Roper Story

<div class='circular--portrait' style='background:#347AFC;color: #ffffff;font-size:3em;'>ROP</div>
ROP -- USA Stock  

USD 398.12  6.91  1.77%

While many traders are getting carried away by overanalyzing industrials space, it is reasonable to recap Roper. We will evaluate why recent Roper price moves suggest a bounce in August. Is Roper valuation justified? Here we go over the organization perspective on valuation to give you a better outlook on taking a position in this stock.
Published over two months ago
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Is Roper (NYSE:ROP) ready for a correction?
This firm has 5.28 B in debt with debt to equity (D/E) ratio of 0.55, which is OK given its current industry classification. The company has 5.28 B in debt with debt to equity (D/E) ratio of 0.55, which is OK given its current industry classification. Roper has a current ratio of 0.94, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Roper has an asset utilization ratio of 53.4 percent. This suggests that the company is making $0.53 for each dollar of assets. An increasing asset utilization means that Roper is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Roper using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Roper based exclusively on its fundamental and basic technical indicators. By analyzing Roper's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Roper's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Roper. We calculate exposure to Roper's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Roper's related companies.

Roper Investment Alerts

Roper investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Roper performance across your portfolios.Please check all investment alerts for Roper

Roper Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Roper value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Roper competition to find correlations between indicators driving the intrinsic value of Roper.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Roper, but it might be worth checking our own buy vs. sell analysis

A Deeper Perspective

The entity reported the last year's revenue of 5.43 B. Total Income to common stockholders was 1.64 B with profit before taxes, overhead, and interest of 3.43 B.

Margins Breakdown

Roper profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Roper itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Roper profit margins.
Profit Margin
Operating Margin
Operating Margin25.74
EBITDA Margin42.15
Gross Margin58.54
Profit Margin35.54

Roper Revenue Per Employee is increasing over the last 8 years. The recent value of Roper Revenue Per Employee is 306,151. Moreover, Roper Earnings Before Interest Taxes and Depreciation Amortization EBITDA is very stable at the moment.

Will Roper pull back in August 2020?

Information ratio is down to 0.18. It may hint at a possible volatility decline. As of the 27th of July, Roper holds the Semi Deviation of 1.17, coefficient of variation of 356.6, and Risk Adjusted Performance of 0.4737. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Roper, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Roper, which can be compared to its competitors. Please check Roper variance and potential upside to decide if Roper is priced some-what accurately, providing market reflects its current price of 420.7 per share. Given that Roper has jensen alpha of 0.3774, we recommend you to check out Roper's recent market performance to make sure the company can sustain itself at a future point.

Our Final Perspective on Roper

Although other companies under the specialty industrial machinery industry are still a bit expensive, Roper may offer a potential longer-term growth to insiders. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to drop some or all of your Roper holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Roper.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Roper. Please refer to our Terms of Use for any information regarding our disclosure principles.

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