ROP
Roper Technologies, Inc.$365.11
Hold
Target $443.36
Report: Mar 07, 2026Industrials • Industrial - Machinery • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$365.11+21.4%
Rec: HoldConviction: Medium
Entry Target
$341.05
(7% below current)
Fair Value
$443.36
(21% above current)
Stop Loss
$311.34
(15% below current)
Position Size
Starter
Time Horizon
Long-Term
Key Metrics
Live Snapshot
Market Data
52 Week High$593.00
52 Week Low$313.07
Avg. 3 Month Volume1.65M
Efficiency
LTM Gross Margin69.2%
LTM EBITDA Margin29.1%
LTM EBIT Margin28.6%
LTM Operating Margin28.3%
LTM ROA4.6%
LTM ROE7.8%
LTM ROIC27.7%
LTM ROCE7.7%
Capital Structure
Market Cap (MM)$36.4B
Enterprise Value (MM)$45.4B
Shares Outstanding107.10M
Total Debt (MM)$9.30B
Cash & Equivalents (MM)$297.40M
LTM Net Debt (MM)$9.00B
LTM Net Debt/EBITDA3.9x
Growth
TTM Rev. Growth12.3%
Last 3-Yr Rev. CAGR12.0%
Last 3-Yr EBITDA CAGR-23.2%
Last 3-Yr EPS CAGR-30.7%
Valuation
Street Target Price$475.50
LTM EV/Revenue5.7x
LTM EV/Gross Profit8.3x
LTM EV/EBIT20.1x
LTM EV/EBITDA19.7x
LTM P/E23.7x
LTM EV/FCF18.7x
LTM P/FCF15.0x
LTM P/TB10.5x
LTM P/B1.8x
Dividend Yield1.0%
Payout Ratio23.7%
Executive SummarySituation: Current price is $365.11 versus fair value $443.36 (21.4% expected return), and valuation confidence is stable. Debate: Bull case depends on Rollout of AI-integrated software SKUs across the VMS portfolio. Bear case centers on Moat erosion in key segments like Deltek GovCon and Neptune. Conclusion: Recommendation is Hold with Starter sizing and Long-Term horizon.
Bull Case
Roper's 95% recurring software revenue base provides unparalleled cash flow visibility, while the rollout of AI-enabled features across 75% of its customer base is expected to drive a pricing power breakout. Furthermore, the company maintains $6 billion in capital deployment capacity to fund opportunistic acquisitions at attractive valuations.
Bear Case
Rising leverage (3.9x net debt/EBITDA) and negative tangible book value of -$11.2 billion create financial risk if organic growth continues to decelerate. Additionally, recent M&A effectiveness of 0.1x and a -21% trade ROI on share repurchases suggest that capital allocation may be destroying shareholder value.
Key Catalysts
Mid-Term (6-18 months)Impact: High
Rollout of AI-integrated software SKUs across the VMS portfolio. This addresses market concerns about AI disruption and validates the compan...
Mid-Term (6-18 months)Impact: Moderate
CentralReach and Subsplash turning organic in the second half of 2026. This will simplify the financial narrative and demonstrate the underl...
Long-Term (18+ months)Impact: Moderate
Roper Technologies is relevant for analysis at this moment following a 9.6% price drop after its FY 2025 earnings release, which has brought...
Primary Risks
Concern: Medium
Moat erosion in key segments like Deltek GovCon and Neptune. Structural shifts in government contracting or technological disruption in wate...
Concern: Medium
Financial risk from rising leverage. Net debt/EBITDA has risen to 3.9x, which could limit the company's ability to fund the M&A engine if in...
Concern: Medium
The stewardship verdict is positive but requires close monitoring of capital allocation. The Governance Outcome Tree is as follows: 1. Statu...
Recent Activity
2026-01-27SEC Filing (8-K)
-9.64%Roper Technologies reports full year 2025 results with revenue up 12% and initiates 2026 guidance.
2025-10-23SEC Filing (8-K)
-5.70%Roper Technologies reports Q3 2025 results with revenue up 14% and announces new share repurchase program.
2025-01-30SEC Filing (8-K)
+5.08%Roper Technologies reports Q4 2024 and full year 2024 results with revenue up 14% and initiates 2025 guidance.
2024-07-24SEC Filing (8-K)
-7.37%Roper Technologies reports Q2 2024 results with revenue up 12% and updates full year guidance.
2023-04-27SEC Filing (8-K)
+5.09%Roper Technologies reports Q1 2023 results with revenue up 15% and increases full year guidance.
Valuation Table
9.8/10Decision Grade
Scenario Range
$311
Bear
$393
Base
$471
Bull
$365