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What this page is: Delvantic's full research page for Roper Technologies Inc. (ROP) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.
Our current read (analysis of 2026-08-23): Designation Watch · Gem Score -11 (−100…+100 Quality+Value blend) · Quality 53 · Value -64 · Sentiment -30 (timing only, not weighted) · Composite fair value $171.06 vs $411.79 at analysis
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profile-header/price-overview— company profile, live quote, market capextended-analysis— the core: three AI lens reads with findings, scores, and the analyst memofuture-predictions— our forward price-band predictionsmarket-narrative/ai-findings/gpt-critique— narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)- Members-only sections (render as login gates for anonymous readers):
price-history,income-trend,key-metrics,financials(statement tables),insider-trading. The analysis above is public; the raw data tables require a free account.
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Roper Technologies Inc.
ROP NASDAQRoper Technologies Inc. is a diversified technology company that operates a portfolio of businesses focused on software and engineered products for specialized end markets worldwide. The company emphasizes asset-light, technology-driven offerings, with a significant portion of its revenue derived from application and network software solutions. Roper Technologies Inc. is organized into segments that include application software, network software and systems, and technology-enabled products, serving sectors such as healthcare, education, industrial, logistics, and professional services. Its businesses provide products and services like enterprise and industry-specific software, SaaS-based trading networks, laboratory information management systems, campus card and cashless solutions, wireless sensor networks, and precision measurement and analytical instruments. Headquartered in Sarasota, Florida, and founded in 1890, Roper Technologies Inc. plays a notable role in enabling digital workflows, data-driven decision-making, and operational efficiency for a wide range of institutional, commercial, and industrial customers.
Price Overview
Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 14.20
Total Equity: $19.88B
Shares: 108,200,000
Total Debt: $9.30B
Cash: $297.40M
EBITDA: $3.13B
Total Debt: $9.30B
Cash: $297.40M
Revenue: $7.90B
Revenue: $7.90B
Revenue: $7.90B
Total Equity: $19.88B
Tax Rate: 20.6%
Equity: $19.88B
Total Debt: $9.30B
Cash: $297.40M
Current Liabilities: $3.73B
Long-Term Debt: $8.60B
Total Debt: $9.30B
Total Equity: $19.88B
Shares: 108,200,000
Shares: 108,200,000
CapEx: $0.00
Shares: 108,200,000
Stock Price: $411.63
Net Income: $1.54B
Industry Benchmarks
Income Statement (Annual)
Last updated: Aug 22, 2026 4:11pm (1d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $5.8B | $5.4B | $6.2B | $7.0B | $7.9B |
| Cost of Revenue | $1.9B | $1.6B | $1.9B | $2.2B | $2.4B |
| Gross Profit | $3.9B | $3.8B | $4.3B | $4.9B | $5.5B |
| Operating Expenses | $2.4B | $2.2B | $2.6B | $2.9B | $3.2B |
| Operating Income | $1.5B | $1.5B | $1.7B | $2.0B | $2.2B |
| Net Income | $1.2B | $4.5B | $1.4B | $1.5B | $1.5B |
| EBITDA | $2.1B | $2.2B | $2.5B | $2.8B | $3.1B |
| EPS | $10.95 | $42.92 | $12.98 | $14.47 | $14.30 |
| EPS (Diluted) | $10.82 | $42.55 | $12.89 | $14.35 | $14.20 |
Balance Sheet (Annual)
Last updated: Aug 22, 2026 3:54pm (1d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $351.5M | $792.8M | $214.3M | $188.2M | $297.4M |
| Total Current Assets | $2.4B | $1.9B | $1.5B | $1.5B | $1.9B |
| Total Assets | $23.7B | $27.0B | $28.2B | $31.3B | $34.6B |
| Current Liabilities | $3.1B | $2.9B | $3.0B | $3.8B | $3.7B |
| Long-Term Debt | $7.1B | $6.0B | $5.8B | $6.6B | $8.6B |
| Total Liabilities | $12.2B | $10.9B | $10.7B | $12.5B | $14.7B |
| Total Equity | $11.6B | $16.0B | $17.4B | $18.9B | $19.9B |
| Retained Earnings | $9.5B | $13.7B | $14.8B | $16.0B | $17.2B |
Cash Flow (Annual)
Last updated: Aug 22, 2026 4:11pm (1d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $2.0B | $734.6M | $2.0B | $2.4B | $2.5B |
| Capital Expenditure | — | — | — | — | — |
| Free Cash Flow | — | — | — | — | — |
| Acquisitions (net) | -$217.0M | -$4.3B | -$2.1B | -$3.6B | -$3.3B |
| Net Debt Issued / (Repaid) | $0 | $0 | $0 | $2.0B | $2.0B |
| Dividends Paid | -$236.4M | -$262.3M | -$290.2M | -$321.9M | -$355.0M |
| Stock Buybacks | — | — | $0 | $0 | -$500.0M |
| Net Change in Cash | $43.2M | $441.3M | -$578.5M | -$26.1M | $109.2M |
Growth Trends (YoY %)
Last updated: Aug 22, 2026 4:11pm (1d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | -7.0% | +15.0% | +13.9% | +12.3% |
| Gross Profit Growth | -4.2% | +14.8% | +13.3% | +12.2% |
| Operating Income Growth | +3.0% | +14.5% | +14.4% | +11.9% |
| Net Income Growth | +294.3% | -69.5% | +11.9% | -0.8% |
| EBITDA Growth | +2.9% | +15.0% | +12.4% | +11.5% |
Dividend History (Last 20)
Last updated: Aug 22, 2026 3:54pm (1d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-10-02 | $0.91 | — | — | — |
| 2026-07-08 | $0.91 | — | — | — |
| 2026-04-06 | $0.91 | — | — | — |
| 2026-01-02 | $0.91 | — | — | — |
| 2025-10-03 | $0.83 | — | — | — |
| 2025-07-08 | $0.83 | — | — | — |
| 2025-04-04 | $0.83 | — | — | — |
| 2025-01-03 | $0.83 | — | — | — |
| 2024-10-08 | $0.75 | — | — | — |
| 2024-07-08 | $0.75 | — | — | — |
| 2024-04-04 | $0.75 | — | — | — |
| 2024-01-08 | $0.75 | — | — | — |
| 2023-10-05 | $0.68 | — | — | — |
| 2023-07-07 | $0.68 | — | — | — |
| 2023-04-05 | $0.68 | — | — | — |
| 2023-01-06 | $0.68 | — | — | — |
| 2022-10-05 | $0.62 | — | — | — |
| 2022-07-07 | $0.62 | — | — | — |
| 2022-04-04 | $0.62 | — | — | — |
| 2022-01-07 | $0.62 | — | — | — |
Deep Analysis
Risk : Reward — if the last quarter repeats
Live · as of 2026-08-22 16:19Recovery pays +32%; another quarter like the worst recent one costs 20%. Ratio 1.6:1.
| Case | Growth | Margin | Fair value | vs price ($411.79) |
|---|---|---|---|---|
| Bull — recovery | +20% | 34.8% | $545.16 | +32% |
| Base — stabilizes | +13% | 30.2% | $391.14 | -5% |
| Bear — keeps slipping | +7% | 25.7% | $273.94 | -33% |
| Stress — last quarter repeats | +8% | 29.7% | $330.37 | -20% |
Narrative Economics
market-narrative step).
Growth Outlook
Analyzed 2026-08-22 16:17The question every valuation on this page silently assumes: is this company likely to grow? Judged forward — the business, its category, the world — against what's already printed.
Claude Reading
The raw numbers tell a coherent story: revenue growth is real (13.1% CAGR, 12.3% recent YoY, quarterly march from $1.76B to $2.11B), gross margin is genuinely software-like at 69%, and operating cash flow of $2.54B on $7.9B revenue is a 32% OCF margin — these are compounder-grade fundamentals. But two things jump out that the synthesis buries. First, the June 2026 quarter shows $1.17B net income on $2.11B revenue — a 55.4% net margin that is completely inconsistent with the surrounding quarters (17-25%) and with the full-year 2025 net margin of 19.4%. That is either a massive one-time gain (divestiture, tax benefit, mark-to-market) or a data error; either way, trailing EPS and thus the 29x PE are distorted downward. Strip that quarter and normalized PE is closer to 34-36x. Second, ROIC of 6.1% and ROE of 7.7% for a "high-quality compounder" are mediocre — this is what happens when you fund $9.3B of debt-plus-equity acquisitions and the goodwill sits on the balance sheet earning cash-on-cash returns well below the multiple implies.
The DCF fair value of $171 feels too punitive to me and I'd push back on the synthesis there. A business generating $2.54B in operating cash flow, growing 12-13%, with 69% gross margins and demonstrated pricing power in vertical SaaS niches, does not trade at $171 (~$17B market cap, 6.7x OCF) outside of a genuine crisis. A more honest bear case anchors around 20-22x normalized earnings of ~$16-17/share = $320-370, plus some credit for the M&A optionality that has actually worked for two decades. So my fair value band is $300-360, not $175. That still makes ROP overvalued at $412, just not catastrophically so — call it 15-25% overvalued, not 58%.
The contrarian argument the models underweight: Roper's organic growth is likely 6-8%, with the balance coming from acquisitions funded by debt (D/E 0.47, current ratio 0.52 — that current ratio is genuinely tight for a company this leveraged). Earnings CAGR of 5.4% versus revenue CAGR of 13.1% is the tell — they are buying revenue that dilutes returns. The market-forces model flagging "deteriorating capital allocator masking organic weakness" is directionally right even if harshly worded. Recent earnings YoY of -0.8% against 12.3% revenue growth is exactly what late-cycle roll-ups look like before the multiple compresses. The insider activity is too thin to read (three small transactions, roles unlabeled) but the pattern of option-exercise-and-immediately-sell is not a vote of confidence, just routine comp monetization.
Where I dissent from the synthesis: the "$175 fair value, 58% downside" verdict is directionally correct but numerically overreaches, and it leans on a DCF that appears to have punished terminal growth or discount rate unrealistically for an asset with this cash flow profile. Where I agree with the synthesis: at $412 you are paying a heavy narrative premium for a compounder thesis that has never been stress-tested in a genuine software downturn, and the ROIC decay is real. Where I flag the data: that 55.4% Q2 2026 margin needs an explanation before anyone trusts trailing metrics; the missing FCF and capex lines mean I'm inferring FCF from OCF; and "conglomerate serial acquirer" is a fundamentally different valuation exercise than the mature-earner archetype the rule-based classifier assigned (0.78 confidence is overstated). The narrative layer's read — anchored, moderate durability, ~70% narrative premium — is the most intellectually honest of the prior outputs, and I'd defer to that framing over the synthesis's precise number.
Net: I side with the overvalued direction but at lower conviction and a shallower discount than the synthesis. Fair value ~$330, current $412 = ~20% overvalued, which is a pass-not-short in a quality name where the compounding could bail out the multiple over 3-4 years if organic growth reaccelerates. I'd want to see the Q2 anomaly explained, ROIC stop declining, and organic growth disclosed clearly before touching this at anything above $340.
GPT Reading
What jumps out is that Roper still looks like a very good business, but not an obviously good stock at $411. Revenue has compounded from $5.37B in 2022 to $7.90B in 2025, and the quarterly run-rate now sits a little above $8.4B annualized with 2026 Q1 and Q2 both over $2.1B. Gross margin at 69.2% and operating margin at 28.3% are exactly what investors want from a software-heavy portfolio, and operating cash flow of $2.54B on $7.90B of sales is strong. The issue is not quality; it is what kind of growth and return profile you are actually buying. Net income barely moved from $1.55B in 2024 to $1.54B in 2025 despite revenue rising 12%, and the most recent YoY earnings signal is negative even as revenue keeps climbing. That is not the profile of a clean software compounder deserving any price.
The quarterly pattern reinforces that concern. Revenue grew from $1.76B in 2024 Q3 to $2.11B in 2026 Q2, a healthy trajectory, but net margins are inconsistent: 20.8%, 24.6%, 17.6%, 19.5%, 19.8%, 20.8%, 24.3%, then a bizarre 55.4% in the latest quarter. I would not capitalize that 55% margin as sustainable operating strength; it almost certainly reflects a gain, tax event, or accounting item rather than an underlying step-change in economics. If you normalize toward the 19-24% band, Roper is producing roughly $1.7B-$2.0B of annual earnings power on today’s revenue base, not some suddenly transformed profit machine. Against a $40.7B market cap, that is still around 20-24x a normalized earnings number before giving much credit for debt. On enterprise value, the stock already sits near 17x EBITDA and 6.7x revenue, rich multiples for a company with ROIC of 6.1% and ROE of 7.7%, both far less impressive than the brand halo suggests.
The balance sheet and capital allocation angle matter more here than for a standard software name because Roper’s model depends on disciplined acquisition economics. Debt of $9.30B against just $297M of cash is manageable with $2.54B of operating cash flow, but it reduces the margin for error if acquisition valuations stay high or organic growth softens. The current ratio of 0.52 is not alarming for this type of company, yet it does underscore that this is not a fortress balance sheet SaaS company with net cash optionality. If the market is paying a premium for Roper as a compounding allocator, I want to see either clearly superior returns on capital or stronger earnings conversion than the recent data show. Instead, the numbers say revenue growth has outrun earnings growth for years: 2023 to 2025 revenue up 28%, net income up only 12% if you ignore the anomalous 2022 spike. That spread is the central problem with the bull case.
The smartest pushback is that I may be underweighting the quality of the mix shift and the value of durability. A 69% gross margin business at nearly $8B of revenue with recurring, niche, mission-critical software assets deserves a premium to ordinary industrial conglomerates and even to many horizontal software peers. Revenue has been consistently rising quarter after quarter, recent YoY growth is still 12.3%, and 2026 quarterly earnings excluding the odd June quarter were already improving from $331M in 2025 Q1 to $509M in 2026 Q1. If that progression reflects operating leverage rather than noise, then today’s multiple could compress faster than I expect. The debt load is also not excessive relative to earnings power, and Roper has a long history of integrating acquisitions better than most roll-ups. A buyer can reasonably argue that 29x trailing earnings is acceptable for a defensive, high-margin serial acquirer when many lower-quality software names trade on weaker cash generation.
What would change my mind is simple: I need proof that earnings quality is catching up to revenue quality. If the next few quarters sustain revenue above $2.1B while delivering recurring net margins above 23-25% without one-offs, or if annual operating income moves decisively above $2.5B with cash flow following, then the current price would look less stretched. Likewise, evidence that ROIC is moving from 6% toward double digits on the enlarged asset base would validate the premium allocator narrative. Until then, the stock looks priced for a cleaner, faster, and higher-return compounding story than the actual data support.
Grok Reading
The numbers describe a competent serial acquirer that has successfully migrated toward higher-margin vertical software, not a compounding machine that justifies a near-29x earnings multiple. Revenue has compounded at roughly 13% annually and is still printing mid-teens sequential dollars—$2.11B and $2.10B in the two most recent quarters versus $1.94B and $1.88B a year earlier—while gross margin sits at a genuine software-like 69%. Operating margin of 28% and free-cash-flow conversion implied by $2.54B of operating cash flow on $7.9B of 2025 revenue are real strengths. Yet the earnings power underneath is far less impressive: annual net income was essentially flat at $1.54B in 2025 versus $1.55B in 2024, the multi-year earnings CAGR is only 5.4%, and recent earnings growth is negative. The $1.17B net-income print in the June 2026 quarter (55% margin) is an obvious one-time item that temporarily flatters trailing PE; strip it out and the underlying mid-20% net margins and mid-single-digit earnings growth reappear. Returns on capital tell the same story: ROIC of 6.1% and ROE of 7.7% are mediocre for a company the market treats as a software compounder, especially one carrying $9.3B of debt against only $297M of cash and a current ratio of 0.52. At $411 the stock is pricing durability and capital-allocation genius that the realized ROIC and earnings trajectory have not yet delivered.
The valuation gap is the central fact. A 29x PE, 5.6x sales and 17x EV/EBITDA on mid-single-digit earnings growth and sub-8% ROE is a narrative multiple, not a cash-flow multiple. The models that spit out ~$175 fair value are directionally correct even if their absolute precision is debatable; the market is paying a roughly 70-100% premium for the story that Roper is the Berkshire of niche SaaS. That story is not baseless—switching costs in regulated verticals are high and management has a long M&A track record—but it is running well ahead of the organic evidence. Revenue growth is already flagged as decelerating, and the portfolio’s reported growth continues to lean on acquisition contribution rather than demonstrated pricing power or share gains inside the installed base.
The strongest counter-argument is straightforward: high-teens recurring revenue, 69% gross margins and two decades of value-accretive deals have historically allowed Roper to compound through cycles, and quality-factor and compounder funds will keep bid under the stock as long as that reputation holds. A bull can also note that the 2022 net-income spike and the latest quarter’s surge show the company can surface large gains when it exits assets, and that EV/EBITDA of 17 is not insane versus pure-play vertical software. Those points have merit on a multi-year horizon, but they do not erase the current math: you are paying 29x for 5% earnings growth and a 6% ROIC business whose organic momentum is softening. I weigh the realized returns and the decelerating top-line more heavily than the pedigree.
I would reverse to neutral or constructive only if organic revenue re-accelerates sustainably above 10%, ROIC moves back toward the mid-teens on the existing portfolio (not just on new deals), and net leverage declines while earnings growth re-couples to revenue growth for several consecutive quarters without one-time items.
Big-3 Panel — where each AI stands
Advanced Analysis Forensic deep-dive · separate lenses
Roper delivers exactly what a mature compounder should: revenue grew from 5.78B in 2021 to 7.90B in 2025 (roughly 8% CAGR), gross margin sits at a durable 69% and operating margin has held between 25.6% and 28.4% throughout. FCF stepped from 2.01B to 2.54B, and OCF/NI of 1.32x with accruals at just 0.5% of assets indicates earnings are genuinely cash-backed. Beneish M of -2.53 shows no manipulation signature. The 2022 net income spike to 4.54B is a one-off gain (likely divestiture-related) not a recurring earnings feature. Dilution is essentially inert: diluted share count moved from 106.5M to 108.2M over four years (0.4% CAGR), SBC is a modest 2.1% of revenue, though buybacks only offset 72.4% of SBC, meaning capital return via repurchase is minimal. Roper's model is acquisition-driven, so the softness is on the balance sheet: 9.00B net debt against just 297M liquid cash, with 705M of short-term debt exceeding cash on hand. FCF of 2.54B easily services this, and Altman Z of 2.74 sits in grey but not distressed. Insider activity is immaterial and neutral (two small sales totaling ~3M). The business quality read is that of a well-run, high-margin, cash-generative software conglomerate whose main constraint is leverage taken on to fund the roll-up strategy.
Verify before trusting this (6)
- Nature of the 2022 net income spike to 4.54B (likely industrial divestitures) and whether continuing ops trajectory is cleaner than headline
- Organic vs acquired revenue growth split — is the 8% CAGR meaningfully organic?
- Debt maturity schedule and refinancing calendar given 705M short-term debt vs 297M cash
- Segment-level margins and customer concentration across the software portfolio (Deltek, Aderant, Vertafore, etc.)
- Goodwill and intangibles as % of assets and any impairment history
- Capital allocation policy going forward — M&A cadence vs deleveraging vs return of capital
The e2e composite pins deserved value at $171 and the signal-adjusted read at $175, implying roughly 58% downside from the $411.79 tape. Even generously grossing that up for the quality lens (Strong, fat software margins, clean cash conversion) and the 9B net debt already embedded in enterprise value, the gap is too wide to hand-wave. The EPV-floor anchor is telling: even a floor method lands nowhere near the price, which means the market is paying for continued accretive M&A and durable organic growth, not for the earnings the portfolio produces today. What is priced in: mid-to-high single digit organic growth indefinitely, sustained software-like margins across newly acquired assets, and disciplined capital allocation that keeps compounding ROIC despite a leveraged balance sheet. That is the bull case as base case, with no margin of safety for M&A missteps, integration slippage, or multiple compression in a higher-rate world. Earnings quality is good, so no haircut there - but good earnings quality does not justify paying ~2.4x deserved value. This is the classic 'great business, full price' setup: nothing screams sell, nothing whispers buy.
Verify before trusting this (4)
- Organic (ex-M&A) revenue growth by segment in latest 10-Q
- Cash from ops less capex trend vs reported EBITDA for quality of the compounding story
- Incremental margins on recent acquisitions to test whether the software premium is sustaining
- Interest coverage and floating-rate exposure in the debt stack
The macro backdrop is a modest risk-on tilt with VIX at 15 and the S&P just 1.6% off highs, which is a mild tailwind for equities broadly. But ROP is a low-beta (0.74), defensive software compounder - the risk-on impulse barely touches it, and it has been underperforming the tape per the analyst-target news item, meaning the rising tide is not lifting this boat. Rates at 4.69% and a market PE of 25.7 are a real crosswind for a name whose entire premium rests on multi-decade DCF assumptions and serial M&A funded partly by debt (D/E drifting 0.36 to 0.47). The narrative is the key variable: 'platform-monopoly compounder' is still intact and strong in intensity, but durability is only moderate and the cult factor medium - this is not a story stock with a fanbase defending it, it is an institutional quality-compounder trade. Recent news flow is thin and mostly noise (two items are actually about Roche, ticker confusion), leaving analysts 'moderately optimistic' but not pounding the table. Momentum is neutral with a 3pp deceleration over three years - exactly the kind of subtle organic-growth erosion that eats compounder multiples slowly. Net: no acute pressure either way, but the asymmetry is unfavorable - little narrative fuel to push higher, real vulnerability if rates back up or an M&A print disappoints.
Verify before trusting this (5)
- Next quarterly organic growth print - a further deceleration would crack the compounder narrative
- Any large M&A announcement and how the tape receives it (accretion math vs leverage optics)
- 10y Treasury behavior - a move above 5% would pressure long-duration quality names first
- Analyst target revisions - watch for downgrades from the current 'moderately optimistic' consensus
- Sector rotation signals - if defensive quality software falls out of favor for cyclicals or AI beneficiaries
The world is paying more, not less, for regulated workflow software: compliance burden, digitization of mid-market verticals and data-network effects all favour owners of embedded systems of record. That backdrop keeps Roper's revenue base sticky and price-escalating. Against it, two forces push the other way: capital costs (10y 4.69%) raise the bar on the acquisition engine that supplies half of reported growth, and AI is redistributing category growth toward platforms selling new capability rather than incumbents selling incumbency. Roper's outcome is therefore less about demand existing and more about whether it can keep buying growth at acceptable returns while organic holds mid-single digits.
When we made this prediction on Aug 23, 2026, ROP was $411.79. We expect it to be $378.00 by Feb 2027, and we consider it great value under $260.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 23, 2026.
Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.