# Roper Technologies Stock (ROP): The Cash Compounder Fell 37% — Then Bought ITSELF. Our Call: BUY

Page: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/roper-technologies-stock-rop-the-cash-compounder-fell-37-then-bought-itself-our-call-buy
Text version: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/roper-technologies-stock-rop-the-cash-compounder-fell-37-then-bought-itself-our-call-buy.md
Podcast: [Charged Alpha Stock Encyclopedia](https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792)
Published: 2026-07-23T20:20:03+00:00
Episode link: https://chargedalpha.podbean.com/e/roper-technologies-stock-rop-the-cash-compounder-fell-37-%e2%80%94-then-bought-itself-our-call-buy/
Audio file: https://mcdn.podbean.com/mf/web/mizbibpyo8f19tw1/audio_3.mp3
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Duration seconds: 865

## Resource

Roper Technologies (ROP) Q2 2026 — Roper Technologies (ROP), the serial acquirer of niche vertical-market software and tech-enabled businesses (Deltek, Vertafore, Aderant, Neptune, Verathon), reported a clean Q2 2026 beat-and-raise: adjusted EPS of $5.38 topped its $5.25-5.30 guide (+10% YoY) on revenue of $2.11B (+9%, organic +5%), adjusted free cash flow rose 11% to $447M, and management RAISED full-year adjusted EPS guidance for the second time to $22.15-22.30. Ignore the 233% GAAP EPS jump to $11.62 — almost all of it is a one-time, non-cash $835M gain on Roper's Indicor minority stake. The real story: the famous acquirer spent $1.2B buying its OWN stock (3.6M shares; $3.2B / 9.0M shares over three quarters, >8% of the count, back to 2013 levels) while first-half acquisitions collapsed to just $28M vs $2.0B a year ago. The stock (~$355, +5.6% on the print) has fallen ~37% from its $564 high and now trades near 16x earnings — the cheapest in a decade. The catch: organic growth has cooled to 5%, adjusted EBITDA margin slipped 130bps to 38.6%, and the 10% EPS growth is buyback-fueled (adjusted net earnings up only 3%). Our owner-earnings DCF — GAAP understates cash earnings by ~$6.50/share of acquisition amortization — lands fair value near $425, ~20% above the price, even on the cautious organic-only path. Our call: BUY, 4/5. Roper Technologies is one of the market's great quiet compounders — a serial acquirer that has spent 30+ years buying tiny, dominant vertical-market software and tech-enabled businesses (Deltek, Vertafore, Aderant, Frontline, Strata, Neptune, Verathon) and reinvesting their cash into buying more. Q2 2026 was a clean beat-and-raise: adjusted EPS of $5.38 beat the $5.25-5.30 guide (+10% YoY), revenue rose 9% to $2.11B (organic +5%), adjusted fr…

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