Roper Technologies Inc (ROP) stock analysis

P/E below its 5-year median

Roper Technologies's P/E of 18.9 is below its own 5-year median of 25.6.

P/E below the industry

Roper Technologies's P/E of 18.9 is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 36.5.

EV/EBITDA below its 5-year median

Roper Technologies's EV/EBITDA of 23.9 is below its 5-year median of 35.1.

P/B below the industry

Roper Technologies's price-to-book of 2.46 is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 3.17.

Trading below fair value

The share price of $477.70 is below our fair value estimate of $630.57.

Margin of safety over 20%

The price is 24.2% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 13.7% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -30.6% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 65.0% over the last twelve months, against a 5-year average of 10.1% a year.

Growing faster than the industry

Revenue grew 9.2% over the last twelve months; the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median is 8.4%.

Guidance lowered

Roper Technologies lowered its full year organic revenue growth outlook on Jul 23, 2026.

Gross margin improving

Gross margin was 69.7% over the last twelve months, against 69.0% a year earlier.

Return on equity under 15%

Return on equity was 13.2% over the last twelve months and averaged 13.6% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 7.0%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Roper Technologies's return on equity of 13.2% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 1.1%.

Earnings grew over 5 years

Net income grew 10.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 30.7% over the last twelve months, against a 5-year average of 34.5%.

Net margin above the industry

Roper Technologies's net margin of 30.7% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of -1.3%.

High debt

Debt is 50.7% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 91.2% five years ago to 50.7%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 27.0% of total debt.

Interest well covered

Operating income covers interest expense 5.8 times.

Short-term assets don't cover short-term debts

Current assets are 0.43 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.03; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Roper Technologies paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Roper Technologies yields 0.8%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 14.3% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.