Roper Technologies Receives Mixed Ratings from Analysts

Roper Technologies Inc. shows promise with a high rating under the Low PE Investor model but fails certain criteria. Investors should note the balance of EPS and free cash flow against P/E challenges.

Date: 13-01-2025

AI Rating: 6

Overview of ROPER TECHNOLOGIES INC Ratings

According to the report, Roper Technologies Inc (ROP) has a rating of 62% based on its fundamentals and stock valuation. This rating reflects positive aspects such as persistent EPS growth, future EPS growth, sales growth, and free cash flow. However, it also highlights weaknesses regarding the P/E ratio and total return/PE, both of which received failing marks.

EPS Growth and Future Prospects

The report indicates that ROP has passed the tests for EPS growth and future EPS growth, which is a sign of the company's capacity for ongoing profitability and expansion. This is a positive indicator for potential investors who are assessing the company’s long-term performance.

Sales Growth

Roper also passed the sales growth criterion. Strong sales growth can lead to increased revenues and, consequently, improved net income. This metric can be a critical factor for investors since it suggests that the company's operations are healthy and on an upward trajectory.

Free Cash Flow

Another positive signal from the report is the passing status of free cash flow. This indicates that the company generates enough cash to cover its operating expenses, invest in growth, and return capital to shareholders. A healthy free cash flow is attractive for potential investors as it suggests financial stability.

P/E Ratio Challenges

However, the report notes that the company fails on the P/E ratio, which may raise concerns among value-oriented investors. A high P/E ratio can deter investors who are focused on getting a bargain, making ROP potentially less appealing despite its strong growth metrics.

Total Return/PE

Additionally, the failing rating on total return/PE can signal that the overall return relative to the price might not be justifiable at the current valuation, which could lead to skepticism about investing in ROP at this time.

Stocks: ROP