 17.44B | 16.04B | 11.56B |
Cash Flow | |||||
| Free Cash Flow | 2.49B | 2.33B | 1.93B | 664.30M | 1.95B |
| Operating Cash Flow | 2.54B | 2.39B | 2.04B | 734.60M | 2.01B |
| Investing Cash Flow | -3.39B | -3.47B | -2.13B | 1.21B | -142.90M |
| Financing Cash Flow | 923.60M | 1.07B | -499.50M | -1.47B | -1.81B |
Roper Technologies Technical Analysis
Negative
335.79
Price Trends
402.88
Negative
435.76
Negative
490.63
Negative
Market Momentum
-22.82
Negative
35.68
Neutral
38.47
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 335.79 is below the 20-day moving average (MA) of 353.16, below the 50-day MA of 402.88, and below the 200-day MA of 490.63, indicating a bearish trend. The MACD of -22.82 indicates Negative momentum. The RSI at 35.68 is Neutral, neither overbought nor oversold. The STOCH value of 38.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ROP.
Roper Technologies Risk Analysis
Roper Technologies disclosed 24 risk factors in its most recent earnings report. Roper Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Roper Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $125.90B | 36.38 | 25.79% | 0.79% | 0.22% | 26.66% | |
79 Outperform | $53.65B | 36.61 | 14.59% | 0.59% | 3.67% | 10.44% | |
72 Outperform | $85.35B | 28.23 | 93.75% | 2.43% | -0.41% | -10.88% | |
70 Outperform | $35.26B | 23.07 | 7.93% | 0.73% | 13.95% | 6.80% | |
69 Neutral | $84.99B | 36.91 | 11.31% | 1.58% | 2.97% | 18.14% | |
68 Neutral | $44.55B | 45.36 | 27.71% | 1.33% | 0.98% | -7.51% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ROP
Roper Technologies
335.79
-237.00
-41.38%
AME
Ametek
233.51
48.97
26.54%
EMR
Emerson Electric Company
148.62
29.92
25.20%
ITW
Illinois Tool Works
294.98
38.14
14.85%
PH
Parker Hannifin
1,022.23
369.19
56.53%
ROK
Rockwell Automation
398.79
108.52
37.38%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.