Leading position in profitable niche segments Good customer, geographic, and product diversity Revenue growth, above-average profitability, and strong cash flow generation Integration risks related to acquisitions Cyclical, fragmented end markets The ratings on Duluth, Ga.-based Roper Industries Inc., a diversified manufacturer of industrial products, reflect its leading position in profitable niche markets and its broad product, end-market, and geographic diversity, which help stabilize cash flow generation. These factors are partly offset by the possibility of integration risks for current and future acquisitions. Roper provides engineered products and solutions for a diverse array of global niche markets and generates annual pro forma sales of about $1.3 billion. It benefits from technological leadership, high profit margins, and low capital expenditures because of
