FORTIVE CORP (FTV) Stock Fundamental Analysis
USA - NYSE:FTV - US34959J1088 - Common Stock
49.47 USD
-0.15 (-0.3%)
49.92 USD
+0.45 (+0.91%)
Overall FTV gets a fundamental rating of 4 out of 10. We evaluated FTV against 130 industry peers in the Machinery industry. There are concerns on the financial health of FTV while its profitability can be described as average. FTV has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FTV had positive earnings in the past year.
In the past year FTV had a positive cash flow from operations.
Each year in the past 5 years FTV has been profitable.
In the past 5 years FTV always reported a positive cash flow from operatings.
1.2 Ratios
FTV has a Return On Assets (4.21%) which is in line with its industry peers.
The Return On Equity of FTV (7.41%) is comparable to the rest of the industry.
FTV has a Return On Invested Capital of 6.36%. This is comparable to the rest of the industry: FTV outperforms 48.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FTV is below the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 7.41% | ||
| ROIC | 6.36% |
ROA(3y)4.92%
ROA(5y)5.57%
ROE(3y)8.12%
ROE(5y)9.53%
ROIC(3y)6.67%
ROIC(5y)5.86%
1.3 Margins
FTV's Profit Margin of 12.51% is amongst the best of the industry. FTV outperforms 83.85% of its industry peers.
FTV's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.31%, FTV belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
FTV's Operating Margin has improved in the last couple of years.
FTV has a better Gross Margin (59.78%) than 96.92% of its industry peers.
In the last couple of years the Gross Margin of FTV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.31% | ||
| PM (TTM) | 12.51% | ||
| GM | 59.78% |
OM growth 3Y6.19%
OM growth 5Y12.39%
PM growth 3Y6.96%
PM growth 5Y-1.86%
GM growth 3Y1.52%
GM growth 5Y1.93%
2. Health
2.1 Basic Checks
FTV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 2.46 indicates that FTV is not a great score, but indicates only limited risk for bankruptcy at the moment.
FTV has a Altman-Z score (2.46) which is comparable to the rest of the industry.
FTV has a debt to FCF ratio of 3.47. This is a good value and a sign of high solvency as FTV would need 3.47 years to pay back of all of its debts.
FTV has a better Debt to FCF ratio (3.47) than 66.15% of its industry peers.
FTV has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FTV (0.28) is better than 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.47 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.68
WACC9.36%
2.3 Liquidity
FTV has a Current Ratio of 0.98. This is a bad value and indicates that FTV is not financially healthy enough and could expect problems in meeting its short term obligations.
FTV has a worse Current ratio (0.98) than 87.69% of its industry peers.
A Quick Ratio of 0.82 indicates that FTV may have some problems paying its short term obligations.
With a Quick ratio value of 0.82, FTV is not doing good in the industry: 73.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
FTV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.56%.
FTV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.25% yearly.
Looking at the last year, FTV shows a decrease in Revenue. The Revenue has decreased by -0.12% in the last year.
FTV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.43% yearly.
EPS 1Y (TTM)-0.56%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%-37.63%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-34.53%
3.2 Future
The Earnings Per Share is expected to grow by 0.45% on average over the next years.
Based on estimates for the next years, FTV will show a decrease in Revenue. The Revenue will decrease by -5.15% on average per year.
EPS Next Y-34.99%
EPS Next 2Y-15.41%
EPS Next 3Y-7.33%
EPS Next 5Y0.45%
Revenue Next Year-34.05%
Revenue Next 2Y-17.43%
Revenue Next 3Y-10.84%
Revenue Next 5Y-5.15%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FTV is valuated correctly with a Price/Earnings ratio of 13.86.
FTV's Price/Earnings ratio is rather cheap when compared to the industry. FTV is cheaper than 87.69% of the companies in the same industry.
When comparing the Price/Earnings ratio of FTV to the average of the S&P500 Index (26.91), we can say FTV is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.73 indicates a rather expensive valuation of FTV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTV indicates a somewhat cheap valuation: FTV is cheaper than 61.54% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.92. FTV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 17.73 |
4.2 Price Multiples
FTV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FTV is cheaper than 63.85% of the companies in the same industry.
FTV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FTV is cheaper than 90.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.08 | ||
| EV/EBITDA | 12.3 |
4.3 Compensation for Growth
FTV has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as FTV's earnings are expected to decrease with -7.33% in the coming years.
PEG (NY)N/A
PEG (5Y)6.17
EPS Next 2Y-15.41%
EPS Next 3Y-7.33%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, FTV is not a good candidate for dividend investing.
FTV's Dividend Yield is comparable with the industry average which is at 1.80.
With a Dividend Yield of 0.49, FTV pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
The dividend of FTV decreases each year by -7.91%.
FTV has been paying a dividend for at least 10 years, so it has a reliable track record.
As FTV did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-7.91%
Div Incr Years2
Div Non Decr Years8
5.3 Sustainability
14.22% of the earnings are spent on dividend by FTV. This is a low number and sustainable payout ratio.
DP14.22%
EPS Next 2Y-15.41%
EPS Next 3Y-7.33%
49.47
-0.15 (-0.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.46%
Inst Owner Change0.47%
Ins Owners0.17%
Ins Owner Change0.03%
Market Cap16.74B
Revenue(TTM)6.15B
Net Income(TTM)768.90M
Analysts68.33
Price Target57.83 (16.9%)
Short Float %2.84%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.32
Dividend Growth(5Y)-7.91%
DP14.22%
Div Incr Years2
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.11%
Min EPS beat(2)-3.21%
Max EPS beat(2)-1.01%
EPS beat(4)2
Avg EPS beat(4)0.63%
Min EPS beat(4)-3.21%
Max EPS beat(4)3.45%
EPS beat(8)5
Avg EPS beat(8)1.12%
EPS beat(12)9
Avg EPS beat(12)1.74%
EPS beat(16)13
Avg EPS beat(16)1.94%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-2.24%
Max Revenue beat(2)-0.65%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-2.24%
Max Revenue beat(4)-0.65%
Revenue beat(8)1
Avg Revenue beat(8)-1.47%
Revenue beat(12)4
Avg Revenue beat(12)-0.74%
Revenue beat(16)6
Avg Revenue beat(16)-0.76%
PT rev (1m)-0.03%
PT rev (3m)-14.18%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-11.44%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-2.14%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 17.73 | ||
| P/S | 2.72 | ||
| P/FCF | 12.08 | ||
| P/OCF | 11.05 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.3 |
EPS(TTM)3.57
EY7.22%
EPS(NY)2.79
Fwd EY5.64%
FCF(TTM)4.1
FCFY8.28%
OCF(TTM)4.48
OCFY9.05%
SpS18.17
BVpS30.69
TBVpS-9.52
PEG (NY)N/A
PEG (5Y)6.17
Graham Number49.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 7.41% | ||
| ROCE | 7.34% | ||
| ROIC | 6.36% | ||
| ROICexc | 7.28% | ||
| ROICexgc | N/A | ||
| OM | 17.31% | ||
| PM (TTM) | 12.51% | ||
| GM | 59.78% | ||
| FCFM | 22.54% |
ROA(3y)4.92%
ROA(5y)5.57%
ROE(3y)8.12%
ROE(5y)9.53%
ROIC(3y)6.67%
ROIC(5y)5.86%
ROICexc(3y)7.24%
ROICexc(5y)6.49%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.7%
ROCE(5y)6.77%
ROICexgc growth 3YN/A
ROICexgc growth 5Y22.28%
ROICexc growth 3Y6.66%
ROICexc growth 5Y17.49%
OM growth 3Y6.19%
OM growth 5Y12.39%
PM growth 3Y6.96%
PM growth 5Y-1.86%
GM growth 3Y1.52%
GM growth 5Y1.93%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.47 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 23.6% | ||
| Cap/Sales | 2.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.19% | ||
| Profit Quality | 180.25% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.46 |
F-Score6
WACC9.36%
ROIC/WACC0.68
Cap/Depr(3y)22.1%
Cap/Depr(5y)19.73%
Cap/Sales(3y)1.78%
Cap/Sales(5y)1.59%
Profit Quality(3y)157.54%
Profit Quality(5y)143.9%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.56%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%-37.63%
EPS Next Y-34.99%
EPS Next 2Y-15.41%
EPS Next 3Y-7.33%
EPS Next 5Y0.45%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-34.53%
Revenue Next Year-34.05%
Revenue Next 2Y-17.43%
Revenue Next 3Y-10.84%
Revenue Next 5Y-5.15%
EBIT growth 1Y-9.05%
EBIT growth 3Y12.4%
EBIT growth 5Y19.62%
EBIT Next Year-9.69%
EBIT Next 3Y0.7%
EBIT Next 5Y3.16%
FCF growth 1Y16.96%
FCF growth 3Y15.57%
FCF growth 5Y3.95%
OCF growth 1Y17.43%
OCF growth 3Y16.68%
OCF growth 5Y3.73%
FORTIVE CORP / FTV FAQ
Can you provide the ChartMill fundamental rating for FORTIVE CORP?
ChartMill assigns a fundamental rating of 4 / 10 to FTV.
What is the valuation status for FTV stock?
ChartMill assigns a valuation rating of 5 / 10 to FORTIVE CORP (FTV). This can be considered as Fairly Valued.
Can you provide the profitability details for FORTIVE CORP?
FORTIVE CORP (FTV) has a profitability rating of 6 / 10.
What are the PE and PB ratios of FORTIVE CORP (FTV) stock?
The Price/Earnings (PE) ratio for FORTIVE CORP (FTV) is 13.86 and the Price/Book (PB) ratio is 1.61.
What is the earnings growth outlook for FORTIVE CORP?
The Earnings per Share (EPS) of FORTIVE CORP (FTV) is expected to decline by -34.99% in the next year.