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Roper Technologies Inc ROP

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Ignore the Sell-Off; Roper’s Fundamental Position Is the Strongest Among Multi-Industrials

Joshua Aguilar Equity Analyst

Analyst Note

| Joshua Aguilar |

Nothing in wide-moat-rated Roper Technologies’ third-quarter earnings results fundamentally alters our long-term view of the firm. As it pertains to Roper’s earning power, we mistimed the inclusion of cash flows from both acquisitions and Transcore’s congestion infrastructure project, but with puts and takes in our model, this was more than offset by time value of money (which added about 1.5% to our valuation since our last update).

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Company Profile

Business Description

Roper is a diversified technology company that operates out of four segments: application software; network software and systems; measurement and analytical solutions; and process technologies. The firm’s culture emphasizes acquiring asset-light, cash-generative businesses. Roper then reinvests this excess cash in businesses that yield incrementally higher rates of return. While the firm’s businesses are managed in a decentralized manner, Roper does not passively manage its portfolio. Instead, Roper manages its businesses through the Socratic method and empowers decision-makers through group executive coaching. Roper has now rotated a clear majority of its business from legacy industrial products into technology software in mature, niche markets with large quantities of deferred revenue.

Contact
6901 Professional Parkway East, Suite 200
Sarasota, FL, 34240
T +1 941 556-2601
Sector Industrials
Industry Specialty Industrial Machinery
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 16,460

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