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Roper Technologies, Inc. ROP has been benefiting from strength across its segments and accretive acquisitions. The company's efforts to reward its shareholders handsomely add to its appeal.
Based in Sarasota, FL, Roper designs, manufactures and distributes software and technology-enabled products and solutions. It caters to selected segments of a broad range of markets, which include legal, healthcare, government, food, transportation, oil & gas, medical and other niche industries. ROP currently carries a Zacks Rank #3 (Hold). Roper belongs to Zacks Computers - IT Services industry.
Growth Catalysts of ROP
Business Strength: Strength across its Deltek, Frontline, Strata, PowerPlan and Aderant businesses is benefiting Roper’s Application Software segment. It is witnessing strength in the property and casualty insurance, project-based private sector, healthcare and legal markets. The growing adoption of SaaS solutions and continued GenAI innovation bode well for Aderant.
Solid demand for SaaS solutions in the GovCon sectors and expanding GenAI functionality are key catalysts for the Deltek business. Increased renewal activity in the Frontline business is also driving the segment’s performance. The Strata business is gaining from strong demand for its leading decision support and financial planning solutions in the healthcare market. Strong customer retention and adoption of new SaaS solutions are aiding the PowerPlan business.
Strength across alternate site healthcare businesses, driven by increased demand for software solutions at MHA, is supporting the Network Software segment. Solid demand for Gen AI-powered solutions within the ConstructConnect business is aiding the Network Software segment.
The solid performance of the Neptune business, due to continued demand for ultrasonic metes and increasing adoption of meter data management software, is fostering the growth of the Technology enabled Products segment. Strong momentum in the Verathon business, due to strength across single-use BFlex & GlideScope offerings and continued BladderScan demand, bodes well for the segment.
Acquisitions: Roper has been strengthening its business through acquisitions. In December 2024, it completed the acquisition of Trucker Tools LLC through its business unit, DAT Freight & Analytics. The acquisition will enable ROP to strengthen DAT's real-time GPS tracking and load optimization features on the DAT One platform. In August 2024, Roper inked a deal to acquire Transact Campus for $1.5 billion. The inclusion of Transact’s expertise in campus technology and payment solutions will enable the company to boost its CBORD business, which provides food service, nutrition, access and security and campus commerce solutions.
In February 2024, the company acquired Procare Solutions for $1.75 billion. The buyout expanded Roper’s software offerings in the education sector. In August 2023, the company acquired cloud-based performance management and data solutions provider, Syntellis Performance Solutions, for $1.25 billion. The acquired entity has been integrated into Roper’s Strata Decision Technology business, which is part of the Application Software segment.
Rewards to Shareholders: Roper remains committed to rewarding its shareholders handsomely through dividend payouts. The company’s dividend payments totaled $241.1 million, up 10.9% year over year in the first nine months of 2024. In November 2024, it hiked its dividend by 10%. It is worth noting that in 2023, the company rewarded its shareholders with a dividend payment of $290.2 million, up 10.6% year over year.