ROPER TECHNOLOGIES: an asset-light model

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Dividend Growth, US Stocks

roper fcf

Ticker: ROP | Market: NYSE | Price: $271.36 | Yield: 0.53% | Cap: $28.3B

You’ve likely never heard of asset-light Roper Technologies, but this company has been quietly building a war chest of cash rich businesses for decades. Public since 1992, Roper now owns 40+ businesses in asset-light verticals that allow them to earn sticky, recurring revenue. Roper’s secret sauce has been their commitment to and execution of an acquisition strategy that focuses on niche markets, 50%+ gross margins and asset-light business models. This strategy has certainly been paying off for Roper, which has seen its free cash flow grow on an annualized basis by 15% since the depths of the 2008 recession. I’ve been in this one since it was about USD $170 a share. Check out their free cash flow above … how sweet it is.

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