Roper Technologies, Inc. (ROP)
Quantitative Summary
DeterministicAt 20.3x earnings — a 69% discount to the sector average of 65.0x — ROP is in the lower valuation range. Financial health is average: Piotroski 5/9, Altman Z 2.5. DCF fair value of $839 implies 136% upside from current prices based on model assumptions.
Generated deterministically from quant metrics and financial statements. Not a recommendation.
Algorithmic Teardown
AI-GeneratedThe fundamental economics present a distinct divergence between high-margin operations and capital efficiency constraints. While the company demonstrates robust profitability with a 69.2% gross margin and a net margin of 19.4%, driven primarily by asset turnover rather than leverage, this strength is offset by an ROIC-WACC spread of -3.5%. This negative spread indicates that current returns on invested capital fail to cover the cost of capital, suggesting value destruction despite healthy top-line growth of 12.3% YoY. Credit and integrity metrics offer a mixed picture; the Altman Z-Score of 2.6 flags potential distress risk near the bankruptcy threshold, whereas the Beneish M-Score of -2.46 signals low earnings manipulation probability and a Piotroski F-Score of 5/9 confirms moderate financial strength without significant deterioration or improvement trends.
Valuation metrics suggest a market premium that conflicts with intrinsic value models based on current parameters. Trading at a P/E multiple of 25.2x, the stock commands a valuation significantly higher than its implied fundamentals would support under standard discounted cash flow assumptions yielding a fair value of $800 and an upside projection of 126.1%. This discrepancy implies the market is pricing in aggressive future growth expectations that exceed the modeled 10-year free cash flow expansion rate of 5.3%, creating a potential mean reversion risk if earnings fail to accelerate materially beyond historical norms.
Risk-adjusted performance data reveals substantial underperformance relative to factor benchmarks, despite some positive signals regarding ownership and profitability factors. The annual Fama-French alpha stands at -19.57%, indicating significant underperformance after adjusting for market, size, value, and momentum exposures over the measurement period. However, this is partially mitigated by a robust Profitability Factor (RMW) score of 0.140 and neutral Value exposure, alongside $501,844 in net insider buying over the last ninety days, which may signal management confidence in near-term execution despite the broader factor drag.
Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.
DCF Sandbox
Interactive5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.
The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of 12% YoY revenue.
Sensitivity Matrix
| TG ↓ / WACC → | 7.1% | 9.1% | 11.1% |
|---|---|---|---|
| 2% | $1073 | $728 | $536 |
| 3% | $1322 | $839 | $597 |
| 4% | $1731 | $994 | $675 |
Center = base case. Green = >10% upside, Red = >10% downside vs $336.50.
Pre-computed DCF: WACC=9.1%, terminal growth 3%. Fair value $839 (+135.6%). Not investment advice.
Valuation Context
Currently trading 28% below its 5-year average P/E of 33.4x.
Price Chart with Moving Averages
Quant Health Deep Dive
Profitability & Value Creation
✅ Conservative payout — room for dividend increases.
DuPont Analysis — ROE Decomposition
Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.
Balance Sheet Health
Insider Activity (Last 90 Days)
Open-market buys vs sells by company insiders. Source: yfinance.
Earnings Surprise History
EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.
Dividend History
| Date | Amount | Change |
|---|---|---|
| 2026-04-06 | $0.9100 | 0.0% |
| 2026-01-02 | $0.9100 | +10.3% |
| 2025-10-03 | $0.8250 | 0.0% |
| 2025-07-08 | $0.8250 | 0.0% |
| 2025-04-04 | $0.8250 | 0.0% |
| 2025-01-03 | $0.8250 | +10.0% |
| 2024-10-08 | $0.7500 | 0.0% |
| 2024-07-08 | $0.7500 | 0.0% |
| 2024-04-04 | $0.7500 | 0.0% |
| 2024-01-08 | $0.7500 | +9.8% |
| 2023-10-05 | $0.6830 | 0.0% |
| 2023-07-07 | $0.6830 | 0.0% |
Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Fama-French 5-Factor Exposure
Academic factor model decomposition — what's really driving this stock's returns.
Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.
Fundamentals
Passive Flow Attribution
ETF Draft EffectWhen investors buy or sell ETFs like VIGI or VGK, the fund manager is mechanically forced to buy or sell ROP shares regardless of Roper Technologies, Inc.'s individual fundamentals. We estimate $15.8B of passive capital is structurally linked to ROP through 8 tracked ETFs. This substantial passive exposure means that ETF inflows and outflows — not company fundamentals — can dominate daily volume on this stock.
Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.
ETF Contagion Visualizer
Simulate a price drop in Roper Technologies, Inc. to visualize passive redemption contagion across ETFs and collateral stocks.
If Roper Technologies, Inc. (ROP) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies Nestle SA (NESN) as the most exposed collateral stock, sharing 3 ETFs with ROP. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.
Contagion model based on shared ETF exposure and constituent weights across 42 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.
ROP Ownership Dynamics
Passive funds hold 1 in every 2 ROP shares, reducing daily market volatility.
Roper Technologies, Inc. (ROP) exerts significant gravity on the passive index market, currently representing 3.3% of the VIGI (VIGI) and 1.8% of the VGK (VGK). Across 43 tracked ETFs, approximately 43M shares (42.4% of float) are held by passive funds and rarely trade on the open market. This high passive lock-up reduces the effective active float, which can amplify daily price volatility and momentum signals.
ETFs with Highest ROP Exposure
Float lock-up computed from 43 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).
ROP Institutional Volume Profile
252-day volume distribution by price level. The Point of Control (POC) marks — the price where the most institutional volume transacted — an implicit support/resistance floor.
The highest-volume price zone for Roper Technologies, Inc. over the past year sits near $352.78 (22% of 252-day volume). The current price of $336.50 sits 4.6% below the POC — suggesting potential mean-reversion upside if institutional demand reasserts at this level. The highly concentrated volume profile (22% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.
Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.
ROP Capital Efficiency
How efficiently does Roper Technologies, Inc. convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.
Roper Technologies, Inc. converts 77% of its EBITDA into free cash flow, an exceptional conversion rate indicating an asset-light business model with minimal capital reinvestment drag. However, the ROIC-WACC spread is negative (-3.3%), suggesting reinvested capital is destroying shareholder value.
Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.
Fails-to-Deliver (FTD) History
SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.
| Date | Failed Shares | Close Price | Notional Value |
|---|---|---|---|
| 2026-05-14 | 373 | $316.25 | $117,961.25 |
| 2026-05-12 | 9,000 | $328.80 | $3.0M |
| 2026-05-07 | 21,034 | $350.26 | $7.4M |
| 2026-05-05 | 57 | $355.23 | $20,248.11 |
| 2026-05-04 | 48 | $358.22 | $17,194.56 |
| 2026-04-29 | 520 | $354.12 | $184,142.4 |
| 2026-04-28 | 2,494 | $352.45 | $879,010.3 |
| 2026-04-24 | 1,995 | $363.76 | $725,701.2 |
| 2026-04-23 | 137,966 | $364.73 | $50.3M |
| 2026-04-20 | 141 | $362.44 | $51,104.04 |
| 2026-04-16 | 199 | $358.09 | $71,259.91 |
| 2026-04-15 | 3 | $354.00 | $1,062 |
| 2026-04-13 | 2 | $343.15 | $686.3 |
| 2026-04-01 | 7 | $353.86 | $2,477.02 |
| 2026-03-31 | 7 | $351.96 | $2,463.72 |
| 2026-03-27 | 340 | $351.07 | $119,363.8 |
| 2026-03-25 | 13 | $345.93 | $4,497.09 |
| 2026-03-23 | 308 | $353.68 | $108,933.44 |
| 2026-03-12 | 3 | $352.25 | $1,056.75 |
| 2026-03-10 | 87 | $363.06 | $31,586.22 |
| 2026-03-02 | 12 | $349.73 | $4,196.76 |
| 2026-02-23 | 5 | $335.79 | $1,678.95 |
| 2026-02-18 | 33 | $315.53 | $10,412.49 |
| 2026-02-10 | 28 | $351.71 | $9,847.88 |
| 2026-02-05 | 578 | $359.71 | $207,912.38 |
| 2026-02-04 | 6 | $348.82 | $2,092.92 |
| 2026-01-28 | 203 | $369.27 | $74,961.81 |
| 2026-01-22 | 15 | $404.66 | $6,069.9 |
| 2026-01-15 | 32 | $424.20 | $13,574.4 |
| 2026-01-05 | 10,080 | $434.54 | $4.4M |
Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.
Price Correlations
Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.
| Peer | 252-Day (1Y) | 126-Day (6M) | Direction |
|---|---|---|---|
| WTGXX | NaN | NaN | |
| ADP | 0.572 | 0.559 | Moderate |
| PAYX | 0.555 | 0.580 | Moderate |
| ACN | 0.510 | 0.514 | Moderate |
| FIS | 0.489 | 0.550 | Moderate |
| FDS | 0.488 | 0.524 | Moderate |
| PAYC | 0.486 | 0.471 | Moderate |
| INTU | 0.486 | 0.530 | Moderate |
| NDAQ | 0.485 | 0.488 | Moderate |
| ADSK | 0.480 | 0.499 | Moderate |
Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.
Compare ROP to Peers
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.