Roper Technologies (ROP)
Technology · NASDAQ · US
Fundamentals
Valuation and ratings
Roper Technologies trades at $364.21, which is 69% below the $616.77 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 72 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 22.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Roper Technologies
Roper Technologies, Inc. designs and develops vertical software and technology enabled products in the United States, Canada, Europe, Asia, and internationally. Its Application Software segment offers comprehensive management, diagnostic and laboratory information management, enterprise software and information solutions, K-12 school administration, transportation management, financial and compliance management, cloud-based and integrated payment processing, campus technology and payment, and cloud-based financial analytics, performance management software, and data solutions; cloud-based software for the property and casualty insurance industry; and foodservice technologies. The Network Software segment provides cloud-based data, collaboration, and estimating automation software; electronic marketplace; visual effects and 3D content software; cloud-based software and AI-enabled analytics solutions for the life insurance and financial services industries; supply chain software; health care services and software; data analytics and information; pharmacy software solutions; and AI-enabled SaaS providing digital engagement, as well as church management and integrated giving solutions for faith-based organizations. The Technology Enabled Products segment offers ultrasound procedures accessories; dispensers and metering pumps; wireless sensor network and solutions; automated surgical scrub and linen dispensing equipment; water meters; optical and electromagnetic precision measurement systems; RFID card and credential readers; and medical devices. It distributes and sells its products through direct sales offices, manufacturers' representatives, resellers, and distributors. The company was formerly known as Roper Industries, Inc. and changed its name to Roper Technologies, Inc. in April 2015. Roper Technologies, Inc. was incorporated in 1981 and is based in Sarasota, Florida.
ROP passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
13 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Bill Nygren, HARRIS ASSOCIATES L P$1.22B · 0.8% of book
- Dodge & Cox, DODGE & COX$1.18B · 0.7% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$474.07M · 0.3% of book
- Chuck Akre, AKRE CAPITAL MANAGEMENT LLC$444.88M · 7.3% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$408.47M · 0.3% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Roper Technologies (ROP) undervalued?
Against our discounted cash flow estimate of $616.77, ROP at $364.21 is 69% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own ROP?
13 of the institutions we track reported a position in ROP in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is ROP's P/E ratio?
ROP trades at 22.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.