ROP Roper Technologies, Inc. - Fundamental Analysis
BULLISH
ROP Stock | Fundamental Analysis & Investment Insights
NASDAQ
•
Technology
•
Software - Application
Current Price
$449.5
Analyst Target
$573.87
+27.7% Upside
52W High
$595.17
52W Low
$435.42
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
88%
Analysis Accuracy
ROP presents a compelling investment case despite near-term price underperformance, trading at a significant discount to its $573.87 analyst target price with strong fundamentals intact. The company demonstrates consistent earnings execution, beating estimates in 3 of the last 4 quarters and delivering double-digit YoY EPS growth of 11.3%, underpinned by best-in-class margins (68.96% gross, 28.40% operating). While insider selling raises caution, it appears opportunistic rather than strategic, and the stock remains deeply undervalued relative to both its growth trajectory and the broader technology sector’s sky-high valuation multiples. ROP’s disciplined capital allocation, low leverage, and durable software-driven business model position it well for re-rating as macro sentiment improves.
Key Strengths
Exceptional profitability with 68.96% gross margin and 28.40% operating margin, significantly above sector averages of 16.63% profit margin and 24.83% ROE
Consistent earnings outperformance: beat estimates in 22 of last 25 quarters, with average surprise of +3.1% over full history and +0.8% in recent period
Strong double-digit revenue growth of 14.3% YoY, outpacing many peers including ZM (4.7%), FI (0.9%), and MCHP (-2.0%)
Attractive valuation relative to growth: Forward P/E of 22.45 vs sector average P/E of 138.37, implying substantial discount despite superior execution
Healthy capital structure with low Debt/Equity of 0.47, well below peer average of 0.74 and significantly better than FI (1.21) and MCHP (0.81)
Key Risks
Near-term price weakness: -19.9% 1Y return and -22.6% 6M return suggest ongoing investor skepticism or rotation out of software names
Insider selling pressure: $14.56M in net insider sales over last 6 months, including large CEO sale, may signal top-level profit-taking or reduced conviction
Liquidity constraints: Current ratio of 0.58 and quick ratio of 0.46 indicate tight short-term liquidity, below 1.0 threshold and weaker than typical software peers
Missing key financial data: Absence of EV, cash, debt, FCF, and ROIC metrics limits full credit and cash flow quality assessment
Forward P/E still elevated at 22.45 despite discount to sector, leaving it vulnerable to multiple contraction if rates rise or growth slows
AI Fair Value Estimate
Based on comprehensive analysis
$573.87
+27.7% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
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Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
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Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
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Insider Trading & Analyst Ratings
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