Buffett Brain · Research note
Score updated 20 Oct 2026 · analysis from 21 Sept 2026
ROP· Industrials
Roper Technologies
Roper Technologies shows strong margins but lacks the high ROIC Buffett prefers.
Buffett fit
Weak fit
Owner
50
Durability
91
Management
59
Price
61
Score updated 20 Oct 2026 · analysis from 21 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Roper Technologies would mean benefiting from its high of 28.1%.
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Roper has been profitable for the last five years, with an EPS CAGR of 8.27%.
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Roper's share count has been stable, with a CAGR of 0.45%, and the yield is low at 0.27%.
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With a of 18.7 and an yield of 6.82%, Roper is reasonably priced but not a bargain.
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- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 69.4% is top-quintile in the sector.
- 2 at 28.1% indicates strong profitability.
- 3Net margin of 21.1% is robust compared to peers.
- 4EPS has been positive for the past 5 years.
Concerns
5- 1 of 5.7% is below the sector top-quintile and Buffett's threshold.
- 2Net debt/EBITDA ratio of 3.11 indicates high .
- 3Current ratio of 0.53 suggests potential liquidity issues.
- 4Dividend CAGR of -4.16% indicates shrinking shareholder returns.
Price history
$398-18.3%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Roper Technologies operates in the industrial sector, providing a range of software and engineered products. Its revenue comes from cloud-based solutions for industries like insurance and healthcare, as well as precision instruments. With a of 69.4%, the company excels in cost management. The unit economics indicate strong profitability with a net margin of 21.1%.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 20, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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