One-glance verdict
Undervalued
$844.57 our estimate vs market $444.21
Wall Street consensus: $466.79 (-44.7% lower than our fair-value estimate)
47% below our estimate, below the bear case
Fundamentals snapshot
Roper Technologies, Inc.
ROP · NMS · Technology · Software - Application
Current price
$444.21
52-week range
$305.96 - $455.80
Market cap
$43.93B
Balance sheet
Watch
6.88x Adequate
Net debt $9.41B. 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 13.2% on equity, ahead of 60% of its peers.
- Risk Net debt grew 53.0% over 3 years.
- Risk Forward P/E (18.1x) is higher than trailing (17.6x) - earnings are expected to drop.
What this company does
Roper Technologies, Inc.
Roper Technologies sells specialized software and technology products that help businesses run more efficiently, with a big chunk of their money coming from software that customers pay for regularly (this is known as recurring revenue). This is important because it means Roper has a more predictable income stream, like a steady paycheck, which helps them plan for the future. They also sell equipment like water meters and medical devices, further diversifying where their earnings come from.
How the company got here
Roper Technologies, Inc. started in 1981, originally as Roper Industries, Inc., and has evolved significantly over the decades. The company's journey has been marked by a strategic focus on acquiring and growing specialized software and technology businesses. This approach has allowed Roper to build a diverse portfolio of companies that serve niche markets, rather than competing in broad, crowded sectors. The name change to Roper Technologies, Inc. in 2015 reflected its increasing emphasis on software and technology-driven solutions. This transformation has positioned Roper as a unique player in the technology landscape, known for its decentralized management style and long-term value creation.
What it actually does
Roper Technologies operates as a diversified technology company, but its core business is providing specialized software and technology-enabled products. Think of it like a company that owns several smaller, highly focused businesses, each making essential tools or software for specific industries. Instead of selling one big product to everyone, Roper's businesses create solutions that help professionals in fields like insurance, education, transportation, and healthcare do their jobs more efficiently. These solutions often automate complex tasks, manage data, or provide critical information, making them indispensable for their customers.
Application Software
This segment is all about providing software that helps businesses manage specific operations. For example, it offers solutions for K-12 school administration, helping schools manage student records and operations, and transportation management software that optimizes logistics for shipping companies. It also includes software for the property and casualty insurance industry to manage policies and claims, as well as financial and payment processing solutions. These are specialized tools designed to make complex business processes smoother and more efficient, forming a significant part of Roper's overall business.
Network Software
The Network Software segment focuses on cloud-based software and data solutions that enhance collaboration and efficiency, particularly in specialized industries. This includes software for the life insurance and financial services sectors, helping them manage data and operations, as well as supply chain software to improve how goods move from production to consumers. It also encompasses solutions for healthcare services and pharmacy operations, aiming to streamline processes and improve data management. This segment represents a substantial portion of Roper's revenue, providing critical digital infrastructure for its clients.
Technology Enabled Products
This segment offers a variety of physical products that are enhanced by technology, often serving niche industrial or medical markets. Examples include precision measurement systems used in scientific and industrial applications, and specialized pumps and dispensers for various industries. It also provides equipment for automated surgical processes and medical devices, showcasing a blend of hardware and technological innovation. While perhaps less prominent than the software segments, these technology-driven products contribute to Roper's diversified revenue streams.
What management is betting on now
Roper's management is focused on continuing its strategy of acquiring and nurturing specialized software businesses that have strong market positions. They aim to drive growth by improving the performance of their existing portfolio companies and identifying new acquisition opportunities in niche technology sectors. A key priority is to foster innovation within these businesses, ensuring they remain leaders in their respective fields by adapting to new technologies like artificial intelligence. This long-term approach emphasizes sustainable growth and profitability by focusing on essential, specialized solutions rather than broad consumer markets.
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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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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Revenue
$2.02B
Net income
$398.50M
Diluted EPS
3.68
Operating cash flow
$869.50M
Free cash flow
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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 $844.57 vs current price $444.21
Wall Street consensus is the average analyst price target: $466.79 (-44.7% lower than our fair-value estimate).
Our most-likely fair value is $844.57 a share — about 90.1% above today's price of $444.21, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $9.4B. Interest coverage 6.9x.
Net debt
$9.41B
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 $9.72B 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 $7.65B 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 13.2% 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.
-
Forward P/E (18.1x) is higher than trailing (17.6x) - earnings are expected to drop.
-
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)
17.58x
Forward P/E
18.08x
P/B
2.29x
P/S
5.21x
EV/EBITDA
16.11x
PEG ratio
1.68x
Profitability
How much profit each dollar creates
Gross margin
69.7%
Operating margin
28.7%
Net margin
30.7%
ROE
13.2%
ROA
4.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.51x
Current ratio
0.43x
Quick ratio
0.33x
Total debt
$9.72B
Total cash
$311.00M
Growth
How the business has been compounding
Revenue TTM
$8.28B
Revenue 5Y CAGR
13.1%
EPS TTM
25.27
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
0.8%
Payout ratio
14.5%
Last ex-div date
2026-10-02