Roper Technologies is a holding company that acquires companies, typically software firms that are market-leader-niche, have defensible segments, and reinvest the resulting cash flows into new acquisitions.
The ongoing high interest rate environment positions Roper favorably relative to private equity firms in competing for acquiring companies at attractive valuations.
The cash-compounder premium attached to Roper’s valuation becomes harder to justify if acquired companies underperform expectations priced into the firm’s high purchase multiples, which can cause its stock to derate sharply.
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Metric
|
ROP
|
BRK.B
|
IEX
|
|---|---|---|---|
Price/Earnings (Normalized) | 17.36 | 22.51 | 27.20 |
Price/Book Value | 1.92 | 1.44 | 4.24 |
Price/Sales | 4.61 | 2.46 | 4.78 |
Price/Cash Flow | 14.46 | 26.53 | 21.92 |
|
Metric
|
ROP
|
BRK.B
|
IEX
|
|---|---|---|---|
Quick Ratio | 0.44 | — | 2.01 |
Current Ratio | 0.55 | — | 3.05 |
Interest Coverage | 8.56 | 21.59 | 11.68 |
|
Metric
|
ROP
|
BRK.B
|
IEX
|
|---|---|---|---|
Return on Assets (Normalized) | 7.74% | 7.02% | 9.11% |
Return on Equity (Normalized) | 13.74% | 12.09% | 15.69% |
Return on Invested Capital (Normalized) | 10.23% | 10.72% | 11.50% |
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1-Day Chart
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Name
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Price
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Morningstar Rating for Stocks
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Capital Allocation
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Economic Moat
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Market Cap
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United States