Is Roper Technologies, Inc. (NYSE: ROP) data in right direction?

On 27 March 2020, Roper Technologies, Inc.  the stock changed -0.17% to recent value of $305.79. There are 104.2M shares outstanding and 104.1M shares are floated in market.  ROP over recent time; they noted that 1191129 shares changed at hands contradiction to its average trading volume of 571.69K.

Roper Technologies, Inc. (ROP) stated financial results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter 2019

Fourth quarter GAAP diluted earnings per share (“DEPS”) was $8.28, a 237% increase, while adjusted DEPS was $3.39, a 5% increase. GAAP results include a pretax gain of $801M associated with the divestiture of Gatan.

GAAP revenue increased to $1.39B and adjusted revenue increased 2% to $1.40B. Organic revenue increased 1%. GAAP and adjusted gross margin both expanded 60 basis points to 64.0% and 64.1%, respectively.

EBITDA increased 4% to $518M and EBITDA margin expanded 100 basis points to 37.0%. Operating cash flow was a record $466M while free cash flow was $453M, representing 32% of adjusted revenue.

Full Year 2019

Full year GAAP DEPS was $16.82, an 86% increase, while adjusted DEPS was $13.05, a 10% increase.

EBITDA increased 7% to $1.93B and EBITDA margin expanded 110 basis points to 35.8%. GAAP operating cash flow was $1.46B and adjusted operating cash flow increased 5% to $1.50B. Adjusted free cash flow also increased 5% to $1.44B, representing 27% of adjusted revenue.

“It was another excellent year for Roper,” stated Neil Hunn, Roper’s President and CEO. “Operationally, our teams executed at a very high level while continuing to innovate and invest for long term, sustained growth. In addition, we meaningfully improved our portfolio through $2.4B of acquisitions, led by iPipeline and Foundry, and the divestitures of our Gatan and Scientific Imaging businesses. As a result, we exit 2019 in a stronger position to continue compounding cash flow and shareholder returns.”

2020 Outlook and Guidance

“Roper is well positioned for a strong 2020, driven by continued organic growth across our portfolio of software and product businesses, TransCore’s important New York City project, and contributions from our recent acquisitions,” stated Mr. Hunn. “Aided by the proceeds from the Gatan divestiture, we enter the new year with important financial capacity to execute against our large and active pipeline of high-quality acquisition opportunities.”

Roper expects full year adjusted DEPS of $13.30 – $13.60 with first quarter adjusted DEPS of $2.94 – $3.00. The Company expects full year organic revenue growth of +6 – 7%.

Currently ROP has beta value of 1.07. A beta of 1.0 tells you that a stock has been going up and down with the overall stock market. A stock with a beta between 0.0 and 1.0 has smaller ups and downs. A beta greater than 1.0 has wider price swings. You invest to earn a return on your money, but returns are not the only consideration. Risk and return are connected. Generally, the higher the risk of an investment, the higher the potential return.  Here beta – measures how the stock is doing compared to a given benchmark, such as the S&P TSX Composite Index. Stocks with a negative beta are moving opposite to the index. When you invest in a stock, you could lose all of your money – in some cases, more than you invested. Before you buy a stock, understand the risks and decide if they are risks you are comfortable taking.

Analyst Review:

Analyst recommendations as reported on FINVIZ are rated on a 1 to 5 scale. 1 is equivalent to a Strong Buy rating, 3 a hold rating, and 5 a Strong Sell rating. The consensus recommendation is the average rating on a stock by the analyst community. Analyst mean recommendation for this stock stands at 2.2. A stock rating will usually tell the investor how well a stock’s market value relates to what analysts believe is a fair value for the stock, based on an objective evaluation of the company.

Simple Moving Average:

The stock disclosed a move of -13.78% away from 50 day moving average and -14.02% away from 200 day moving average. Moving closer, we can see that shares have been trading -3.08% away off 20-day moving average. Traders and technical analysts have the ability to use volume to help measure the strength of a particular move. Investors may also view volume levels when the stock price is nearing significant support or resistance levels, in order to confirm a breakout in either direction.

ROP ’s shares are at -13.57% for the quarter and driving a -10.09% return over the course of the past year and is now at -13.67% since this point in 2019. The average volatility for the week and month was at 8.00% and -13.86% respectively.

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