Roper Technologies, Inc. (ROP) Fundamental Analysis: Bull vs. Bear Case

ROP

Roper Technologies, Inc.

Fundamental data last updated:September 4, 2026

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company profile

SECTOR

Technology

industry

Software - Application

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Roper Technologies, Inc. designs and develops software, and engineered products and solutions. The company offers management, campus solutions, diagnostic and laboratory information management, enterprise management, information solutions, transportation management, financial and compliance management, and cloud-based financial analytics and performance management software; cloud-based software to the property and casualty insurance industry; and software, services, and technologies for foodservice operations. It also provides cloud-based data, collaboration, and estimating automation software; electronic marketplace; visual effects and 3D content software; wireless sensor network and solutions; cloud-based software for the life insurance and financial services industries; supply chain software; health care service and software; RFID card readers; data analytics and information; and pharmacy software solutions. In addition, the company offers precision rubber and polymer testing instruments, and data analysis software; ultrasound accessories; testing and analyzing plastic solutions; dispensers and metering pumps; control valves; precision weighing equipment; automated surgical scrub and linen dispensing equipment; water meters; optical and electromagnetic measurement systems; automated leak detection equipment; medical devices; products and services for water and gas utilities; and equipment and consumables. It also provides temperature control and emergency shutoff valves; turbomachinery control hardware, software, and services; specialized pumps; flow meter calibrators and controllers; vibration monitoring systems and controls; analytical instrument; drilling power section; and pressure and level sensors. The company was formerly known as Roper Industries, Inc. and changed its name to Roper Technologies, Inc. in April 2015. The company was incorporated in 1981 and is based in Sarasota, Florida.

VALUATION

P/E

19.83 Market Cap ($M USD)

$32.89B

Forward P/E

10.55 PEG

0.12 PRICE TO SALES

4.05 PRICE TO BOOK

1.81 EV / EBITDA

13.27 5-Year Average P/E

Free Cash Flow Yield

7.76%

DCF Value

$1192.00

Graham Number

$258.29

Price to FCF

12.89 EV to FCF

16.84 Earnings Yield

5.04%

FCF Yield

7.76%

DIVIDEND

Yield

1.06%

Annual Payout

$3.47

Payout Ratio

21.22%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$16.43

Next Year EPS Growth Estimate

$30.90

Next Year Revenue Growth Estimate

$11.59B

Return on Equity (ROE)

8.75%

FREE CASH FLOW

Operating Margin

28.09%

Debt-to-Equity

0.47 Piotroski F-Score

8 Altman Z-Score

2.35 Return on Invested Capital (ROIC)

7.36%

Current Ratio

0.53 Quick Ratio

0.49 Net Debt to EBITDA

3.11 Interest Coverage

6.31 Gross Profit margin

69.40%

FCF PER SHARE

$24.46

REVENUE PER SHARE

$77.80

Gainseekers Quantitative Analysis

Summary

Roper Technologies appears to be a classic case of market mispricing. With a DCF value significantly higher than its snapshot price, the stock seems undervalued. The Forward P/E of 11.15 suggests growth expectations are not fully priced in, while the robust Earnings Yield of 4.79% indicates solid earnings potential. However, the Altman Z-score of 2.44 signals moderate financial distress, hinting at some underlying risks. Overall, the market may be underestimating Roper’s growth trajectory and financial health.

AI Exposure / Tech Reliance

Operating within the Industrials sector, Roper Technologies is well-positioned to leverage AI and modern tech advancements. As a player in the Industrial Machinery industry, the company can integrate AI to enhance operational efficiency and product innovation. This adaptability could provide a competitive edge in an increasingly tech-driven market.

The Bull Case

For value and GARP investors, Roper Technologies offers compelling institutional tailwinds. The impressive ROIC of 7.36% and a high Piotroski F-Score of 8 reflect strong capital efficiency and operational health. With a Free Cash Flow Yield of 7.36%, the company demonstrates robust cash generation capabilities. Its operating margin of 28.09% underscores significant pricing power, making it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, Roper faces structural risks that cannot be ignored. The Price/Book ratio of 1.90 and Price/Sales of 4.27 suggest the stock is not cheap on a relative basis. Additionally, the Current Ratio of 0.53 and Quick Ratio of 0.49 indicate potential liquidity concerns. The stock's proximity to its 52-week high further raises questions about its technical overextension, making it a risky bet for cautious investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$457.64

Institutional Ownership %

1-Year Beta

0.80 Insider Buying % (6 Mo)

Distance to 52-Week High

76.88%

Distance to 52-Week Low

6.13%

EARNINGS SURPRISE %

3.41%

50-DAY SMA

$346.32

200-DAY SMA

$420.38

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.