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Roper Technologies (ROP)
NASDAQ:ROP
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Roper Technologies
(NASDAQ:ROP)
75Outperform
Positive Factors
Acquisitions Impact
ROP acquires CentralReach, expanding its software capabilities.
Mergers and Acquisitions
ROP 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'.
Negative Factors
Deal Dilution
Taking a point off of Deltek while raising full year and absorbing 15c of deal dilution.
Organic 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. S&P 500 (SPY)
Market Cap
$60.86B
Dividend Yield0.56%
Average Volume (3M)699.95K
Price to Earnings (P/E)40.8
Beta (1Y)0.64
Revenue Growth13.34%
EPS Growth1.98%
CountryUS
Employees18,200
SectorTechnology
Sector Strength69
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)13.86
Shares Outstanding107,519,730
10 Day Avg. Volume598,554
30 Day Avg. Volume699,951
Financial Highlights & Ratios
PEG Ratio20.63
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.16
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit14.53
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$640.91Price Target Upside13.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Roper Technologies Business Overview & Revenue Model
Company DescriptionRoper Technologies, Inc. is a diversified technology company that operates in various sectors including medical and scientific imaging, RF technology, software information solutions, and industrial technology. The company is known for its innovative approach and focuses on acquiring and managing businesses that design and develop products and solutions across niche markets. Roper's core services and products span across healthcare, transportation, food, energy, and water industries, providing essential technology and software solutions to improve operational efficiency and productivity.
How the Company Makes MoneyRoper 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 Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows revenue distribution across different business units, highlighting which segments drive growth and profitability, and where the company might focus future investments or face challenges.
Shows revenue distribution across different business units, highlighting which segments drive growth and profitability, and where the company might focus future investments or face challenges.
Data provided by:
Main Street Data
Main Street DataRoper Technologies Financial Statement Overview
Summary
Roper Technologies demonstrates strong financial health with consistent revenue and profit growth, robust profitability margins, and effective cash flow management. While leverage has increased, the company maintains a solid equity base to support its operations. Continued focus on revenue acceleration and careful debt management will be key to sustaining its financial performance.Income Statement
Roper Technologies shows impressive growth with a consistent increase in revenue over the years. The gross profit margin and net profit margin have improved, indicating strong profitability. The EBIT and EBITDA margins are robust, reflecting efficient operational management. However, the revenue growth rate has been moderate, suggesting room for accelerated market expansion.85
Very Positive
Balance Sheet
The company's balance sheet is stable, with a solid equity base. The debt-to-equity ratio has increased slightly, indicating higher leverage, which could pose a risk if not managed carefully. The return on equity is healthy, demonstrating effective utilization of shareholders' funds. Equity ratio shows a strong asset base, providing a cushion against liabilities.78
Positive
Cash Flow
Roper Technologies has shown strong free cash flow generation, with a positive growth trend. The operating cash flow to net income ratio suggests good cash conversion from profits. Free cash flow to net income ratio is favorable, highlighting effective cash management. However, the significant investing cash flow outlay could impact future cash reserves.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.04B | 6.18B | 5.37B | 5.78B | 5.53B | Gross Profit |
| 4.88B | 4.31B | 3.75B | 3.92B | 3.54B | EBIT |
| 2.00B | 1.75B | 1.52B | 1.48B | 1.43B | EBITDA |
| 3.04B | 2.66B | 2.12B | 1.95B | 1.78B | Net Income Common Stockholders |
| 1.55B | 1.38B | 985.60M | 1.15B | 949.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 188.20M | 214.30M | 792.80M | 351.50M | 308.30M | Total Assets |
| 31.33B | 28.17B | 26.98B | 23.71B | 24.02B | Total Debt |
| 7.67B | 6.37B | 6.66B | 7.92B | 9.57B | Net Debt |
| 7.48B | 6.16B | 5.87B | 7.57B | 9.26B | Total Liabilities |
| 12.47B | 10.72B | 10.94B | 12.15B | 13.54B | Stockholders Equity |
| 18.87B | 17.44B | 16.04B | 11.56B | 10.48B |
| Cash Flow | Free Cash Flow | |||
| 2.33B | 1.93B | 664.30M | 1.95B | 1.48B | Operating Cash Flow |
| 2.39B | 2.04B | 734.60M | 2.01B | 1.53B | Investing Cash Flow |
| -3.47B | -2.13B | 1.21B | -142.90M | -6.07B | Financing Cash Flow |
| 1.07B | -499.50M | -1.47B | -1.81B | 4.14B |
Roper Technologies Technical Analysis
Positive
566.04
Price Trends
568.76
Negative
554.84
Positive
551.81
Positive
Market Momentum
-3.13
Negative
48.78
Neutral
74.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROP, the sentiment is Positive. The current price of 566.04 is above the 20-day moving average (MA) of 553.36, below the 50-day MA of 568.76, and above the 200-day MA of 551.81, indicating a neutral trend. The MACD of -3.13 indicates Negative momentum. The RSI at 48.78 is Neutral, neither overbought nor oversold. The STOCH value of 74.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $59.87B | 52.64 | 28.29% | 0.21% | 10.01% | 47.99% | |
76 Outperform | $79.71B | 25.61 | 27.16% | 1.07% | -0.23% | 22.41% | |
75 Outperform | $60.86B | 40.83 | 8.09% | 0.56% | 13.34% | 1.98% | |
74 Outperform | $41.30B | 10.57 | 41.27% | 2.42% | 0.14% | 444.36% | |
74 Outperform | $71.00B | 20.69 | 107.62% | 2.47% | -1.85% | 12.04% | |
67 Neutral | $28.68B | 31.56 | 26.22% | 2.05% | -11.28% | -23.69% | |
60 Neutral | $10.95B | 10.52 | -7.07% | 3.00% | 7.30% | -12.04% |
* Technology Sector Average
Performance Comparison
ROP
Roper Technologies
566.04
53.46
10.43%
CMI
Cummins
299.85
22.30
8.03%
ITW
Illinois Tool Works
242.32
2.86
1.19%
PH
Parker Hannifin
619.02
73.95
13.57%
ROK
Rockwell Automation
253.65
-18.65
-6.85%
HWM
Howmet Aerospace
154.07
74.13
92.73%
Roper Technologies Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: 1.50%|
Next Earnings Date:Jul 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong financial performance, successful acquisition, and increased revenue guidance, indicating a positive outlook. However, there were challenges in specific segments and macroeconomic uncertainties affecting some parts of the business.Q1-2025 Updates
Positive Updates
Strong Financial Performance in Q1 2025
Roper Technologies reported a 12% increase in total revenue, 5% organic growth, and a 12% increase in cash flow over the last 12 months.
Successful Acquisition of CentralReach
The acquisition was completed for $1.65 billion, net of a $200 million tax benefit. CentralReach is expected to deliver $175 million in revenue and $75 million in EBITDA by June 2026, with continued revenue and EBITDA growth of 20%.
Increased Full-Year Revenue Guidance
Roper raised its full-year total revenue growth outlook from 10% to approximately 12% due to a strong start to the year and the CentralReach acquisition.
Robust Capital Deployment Capability
Roper Technologies has more than $5 billion of available firepower for capital deployment over the next 12 months, positioning the company well for future acquisitions.
Application Software Segment Growth
This segment saw a 19% total revenue growth and a 6% organic growth, with EBITDA margins improving by 110 basis points.
Negative Updates
Challenges in Network Software Segment
Organic revenue growth in the Network Software segment was only 1% due to difficult prior year comparisons at MHA and the lingering effects of the actors and writers strike on Foundry.
Soft Free Cash Flow in Q1 2025
Free cash flow in Q1 was down 1% compared to the prior year due to a legal settlement and timing of bond coupon payments.
Uncertainty in Government Contracting
Deltek, which relies significantly on federal government contractors, faces uncertainty due to government budget issues, potential shutdowns, and the current macro environment.
Impact of Tariffs
The TEP segment faces potential exposure to tariffs, although most cross-border flows are USMCA compliant.
Company Guidance
During the Roper Technologies conference call on April 28, 2025, the company announced a robust financial performance for the first quarter. Total revenue grew by 12%, with organic revenue increasing by 5% and cash flow growing by 12% over the last 12 months. The acquisition of CentralReach, a cloud-native software provider for ABA therapy, was highlighted, with expectations of $175 million in revenue and $75 million in EBITDA for the TTM period ending June 2026. The company's gross retention rate stood at 95%, and its free cash flow conversion rate was about 30%. Roper raised its full-year total revenue guidance and modestly increased its debts outlook, reaffirming its position with over $5 billion available for capital deployment in the coming 12 months.Roper Technologies Corporate Events
Executive/Board ChangesShareholder Meetings
Roper Technologies Board Member Announces Retirement
Neutral
Apr 14, 2025
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.
Spark’s Take on ROP Stock
According to Spark, TipRanks’ AI Analyst, ROP is a Outperform.
Roper Technologies scores well due to its strong financial performance and positive earnings call, highlighting significant cash flow and revenue growth. Technical analysis supports a positive price trend, although valuation concerns arise from a high P/E ratio. The company’s strategic focus on acquisitions and organic growth provides confidence in future performance, despite some segment challenges and restructuring costs.
To see Spark’s full report on ROP stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.