Roper Beneish M Score

ROP
 Stock
  

USD 439.10  5.40  1.25%   

This module uses fundamental data of Roper Industries to approximate the value of its Beneish M Score. Roper Industries M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, take a look at Roper Industries Piotroski F Score and Roper Industries Altman Z Score analysis.
  
Roper Industries Total Debt is very stable at the moment as compared to the past year. Roper Industries reported last year Total Debt of 5.59 Billion. As of 13th of August 2022, Debt Current is likely to grow to about 389.4 M, while Long Term Debt to Equity is likely to drop 0.57. Roper Industries Revenue to Assets are very stable at the moment as compared to the past year. Roper Industries reported last year Revenue to Assets of 0.24. As of 13th of August 2022, Total Assets Per Share is likely to grow to 242.52, while Receivables Turnover is likely to drop 5.37.
At this time, it appears that Roper Industries is an unlikely manipulator. The earnings manipulation may begin if Roper Industries' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Roper Industries executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Roper Industries' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.04
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.31Focus
Asset QualityN/AFocus
Expense Coverage1.31Focus
Gross Margin Strengs0.9Focus
Accruals Factor1.31Focus
Depreciation Resistance0.97Focus
Net Sales Growth0.82Focus
Financial Leverage Condition1.0Focus

Roper Industries Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Roper Industries' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues4.8 B5.8 B
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense1.2 B1.2 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations2.2 BB
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion30.2 M33.6 M
Moderately Down
Increasing
Stable
Total Assets25.6 B23.7 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net109.3 M127.2 M
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables728.1 M674.8 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities13.1 B12.2 B
Significantly Up
Increasing
Slightly volatile
Current Assets1.9 B2.4 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current12.2 B11.3 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities3.4 B3.1 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current6.9 B6.4 B
Significantly Up
Increasing
Slightly volatile
Total DebtB5.6 B
Significantly Up
Increasing
Slightly volatile
Debt Current389.4 M360.9 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current5.6 B5.2 B
Significantly Up
Increasing
Slightly volatile
Operating Income1.2 B1.5 B
Significantly Down
Increasing
Slightly volatile
Gross Margin61.0867.8009
Moderately Down
Increasing
Slightly volatile

Roper Industries Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Roper Industries' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Roper Industries in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Roper Industries' degree of accounting gimmicks and manipulations.

About Roper Industries Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

1.24 Billion

Roper Industries Operating Expenses is very stable at the moment as compared to the past year. Roper Industries reported last year Operating Expenses of 1.15 Billion

Roper Industries Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Roper Industries. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues4.61 B5.19 B5.37 B5.53 B5.78 B4.75 B
Total Assets14.32 B15.25 B18.11 B24.02 B23.71 B25.59 B
Current Assets1.76 B1.61 B2 B1.75 B2.42 B1.95 B
Total Liabilities7.45 B7.51 B8.62 B13.54 B12.15 B13.11 B
Current Liabilities2.03 B1.45 B2.4 B2.44 B3.12 B3.37 B
Operating Income1.21 B1.4 B1.5 B1.43 B1.48 B1.23 B
Gross Margin62.1863.1763.8664.167.861.08

Roper Industries ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Roper Industries' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Roper Industries' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Roper Industries Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Roper Industries's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Roper Industries using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Roper Industries based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Roper Technologies, Inc. designs and develops software, and engineered products and solutions. The company was incorporated in 1981 and is based in Sarasota, Florida. Roper Industries operates under Specialty Industrial Machinery classification in the United States and is traded on New York Stock Exchange. It employs 19300 people.

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Additionally, take a look at Roper Industries Piotroski F Score and Roper Industries Altman Z Score analysis. Note that the Roper Industries information on this page should be used as a complementary analysis to other Roper Industries' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Shere Portfolio module to track or share privately all of your investments from the convenience of any device.

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Is Roper Industries' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Roper Industries. If investors know Roper will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Roper Industries listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.063
Market Capitalization
46.1 B
Quarterly Revenue Growth YOY
0.1
Return On Assets
0.0423
Return On Equity
0.0819
The market value of Roper Industries is measured differently than its book value, which is the value of Roper that is recorded on the company's balance sheet. Investors also form their own opinion of Roper Industries' value that differs from its market value or its book value, called intrinsic value, which is Roper Industries' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Roper Industries' market value can be influenced by many factors that don't directly affect Roper Industries' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Roper Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine Roper Industries value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Roper Industries' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.