ROPNEUTRAL

Return on Equity (ROE)

9.0%

Higher than 37% of Industrials sector peers

Updated 150h ago

Sector Performance

37th percentile

ROP

9.0%

Sector Median

12.6%

Sector Avg

-23.6%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company uses shareholders' money to generate profit — a 9.0% ROE means Roper earns $0.09 for every dollar of equity.

That figure sits well below the Industrials sector median of 13.5%, placing the stock in the 36th percentile among peers, indicating weaker profitability relative to similar companies. The year-over-year change is unavailable, but the quarter-over-quarter change shows a +16.9% improvement from the prior value of 7.7%, suggesting a recent upward shift in earnings relative to equity. The combination of a below-median ROE level with a positive quarterly trend points to a potential recovery in profitability, though the absolute return remains modest and lags the sector. For investors, this creates a mixed picture: the recent momentum reduces some downside risk, but the low standing versus peers still signals limited competitive advantage. This metric partially supports the overall NEUTRAL verdict, as the improving trend offsets concerns about the below-median level, preventing a clear bullish or bearish case.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ROP?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ROP's Return on Equity (ROE) compare to its sector?

ROP's Return on Equity (ROE) of 9.0% compares to a Industrials sector median of 12.6%, placing it in the 37th percentile.

Who are ROP's closest peers by Return on Equity (ROE)?

The closest Industrials peers by Return on Equity (ROE) include: PWR (13.5%), RTX (11.6%), AME (13.9%), SAIA (10.2%), CARR (9.9%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

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ROP

9.0%

Sector Median

12.6%

Sector Avg

-23.6%

How ROP's Return on Equity (ROE) compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.