Should Quality Investors Include NYSE:FTV in Their Portfolio?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if FORTIVE CORP (NYSE:FTV) is suited for quality investing. Investors should of course do their own research, but we spotted FORTIVE CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why NYSE:FTV Holds Appeal for Quality Investors.

• FORTIVE CORP has demonstrated significant revenue growth over the past 5 years, with a 9.8% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• FORTIVE CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 246.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• FORTIVE CORP maintains a healthy Debt/Free Cash Flow Ratio of 2.93, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a robust Profit Quality (5-year) ratio of 145.0%, FORTIVE CORP highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• FORTIVE CORP has experienced impressive EBIT growth over the past 5 years, with 11.83% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• FORTIVE CORP has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, FTV scores 5 out of 10 in our fundamental rating. FTV was compared to 133 industry peers in the Machinery industry. While FTV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FTV is valied quite expensively at the moment, while it does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of FTV

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.