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1. Company Snapshot

1.a. Company Description

Roper Technologies, Inc.designs and develops software, and engineered products and solutions.The company offers management, campus solutions, diagnostic and laboratory information management, enterprise management, information solutions, transportation management, financial and compliance management, and cloud-based financial analytics and performance management software; cloud-based software to the property and casualty insurance industry; and software, services, and technologies for foodservice operations.


It also provides cloud-based data, collaboration, and estimating automation software; electronic marketplace; visual effects and 3D content software; wireless sensor network and solutions; cloud-based software for the life insurance and financial services industries; supply chain software; health care service and software; RFID card readers; data analytics and information; and pharmacy software solutions.In addition, the company offers precision rubber and polymer testing instruments, and data analysis software; ultrasound accessories; testing and analyzing plastic solutions; dispensers and metering pumps; control valves; precision weighing equipment; automated surgical scrub and linen dispensing equipment; water meters; optical and electromagnetic measurement systems; automated leak detection equipment; medical devices; products and services for water and gas utilities; and equipment and consumables.It also provides temperature control and emergency shutoff valves; turbomachinery control hardware, software, and services; specialized pumps; flow meter calibrators and controllers; vibration monitoring systems and controls; analytical instrument; drilling power section; and pressure and level sensors.


The company was formerly known as Roper Industries, Inc.and changed its name to Roper Technologies, Inc.in April 2015.


The company was incorporated in 1981 and is based in Sarasota, Florida.

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1.b. Last Insights on ROP

Roper Technologies' recent performance was impacted by higher costs and currency headwinds, which tempered its strong software-driven growth. The company's Q3 results revealed a significant increase in costs, which could affect its profitability. Despite beating earnings estimates with $5.14 per share, concerns surrounding its high debt and costs persist. Additionally, while the company's announcement of a new $3 billion share repurchase program may boost shareholder value, its impact on the stock's short-term performance remains to be seen (Source: Zacks Consensus Estimate).

1.c. Company Highlights

2. Roper Technologies' Q3 2025 Earnings: Strong Performance and AI-Driven Growth

Roper Technologies reported a robust third-quarter 2025 financial performance, with total revenue growth of 14% and organic revenue growth of 6%. The company's revenue reached $2 billion, EBITDA was $810 million, and diluted earnings per share (DEPS) came in at $5.14, exceeding estimates of $5.11. The free cash flow margin was 32% for the trailing twelve months, and the company deployed $1.3 billion in capital, primarily for acquisitions. Roper announced its first share repurchase authorization of $3 billion, demonstrating its commitment to returning value to shareholders.

Publication Date: Oct -24

📋 Highlights
  • Total Revenue Growth: 14% year-over-year, with $2 billion in revenue, driven by 6% organic growth.
  • Free Cash Flow Strength: 17% growth to $810 million, with a 32% trailing twelve-month margin.
  • Segment Performance: Network Software led with 53.7% EBITDA margins, while Application Software achieved 43.4% margins and 18% revenue growth.
  • Capital Deployment: $1.3 billion in M&A spending and a $3 billion share buyback authorization, supported by a 3x net debt-to-EBITDA ratio.

Segment Performance

The Application Software segment revenue grew 18% in total and 6% organically, with EBITDA margins of 43.4%. The Network Software segment revenue grew 13% in total and 6% organically, with EBITDA margins of 53.7%. The TEP segment revenue grew 7% in total and 6% organically, with EBITDA margins of 35.2%. The company is encouraged by AI progress and momentum across its businesses, citing examples such as Aderant's AI-enabled compliant time capture and billing, and Deltek's AI features in its cloud offerings.

Guidance and Outlook

Roper expects organic growth in the low single-digit area for the fourth quarter due to a difficult prior-year comparison and Neptune's timing. For the full year, total revenue is expected to remain in the 13% area, and organic revenue is expected to be around 6%. Adjusted EPS guidance is now $19.90 to $19.95, and the tax rate is expected to be at the lower end of the 21% to 22% range. Analysts estimate next year's revenue growth at 8.1%.

Valuation and Capital Deployment

Roper's current valuation metrics include a P/E Ratio of 32.76, EV/EBITDA of 17.79, and Free Cash Flow Yield of 4.78%. The company's net debt-to-EBITDA ratio stands at 3x, with over $5 billion in capital deployment capacity available over the next 12 months. Roper's strategy focuses on operating a portfolio of market-leading, application-specific, and vertically oriented businesses, with a decentralized environment allowing businesses to compete and win based on customer intimacy.

AI-Driven Growth and Innovation

The company is leveraging AI to drive growth and innovation across its businesses. For example, DAT's pricing and packaging have driven growth, and the company is investing in one-click automation to expand its TAM. Deltek's growth is expected to accelerate, driven by its cloud product and AI features. Roper's acquisition of Convoy, a technology that enables end-to-end automation, is a strategic investment to create a new market.

3. NewsRoom

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Transact + CBORD Names Greg Brown as CEO, Announces Rebrand to Illumia

Dec -03

Source: businesswire.com

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OhioHealth Deploys NetMenu to Standardize Patient Nutrition Across 16 Hospitals

Dec -02

Source: businesswire.com

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Roper Technologies, Inc. $ROP Shares Sold by Boston Family Office LLC

Dec -01

Source: defenseworld.net

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Roper's Application Software Strength Holds Firm: More Upside Ahead?

Nov -26

Source: zacks.com

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Critical Review: Roper Technologies (NASDAQ:ROP) vs. Ralliant (NYSE:RAL)

Nov -26

Source: defenseworld.net

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Aviso Financial Inc. Purchases 186 Shares of Roper Technologies, Inc. $ROP

Nov -25

Source: defenseworld.net

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Roper Technologies, Inc. $ROP Shares Purchased by AlphaCore Capital LLC

Nov -24

Source: defenseworld.net

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Roper Technologies, Inc. $ROP Shares Sold by Bank Julius Baer & Co. Ltd Zurich

Nov -23

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.62%)

6. Segments

Application Software

Expected Growth: 6.4%

Roper Technologies' software solutions drive growth in healthcare and education industries, fueled by increasing demand for digital transformation, data analytics, and process automation.

Technology Enabled Products

Expected Growth: 10.5%

Roper Technologies' growth is driven by increasing demand for technology-enabled products, expansion into new markets, and strategic acquisitions.

Network Software

Expected Growth: 7.5%

Roper Technologies' network management software solutions are driven by increasing demand for digital transformation, IoT adoption, and cybersecurity threats, leading to a strong growth hypothesis.

7. Detailed Products

Software and Information Services

Roper Technologies provides software and information services that help businesses and organizations manage their operations, improve efficiency, and make data-driven decisions. These services include software solutions for customer relationship management, human capital management, and financial management.

Medical Imaging and Service

Roper Technologies offers medical imaging solutions, including X-ray, CT, and ultrasound systems, as well as service and repair for medical imaging equipment. These solutions help healthcare providers diagnose and treat patients more effectively.

Security and Inspection Systems

Roper Technologies provides security and inspection systems, including sensors, detectors, and inspection equipment, that help organizations protect their assets, people, and infrastructure. These solutions are used in various industries, including transportation, logistics, and government.

Industrial and Commercial Instruments

Roper Technologies offers industrial and commercial instruments, including flow meters, pressure transmitters, and temperature sensors, that help businesses measure and control their industrial processes. These solutions improve process efficiency, reduce costs, and enhance product quality.

Electronic Components

Roper Technologies provides electronic components, including connectors, switches, and sensors, that are used in various industries, including aerospace, automotive, and industrial. These components help businesses design and manufacture innovative products.

8. Roper Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Roper Technologies, Inc. operates in a niche market with limited substitutes for its products and services, particularly in the fields of medical and industrial imaging, and software solutions. The company's focus on high-end, specialized products reduces the threat of substitution.

Bargaining Power Of Customers

While Roper Technologies has a diverse customer base across various industries, its customers are often large enterprises with significant purchasing power. However, the company's products and services are often critical to its customers' operations, which can limit their bargaining power.

Bargaining Power Of Suppliers

Roper Technologies has a large and diverse supplier base, which reduces the bargaining power of any individual supplier. Additionally, the company has a strong financial position, which allows it to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The markets in which Roper Technologies operates are highly specialized and require significant investment in research and development, as well as regulatory approvals. This creates a barrier to entry for new competitors, reducing the threat of new entrants.

Intensity Of Rivalry

While Roper Technologies operates in a niche market with limited competitors, its products and services are often competing with those of established players in the industry. The company's strong brand reputation and focus on innovation help it to maintain a competitive edge, but there is still some level of rivalry in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 28.90%
Debt Cost 4.34%
Equity Weight 71.10%
Equity Cost 9.56%
WACC 8.05%
Leverage 40.65%

11. Quality Control: Roper Technologies, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 5.0/10

Value: 2.6

Growth: 5.7

Quality: 7.4

Yield: 1.0

Momentum: 3.0

Volatility: 10.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

447.56$

Current Price

447.56$

Potential

-0.00%

Expected Cash-Flows