ROPRoper Technologies
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.4×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
Margin-driven, fat margins on slower asset turns. ROE 10% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ROP?
Roper Technologies earns 6.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.8 points below what the capital costs: growth destroys value
- Operating margin
- 28%
Operating margin · Software - Application median 6.4% · 12 months to Q2 2026
- Cash conversion
- 1.37×
Cash conversion · 1.47× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −7.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 27% |
| FY2021 | 26% |
| FY2022 | 28% |
| FY2023 | 28% |
| FY2024 | 28% |
| FY2025 | 28% |
Details›
- Gross margin12 months to Q2 2026
- 70%
- Operating margin12 months to Q2 2026
- 28%
- Net margin12 months to Q2 2026
- 30%
- Revenue, trailing twelve months
- $8.28B
- Net income, trailing twelve months
- $2.50B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Application
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