Brett Girard, CPA, CA, CFA Roper Technologies Inc. ROP-N HOLD Jan 22, 2025

Recent all time high of the stock good for shareholders. American version of Constellation Software (Canada). Dividend has grown at ~ 14% annually the past 10 years. M&A skill very good - usually pay cash and is friendly. Excellent growth prospects for the long term investor. 

Recent results were pretty good, and announced a new acquisition. Shares trading sideways, very good long-term compounder and this should continue.

ROP has been roughly sideways for the last few years now. Up until 2023, top-line growth hasn't been the most inspiring but it looks like the company is getting back to a more consistent 10% range of revenue growth and roughly 9% EPS growth. Fundamentally it is a solid company as well with good margins and return metrics. We think the 'issue' with ROPis just that it is in a bit of a grey zone between valuation and growth. At 25X forward earnings, it is not really expensive given the fundamentals but also not a 'steal' at these levels. Meanwhile, the growth rate is probably just low enough to not really get investors excited about it either. We like the name and think it is fine, but probably just needs a bit of a catalyst to get investors caring about it again.
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