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Roper Technologies Inc ROP

Morningstar Rating
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Stock XNAS Rating as of
$510.28 −4.76 (0.92%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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Roper Earnings: Strong Start to 2024 but We Trim Our Valuation on Tempered Inorganic Growth Outlook

Emma Williams

We lower our fair value estimate for Roper Technologies to $480 per share from $560, following a transfer of coverage and our tempered outlook for the value add of future acquisitions on the assumption of higher average deal multiples. Nonetheless, we continue to view Roper as a high-quality, diversified technology company with a portfolio of leading businesses in niche markets with durable competitive advantages, underpinning our wide moat rating. At current prices, Roper shares trade in line with our updated fair value estimate on a risk-adjusted basis.

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Price vs Fair Value

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ROP is trading at a 7% premium.
Price
$514.76
Fair Value
$373.00
Uncertainty
Medium
1-Star Price
$793.00
5-Star Price
$294.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

We expect Roper to continue execute on the firm’s highly successful playbook of using excess cash to acquire cash rich businesses at reasonable valuations.

Bears

Roper’s acquisition heavy model presents significant execution risk, and the firm may struggle to find attractive acquisition targets.

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News

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Trading Information

Previous Close Price
$515.04
Day Range
$508.17–514.73
52-Week Range
$441.13–562.97
Bid/Ask
$510.14 / $510.68
Market Cap
$54.62 Bil
Volume/Avg
254,007 / 523,600

Key Statistics

Price/Earnings (Normalized)
30.81
Price/Sales
8.67
Dividend Yield (Trailing)
0.56%
Dividend Yield (Forward)
0.58%
Total Yield
0.56%

Company Profile

Roper Technologies is a diversified technology company that operates three segments: application software, network software, and technology enabled products. Roper acquires asset light, cash generative businesses and deploys excess cash to acquire further portfolio companies. The firm operates a highly decentralized model with portfolio company management holding autonomy and accountability for key operational decisions, and a small, centralized team overseeing capital deployment and providing executive coaching and reviewing strategic goals.
Sector
Technology
Industry
Software - Application
Stock Style Box
Large Growth
Total Number of Employees
16,800
Website
https://www.ropertech.com

Competitors

Valuation

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Metric
ROP
BRK.B
FTV
Price/Earnings (Normalized)
 30.8123.2121.49
Price/Book Value
 3.101.542.53
Price/Sales
 8.671.984.38
Price/Cash Flow
 26.7830.2818.72
Price/Earnings
ROP
BRK.B
FTV

Financial Strength

Metric
ROP
BRK.B
FTV
Quick Ratio
 0.40—0.96
Current Ratio
 0.50—1.50
Interest Coverage
 11.5825.028.53
Quick Ratio
ROP
BRK.B
FTV

Profitability

Metric
ROP
BRK.B
FTV
Return on Assets (Normalized)
 5.31%9.57%5.79%
Return on Equity (Normalized)
 8.76%18.65%9.33%
Return on Invested Capital (Normalized)
 6.82%15.43%7.92%
Return on Assets
ROP
BRK.B
FTV
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