📊 ROP Key Takeaways
Is Roper Technologies Inc. (ROP) a Good Investment?
Roper Technologies demonstrates exceptional profitability with industry-leading margins (69.2% gross, 28.3% operating) and strong revenue growth of 12.3% YoY. The company generates substantial free cash flow ($2.5B, 31.6% FCF margin) despite modest net income decline, indicating underlying business strength and effective capital efficiency. Solid balance sheet with 0.47x debt/equity and 18.5x interest coverage provides financial flexibility, though tight liquidity ratios warrant monitoring.
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.
Why Buy Roper Technologies Inc. Stock? ROP Key Strengths
- Exceptional gross margin of 69.2% and operating margin of 28.3% reflect strong pricing power and operational efficiency
- Robust revenue growth of 12.3% YoY combined with 31.6% free cash flow margin demonstrates high-quality earnings
- Conservative leverage (0.47x debt/equity, 18.5x interest coverage) provides financial stability and debt capacity for growth investments
- Operating cash flow of $2.5B covers capital expenditures 59x over, enabling shareholder returns and strategic investments
- 9 Form 4 filings indicate active insider engagement
- 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
- Weak liquidity position with current ratio of 0.52x and quick ratio of 0.48x below prudent industrial standards raises short-term operational concerns
- Net income declined 0.8% YoY and diluted EPS fell 1.0% YoY despite 12.3% revenue growth, signaling margin compression or increased expenses offsetting topline gains
- Low ROE of 7.7% and ROA of 4.4% suggest suboptimal capital efficiency relative to equity base and asset utilization
- Cash position of only $297.4M is modest relative to $9.3B long-term debt and $2.2B operating income, limiting financial flexibility
- High capital intensity implied by $9.3B debt may constrain future growth investments or shareholder returns
- 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
- Operating margin and gross margin trends to assess pricing power sustainability amid revenue growth
- Free cash flow generation and FCF conversion rate to validate earnings quality
- Current and quick ratios to monitor liquidity improvement or deterioration
- Net income growth trajectory to confirm margin pressures are temporary or structural
- Return on equity and return on assets to track capital efficiency improvements
- 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 31.6% 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $1.3B | $268.8M | $2.52 |
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 Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ROP's key strengths?
Claude: Exceptional gross margin of 69.2% and operating margin of 28.3% reflect strong pricing power and operational efficiency. Robust revenue growth of 12.3% YoY combined with 31.6% free cash flow margin demonstrates high-quality earnings. 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: Weak liquidity position with current ratio of 0.52x and quick ratio of 0.48x below prudent industrial standards raises short-term operational concerns. Net income declined 0.8% YoY and diluted EPS fell 1.0% YoY despite 12.3% revenue growth, signaling margin compression or increased expenses offsetting topline gains. 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 $7.9B.
Does ROP pay dividends?
Roper Technologies Inc. pays dividends, with $355.0M 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 $14.20.
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 rating reflects both perspectives for balanced insights.
Is ROP a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Roper Technologies Inc. has a BUY rating with 81% 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 7.7% (sector avg: 15%), net margin of 19.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ROP stock in 2026?
Our dual AI analysis gives Roper Technologies Inc. a combined BUY rating 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 $2.5B, with capital expenditures of $42.2M. FCF margin is 31.6%.
How does ROP compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 19.4% (avg: 10%), ROE 7.7% (avg: 15%), current ratio 0.52 (avg: 1.8).