One-glance verdict
Undervalued
$776.60 our estimate vs market $398.60
Wall Street consensus: $445.20 (-42.7% lower than our fair-value estimate)
49% below our estimate, below the bear case
Fundamentals snapshot
Roper Technologies, Inc.
ROP · NMS · Technology · Software - Application
Current price
$398.60
52-week range
$305.96 - $521.28
Market cap
$39.42B
Balance sheet
Watch
6.88x Adequate
Net debt $10.95B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 4.8% last year.
- Reward Returns 13.1% on equity, ahead of 60% of its peers.
- Risk Net debt grew 53.0% over 3 years.
- Risk Operating margin compressed from 28.4% to 27.7% over 3 years.
What this company does
Roper Technologies, Inc.
Roper Technologies provides specialized software that businesses in very specific industries, like insurance or K-12 schools, rely on for their day-to-day work. Because this software is so essential, it creates a lot of recurring revenue (predictable income from ongoing subscriptions), which is where the company makes most of its money. Roper also sells physical technology products, such as medical devices and water meters, making its business more diverse.
How the company got here
Founded in 1890 by George D. Roper as a manufacturer of home appliances and industrial products, the company has transformed significantly over the decades. A major turning point occurred in the early 2000s when management began a focused strategy of acquiring niche, asset-light (businesses that don't require large physical investments) technology companies with strong cash flow. This led to a shift away from its industrial roots, and in 2015, the company changed its name from Roper Industries to Roper Technologies to reflect its new focus on software and technology. Today, it operates as a holding company, owning a diverse portfolio of specialized technology businesses.
What it actually does
Roper Technologies doesn't sell products under its own name; instead, it owns a collection of many different companies that provide specialized software and technology products for specific industries. Think of it like a parent company that owns a variety of expert businesses. These businesses create software to manage things like law firms, construction projects, and insurance agencies, as well as high-tech hardware like water meters and medical devices. The common thread is that these products are essential to their customers' daily operations, making them difficult to replace.
Application Software
This is Roper's largest segment, providing software that helps businesses in specific industries manage their core operations. For example, it owns companies that make software for law firms to manage their cases and billing, for construction companies to manage their projects, and for insurance agencies to manage their policies. Customers pay for this software, often through recurring subscriptions, because it is critical to running their day-to-day business. This segment brings in the majority of the company's revenue.
Network Software
This segment consists of businesses that create value by connecting many users together, often in a marketplace. For instance, one of its companies, DAT, operates a platform that matches freight carriers with businesses that need to ship goods. Another company provides a network for the insurance industry. These businesses typically make money from subscription fees or by taking a small fee from each transaction that happens on their network. This is a significant part of Roper's business, contributing a substantial portion of its revenue.
Technology Enabled Products
This is the company's most traditional segment, which includes businesses that make specialized, high-tech physical products. This includes things like highly accurate water meters used by utilities, medical devices used in hospitals, and systems for precision measurement. Customers for these products are typically other businesses and organizations that need reliable and specialized hardware. This segment represents a smaller, but still important, part of Roper's overall business.
What management is betting on now
The company's main strategy is to continue acquiring niche software businesses that are leaders in their specific markets. They focus on companies with high recurring revenue (predictable income from subscriptions or ongoing services) and that don't require a lot of physical assets to operate. Management believes this approach of buying and holding these types of businesses will continue to generate strong and predictable cash flow. They also emphasize a decentralized approach, allowing the businesses they acquire to operate independently, which they believe fosters innovation and keeps them close to their customers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$2.11B
Net income
$1.17B
Diluted EPS
11.62
Operating cash flow
$469.50M
Free cash flow
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Sources
Revenue
$2.10B
Net income
$508.90M
Diluted EPS
4.87
Operating cash flow
$592.10M
Free cash flow
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Revenue
$2.06B
Net income
$428.40M
Diluted EPS
3.97
Operating cash flow
$738.00M
Free cash flow
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Sources
Revenue
$2.02B
Net income
$398.50M
Diluted EPS
3.68
Operating cash flow
$869.50M
Free cash flow
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Sources
Revenue
$1.94B
Net income
$378.30M
Diluted EPS
3.49
Operating cash flow
$404.10M
Free cash flow
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Revenue
$1.88B
Net income
$331.10M
Diluted EPS
3.06
Operating cash flow
$528.70M
Free cash flow
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Revenue
$1.88B
Net income
$462.30M
Diluted EPS
4.28
Operating cash flow
$722.20M
Free cash flow
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Revenue
$1.76B
Net income
$367.90M
Diluted EPS
3.40
Operating cash flow
$755.40M
Free cash flow
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Is it cheap or expensive?
Fair value $776.60 vs current price $398.60
Wall Street consensus is the average analyst price target: $445.20 (-42.7% lower than our fair-value estimate).
Our most-likely fair value is $776.60 a share — about 94.8% above today's price of $398.60, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $11.0B. Interest coverage 6.9x.
Net debt
$10.95B
Interest coverage
6.88x
Roper Technologies, Inc.'s profit covers its interest bill about 6.9 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
ROP
BASELINE
Roper Technologies, Inc.
Total debt $11.32B Interest coverage 6.88x This is the baseline the peer rows are being compared against.
Total debt $3.60B Interest coverage 5.98x -13% vs ROP Has roughly the same debt cushion as ROP.
Total debt $33.49B Interest coverage 2.66x -61% vs ROP Carries about 2.6x less debt cushion than ROP.
Total debt $7.78B Interest coverage 3.31x -52% vs ROP Carries about 2.1x less debt cushion than ROP.
Total debt $2.54B Interest coverage 7.85x +14% vs ROP Has roughly the same debt cushion as ROP.
Total debt $1.46B Interest coverage 71.61x +941% vs ROP Carries about 10.4x more debt cushion than ROP.
What you should know
The case for and against ROP
3 Rewards
3 Risks
Rewards
-
Revenue grew 4.8% last year.
-
Returns 13.1% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 53.0% over 3 years.
-
Operating margin compressed from 28.4% to 27.7% over 3 years.
-
Insider ownership is only 0.4% (peer median: 0.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.60x
Forward P/E
16.41x
P/B
2.11x
P/S
4.76x
EV/EBITDA
15.25x
PEG ratio
1.53x
Profitability
How much profit each dollar creates
Gross margin
69.5%
Operating margin
27.7%
Net margin
30.2%
ROE
13.1%
ROA
4.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.61x
Current ratio
0.55x
Quick ratio
0.44x
Total debt
$11.32B
Total cash
$364.90M
Growth
How the business has been compounding
Revenue TTM
$8.28B
Revenue 5Y CAGR
13.1%
EPS TTM
24.01
EPS 5Y CAGR
-30.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.67B
Free CF TTM
$2.44B
FCF margin
29.4%
Dividend
Shareholder payout
Yield
0.9%
Payout ratio
14.5%
Last ex-div date
2026-10-02