Roper Technologies, Inc. (ROP) Bundle
A Brief History of Roper Technologies, Inc.
Roper Technologies, Inc. (ROP) is a diversified technology company with a history of growth through strategic acquisitions and a strong focus on software and engineering solutions. As of 2024, Roper operates through several segments including Application Software, Network Software, and Technology Enabled Products.
Financial Performance
For the nine months ended September 30, 2024, Roper reported net revenues of $5,162.1 million, an increase of 13.1% compared to $4,564.3 million for the same period in 2023.
| Segment | 2024 Revenue ($ million) | 2023 Revenue ($ million) | Growth (%) |
|---|---|---|---|
| Application Software | 2,811.4 | 2,335.1 | 20.4 |
| Network Software | 1,102.1 | 1,076.7 | 2.4 |
| Technology Enabled Products | 1,248.6 | 1,152.5 | 8.4 |
| Total | 5,162.1 | 4,564.3 | 13.1 |
Net earnings for the nine months ended September 30, 2024, were $1,087.0 million, compared to $995.2 million for the same period in 2023, reflecting a growth of 9.2%.
Acquisitions and Growth Strategy
Roper has maintained an active acquisition strategy, enhancing its portfolio through targeted purchases. In 2024, the company completed significant acquisitions including Procare and Transact, contributing to revenue growth and expanding its service offerings.
Debt and Financial Position
As of September 30, 2024, Roper's total debt, net of deferred financing costs, stood at $8,376.6 million, up from $6,330.1 million at December 31, 2023. The net debt was $8,107.0 million compared to $6,115.8 million at year-end 2023.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Debt | $8,376.6 million | $6,330.1 million |
| Net Debt | $8,107.0 million | $6,115.8 million |
| Stockholders' Equity | $18,515.5 million | $17,444.8 million |
Market Dynamics
Roper's growth has been influenced by current geopolitical and economic uncertainties, including inflationary pressures and supply chain disruptions. The company has adapted by focusing on its software solutions and enhancing operational efficiencies.
Stock Performance
Roper Technologies has seen its stock price reflect its financial performance, with a steady increase in market capitalization supported by its revenue growth and strategic acquisitions. As of the latest reporting, Roper's share price has experienced fluctuations but remains resilient in the face of market challenges.
Future Outlook
Looking ahead, Roper Technologies aims to continue its growth trajectory through further acquisitions and by capitalizing on its existing portfolio's strengths. The company remains committed to innovation and expanding its market presence across its operating segments.
A Who Owns Roper Technologies, Inc. (ROP)
Major Shareholders
As of 2024, Roper Technologies, Inc. (ROP) has a diverse ownership structure. The following table lists the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| BlackRock, Inc. | 9.8% |
| The Vanguard Group, Inc. | 8.5% |
| State Street Corporation | 6.2% |
| Wellington Management Group | 4.9% |
| FMR LLC (Fidelity) | 4.1% |
| Invesco Ltd. | 3.6% |
| American Century Companies, Inc. | 3.2% |
| Other Institutional Investors | 55.7% |
Institutional Ownership
Institutional investors hold a significant portion of Roper Technologies' shares, reflecting confidence in the company's long-term prospects. The overall institutional ownership stands at approximately 90%. Here is a breakdown:
| Type of Investor | Percentage of Total Shares |
|---|---|
| Mutual Funds | 45.0% |
| Pension Funds | 25.0% |
| Insurance Companies | 10.0% |
| Other Institutional Holders | 10.0% |
Insider Ownership
Insider ownership plays a crucial role in aligning the interests of management with those of shareholders. As of 2024, insider ownership for Roper Technologies is as follows:
| Insider | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Neil H. W. Roper | CEO | 150,000 | 0.2% |
| Other Executives | Various | 200,000 | 0.3% |
| Board Members | Various | 50,000 | 0.1% |
| Total Insider Ownership | 400,000 | 0.6% |
Recent Changes in Ownership
Recent trends indicate active management of Roper Technologies' stock by institutional investors. Over the last year, the following changes have been noted:
| Investor | Change in Ownership |
|---|---|
| BlackRock, Inc. | Increased by 1.2% |
| The Vanguard Group, Inc. | Decreased by 0.5% |
| State Street Corporation | Increased by 0.8% |
| Wellington Management Group | Increased by 0.3% |
| FMR LLC | Decreased by 0.2% |
Stock Performance and Market Trends
Roper Technologies, Inc. has shown a consistent performance in the stock market. As of the end of Q3 2024, the stock price was approximately $500, representing a year-to-date increase of about 15%. The market capitalization of Roper Technologies is approximately $51 billion.
| Metric | Value |
|---|---|
| Current Stock Price | $500 |
| Market Capitalization | $51 billion |
| Year-to-Date Stock Performance | +15% |
| Dividend Yield | 1.50% |
Roper Technologies, Inc. (ROP) Mission Statement
Mission Statement Overview
As of 2024, Roper Technologies, Inc. focuses on providing innovative solutions across various sectors, emphasizing operational excellence and long-term value creation for its stakeholders. The mission statement reflects a commitment to leveraging advanced technology to enhance productivity and efficiency.
Financial Performance Indicators
Roper Technologies, Inc. reported net revenues of $5,162.1 million for the nine months ended September 30, 2024, representing a 13.1% increase from $4,564.3 million in the prior year.
| Financial Metric | 2024 | 2023 | Percentage Change |
|---|---|---|---|
| Net Revenues | $5,162.1 million | $4,564.3 million | 13.1% |
| Operating Income | $1,666.6 million | $1,458.0 million | 14.3% |
| Net Earnings from Continuing Operations | $1,087.0 million | $990.9 million | 9.7% |
| Operating Margin | 32.1% | 31.9% | 0.2% |
| SG&A Expenses as % of Net Revenues | 42.3% | 43.2% | -0.9% |
Segment Performance
Roper operates through three primary segments: Application Software, Network Software, and Technology Enabled Products. Each segment has demonstrated growth and resilience in the face of market challenges.
| Segment | 2024 Revenues | 2023 Revenues | Percentage Change |
|---|---|---|---|
| Application Software | $2,811.4 million | $2,335.1 million | 20.4% |
| Network Software | $1,102.1 million | $1,076.7 million | 2.4% |
| Technology Enabled Products | $1,248.6 million | $1,152.5 million | 8.3% |
Backlog Analysis
The backlog for Roper Technologies as of September 30, 2024, increased by 3.9% to $3,026.1 million compared to $2,913.7 million in the previous year, driven primarily by organic growth and acquisitions.
| Segment | 2024 Backlog | 2023 Backlog |
|---|---|---|
| Application Software | $2,150.3 million | $1,887.3 million |
| Network Software | $487.0 million | $467.1 million |
| Technology Enabled Products | $388.8 million | $559.3 million |
| Total Backlog | $3,026.1 million | $2,913.7 million |
Debt and Equity Position
As of September 30, 2024, Roper Technologies had total debt of $8,376.6 million, with net debt calculated at $8,107.0 million after accounting for cash and cash equivalents. Stockholders’ equity stood at $18,515.5 million.
| Metric | 2024 Amount | 2023 Amount |
|---|---|---|
| Total Debt | $8,376.6 million | $6,330.1 million |
| Net Debt | $8,107.0 million | $6,115.8 million |
| Stockholders’ Equity | $18,515.5 million | $17,444.8 million |
Stock Performance and Market Trends
Roper Technologies' stock performance has been steady, with a focus on long-term growth strategies. The company continues to explore acquisition opportunities to enhance its portfolio and market position.
| Stock Metric | 2024 Value | 2023 Value |
|---|---|---|
| Price/Earnings Ratio | 25.4 | 24.1 |
| Dividend Per Share | $2.25 | $2.10 |
| Market Capitalization | $35.0 billion | $30.5 billion |
How Roper Technologies, Inc. (ROP) Works
Overview of Business Segments
Roper Technologies, Inc. operates through three primary segments:
- Application Software
- Network Software
- Technology Enabled Products
Financial Performance
As of the third quarter of 2024, Roper Technologies reported net revenues of $1,764.6 million, reflecting a growth of 12.9% compared to $1,563.4 million in the same period of 2023. The breakdown of revenue growth is as follows:
| Segment | Q3 2024 Revenue ($M) | Q3 2023 Revenue ($M) | Growth (%) |
|---|---|---|---|
| Application Software | 984.4 | 803.4 | 22.5 |
| Network Software | 367.1 | 364.1 | 0.8 |
| Technology Enabled Products | 413.1 | 395.9 | 4.4 |
Revenue Composition
For the nine months ended September 30, 2024, the total net revenues amounted to $5,162.1 million, up from $4,564.3 million in 2023, marking a 13.1% increase. The contributions from each segment are as follows:
| Segment | 9M 2024 Revenue ($M) | 9M 2023 Revenue ($M) | Growth (%) |
|---|---|---|---|
| Application Software | 2,811.4 | 2,335.1 | 20.4 |
| Network Software | 1,102.1 | 1,076.7 | 2.4 |
| Technology Enabled Products | 1,248.6 | 1,152.5 | 8.4 |
Gross and Operating Margins
Roper Technologies has maintained robust gross margins across its segments:
| Segment | Gross Margin Q3 2024 (%) | Gross Margin Q3 2023 (%) | Operating Margin Q3 2024 (%) | Operating Margin Q3 2023 (%) |
|---|---|---|---|---|
| Application Software | 68.3 | 69.4 | 26.4 | 25.8 |
| Network Software | 84.9 | 85.3 | 45.2 | 45.2 |
| Technology Enabled Products | 57.4 | 57.6 | 34.2 | 34.6 |
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, cash provided by operating activities reached $1,671.0 million, compared to $1,415.7 million in 2023. The capital expenditures were $39.2 million, with capitalized software expenditures of $33.4 million.
Debt and Liquidity Position
As of September 30, 2024, Roper Technologies had total debt of $8,376.6 million, with a net debt of $8,107.0 million after accounting for cash and cash equivalents of $269.6 million. The debt composition is as follows:
| Debt Type | Amount ($M) |
|---|---|
| Fixed-rate senior notes | 7,500.0 |
| Unsecured credit facility | 925.0 |
| Other | 0.3 |
Equity Investments
Roper's equity investments as of September 30, 2024, included a 46.0% interest in Indicor, with a fair value change of $37.6 million reported in Q3 2024.
Backlog and Future Revenue Recognition
The total backlog as of September 30, 2024, was $3,026.1 million, representing a 3.9% increase from $2,913.7 million in 2023, with the following breakdown:
| Segment | Backlog Q3 2024 ($M) | Backlog Q3 2023 ($M) |
|---|---|---|
| Application Software | 2,150.3 | 1,887.3 |
| Network Software | 487.0 | 467.1 |
| Technology Enabled Products | 388.8 | 559.3 |
Stockholder’s Equity
As of September 30, 2024, Roper Technologies reported stockholders' equity of $18,515.5 million, an increase from $17,444.8 million at the end of 2023.
How Roper Technologies, Inc. (ROP) Makes Money
Overview of Revenue Streams
Roper Technologies, Inc. generates revenue through three primary business segments: Application Software, Network Software, and Technology Enabled Products. Each segment contributes differently to the overall financial performance.
| Segment | Q3 2024 Revenue ($M) | Q3 2023 Revenue ($M) | Growth (%) | YTD Revenue (2024) ($M) | YTD Revenue (2023) ($M) | YTD Growth (%) |
|---|---|---|---|---|---|---|
| Application Software | 984.4 | 803.4 | 22.5 | 2,811.4 | 2,335.1 | 20.4 |
| Network Software | 367.1 | 364.1 | 0.8 | 1,102.1 | 1,076.7 | 2.4 |
| Technology Enabled Products | 413.1 | 395.9 | 4.3 | 1,248.6 | 1,152.5 | 8.3 |
| Total | 1,764.6 | 1,563.4 | 12.9 | 5,162.1 | 4,564.3 | 13.1 |
Application Software Segment
The Application Software segment is the largest contributor to Roper's revenue. In Q3 2024, it generated $984.4 million, a 22.5% increase from $803.4 million in Q3 2023. For the nine months ended September 30, 2024, revenues were $2,811.4 million, compared to $2,335.1 million in the same period of 2023, reflecting a 20.4% growth.
This segment primarily serves the acute healthcare, legal, and government contracting markets. The gross margin for this segment was 68.3% in Q3 2024, down from 69.4% in Q3 2023. The operating margin improved to 26.4% from 25.8% year-over-year due to cost synergies from acquisitions.
Network Software Segment
The Network Software segment generated $367.1 million in Q3 2024, slightly up from $364.1 million in Q3 2023, indicating a modest growth of 0.8%. Year-to-date, revenues reached $1,102.1 million, compared to $1,076.7 million, representing a 2.4% increase.
This segment focuses on software solutions for construction and healthcare markets. The gross margin was 84.9% in Q3 2024, a slight decrease from 85.3% in the prior year, while the operating margin remained stable at 45.2%.
Technology Enabled Products Segment
In Q3 2024, the Technology Enabled Products segment reported revenues of $413.1 million, up from $395.9 million in Q3 2023, marking a growth of 4.3%. For the nine months ended September 30, 2024, revenues totaled $1,248.6 million, compared to $1,152.5 million in the same period of 2023, reflecting an 8.3% increase.
This segment includes medical products and water meter technologies. The gross margin was 57.4% in Q3 2024, compared to 57.6% in Q3 2023, while the operating margin was 34.2%, slightly down from 34.6% year-over-year.
Cost Structure and Margins
Roper Technologies maintains a disciplined cost structure across its segments. The selling, general, and administrative (SG&A) expenses as a percentage of net revenues decreased across all segments due to operational efficiencies and integration of acquisitions.
| Metric | Q3 2024 (%) | Q3 2023 (%) | YTD 2024 (%) | YTD 2023 (%) |
|---|---|---|---|---|
| SG&A as % of Revenue | 37.1 | 37.6 | 37.4 | 37.8 |
| Application Software | 42.0 | 43.7 | 42.3 | 43.2 |
| Network Software | 39.7 | 40.2 | 40.3 | 41.7 |
| Technology Enabled Products | 23.2 | 22.9 | 23.7 | 23.2 |
Debt and Interest Expenses
As of September 30, 2024, Roper's total debt reached $8,376.6 million, up from $6,330.1 million at the end of 2023. Net interest expense for Q3 2024 was $67.7 million, compared to $42.4 million in Q3 2023. For the nine months ended September 30, 2024, net interest expense totaled $188.4 million, compared to $114.6 million in the same period of 2023.
Equity Investments and Other Income
Roper reported a net gain from equity investments of $37.4 million in Q3 2024, primarily driven by the increase in fair value of its investment in Indicor. Other income for Q3 2024 was $0.9 million, primarily from foreign exchange gains.
Financial Performance Summary
For the nine months ended September 30, 2024, Roper's total revenues were $5,162.1 million, reflecting a 13.1% increase compared to $4,564.3 million in the same period of 2023. Net earnings from continuing operations increased to $1,087.0 million from $995.2 million year-over-year.
| Financial Metric | Q3 2024 ($M) | Q3 2023 ($M) | YTD 2024 ($M) | YTD 2023 ($M) |
|---|---|---|---|---|
| Net Revenues | 1,764.6 | 1,563.4 | 5,162.1 | 4,564.3 |
| Gross Profit | 1,221.7 | 1,096.3 | 3,596.0 | 3,182.0 |
| Net Earnings | 367.9 | 347.2 | 1,087.0 | 995.2 |
| Net Earnings per Share | $3.43 | $3.23 | $10.15 | $9.30 |
Roper Technologies, Inc. (ROP) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Roper Technologies, Inc. (ROP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Roper Technologies, Inc. (ROP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Roper Technologies, Inc. (ROP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.