Chances of Roper (NYSE:ROP) to decline in May

Roper Industries is scheduled to announce its earnings today. The next earnings report is expected on the 27th of July 2021. Roper Industries Free Cash Flow is very stable at the moment as compared to the past year. Roper Industries reported last year Free Cash Flow of 831.31 Million. As of 27th of April 2021, Invested Capital is likely to grow to about 1.3 B, while PPandE Turnover is likely to drop 34.05. Although many aggressive traders are getting into industrials space, Roper Industries may or may not be your first choice. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

Roper Industries has 9.85 B in debt with debt to equity (D/E) ratio of 0.94, which is OK given its current industry classification. The entity has a current ratio of 0.71, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. The company has Net Profit Margin of 17.18 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large. In the same way, it shows Net Operating Margin of 35.31 %, which entails that for every 100 dollars of revenue, it generated 0.35 of operating income.
Roper Technologies financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Roper Technologies, including all of Roper Technologies's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Roper Technologies assets, the company is considered highly leveraged. Understanding the composition and structure of overall Roper Technologies debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Roper Total Liabilities

Roper Technologies Common liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Roper Technologies Common has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Roper Technologies balance sheet include debt obligations and money owed to different Roper Technologies vendors, workers, and loan providers. Below is the chart of Roper short long-term liabilities accounts currently reported on its balance sheet.
You can use Roper Technologies Common financial leverage analysis tool to get a better grip on understanding its financial position

How important is Roper Technologies's Liquidity

Roper Technologies financial leverage refers to using borrowed capital as a funding source to finance Roper Technologies Common ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Roper Technologies 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. Financial leverage can amplify the potential profits to Roper Technologies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Roper Technologies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Roper Technologies's total debt and its cash.

A Deeper look at Roper

The firm reported the last year's revenue of 5.53 B. Total Income to common stockholders was 949.7 M with profit before taxes, overhead, and interest of 3.54 B.

Liabilities Breakdown

Tax Liabilities
2.6 B
Current Liabilities
6.9 B
Long-Term Liabilities
Total Liabilities14.61 Billion
Current Liabilities2.64 Billion
Long-Term Liabilities6.89 Billion
Tax Liabilities1.17 Billion

Will Roper pull back in May 2021?

The total risk alpha is down to -0.2 as of today.
As of the 27th of April, Roper Industries holds the Coefficient Of Variation of 2914.9, risk adjusted performance of 0.0332, and Semi Deviation of 1.71. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Roper Industries, 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 break down and interpolate data for nineteen technical drivers for Roper Industries, which can be compared to its competitors. Please check Roper Industries variance and potential upside to decide if Roper Industries is priced some-what accurately, providing market reflects its current price of 434.22 per share. Given that Roper Industries has jensen alpha of (0.06), we recommend you to check out Roper Industries's recent market performance to make sure the company can sustain itself at a future point.

Although some other entities under the specialty industrial machinery industry are still a bit expensive, Roper Industries may offer a potential longer-term growth to insiders. The inconsistency in the assessment between current Roper valuation and our trade advice on Roper Industries is due to the recent market swings and your selection of investing horizon. 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 Industries.

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Editorial Staff

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 Ellen Johnson do not own shares of Roper Technologies Common. Please refer to our Terms of Use for any information regarding our disclosure principles.

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