📊 ROP Key Takeaways
Is Roper Technologies Inc. (ROP) a Good Investment?
Roper demonstrates exceptional operational performance with 69.4% gross margins, 27.2% operating margins, and strong 12.3% revenue growth, supported by robust FCF generation of $549.9M. However, critically low returns on equity (2.7%) and assets (1.5%), combined with weak liquidity ratios (0.53x current, 0.49x quick), suggest severe capital efficiency issues and potential balance sheet leverage from acquisitions that are not generating proportional returns.
Roper Technologies shows high-quality fundamentals driven by strong recurring cash generation, very high gross margins, and excellent free cash flow conversion. Revenue growth of 12.3% remains solid, but the slight decline in net income and EPS suggests some earnings pressure below the operating line. Overall, the business appears fundamentally strong with durable profitability, though leverage and weak short-term liquidity deserve monitoring.
Roper Technologies Inc. Key Strengths (ROP)
- Exceptional profitability margins (Gross 69.4%, Operating 27.2%, Net 24.3%)
- Strong revenue growth of 12.3% YoY demonstrating market demand
- Excellent free cash flow generation ($549.9M) with 26.2% FCF margin
- Low capital intensity (only 2% of revenue on capex) indicating asset-light model
- Moderate leverage with reasonable interest coverage (4.7x)
- Exceptional profitability, including 69.2% gross margin and 28.3% operating margin
- Very strong cash generation with $2.50B in free cash flow and a 31.6% FCF margin
- Manageable leverage profile supported by 18.5x interest coverage and moderate 0.47x debt-to-equity
ROP Stock Risks: Roper Technologies Inc. Investment Risks
- Critically low return on equity (2.7%) and return on assets (1.5%) despite strong margins - indicates poor capital allocation or significant goodwill impairment
- Weak liquidity position (Current ratio 0.53x, Quick ratio 0.49x) below safe operational thresholds
- Diluted EPS declining (-1.0% YoY) despite 12.3% revenue growth suggests margin compression or unfavorable share dynamics
- Substantial $9.7B long-term debt relative to only $382.9M cash position creates refinancing risk
- Net income and diluted EPS declined despite strong revenue growth, pointing to lower earnings conversion
- Low current ratio of 0.52x and quick ratio of 0.48x indicate limited balance sheet liquidity
- Long-term debt of $9.30B could become more restrictive if cash flow growth slows or financing costs rise
Key Metrics to Watch
- Return on Equity trend - critical to understand if capital inefficiency is structural or temporary
- Gross and operating margin sustainability as revenue grows
- Free cash flow generation and debt reduction trajectory
- Current ratio improvement and working capital management
- Net income and EPS growth relative to revenue growth
- Free cash flow generation and debt reduction progress
Roper Technologies Inc. (ROP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 26.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
ROP Profit Margin, ROE & Profitability Analysis
ROP vs Industrial Sector: How Roper Technologies Inc. Compares
How Roper Technologies Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Roper Technologies Inc. Stock Overvalued? ROP Valuation Analysis 2026
Based on fundamental analysis, Roper Technologies Inc. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Roper Technologies Inc. Balance Sheet: ROP Debt, Cash & Liquidity
ROP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Roper Technologies Inc.'s revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $12.89 reflects profitable operations.
ROP Revenue Growth, EPS Growth & YoY Performance
ROP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.9B | $331.1M | $3.06 |
| Q3 2025 | $1.8B | $367.9M | $3.40 |
| Q2 2025 | $1.7B | $337.1M | $3.12 |
| Q1 2025 | $1.7B | $331.1M | $3.06 |
| Q3 2024 | $1.6B | $347.2M | $3.23 |
| Q2 2024 | $1.5B | $337.1M | $3.12 |
| Q1 2024 | $1.5B | $283.1M | $2.65 |
| Q3 2023 | $1.4B | $327.0M | $3.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Roper Technologies Inc. Dividends, Buybacks & Capital Allocation
ROP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Roper Technologies Inc. (CIK: 0000882835)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ROP
What is the AI rating for ROP?
Roper Technologies Inc. (ROP) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ROP's key strengths?
Claude: Exceptional profitability margins (Gross 69.4%, Operating 27.2%, Net 24.3%). Strong revenue growth of 12.3% YoY demonstrating market demand. ChatGPT: Exceptional profitability, including 69.2% gross margin and 28.3% operating margin. Very strong cash generation with $2.50B in free cash flow and a 31.6% FCF margin.
What are the risks of investing in ROP?
Claude: Critically low return on equity (2.7%) and return on assets (1.5%) despite strong margins - indicates poor capital allocation or significant goodwill impairment. Weak liquidity position (Current ratio 0.53x, Quick ratio 0.49x) below safe operational thresholds. ChatGPT: Net income and diluted EPS declined despite strong revenue growth, pointing to lower earnings conversion. Low current ratio of 0.52x and quick ratio of 0.48x indicate limited balance sheet liquidity.
What is ROP's revenue and growth?
Roper Technologies Inc. reported revenue of $2.1B.
Does ROP pay dividends?
Roper Technologies Inc. pays dividends, with $97.4M distributed to shareholders in the trailing twelve months.
Where can I find ROP SEC filings?
Official SEC filings for Roper Technologies Inc. (CIK: 0000882835) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ROP's EPS?
Roper Technologies Inc. has a diluted EPS of $4.87.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ROP's fundamental grade?
Based on our AI fundamental analysis in June 2026, Roper Technologies Inc. has a A grade with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ROP stock overvalued or undervalued?
Valuation metrics for ROP: ROE of 2.7% (sector avg: 15%), net margin of 24.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ROP's AI grade for 2026?
Our dual AI analysis gives Roper Technologies Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ROP's free cash flow?
Roper Technologies Inc.'s operating cash flow is $592.1M, with capital expenditures of $42.2M. FCF margin is 26.2%.
How does ROP compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 24.3% (avg: 10%), ROE 2.7% (avg: 15%), current ratio 0.53 (avg: 1.8).