We think the company - which designs software-as-a-service solutions for a variety of end markets, including healthcare, education, transportation, government, water, and energy - is well positioned for the post-pandemic future as its products enable work-from-home, environmental testing, and electronic surveillance.
Management has a history of establishing reasonable financial targets and raising them as the year rolls along. Our estimates for the next two years call for double-digit EPS growth, driven by a combination of mid-single-digit top-line growth, margin improvement, and share buybacks.
In November, the Board raised Roper’s quarterly payout by 10% to $0.75 per share, or $3 annually. This marked the 31st straight year in which the company had raised its dividend.