As a multi-industrial increasingly driven by its high-margin, asset-light software businesses, Roper (ROP)
continues to diverge from the broader multi-industrial category in
generally positive ways. Management has built a solid value-compounding
engine here, and Wall Street is quite well aware of that, with the
shares up another 30%-plus over the trailing twelve months. I do expect
Roper to continue to deliver better-than-average organic growth with
improving margins, and I believe Roper has a repeatable formula here for
successful M&A, it’s increasingly difficult for me to see value in
the shares. Yes, there are investors in companies like Roper and Danaher (DHR)
that will argue for buying irrespective of valuation, but that’s not my
approach and I think shareholders should at least be aware of the risks
if Roper’s engine ever has a hiccup along the way.
Read more here:
Roper's Growth Engine Keeps Humming
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