Keep an eye on $ROP (+0.09%)
The company has good revenue and margin growth prospects, with recovery expected in the freight matching and foundry businesses.
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11Keep an eye on $ROP (+0.09%)
The company has good revenue and margin growth prospects, with recovery expected in the freight matching and foundry businesses.
In case $ROP (+0.09%) is not only anyone's watchlist, perhaps it should be.
In Q2 2024, the company's margins benefitted from a growing high-margin business mix and operating leverage on volume growth. This resulted in a 20 bps Y/Y increase to 40.5%.
The company is doing a good job in terms of rolling out AI offerings, but it is not yet monetizing these offerings to the full extent. Look for that in the long-term, helping pricing and margins.
$ROP (+0.09%) has good revenue and margin growth prospects, with recovery expected in the freight matching and foundry businesses.
This coupled with healthy earnings growth should result in a good upside.
$ROP (+0.09%) Roper Technologies is well-positioned for growth with focus on generative AI, water management products, and M&A strategy.
$ROP (+0.09%) high margins and a solid competitive position.. Bullish or bearish on Roper🤔
Stock analysis/Share presentation ⬇️🐵
Today we are talking about the company Roper Technologies: $ROP (+0.09%)
What is and does Roper Technologies anyway: 🤔
Roper Technologies is a U.S. publicly traded technology investment company. The company generates revenue through 46 different subsidiaries in the technology and industrial sectors. Its areas of activity include pumps, industrial valves, measuring instruments, and software products for various industries.
When was Roper founded?
Roper Technologies was founded in 1981 and is headquartered in Sarasota, Florida, USA.
How many employees does the company have: 🙋🏽♂️🙋🏻♀️
Currently, Roper has a total of over 15,800 employees.
P/E RATIO:
Roper Technologies has a current P/E ratio of just under 47 , which is not exactly low in my opinion.
Market capitalization: 🏦
Currently, Roper has a market capitalization of around 44 billion euros.
Dividend yield: 💰
The company pays its shareholders a nice dividend of currently over 0.60%. This distribution is made on a quarterly basis. ADM shareholders receive their dividends in January, April, July and October.
Strengths of the share: 📈
Roper Technologies stock has a history of strong performance and has grown steadily in recent years. The company has a diversified portfolio of businesses and a strong financial position. Roper also has a sustainable dividend policy and has regularly increased its dividend in recent years.
Weaknesses of the share: 📉
As with any stock, there are risks and weaknesses with Roper Technologies. Some of the potential weaknesses of Roper stock include a high price relative to earnings and a high debt level. In addition, the company is dependent on its key customers and business lines, which may leave it vulnerable to changes in those areas.
Industry of Roper:
Roper is a diversified industrial company with a variety of niche-specific solutions, making it difficult to categorize into a single industry. However, there are commonalities. The two main markets in which Roper is located is the software market and the measurement and test market.
The software market is a broad market in which digital goods are developed, leased and sold. There are an enormous number of areas that can be improved through software. The Software as a Service (SaaS) market is over $100 billion in size and growing at 10% per year. SaaS is a licensing and distribution model by which software applications are offered over the Internet, i.e. as a service. Usage is usually on a subscription basis. The huge advantage is the scalability and high switching costs of software. Marginal costs are almost zero and margins are therefore very high in the software sector.
The measurement and test market, on the other hand, is growing more slowly, at 3.9% per year. This refers to various applications, primarily for industry and the healthcare sector, to determine, measure properties of products, such as viscosity. The measurement quality is of great importance for their customers. In this industry, once sales are common, other sources of income are maintenance and consumables. This generates at least some recurring revenue.
In both industries, the industry-specific solutions, strong moats have formed.
A little more about the business model: ⬇️
Roper is a holding company with 46 specialized subsidiaries, roughly evenly split between revenue streams. These companies are the best in their field and often the only ones. A 79% share of sales is generated in the USA. This high share is partly due to the specific solutions, as the individual countries can differ greatly in terms of accounting forms, cultures or even legal frameworks. Software contributes 46% of sales and hardware 54%.
Roper always focuses on niche markets and avoids huge markets, they miss out on great opportunities as a result, but the competitive pressure in such areas is also all the greater and the risk of not coming out as the winner is also much more likely. They focus on high and stable profits when taking over companies. The so-called efficiency program subsequently ensures significantly increasing cash flows. The high cash flows put them in a position to buy up and integrate companies again.
Regarding the many different subsidiaries, synergy effects are deliberately avoided, the companies remain independent companies, which can develop independently. Roper only optimizes these companies, especially with regard to capital commitment, in order to increase free cash flow and otherwise assumes more of an advisory role.
Roper's management: 🙋🏽♂️
Neil Hunn has been chief executive officer of Roper Technologies since 2018. He earned his MBA from Harvard Business School and his bachelor's degree in finance and accounting from Miami University. Prior to being drafted as CEO, he was chief operating officer and executive vice president at Roper. Hunn began at Roper in 2011 as group vice president of Roper Technologies' medical segment and has helped drive the company's growth in medical devices and application software.
Company Goal: 🏁
Roper Technologies' goal is to be a diversified technology company focused on customer value. Roper itself, relies on cutting-edge technologies in diverse areas to diversify their risk and generate the best possible results for shareholders. They see themselves as a company that belongs to the shareholders. Customers benefit from the solutions developed, which are 100% aligned with each niche area.
How does the share look from a chart point of view? (US dollar converted into euros) 📈📉
Let's take a look at the chart of Roper Technologies. Currently, the price here is at 412.70€. Above us is the first resistance at 421.40€. If we take this out sustainably, the share could rise even further. After that, the next target would be at 432.60€. If the share falls now, however, the first support zone is at 406.35€. If this does not hold, the next support zone would be at 400€. This should hold otherwise it would go down again a bit. After that, the target on the short side would be at 391.20€. After that, even the support zone at 385.40 €. Will now be very exciting whether the share is still further bullish on the road or again the one or the other support zone approaches.
Your opinion: 🤔🧐
Now I would like to hear your opinion on this stock in the comments.
What do you think of Roper Technologies and did you already know this company?
Do you guys maybe already have this stock in your portfolio?
Feel free to let me know in the comments.
Of course, this is not an investment advice but just my own opinion that I want to share with you.
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𝗘𝘅-𝗗𝗮𝘁𝗲𝘀 📅
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𝗖𝗿𝘆𝗽𝘁𝗼 💎
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𝗜𝗣𝗢𝘀 🔔
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𝗠𝗮𝗿𝗸𝗲𝘁𝘀 🏛️
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𝗖𝗿𝘆𝗽𝘁𝗼 💎
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