Strong Gross Profit Margin
Solid Net Profit Margin
Good Operating Profit Margin
Manageable Debt Levels
Strong Interest Coverage
💰 Strong Cash Flow Growth
📈 Healthy Market Position
🔍 Strategic M&A Capabilities
🚀 Accelerating Demand for Solutions
🌐 Innovation in GenAI
📊 Positive Revenue Guidance
High Price-to-Earnings Ratio
Elevated Price-to-Sales Ratio
Moderate Return on Equity
Low Liquidity Ratios
Overall, Roper Technologies exhibits strong business quality with robust cash flow, a healthy market position, and strategic M&A capabilities. Their future prospects are bright, with accelerating demand and innovation in GenAI, supported by positive revenue guidance for 2025.
Analysis Date: January 30, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$488.97
Current Market Price: $538.64
IV/P Ratio: 0.91x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-10.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for ROP
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (37.52)
P/B ratio ≤ 1.5 (3.08)
Current ratio ≥ 2.0 (0.40x)
Long-term debt < Net current assets (-2.87x)
Margin of safety (-10.0%)
ROP does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
The net profit margin of 22.01% reflects strong profitability after all expenses, suggesting efficient cost management.
With an operating profit margin of 28.37%, the company demonstrates effective management of operating expenses relative to revenues.
The return on equity (ROE) of 8.45% is relatively modest, indicating that the company may not be maximizing returns on shareholder equity.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
8.45%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
1.48%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
69.30%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
22.01%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
A debt-to-equity ratio of 0.41 suggests that the company uses a moderate level of debt in its capital structure, which is generally considered healthy.
An interest coverage ratio of 7.70 indicates that the company earns significantly more than its interest obligations, demonstrating solid financial stability.
The current ratio of 0.40 and quick ratio of 0.37 indicate that the company may struggle to cover short-term liabilities with its current assets.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.41x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.40x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Roper Technologies demonstrated robust cash flow growth, achieving over $2 billion in free cash flow for the first time, with margins of 32%. This reflects a consistent compounding capability in their financial performance.
Roper maintains a strong position in vertical market software businesses, with over 85% of revenue generated in the US, which minimizes currency risk. The company is a market leader in all its segments, providing a competitive edge.
Roper ended the year with over $5 billion of acquisition firepower, indicating a strong position to capitalize on attractive M&A opportunities, especially as the market becomes more favorable.
Roper is experiencing strong demand for its mission-critical solutions, with accelerating enterprise bookings reaching high-teens growth in Q4, indicating positive momentum heading into 2025.
The company is actively integrating GenAI technologies across its businesses, enhancing customer offerings and operational efficiencies. This positions Roper to capture new markets and improve service delivery.
Roper provided a strong revenue guidance for 2025, projecting total revenue growth north of 10% and organic growth in the 6% to 7% range, reflecting confidence in their growth trajectory.