ROP Stock Analysis — Roper Technologies
Sector: Industrial Software & Technology
AI Verdict
Roper trades at a cheap 16.8x forward earnings, but with earnings expected to shrink and the stock technically overbought, you’re paying less for a business whose moat is only valuable if growth returns.
Competitive Moat
Roper Technologies owns a portfolio of niche software and engineered products, often in markets with high switching costs like healthcare, transportation, and energy compliance. Their defensibility comes from sticky, mission-critical software platforms that customers are reluctant to replace due to integration complexity and regulatory requirements.
Summary
Roper's stock is flashing elevated RSI at 72.0 despite analysts expecting a -0.7% drop in earnings next year.
Where It Stands
Shares are down -24.73% over the past year, trade at 16.8x forward earnings (well below the 20x industrials median), but the RSI of 72.0 signals overbought conditions.
Key Metrics
- RSI: 72 — Overbought
- Trailing P/E: 16.7x
- Forward P/E: 16.8x
- Earnings Growth: -0.0%
- Revenue Growth: +0.1%
- Market Cap: $39.8B
- Dividend Yield: 0.01%
- 1-Year Return: -24.73%
- 52-Week High: $546.52
- 52-Week Low: $305.96
Analyst Consensus
11 Buy · 13 Hold · 2 Sell (26 analysts)
Bull Case
At 16.8x next year's earnings, Roper is priced below the sector median even though its trailing revenue growth was 10.9%.
Bear Case
With forward EPS expected to shrink -0.7% and RSI at 72.0, a pullback to a sector-average 20x multiple would actually lift the price, but further multiple compression and weak earnings could drive more downside.
Catalyst to Watch
Watch for quarterly earnings updates — if EPS stabilizes or returns to growth, the low multiple could rerate upward.