Evia sells ROP 154.21: Gross margins have expanded from 50% to nearly 60% over this time period.

This translates into a premium 4.6 times sales multiple which is actually in line with Roper's own valuation. The company spent $277 million to acquire these two combined businesses which are expected to contribute $60 million in revenues in the coming twelve months. Earlier in September, Roper announced the purchase of Atlantic Health Partners and RF Ideas to expand the medical and RF business of Roper, respectively. Potential deals tend to be quite small. Besides reporting a high CRI, potential targets need to have gross margins which exceed 50%. Other requirements include committed management teams and the fact that targets need to hold leading market positions in niche positions.


Magdalen:
The relentless execution with regards to cash flow conversion is demonstrated by the fact that cash flow generation has exceeded the reported earnings for 17 years in a row.

Blair:
These incremental cash flows allowed Roper to grow the business even faster.

Enedina:
The focus on CRI has boosted margins while it has reduced asset intensity, boosting the overall returns for the organization.

Angel:
This applies to both organic growth opportunities as well as potential acquisitions.

Danille:
Some of the company's end markets include medical software, scientific imaging, medical imaging, toll traffic technology, RF monitoring, fluid handling, water meter technology, as well as nuclear and oil & gas sensors and control systems.

Imogene:
They focus on niche markets which offer solid growth potential.

Della:
While Roper's businesses are very diverse, they have some things in common.

Candy:
Other key attractions besides high margins is the fact that roughly half of Roper's sales are derived from recurring sources, with nearly a third of sales being derived from software and SAAS solutions.

Bev:
As a matter of fact, company-wide margins are currently approaching the 60% mark.

Stefania:
Each of these segments post gross margins which exceed 50% of sales.

Roper Industries (NYSE:ROP)
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