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Roper Technologies (ROP)
NASDAQ:ROP
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Roper Technologies (ROP) AI Stock Analysis

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ROP

Roper Technologies

(NASDAQ:ROP)

Rating:73Outperform
Price Target:
$616.00
â–²(17.34% Upside)
Roper Technologies' strong financial performance and strategic acquisitions are significant strengths, contributing positively to the overall score. However, bearish technical indicators and a high P/E ratio suggest caution. The company's strategic financial moves and positive earnings call sentiment further support its growth potential.
Positive Factors
Financial Performance
Roper reported a solid quarter with results ahead of Street expectations, led by total revenue growth of 13% and 7% organic growth.
Market Position
ROP holds a leadership position in a market with favorable growth dynamics and strong pricing power for critical software infrastructure.
Strategic Acquisitions
Roper's $800 million platform acquisition of Subsplash is expected to contribute $115 million in revenues, with EBITDA margins north of 30%.
Negative Factors
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 (ROP) vs. SPDR S&P 500 ETF (SPY)

Roper Technologies Business Overview & Revenue Model

Company DescriptionRoper Technologies, Inc. (ROP) is a diversified technology company that operates in various sectors, including software, industrial technology, and medical devices. The company focuses on providing innovative solutions across these sectors, with core products that include software solutions for the healthcare and educational markets, industrial automation equipment, and advanced medical devices. Roper's strategy emphasizes high-margin, niche markets that leverage its technical expertise and strong customer relationships.
How the Company Makes MoneyRoper Technologies generates revenue through multiple key streams, primarily from the sale of software and systems, as well as industrial and medical products. The company’s software solutions, which serve critical functions in healthcare and education, represent a significant portion of its revenue, often characterized by recurring subscription fees and maintenance contracts. Additionally, Roper's industrial technology segment provides products and services that enhance operational efficiency for manufacturers, contributing to steady revenue through equipment sales and servicing. The medical devices division, focusing on specialized equipment, also plays a vital role in Roper's financial performance, benefiting from ongoing demand in the healthcare sector. Strategic acquisitions of complementary businesses enhance Roper's product offerings and market reach, further solidifying its revenue base. Partnerships with key industry players and a commitment to innovation allow Roper to maintain a competitive edge and drive long-term growth.

Roper Technologies Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
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.
Chart InsightsRoper Technologies' Application Software segment shows robust growth, driven by strong performance in AI-enabled solutions, aligning with a 17% revenue increase. The Network Software segment also benefits from strategic acquisitions, contributing to a 6% revenue rise. The recent acquisition of Subsplash is expected to bolster future earnings, reflecting Roper's strategic focus on expanding its software offerings. Despite challenges in government and education markets, Roper's raised revenue guidance and strong cash flow position it well for continued growth and further acquisitions.
Data provided by:Main Street Data

Roper Technologies Earnings Call Summary

Earnings Call Date:Jul 21, 2025
(Q2-2025)
|
% Change Since: -3.64%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and strategic acquisitions, with improved guidance reflecting confidence in future growth. However, challenges remain in government contracting and education markets, and ProCare's performance required adjustments.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Total revenue grew 13% with organic revenue growth of 7%. Software bookings increased in the high teens, and free cash flow margins were 31% for the TTM period.
Subsplash Acquisition
Announced the acquisition of Subsplash, a cloud-native and AI-enabled software provider for faith-based organizations, with expected revenue of $115 million and $36 million of EBITDA for the 12 months ending Q3 2026.
Application Software Segment Growth
Revenue in the Application Software segment grew by 17% with organic growth of 6%. Deltek and Aderant showed strong performance with substantial bookings and AI-enabled solutions.
Network Segment Improvements
Network segment revenue grew by 6%, with organic growth of 5%. Key improvements included ARPU enhancements and strategic acquisitions like Loadlink and Alco.
Increased Full Year Guidance
Raised full-year total revenue growth guidance to 13% and increased full-year EPS outlook, reflecting strong first-half performance and the Subsplash acquisition.
Negative Updates
Uncertainty in Government Contracting and Education Markets
Continued muted growth in government contracting due to uncertainties and delays in spending priorities, as well as moderated bookings activity in K-12 education.
Challenges with ProCare
ProCare underdelivered on growth expectations, leading to leadership changes and strategic adjustments to align with growth targets.
Foundry Market Recovery
Foundry experienced a decline, though early signs of market recovery were noted with sequential ARR growth.
Company Guidance
During Roper Technologies' second quarter 2025 earnings call, the company reported a strong performance with total revenue growth of 13%, organic revenue growth of 7%, and high teen growth in software bookings. The free cash flow margins reached 31% for the trailing twelve-month period. The call highlighted the acquisition of Subsplash, a cloud-native and AI-enabled software provider for faith-based organizations, for $800 million. Subsplash is expected to generate $115 million in revenue and $36 million in EBITDA by the end of Q3 2026, with potential for gross and EBITDA margin improvements over the next 3 to 5 years. Roper also raised its full-year revenue guidance and debt outlook, emphasizing its strong position for capital deployment with over $5 billion available for future acquisitions.

Roper Technologies Financial Statement Overview

Summary
Roper Technologies displays strong financial health with robust revenue growth, impressive profitability margins, a solid equity base, and strong cash flow generation, positioning it well for future growth and stability.
Income Statement
85
Very Positive
Roper Technologies demonstrates robust revenue growth with a TTM revenue of $7.47 billion, up from $7.03 billion in the previous year. Gross profit margin is strong at 68.9%, and net profit margin is healthy at 20.6%. Consistent EBIT and EBITDA margins of 28.1% and 30.9% respectively underline operational efficiency and profitability.
Balance Sheet
78
Positive
The balance sheet of Roper Technologies shows stability with a strong equity base. The debt-to-equity ratio stands at 0.45, indicating a balanced leverage, while the return on equity is impressive at 7.8%. The equity ratio is solid at 59.1%, reflecting a strong equity position relative to total assets.
Cash Flow
82
Very Positive
Roper Technologies exhibits a strong cash flow position with a free cash flow of $2.32 billion TTM, maintaining stability from the previous year. The operating cash flow to net income ratio is 1.57, indicating efficient cash generation from operations, and the free cash flow to net income ratio is 1.51, showing solid cash flow coverage.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.47B7.04B6.18B5.37B4.83B4.85B
Gross Profit5.14B4.88B4.31B3.75B3.41B3.27B
EBITDA3.09B3.04B2.66B2.12B1.88B1.78B
Net Income1.54B1.55B1.36B1.19B1.10B949.70M
Balance Sheet
Total Assets33.22B31.33B28.17B26.98B23.71B24.02B
Cash, Cash Equivalents and Short-Term Investments242.40M188.20M214.30M792.80M351.50M308.30M
Total Debt8.86B7.67B6.37B6.71B7.96B9.62B
Total Liabilities13.59B12.47B10.72B10.94B12.15B13.54B
Stockholders Equity19.63B18.87B17.44B16.04B11.56B10.48B
Cash Flow
Free Cash Flow2.32B2.33B1.93B664.30M1.95B1.48B
Operating Cash Flow2.41B2.39B2.04B734.60M2.01B1.53B
Investing Cash Flow-3.63B-3.47B-2.13B1.21B-142.90M-6.07B
Financing Cash Flow1.19B1.07B-499.50M-1.47B-1.81B4.14B

Roper Technologies Technical Analysis

Technical Analysis Sentiment
Negative
Last Price524.96
Price Trends
50DMA
555.36
Negative
100DMA
560.54
Negative
200DMA
556.27
Negative
Market Momentum
MACD
-9.05
Positive
RSI
34.77
Neutral
STOCH
19.08
Positive
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 524.96 is below the 20-day moving average (MA) of 544.98, below the 50-day MA of 555.36, and below the 200-day MA of 556.27, indicating a bearish trend. The MACD of -9.05 indicates Positive momentum. The RSI at 34.77 is Neutral, neither overbought nor oversold. The STOCH value of 19.08 is Positive, 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 23 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$95.24B27.4827.42%0.90%-0.40%24.40%
77
Outperform
$55.78B19.0427.56%1.80%-1.30%53.39%
75
Outperform
$72.93B52.8629.98%0.23%8.85%51.50%
73
Outperform
$55.91B36.518.15%0.61%13.59%6.52%
73
Outperform
$75.93B22.86109.06%2.24%-1.40%11.65%
71
Outperform
$39.07B40.7728.46%1.49%-8.23%-3.29%
61
Neutral
$36.26B7.13-7.27%1.97%7.78%-8.61%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ROP
Roper Technologies
524.96
-20.32
-3.73%
CMI
Cummins
404.80
109.52
37.09%
ITW
Illinois Tool Works
262.49
26.23
11.10%
PH
Parker Hannifin
745.34
167.92
29.08%
ROK
Rockwell Automation
347.51
88.29
34.06%
HWM
Howmet Aerospace
175.99
80.44
84.19%

Roper Technologies Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Roper Technologies Issues $2 Billion in Senior Notes
Positive
Aug 12, 2025

On August 12, 2025, Roper Technologies, Inc. completed the issuance and sale of $2 billion in senior unsecured notes, including $500 million due in 2028 at 4.250%, $500 million due in 2030 at 4.450%, and $1 billion due in 2035 at 5.100%. This strategic financial move, facilitated by major underwriters like BofA Securities, J.P. Morgan Securities, and Wells Fargo Securities, is expected to enhance Roper’s financial flexibility and support its long-term growth initiatives.

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.

Executive/Board ChangesShareholder Meetings
Roper Technologies Holds 2025 Annual Shareholders Meeting
Neutral
Jun 11, 2025

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.

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.Date of analysis: Aug 12, 2025