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Roper Technologies's Free Cash Flow per Share for the three months ended in Mar. 2024 was $4.75. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2024 was $18.54.
During the past 12 months, the average Free Cash Flow per Share Growth Rate of Roper Technologies was 206.90% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 8.60% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was -1.40% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 6.20% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the FCF Growth Rate using Free Cash Flow per Share data.
The historical rank and industry rank for Roper Technologies's Free Cash Flow per Share or its related term are showing as below:
During the past 13 years, Roper Technologies's highest 3-Year average Free Cash Flow per Share Growth Rate was 128.50% per year. The lowest was -31.10% per year. And the median was 12.90% per year.
The historical data trend for Roper Technologies's Free Cash Flow per Share 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.
Roper Technologies Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Free Cash Flow per Share | Get a 7-Day Free Trial | 13.40 | 14.03 | 18.35 | 6.22 | 17.94 |
Roper Technologies Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Free Cash Flow per Share | Get a 7-Day Free Trial | 4.15 | 2.75 | 5.65 | 5.39 | 4.75 |
For the Software - Application subindustry, Roper Technologies's Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow 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.
For the Software industry and Technology sector, Roper Technologies's Price-to-Free-Cash-Flow distribution charts can be found below:
* The bar in red indicates where Roper Technologies's Price-to-Free-Cash-Flow falls into.
Free Cashflow per Share is the amount of Free Cashflow per outstanding share of the company's stock.
Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.
Roper Technologies's Free Cash Flow Per Share for the fiscal year that ended in Dec. 2023 is calculated as
Free Cash Flow Per Share | (A: Dec. 2023 ) | ||||
= | (Cash Flow from Operations | + | Capital Expenditure) | / | Shares Outstanding (Diluted Average) |
= | (2035.1 | + | -108) | / | 107.400 |
= | 1927.1 | / | 107.400 | ||
= | 17.94 |
Roper Technologies's Free Cash Flow Per Share for the quarter that ended in Mar. 2024 is calculated as
Free Cash Flow Per Share | (Q: Mar. 2024 ) | ||||
= | (Cash Flow from Operations | + | Capital Expenditure) | / | Shares Outstanding (Diluted Average) |
= | (531.5 | + | -18.9) | / | 107.900 |
= | 512.6 | / | 107.900 | ||
= | 4.75 |
Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $18.54
* 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 (NAS:ROP) Free Cash Flow per Share Explanation
Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.
In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.
This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.
Therefore, as of Dec23, Roper Technologies's Forward Rate of Return (Yacktman) % is
Forward Rate of Return (Yacktman) % (Dec23) | = | Normalized Free Cash Flow | / | Price | + | 5-Year EBITDA Growth Rate |
= | 14.22590476 | / | 560.84 | + | 0.0244 | |
= | 4.98 % |
* 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.
Be Aware
Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.
Thank you for viewing the detailed overview of Roper Technologies's Free Cash Flow per Share provided by GuruFocus.com. Please click on the following links to see related term pages.
Robert D Johnson | director | HONEYWELL, 1944 E SKY HARBOR CIRCLE, PHOENIX AZ 85034 |
Christopher Wright | director | C/O GENAISSANCE PHARMACEUTICALS INC, 5 SCIENCE PARK, NEW HAVEN CT 06511 |
Laurence Neil Hunn | officer: Executive Vice President | 100 NORTH POINT CENTER EAST, SUITE 200, ALPHARETTA GA 30022 |
Shellye L Archambeau | director | 1095 AVENUE OF THE AMERICAS, 8TH FLOOR, NEW YORK NY 10036 |
Jason Conley | officer: Vice President and Controller | C/O ROPER TECHNOLOGIES, INC., 6901 PROFESSIONAL PARKWAY, SARASOTA FL 34240 |
Richard F Wallman | director | HONEYWELL, 101 COLUMBIA ROAD, MORRISTOWN NJ 07962 |
Brandon L Cross | officer: VP and Corporate Controller | 6901 PROFESSIONAL PARKWAY, SUITE 200, SARASOTA FL 34240 |
Robert Crisci | officer: Vice President and CFO | C/O ROPER TECHNOLOGIES, INC., 6901 PROFESSIONAL PARKWAY, SARASOTA FL 34240 |
John K Stipancich | officer: VP, GC & Secretary | C/O ROPER TECHNOLOGIES, INC., 6901 PROFESSIONAL PARKWAY E, STE. 200, SARASOTA FL 34240 |
Joyce Thomas Patrick Jr | director | 2099 PENNSYLVANIA AVENUE, NW, 12TH FLOOR, WASHINGTON DC 22207 |
Irene M Esteves | director | C/O TIME WARNER CABLE INC., 60 COLUMBUS CIRCLE, 17TH FLOOR, NEW YORK NY 10023 |
Amy Woods Brinkley | director | BANK OF AMERICA CORP, 100 NORTH TRYON ST NC1-007-58-04, CHARLOTTE NC 28255 |
Fort John F Iii | director | C/O ROPER INDUSTRIES INC, 2160 SATELLITE BLVD, DULUTH GA 30097 |
Wilbur J Prezzano | director | 13515 BALLANTYNE CORPORATE PL, CHARLOTTE NC 28277 |
Knowling Robert E Jr | director | C/O HEWLETT-PACKARD CO, 3000 HANOVER STREET, PALO ALTO CA 94304 |
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