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Roper Technologies Inc (NYSE:ROP)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Roper Technologies Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

ROP' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 7

3
8

During the past 13 years, the highest Piotroski F-Score of Roper Technologies Inc was 8. The lowest was 3. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Net Income was 155.51 + 185.936 + 155.773 + 171.28 = $668 Mil.
Cash Flow from Operations was 226.102 + 261.209 + 260.399 + 172.549 = $920 Mil.
Revenue was 884.122 + 946.145 + 865.281 + 889.541 = $3,585 Mil.
Gross Profit was 524.04 + 565.741 + 518.161 + 533.911 = $2,142 Mil.
Average Total Assets from the begining of this year (Jun14)
to the end of this year (Jun15) was
(8262.146 + 8510.266 + 8412.934 + 8974.622 + 9034.096) / 5 = $8638.8128 Mil.
Total Assets at the begining of this year (Jun14) was $8,262 Mil.
Long-Term Debt was $2,517 Mil.
Total Current Assets was $1,587 Mil.
Total Current Liabilities was $655 Mil.
Net Income was 136.323 + 165.703 + 147.226 + 157.361 = $607 Mil.

Revenue was 827.81 + 889.173 + 834.052 + 885.175 = $3,436 Mil.
Gross Profit was 482.625 + 533.22 + 488.936 + 523.182 = $2,028 Mil.
Average Total Assets from the begining of last year (Jun13)
to the end of last year (Jun14) was
(8213.742 + 8245.575 + 8184.981 + 8189.703 + 8262.146) / 5 = $8219.2294 Mil.
Total Assets at the begining of last year (Jun13) was $8,214 Mil.
Long-Term Debt was $2,234 Mil.
Total Current Assets was $1,525 Mil.
Total Current Liabilities was $635 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Roper Technologies Inc's current net income (TTM) was 668. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Roper Technologies Inc's current cash flow from operations (TTM) was 920. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Jun14)
=668.499/8262.146
=0.08091106

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=606.613/8213.742
=0.07385343

Roper Technologies Inc's return on assets of this year was 0.08091106. Roper Technologies Inc's return on assets of last year was 0.07385343. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Roper Technologies Inc's current net income (TTM) was 668. Roper Technologies Inc's current cash flow from operations (TTM) was 920. ==> 920 > 668 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=2517.499/8638.8128
=0.29141724

Gearing (Last Year: Jun14)=Long-Term Debt/Average Total Assets from Jun13 to Jun14
=2233.809/8219.2294
=0.2717784

Roper Technologies Inc's gearing of this year was 0.29141724. Roper Technologies Inc's gearing of last year was 0.2717784. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Jun15)=Total Current Assets/Total Current Liabilities
=1587.282/654.941
=2.4235496

Current Ratio (Last Year: Jun14)=Total Current Assets/Total Current Liabilities
=1524.525/635.272
=2.39979883

Roper Technologies Inc's current ratio of this year was 2.4235496. Roper Technologies Inc's current ratio of last year was 2.39979883. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Roper Technologies Inc's number of shares in issue this year was 101.6. Roper Technologies Inc's number of shares in issue last year was 100.8. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2141.853/3585.089
=0.5974337

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2027.963/3436.21
=0.59017435

Roper Technologies Inc's gross margin of this year was 0.5974337. Roper Technologies Inc's gross margin of last year was 0.59017435. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Jun14)
=3585.089/8262.146
=0.43391741

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=3436.21/8213.742
=0.41834891

Roper Technologies Inc's asset turnover of this year was 0.43391741. Roper Technologies Inc's asset turnover of last year was 0.41834891. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+0+1+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Roper Technologies Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Roper Technologies Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
Question 1 1111111111
Question 2 1111111111
Question 3 1111001110
Question 4 1111111111
Question 5 1101011100
Question 6 0010111101
Question 7 0000100000
Question 8 0111111111
Question 9 0010001000
F-score 5676668755

Roper Technologies Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Question 1 1111111111
Question 2 1111111111
Question 3 1100001111
Question 4 1111111111
Question 5 0000011100
Question 6 0011111111
Question 7 0000000000
Question 8 1111111111
Question 9 0100000001
F-score 5655567767
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