Roper Technologies’ Upcoming Analysts Meeting Preview
RBC Capital analysts provided their outlook on Roper Technologies, Inc. (NYSE:ROP) ahead of the upcoming Analyst Meeting on March 21.
The analysts expect the company to issue updated long-term metrics, likely to target organic sales growth of 7%-8% (vs. 6%-7% today), EBITDA margins of 40%, and free cash flow generation equal to approximately 80% of EBITDA.
The analysts look for Roper to review its repeatable self-funded growth-by-M&A compounder model focused on acquiring niche software/SaaS businesses with high barriers to entry and low capital-intensity/high free cash flow. With over $4 billion in M&A firepower, the analysts like Roper’s near-term prospects to pursue M&A.
| Symbol | Price | %chg |
|---|---|---|
| 373220.KS | 318000 | -2.99 |
| 009540.KS | 283500 | -1.23 |
| 034020.KS | 27850 | 0.36 |
| 7011.T | 2731.5 | -5.89 |
Roper Technologies’ First-Ever Analyst Meeting Review
RBC Capital provided its key takeaways from Roper Technologies, Inc. (NYSE:ROP) first-ever analyst meeting, where the company showcased its business model, leadership team, growth algorithm, and culture.
There was no update to 2023 guidance, but the company did make its case for how its current mid-single-digit organic revenue cadence should be stepping up to mid-to-high-single-digits.
The analysts continue to see the company as well positioned in its pivot to 75% niche software markets with high free cash flow.
According to the analysts, the attractive M&A funnel should help Roper achieve its double-digit total revenue growth goal over the next 5 years. The analysts expect shares to benefit in a risk-off environment and reiterate their Outperform rating and $528 price target.
Roper Technologies Reports Solid Q4 Results But Shares Drop
Roper Technologies (NYSE:ROP) reported its Q4 results, with EPS coming in at $3.92, better than the Street estimate of $3.77. Revenue was $1.43 billion, in line with expectations. Despite strong results, shares fell more than 4% since the earnings announcement on Friday.
According to the analysts at RBC Capital, the company reported a clean Q4/22 to close out the year, with the upside in Application Software driving a 5c/2% operating beat. Free cash flow conversion was a strong 161% but below its Q4 historical average of 197%, with some of the drag from the Frontline Education deal, where school system renewals and cash collections are primarily in Q3.
The company provided its fiscal 2023 outlook, expecting EPS in the range of $15.90-$16.20, compared to the Street estimate of $15.95.
