Roper TechnologiesFRA:ROP -1.09%77 Operating Margin % is 27.18% as of Mar. 2026, which is 3% below its 10-year median of 27.97. GuruFocus rates FRA:ROP with a GF Score™ of 77/100 and a GF Value™ of €601.72 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,820 Software companies, Roper Technologies ranks better than 94.11% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Roper Technologies Operating Margin % Related Terms
Roper Technologies Operating Margin % Historical Data
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The historical data trend for Roper Technologies's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:ROP vs PAYX, ZM, WDAY: Operating Margin % Comparison
For the Software - Application subindustry, Roper Technologies's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Roper Technologies Operating Margin % vs Software Industry
For the Software industry and Technology sector, Roper Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Roper Technologies's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Roper Technologies's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Roper Technologies (FRA:ROP) has a Operating Margin % of 27.18% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Roper Technologies and its competitors. This is near median its historical median of 27.97. Over the past decade, Roper Technologies' Operating Margin % has ranged from 26.27 to 28.38. According to the industry distribution chart, Roper Technologies ranks #166 out of 2820 companies in the Software industry, placing it in the top 5.9%.
Is Roper Technologies' Operating Margin % too high?
Roper Technologies' current Operating Margin % of 27.18% is near median its 10-year median of 27.97. Over the past 10 years, this metric has ranged from a low of 26.27 to a high of 28.38. The Software industry median Operating Margin % is 3.87. Roper Technologies' value of 27.18% is 603.2% above this industry median. Based on the distribution chart, Roper Technologies ranks #166 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Roper Technologies has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Roper Technologies' Operating Margin % compare to PAYX and ZM?
According to the Software industry distribution chart, Roper Technologies ranks #166 out of 2820 companies for Operating Margin %. This places Roper Technologies in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Roper Technologies' value of 27.18% is 603.2% above this benchmark. Historically, Roper Technologies' own Operating Margin % has ranged from 26.27 to 28.38 over the past decade. While the company's 10-year median is 27.97 vs. the industry median of 3.87, Roper Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,820 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Roper Technologies's current Operating Margin % of 27.18% is 603.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Roper Technologies and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roper Technologies's current Operating Margin % is 27.18%, which is near median its own 10-year median of 27.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roper Technologies stock overvalued right now?
Based on GuruFocus' analysis, Roper Technologies (FRA:ROP) is currently considered Significantly Undervalued. The stock's GF Value™ is €601.72, compared to a current price of €291.70 — trading 51.5% below its estimated fair value. The current Operating Margin % is 27.18%, which is near median its 10-year median of 27.97 and 603.2% above the Software industry median of 3.87. Roper Technologies' overall GF Score™ is 77/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Roper Technologies (FRA:ROP), the current Operating Margin % is 27.18% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Roper Technologies (FRA:ROP) Overvalued in 2026?
Based on GuruFocus' analysis, Roper Technologies stock appears to be undervalued.
The current stock price of €291.70 is trading 51.5% below its estimated GF Value™ of €601.72.
GuruFocus considers Roper Technologies to be Significantly Undervalued.
Key valuation signals for FRA:ROP:
Operating Margin %: 27.18% (near median its 10-year median of 27.97)
GF Value™: €601.72 vs. price of €291.70 (51.5% below fair value)
Industry Position: 603.2% above the Software median (#166 of 2820)
No single metric tells the full story. See the FRA:ROP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Roper Technologies is a holding company focused on acquiring, managing, and developing niche market-leading technology businesses. The company operates a decentralized business model whereby each portfolio company operates independently from the others. Roper positions itself as a free cash flow compounder, whereby excess free cash flow generated by its portfolio businesses is repatriated to the parent company, which is then utilized to acquire additional businesses. Presently, the company operates 30 distinct businesses with over three-fourths of the revenue coming from software products and over two-thirds of revenue coming from recurring and reoccurring sources.
77GF Score
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