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ROP:NASDAQRoper Technologies, Inc. Analysis

Data as of 2026-05-25 - not real-time

$326.94

Latest Price

4/10Risk

Risk Level: Medium

Executive Summary

Roper Technologies (ROP) is trading at $326.94, notably below its DCF‑derived fair value of $349.95, indicating a ~7% discount and an upside potential of roughly 39% per the computed upside/downside metric. The stock sits under its 20‑day SMA (338.76) and 50‑day SMA (348.31) and the 200‑day SMA remains far higher at 423.59, confirming a bearish price trend, yet the 14‑day RSI of 39 suggests the shares are approaching oversold territory. Momentum indicators reinforce this view, with the MACD line at –8.33 crossing below its signal line (–7.34), producing a bearish histogram, but the stable volume and low beta of 0.35 point to limited price volatility relative to the market. On the fundamentals side, ROP delivers 11.3% revenue growth, a robust gross margin of 69%, and a forward P/E of 13.68 versus an industry average of 39.5, underscoring a compelling blend of growth and value characteristics. The company’s dividend of $0.91 per share (1.11% yield) with a modest payout ratio of 21% is supported by strong operating cash flow ($2.6B) and free cash flow ($2.17B), making the dividend sustainable. Recent material news includes a Zacks Rank 1 Strong Buy upgrade and board approval of the upcoming dividend, both reinforcing investor confidence. While short‑term technicals remain bearish, the combination of undervaluation, solid cash generation, and a low‑risk profile suggests buying opportunities for patient investors.

Market Outlook

Short Term

< 1 year
Positive
Model confidence: 7/10

Key Factors

  • Price below fair value and technical oversold signals
  • Sustainable dividend with low payout ratio
  • Stable volume and low beta limiting downside risk

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Forward P/E of 13.68 versus industry average of 39.5
  • Revenue growth of 11.3% and strong operating margins
  • Analyst upgrade to Zacks Rank 1 Strong Buy

Long Term

> 3 years
Positive
Model confidence: 9/10

Key Factors

  • Diversified technology and software portfolio with recurring revenue
  • Consistent free cash flow supporting dividend and reinvestment
  • Undervalued relative to DCF and attractive upside potential

Key Metrics & Analysis

Financial Health

Revenue Growth11.30%
Profit Margin21.12%
P/E Ratio20.4
ROE9.01%
ROA4.32%
Debt/Equity55.61
P/B Ratio1.8
Op. Cash Flow$2.6B
Free Cash Flow$2.2B
Industry P/E39.5

Technical Analysis

TrendBearish
RSI39.4
Support$305.96
Resistance$363.60
MA 20$338.76
MA 50$348.31
MA 200$423.59
MACDBearish
VolumeStable
Fear & Greed Index91.7

Valuation

Fair Value$349.95
Target Price$453.82
Upside/Downside38.81%
GradeUndervalued
TypeBlend
Dividend Yield1.11%

Risk Assessment

Beta0.35
Volatility26.52%
Sector RiskMedium
Reg. RiskLow
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.