FORTIVE CORP (FTV) Stock Fundamental Analysis
NYSE:FTV - New York Stock Exchange, Inc. - US34959J1088 - Common Stock
Overall FTV gets a fundamental rating of 5 out of 10. We evaluated FTV against 131 industry peers in the Machinery industry. While FTV has a great profitability rating, there are some minor concerns on its financial health. FTV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FTV had positive earnings in the past year.
FTV had a positive operating cash flow in the past year.
Each year in the past 5 years FTV has been profitable.
Each year in the past 5 years FTV had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 5.10%, FTV perfoms like the industry average, outperforming 57.48% of the companies in the same industry.
The Return On Equity of FTV (8.43%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.66%, FTV is in line with its industry, outperforming 51.97% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FTV is below the industry average of 11.19%.
The last Return On Invested Capital (6.66%) for FTV is above the 3 year average (6.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 8.43% | ||
| ROIC | 6.66% |
ROA(3y)4.45%
ROA(5y)5.36%
ROE(3y)7.41%
ROE(5y)9.7%
ROIC(3y)6.27%
ROIC(5y)5.09%
1.3 Margins
The Profit Margin of FTV (14.35%) is better than 88.19% of its industry peers.
FTV's Profit Margin has declined in the last couple of years.
FTV has a better Operating Margin (18.99%) than 85.04% of its industry peers.
FTV's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 59.74%, FTV belongs to the best of the industry, outperforming 96.85% of the companies in the same industry.
In the last couple of years the Gross Margin of FTV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.99% | ||
| PM (TTM) | 14.35% | ||
| GM | 59.74% |
OM growth 3Y15.79%
OM growth 5Y1.85%
PM growth 3Y-24.62%
PM growth 5Y-28.38%
GM growth 3Y1.73%
GM growth 5Y0.59%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FTV is destroying value.
The number of shares outstanding for FTV has been reduced compared to 1 year ago.
The number of shares outstanding for FTV has been increased compared to 5 years ago.
FTV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.70 indicates that FTV is not in any danger for bankruptcy at the moment.
FTV has a Altman-Z score of 3.70. This is comparable to the rest of the industry: FTV outperforms 55.91% of its industry peers.
The Debt to FCF ratio of FTV is 2.85, which is a good value as it means it would take FTV, 2.85 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.85, FTV is in the better half of the industry, outperforming 71.65% of the companies in the same industry.
FTV has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
FTV has a Debt to Equity ratio of 0.33. This is comparable to the rest of the industry: FTV outperforms 59.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 3.7 |
ROIC/WACC0.7
WACC9.57%
2.3 Liquidity
A Current Ratio of 1.25 indicates that FTV should not have too much problems paying its short term obligations.
FTV has a worse Current ratio (1.25) than 88.98% of its industry peers.
FTV has a Quick Ratio of 1.25. This is a bad value and indicates that FTV is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.99, FTV is not doing good in the industry: 69.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.41% over the past year.
Measured over the past years, FTV shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.17% on average per year.
Looking at the last year, FTV shows a small growth in Revenue. The Revenue has grown by 3.06% in the last year.
FTV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.80% yearly.
EPS 1Y (TTM)11.41%
EPS 3Y3.88%
EPS 5Y-0.17%
EPS Q2Q%14.12%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y9.38%
Revenue growth 5Y9.8%
Sales Q2Q%2.72%
3.2 Future
Based on estimates for the next years, FTV will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.87% on average per year.
The Revenue is expected to grow by 8.05% on average over the next years. This is quite good.
EPS Next Y13.32%
EPS Next 2Y10.66%
EPS Next 3Y10.2%
EPS Next 5Y10.87%
Revenue Next Year3.31%
Revenue Next 2Y3.84%
Revenue Next 3Y4.4%
Revenue Next 5Y8.05%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FTV is valuated rather expensively with a Price/Earnings ratio of 21.76.
62.99% of the companies in the same industry are more expensive than FTV, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, FTV is valued a bit cheaper.
FTV is valuated rather expensively with a Price/Forward Earnings ratio of 19.22.
Based on the Price/Forward Earnings ratio, FTV is valued a bit cheaper than 66.14% of the companies in the same industry.
FTV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 19.22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FTV.
Based on the Price/Free Cash Flow ratio, FTV is valued a bit cheaper than 74.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.69 | ||
| EV/EBITDA | 18.26 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FTV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.63
PEG (5Y)N/A
EPS Next 2Y10.66%
EPS Next 3Y10.2%
5. Dividend
5.1 Amount
FTV has a yearly dividend return of 0.41%, which is pretty low.
FTV's Dividend Yield is comparable with the industry average which is at 1.65.
With a Dividend Yield of 0.41, FTV pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
The dividend of FTV decreases each year by -5.52%.
FTV has been paying a dividend for over 5 years, so it has already some track record.
FTV has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-5.52%
Div Incr Years2
Div Non Decr Years8
5.3 Sustainability
FTV pays out 12.59% of its income as dividend. This is a sustainable payout ratio.
DP12.59%
EPS Next 2Y10.66%
EPS Next 3Y10.2%
FORTIVE CORP
NYSE:FTV (1/21/2025, 8:04:00 PM)
After market: 81 +0.27 (+0.33%)80.73
+1.82 (+2.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.92%
Inst Owner Change0.07%
Ins Owners0.33%
Ins Owner Change-1.59%
Market Cap28.01B
Analysts74.4
Price Target86.94 (7.69%)
Short Float %1.3%
Short Ratio1.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.29
Dividend Growth(5Y)-5.52%
DP12.59%
Div Incr Years2
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.73%
Min EPS beat(2)0.16%
Max EPS beat(2)3.3%
EPS beat(4)4
Avg EPS beat(4)2.65%
Min EPS beat(4)0.16%
Max EPS beat(4)3.62%
EPS beat(8)7
Avg EPS beat(8)2.36%
EPS beat(12)11
Avg EPS beat(12)2.62%
EPS beat(16)15
Avg EPS beat(16)3.55%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.13%
Max Revenue beat(2)-2.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-2.13%
Max Revenue beat(4)0.23%
Revenue beat(8)4
Avg Revenue beat(8)-0.59%
Revenue beat(12)6
Avg Revenue beat(12)-0.47%
Revenue beat(16)8
Avg Revenue beat(16)-3.1%
PT rev (1m)-0.39%
PT rev (3m)0.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.9%
EPS NY rev (1m)0%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.34%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 19.22 | ||
| P/S | 4.52 | ||
| P/FCF | 20.69 | ||
| P/OCF | 19.04 | ||
| P/B | 2.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.26 |
EPS(TTM)3.71
EY4.6%
EPS(NY)4.2
Fwd EY5.2%
FCF(TTM)3.9
FCFY4.83%
OCF(TTM)4.24
OCFY5.25%
SpS17.86
BVpS30.42
TBVpS-9.45
PEG (NY)1.63
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 8.43% | ||
| ROCE | 7.66% | ||
| ROIC | 6.66% | ||
| ROICexc | 7.03% | ||
| ROICexgc | 144.18% | ||
| OM | 18.99% | ||
| PM (TTM) | 14.35% | ||
| GM | 59.74% | ||
| FCFM | 21.85% |
ROA(3y)4.45%
ROA(5y)5.36%
ROE(3y)7.41%
ROE(5y)9.7%
ROIC(3y)6.27%
ROIC(5y)5.09%
ROICexc(3y)6.83%
ROICexc(5y)5.7%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.21%
ROCE(5y)5.86%
ROICexcg growth 3YN/A
ROICexcg growth 5Y11.28%
ROICexc growth 3Y16.31%
ROICexc growth 5Y4.74%
OM growth 3Y15.79%
OM growth 5Y1.85%
PM growth 3Y-24.62%
PM growth 5Y-28.38%
GM growth 3Y1.73%
GM growth 5Y0.59%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.85 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 22.39% | ||
| Cap/Sales | 1.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.49% | ||
| Profit Quality | 152.24% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.7 |
F-Score6
WACC9.57%
ROIC/WACC0.7
Cap/Depr(3y)18.94%
Cap/Depr(5y)20.59%
Cap/Sales(3y)1.46%
Cap/Sales(5y)1.69%
Profit Quality(3y)154.18%
Profit Quality(5y)144.73%
High Growth Momentum
Growth
EPS 1Y (TTM)11.41%
EPS 3Y3.88%
EPS 5Y-0.17%
EPS Q2Q%14.12%
EPS Next Y13.32%
EPS Next 2Y10.66%
EPS Next 3Y10.2%
EPS Next 5Y10.87%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y9.38%
Revenue growth 5Y9.8%
Sales Q2Q%2.72%
Revenue Next Year3.31%
Revenue Next 2Y3.84%
Revenue Next 3Y4.4%
Revenue Next 5Y8.05%
EBIT growth 1Y5.57%
EBIT growth 3Y26.65%
EBIT growth 5Y11.83%
EBIT Next Year21.28%
EBIT Next 3Y12.23%
EBIT Next 5YN/A
FCF growth 1Y31.2%
FCF growth 3Y-2.91%
FCF growth 5Y0.22%
OCF growth 1Y32.13%
OCF growth 3Y-1.97%
OCF growth 5Y0.14%