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Roper Technologies Inc.

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Roper Technologies reported fourth-quarter 2016 results with revenues and earnings beating the Zacks Consensus Estimate. On a year-over-year basis, both the metrics registered growth. Roper has maintained that acquisitions will help boost its performance especially the software and network businesses. Roper has spent nearly $3.7 billion in acquisitions, including Deltek. Management expects half of its total EBITDA in 2017 to come from software and network businesses. Apart from acquisitions, winning of New York City’s MTA project is another big positive with nearly 50% contribution to 11% growth in organic orders in the reported quarter. Moreover, we continue to believe that the company’s asset-light business model will boost financial performance in the long run.However, stiff competition, weakness in oil and gas, and a leveraged balance sheet remain overhangs. Shares have underperformed the broader market in past one year. 

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