Roper had a strong quarter which happened to be an all-around beat. The company saw its total revenue growing 15% and organic revenue growing 8%. Roper also achieved impressive cash flow performance, with free cash flow margins exceeding 30%. With a solid start to the year, Roper increased its full-year organic growth outlook and EPS guidance, further reinforcing its strong position in the market. It is worth highlighting that during Q1, all of its segments saw a decent, high-single-digit organic growth but the highlight was its largest segment of Test & Measurement which reported revenue of $539 million, up 16% from the same quarter last year where the organic revenue growth was 9%. The company’s balance sheet strengthened, with net debt decreasing and ample capacity for future deployments. Roper Technologies’ backlog at the end of the first quarter of 2023 was $4.4 billion, up 14% from the end of the fourth quarter of 2022. As Roper maintains its disciplined approach to capital deployment and leverages its strong financial performance, it is poised to seize opportunities and drive sustained growth in the market. We give Roper Technologies a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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