Roper Story

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ROP -- USA Stock  

USD 379.81  0.70  0.18%

It looks like Sensata Technologies will be up for a correction way faster as its share price whent up 1.43% today to Roper's 0.6738%. As many rational traders are trying to avoid industrials space, it makes sense to recap Roper a little further and understand how it stands against Sensata Technologies and other similar entities. We are going to focus on some of the competitive aspects of both Roper and Sensata.
Published over three weeks ago
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Our viewpoint on Roper (NYSE:ROP) and Sensata Technologies (NYSE:ST)?
By analyzing existing basic indicators between Roper and Sensata, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Sensata with a short position in Roper. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. 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 53.3 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.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Roper or Sensata is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Roper Industries dividends

A dividend is the distribution of a portion of Roper Industries earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Roper Industries dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Roper one year expected dividend income is about $0.98 per share.
As of 26th of February 2021, Dividends per Basic Common Share is likely to grow to 1.16, while Payment of Dividends and Other Cash Distributions is likely to drop (143 M).
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-139.3 M-143 M
Dividend Yield 0.00805  0.007602 
Dividends per Basic Common Share 1.08  1.16 
Investing in dividend-paying stocks, such as Roper Industries is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Roper Industries must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Roper Industries. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Roper Industries's Liquidity

Roper Industries financial leverage refers to using borrowed capital as a funding source to finance Roper Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Roper Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Roper Industries's total debt and its cash.

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 Industries, but it might be worth checking our own buy vs. sell analysis

Correlation Between Roper and Sensata Technologies

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Roper Industries together with similar or unrelated positions with a negative correlation. For example, you can also add Sensata Technologies to your portfolio. If Sensata Technologies is not perfectly correlated to Roper Industries it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Roper Industries for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between ROP and ST for more information.

Note

Are you currently holding both Roper Industries and Sensata Technologies in your portfolio?
Please note if you are using this as a pair-trade strategy between Roper Industries and Sensata Technologies, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

A Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Roper revenue. Based on the latest financial disclosure, Roper reported 5.42 B of revenue. This is 54.92% higher than that of the Industrials sector and significantly higher than that of the Specialty Industrial Machinery industry. The revenue for all United States stocks is 42.55% higher than that of the entity. As for Sensata Technologies we see revenue of 2.99 B, which is much higher than that of the Specialty Industrial Machinery

Roper5.42 Billion
Sector0.0
Sensata2.99 Billion
5.4 B
Roper
Sector
B
Sensata

Momentum Analysis of Roper suggests possible reversal in March

Recent Market Risk Adjusted Performance is up to -0.01. Price may decline again. As of the 29th of January, Roper holds the risk adjusted performance of (0.001888), and Coefficient Of Variation of (16,558). 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 422.83 per share. Given that Roper has jensen alpha of (0.12), we recommend you to check out Roper's recent market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Roper

Although other entities within the specialty industrial machinery industry are still a little expensive, even after the recent corrections, Roper may offer a potential longer-term growth to insiders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither trade new shares of Roper nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been 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 Vlad Skutelnik do not own shares of Roper Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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