New Lifetime High Reached: Roper Industries (ROP)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Roper Industries as such a stock due to the following factors:
- ROP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.8 million.
- ROP has traded 5,553 shares today.
- ROP is trading at a new lifetime high.
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More details on ROP:
Roper Industries, Inc., a diversified technology company, designs and develops software (both license and software-as-a-service), and engineered products and solutions for healthcare, transportation, food, energy, water, education, and academic research markets worldwide. The stock currently has a dividend yield of 0.6%. ROP has a PE ratio of 26.8. Currently there are 5 analysts that rate Roper Industries a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Roper Industries has been 408,500 shares per day over the past 30 days. Roper has a market cap of $17.2 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.54 and a short float of 1.3% with 3.89 days to cover. Shares are up 9.7% year-to-date as of the close of trading on Monday.
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Analysis:
rates Roper Industries as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, good cash flow from operations and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 6.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ROP has a quick ratio of 1.94, which demonstrates the ability of the company to cover short-term liquidity needs.
- ROPER INDUSTRIES INC/DE has improved earnings per share by 11.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ROPER INDUSTRIES INC/DE increased its bottom line by earning $6.40 versus $5.37 in the prior year. This year, the market expects an improvement in earnings ($6.85 versus $6.40).
- Net operating cash flow has increased to $261.21 million or 10.78% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.84%.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Roper Industries Ratings Report.
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