FORTIVE CORP (FTV) Stock Fundamental Analysis
NYSE:FTV - New York Stock Exchange, Inc. - US34959J1088 - Common Stock - Currency: USD
Overall FTV gets a fundamental rating of 5 out of 10. We evaluated FTV against 128 industry peers in the Machinery industry. FTV scores excellent on profitability, but there are some minor concerns on its financial health. FTV is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years FTV has always been profitable.
Each year in the past 5 years FTV had a positive operating cash flow.
1.2 Ratios
FTV has a Return On Assets (4.89%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.17%, FTV is in line with its industry, outperforming 49.22% of the companies in the same industry.
FTV has a Return On Invested Capital (6.90%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for FTV is below the industry average of 10.67%.
The 3 year average ROIC (6.67%) for FTV is below the current ROIC(6.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 8.17% | ||
| ROIC | 6.9% |
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 has a Profit Margin of 13.37%. This is amongst the best in the industry. FTV outperforms 84.38% of its industry peers.
In the last couple of years the Profit Margin of FTV has declined.
With an excellent Operating Margin value of 18.88%, FTV belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
In the last couple of years the Operating Margin of FTV has grown nicely.
FTV has a better Gross Margin (59.87%) than 96.88% of its industry peers.
FTV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.88% | ||
| PM (TTM) | 13.37% | ||
| GM | 59.87% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FTV is destroying value.
FTV has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FTV has been increased compared to 5 years ago.
The debt/assets ratio for FTV is higher compared to a year ago.
2.2 Solvency
FTV has an Altman-Z score of 3.25. This indicates that FTV is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.25, FTV perfoms like the industry average, outperforming 58.59% of the companies in the same industry.
FTV has a debt to FCF ratio of 2.64. This is a good value and a sign of high solvency as FTV would need 2.64 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.64, FTV is doing good in the industry, outperforming 67.97% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that FTV is not too dependend on debt financing.
FTV's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. FTV outperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 3.25 |
ROIC/WACC0.68
WACC10.08%
2.3 Liquidity
FTV has a Current Ratio of 1.16. This is a normal value and indicates that FTV is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FTV (1.16) is worse than 89.06% of its industry peers.
A Quick Ratio of 0.91 indicates that FTV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.91, FTV is doing worse than 71.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.70% over the past year.
FTV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.25% yearly.
FTV shows a small growth in Revenue. In the last year, the Revenue has grown by 2.75%.
Measured over the past years, FTV shows a small growth in Revenue. The Revenue has been growing by 6.43% on average per year.
EPS 1Y (TTM)13.7%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%19.39%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%2.31%
3.2 Future
FTV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.14% yearly.
Based on estimates for the next years, FTV will show a small growth in Revenue. The Revenue will grow by 7.38% on average per year.
EPS Next Y5.36%
EPS Next 2Y6.89%
EPS Next 3Y7.8%
EPS Next 5Y9.14%
Revenue Next Year0.48%
Revenue Next 2Y2.63%
Revenue Next 3Y3.68%
Revenue Next 5Y7.38%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 16.78, the valuation of FTV can be described as correct.
FTV's Price/Earnings ratio is a bit cheaper when compared to the industry. FTV is cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, FTV is valued a bit cheaper.
FTV is valuated correctly with a Price/Forward Earnings ratio of 15.93.
Based on the Price/Forward Earnings ratio, FTV is valued a bit cheaper than the industry average as 67.19% of the companies are valued more expensively.
FTV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 15.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTV is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FTV indicates a somewhat cheap valuation: FTV is cheaper than 71.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.83 | ||
| EV/EBITDA | 14.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of FTV may justify a higher PE ratio.
PEG (NY)3.13
PEG (5Y)7.47
EPS Next 2Y6.89%
EPS Next 3Y7.8%
5. Dividend
5.1 Amount
FTV has a yearly dividend return of 0.50%, which is pretty low.
FTV's Dividend Yield is comparable with the industry average which is at 2.12.
With a Dividend Yield of 0.50, FTV pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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.
FTV has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-7.91%
Div Incr Years2
Div Non Decr Years8
5.3 Sustainability
13.35% of the earnings are spent on dividend by FTV. This is a low number and sustainable payout ratio.
DP13.35%
EPS Next 2Y6.89%
EPS Next 3Y7.8%
65.44
+0.44 (+0.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.59%
Inst Owner Change0.02%
Ins Owners0.28%
Ins Owner Change2.61%
Market Cap22.27B
Analysts74.4
Price Target88.52 (35.27%)
Short Float %1.96%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.32
Dividend Growth(5Y)-7.91%
DP13.35%
Div Incr Years2
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.37%
Min EPS beat(2)3.3%
Max EPS beat(2)3.45%
EPS beat(4)4
Avg EPS beat(4)2.63%
Min EPS beat(4)0.16%
Max EPS beat(4)3.62%
EPS beat(8)7
Avg EPS beat(8)2.37%
EPS beat(12)11
Avg EPS beat(12)2.86%
EPS beat(16)15
Avg EPS beat(16)3.04%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-2.13%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-2.13%
Max Revenue beat(4)-1.13%
Revenue beat(8)3
Avg Revenue beat(8)-0.87%
Revenue beat(12)6
Avg Revenue beat(12)-0.14%
Revenue beat(16)8
Avg Revenue beat(16)-0.38%
PT rev (1m)-0.34%
PT rev (3m)1.82%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)-7.94%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-2.17%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-4.97%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-3.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 15.93 | ||
| P/S | 3.57 | ||
| P/FCF | 15.83 | ||
| P/OCF | 14.59 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.63 |
EPS(TTM)3.9
EY5.96%
EPS(NY)4.11
Fwd EY6.28%
FCF(TTM)4.13
FCFY6.32%
OCF(TTM)4.49
OCFY6.86%
SpS18.31
BVpS29.94
TBVpS-9.72
PEG (NY)3.13
PEG (5Y)7.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 8.17% | ||
| ROCE | 7.96% | ||
| ROIC | 6.9% | ||
| ROICexc | 7.3% | ||
| ROICexgc | 217.62% | ||
| OM | 18.88% | ||
| PM (TTM) | 13.37% | ||
| GM | 59.87% | ||
| FCFM | 22.57% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.64 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 22.14% | ||
| Cap/Sales | 1.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.75% | ||
| Profit Quality | 168.86% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 3.25 |
F-Score7
WACC10.08%
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)13.7%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%19.39%
EPS Next Y5.36%
EPS Next 2Y6.89%
EPS Next 3Y7.8%
EPS Next 5Y9.14%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%2.31%
Revenue Next Year0.48%
Revenue Next 2Y2.63%
Revenue Next 3Y3.68%
Revenue Next 5Y7.38%
EBIT growth 1Y3.78%
EBIT growth 3Y12.4%
EBIT growth 5Y19.62%
EBIT Next Year38.92%
EBIT Next 3Y16.89%
EBIT Next 5Y18.84%
FCF growth 1Y12.89%
FCF growth 3Y15.57%
FCF growth 5Y3.95%
OCF growth 1Y12.8%
OCF growth 3Y16.68%
OCF growth 5Y3.73%