- Roper posted a modest beat-and-raise for the second quarter, as the company's longer-cycle end-markets start picking up.
- The guidance revision wasn't particularly large, but Roper should see growth accelerate into the high single-digits to low double-digits in the second half, with operating leverage, while others see deceleration.
- M&A remains a key to the growth engine; high debt levels make large deals less palatable right now, but Roper's FCF growth can self-fund ambitious long-term M&A plans.
- Including M&A, I believe Roper could maintain double-digit FCF growth for another decade; if so, the valuation on the shares isn't out of line with other quality multi-industrials.
For further details see:
Roper Looking Stronger As The Recovery Broadens And Deepens