ROP
Roper Technologies, Inc.
Technology · Software - Application · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong profitability margins and a near-maximum dividend score anchor the composite, reflecting genuine financial quality in those dimensions.
- The mixed growth factor — rewarding 12.3% revenue growth but penalizing the net income and EPS declines — and a cautious momentum score due to the operating income dip in 2026Q1 kept the total score at a moderate 66.6/100.
- The macro theme assignment to Industrial Automation & Robotics did not translate into a positive score under the model's methodology, which weighed on the composite and contributed to the Medium risk, Research Candidate label.
Why Not Higher
- The divergence between strong revenue growth and declining net income and EPS in FY2025 limited the growth score, preventing the composite from reaching a higher tier.
- The theme factor scored zero despite the Industrial Automation & Robotics classification, and the modest return on assets of 4.4% relative to a $34,577,000,000 asset base tempered both the profitability and overall composite scores.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $7,039,200,000 to FY2025's $7,902,500,000, a gain of +12.3%, but net income declined -0.8% (FY2024: $1,549,300,000 to FY2025: $1,536,300,000) and diluted EPS fell -1.0% (FY2024: $14.35 to FY2025: $14.20).
The model rewarded meaningful top-line expansion but penalized the divergence between revenue growth and bottom-line contraction, resulting in a middling score that reflects mixed growth quality.
In FY2025, Roper posted an operating margin of 28.3% and a net margin of 19.4%, though return on assets stood at 4.4%.
The model rewarded the company's wide operating and net margins as indicators of strong pricing power and cost discipline, while the relatively modest return on assets — likely reflecting a large asset base — tempered the score slightly below the maximum.
In FY2025, Roper's debt-to-equity ratio was 0.47 against total assets of $34,577,000,000.
The model rewarded a conservative leverage profile as indicated by the sub-1.0 debt-to-equity ratio, while the very large asset base contextualizes the scale of the balance sheet; limited additional filing data for this factor may account for the score falling short of the maximum.
Revenue rose sequentially across the last four quarters (2025Q2: $1,943,600,000; 2025Q3: $2,017,500,000; 2025Q4: $2,058,600,000; 2026Q1: $2,095,300,000), and net income accelerated sharply through 2026Q1 ($508,900,000) from 2025Q2's $378,300,000, though operating income dipped in 2026Q1 to $569,600,000 after peaking at $588,300,000 in 2025Q4.
The model recognized consistent revenue growth and strong net income acceleration as positive momentum signals, but the slight pullback in operating income in the most recent quarter introduced a note of caution that likely kept the score from reaching the higher range.
Roper has grown its dividends per share every year from FY2022 ($2.54) through FY2025 ($3.39), and maintained a conservative payout ratio of 23.1% in FY2025.
The model rewarded the consistent multi-year dividend growth streak alongside a low payout ratio, which signals both commitment to returning capital and ample room to sustain or increase the dividend from earnings — a combination that drives a near-maximum score.
Roper Technologies is assigned to the Industrial Automation & Robotics macro theme.
Although the company carries the Industrial Automation & Robotics theme assignment, this assignment did not translate into a positive score under the model's current methodology; the theme label reflects the sector classification, not a scoring outcome.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Roper Technologies delivered strong top-line growth of 12.3% in FY2025, reaching $7,902,500,000 in revenue, but net income and diluted EPS each declined modestly, creating a mixed growth picture [growth.revenue.yoy, growth.net_income.yoy, growth.eps_diluted.yoy]. The company maintains wide operating and net margins of 28.3% and 19.4% respectively, supported by a conservative balance sheet with a debt-to-equity ratio of 0.47 [profitability.operating_margin_pct, profitability.net_margin_pct, financial_health.debt_to_equity]. Quarterly momentum is broadly positive, with revenue and net income rising consistently through 2026Q1, though a slight dip in operating income in the most recent quarter introduces a note of caution [momentum.revenue_quarterly, momentum.net_income_quarterly, momentum.operating_income_quarterly]. Roper's dividend track record is a standout, with dividends per share growing every year from $2.54 in FY2022 to $3.39 in FY2025 at a conservative 23.1% payout ratio, while the macro theme assignment did not contribute positively to the composite score [dividend.dps_trend, dividend.payout_ratio, theme.assigned].
Plain English
Roper Technologies is a large, profitable company that grew its sales nicely in 2025 and keeps raising its dividend every year, but its profits dipped slightly even as revenues rose, and its theme classification didn't help its overall score, landing it in the middle of the pack as a research candidate worth watching.
Bull Case vs. Bear Case
Bull Case
- Wide operating and net margins — 28.3% and 19.4% in FY2025 — signal strong pricing power and cost discipline, pointing to a durable, high-quality business model.
- Dividends per share have grown every year from $2.54 in FY2022 to $3.39 in FY2025, with a low payout ratio of 23.1%, indicating both commitment to shareholders and ample room to sustain future increases.
- Revenue has risen sequentially every quarter through 2026Q1 ($2,095,300,000), and net income accelerated sharply to $508,900,000 in 2026Q1 from $378,300,000 in 2025Q2, reflecting improving earnings momentum.
Bear Case
- Despite 12.3% revenue growth in FY2025, net income fell -0.8% and diluted EPS declined -1.0%, revealing a meaningful divergence between top-line expansion and bottom-line performance.
- Return on assets stood at only 4.4% in FY2025 against a very large asset base of $34,577,000,000, suggesting the company's scale may be limiting capital efficiency.
- Operating income dipped in the most recent quarter to $569,600,000 in 2026Q1 after peaking at $588,300,000 in 2025Q4, introducing uncertainty about whether operating profitability momentum can be sustained.
What Could Change the Picture
Bullish Triggers
- A sustained recovery in operating income back above its 2025Q4 peak, combined with net income growth catching up to revenue growth, would signal that the bottom-line divergence is resolving favorably.
- Continued acceleration in dividend per share growth beyond the FY2022–FY2025 trend, while maintaining a low payout ratio, would reinforce confidence in the company's earnings quality and capital return commitment.
Bearish Triggers
- A further widening of the gap between revenue growth and net income or EPS growth — beyond the -0.8% and -1.0% declines already seen in FY2025 — would raise concerns about cost pressures or margin erosion.
- A sustained decline in operating income across multiple quarters, extending the dip seen in 2026Q1, would undermine the otherwise positive revenue momentum story.
Red Flags
- ONE_TIME_REVIEW: 2022 OCF/NI ratio = 0.16 (OCF=734,600,000, NI=4,544,700,000) — possible large one-time item
Risk Profile
Medium RiskRoper's balance sheet appears conservative with a debt-to-equity ratio of 0.47 against total assets of $34,577,000,000, suggesting limited near-term financial distress risk [financial_health.debt_to_equity, financial_health.total_assets]. However, the slight pullback in operating income in 2026Q1 to $569,600,000 after a peak of $588,300,000 in 2025Q4 is a near-term operational signal worth monitoring [momentum.operating_income_quarterly].
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.