Roper Technologies, Inc. ROP is witnessing persistent strength in its Deltek, Vertafore, PowerPlan and Aderant businesses under the Application Software segment, driven by the growing adoption of SaaS solutions and continued GenAI innovation. Strong momentum across alternate site healthcare businesses and robust demand for Gen AI-powered solutions within the ConstructConnect business are fostering growth of the Network Software segment. In the fourth quarter of 2024, organic revenues from the Application Software and Network Software segments increased 6% and 3% year over year, respectively.

The solid performance of the Neptune business is supported by the continued demand for ultrasonic metes. The increasing adoption of meter data management software is fostering the growth of the Technology enabled Products segment. The segment’s organic revenues grew 12% in the fourth quarter. For 2025, the company expects total revenues to increase 10% from the year-ago level.

The company remains focused on acquiring businesses to gain access to new customers, regions and product lines. In December 2024, Roper’s business unit, DAT Freight & Analytics, acquired Trucker Tools LLC. The acquisition will enable the company to strengthen DAT's real-time GPS tracking and load optimization features on the DAT One platform.

In February 2024, ROP completed the acquisition of Procare Solutions, which is expected to expand its software offerings in the education sector. Also, the buyout of Syntellis Performance Solutions in August 2023 strengthened its Strata Decision Technology business. Acquisitions boosted sales 9% in the fourth quarter.

Roper remains focused on increasing its shareholders’ wealth through dividend payouts. For instance, in 2024, it paid out dividends worth $321.9 million, reflecting an increase of 10.9% year over year. It’s worth noting that in November 2024, the company hiked its quarterly dividend by 10%.

ROP Stock’s Price Performance

Image Source: Zacks Investment Research

In the past six months, this Zacks Rank #3 (Hold) company has gained 1.9% against the industry’s 5.3% decline.

However, the company has been dealing with rising costs and expenses. In 2024, its cost of sales increased 15.5% year over year while selling, general and administrative (SG&A) expenses rose 12.5%. Also, in 2023, its cost of sales and SG&A expenses climbed 15.5% and 15%, respectively, on a year-over-year basis. Higher costs related to the amortization of acquired assets are pushing up operating expenses.

High debt levels are an added concern for Roper. At the end of 2024, it had a long-term debt (net of the current portion) of $6.58 billion. Its current portion of long-term debt (net) totaled almost $1.04 billion, higher than its cash equivalents of $188.2 million.

Stocks to Consider

Some better-ranked stocks from the same space are discussed below.

Griffon Corporation GFF presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GFF delivered a trailing four-quarter average earnings surprise of 14.7%. In the past 30 days, the Zacks Consensus Estimate for Griffon’s fiscal 2025 (ending September 2025) earnings has increased 0.7% to $5.55 per share.

Nutanix NTNX presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 38.6%.

In the past 30 days, the consensus estimate for NTNX’s fiscal 2025 earnings has remained stable at $1.48 per share.

Vertiv VRT presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 13.7%.

In the past 30 days, the consensus estimate for VRT’s 2025 earnings has increased 0.3% to $3.59 per share.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Roper Technologies, Inc. (ROP) : Free Stock Analysis Report

Nutanix (NTNX) : Free Stock Analysis Report

Griffon Corporation (GFF) : Free Stock Analysis Report

Vertiv Holdings Co. (VRT) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research