FORTIVE CORP (FTV)
US34959J1088 - Common Stock
FTV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. FTV has an excellent profitability rating, but there are some minor concerns on its financial health. FTV has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FTV was profitable.
FTV had a positive operating cash flow in the past year.
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's Return On Assets of 5.10% is in line compared to the rest of the industry. FTV outperforms 59.23% of its industry peers.
FTV's Return On Equity of 8.43% is in line compared to the rest of the industry. FTV outperforms 57.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.66%, FTV is in line with its industry, outperforming 53.08% of the companies in the same industry.
FTV had an Average Return On Invested Capital over the past 3 years of 6.27%. This is below the industry average of 10.90%.
The 3 year average ROIC (6.27%) for FTV is below the current ROIC(6.66%), indicating increased profibility in the last year.
| 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
FTV has a better Profit Margin (14.35%) than 88.46% of its industry peers.
In the last couple of years the Profit Margin of FTV has declined.
FTV has a better Operating Margin (18.99%) than 85.38% of its industry peers.
FTV's Operating Margin has improved in the last couple of years.
The Gross Margin of FTV (59.74%) is better than 96.92% of its industry peers.
FTV's Gross Margin has been stable in the last couple of years.
| 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
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.
Compared to 5 years ago, FTV has more shares outstanding
The debt/assets ratio for FTV is higher compared to a year ago.
2.2 Solvency
FTV has an Altman-Z score of 3.51. This indicates that FTV is financially healthy and has little risk of bankruptcy at the moment.
FTV has a Altman-Z score (3.51) which is comparable to the rest of the industry.
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.
FTV has a better Debt to FCF ratio (2.85) than 73.08% of its industry peers.
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 in line compared to the rest of the industry. FTV outperforms 59.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 3.51 |
ROIC/WACC0.74
WACC9.01%
2.3 Liquidity
FTV has a Current Ratio of 1.25. This is a normal value and indicates that FTV is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.25, FTV is not doing good in the industry: 88.46% of the companies in the same industry are doing better.
A Quick Ratio of 0.99 indicates that FTV may have some problems paying its short term obligations.
FTV has a Quick ratio of 0.99. This is in the lower half of the industry: FTV underperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
FTV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.41%, which is quite good.
The Earnings Per Share has been decreasing by -0.17% on average over the past years.
FTV shows a small growth in Revenue. In the last year, the Revenue has grown by 3.06%.
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 Year3.39%
Revenue Next 2Y3.92%
Revenue Next 3Y4.38%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.07, FTV is valued on the expensive side.
FTV's Price/Earnings ratio is a bit cheaper when compared to the industry. FTV is cheaper than 64.62% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. FTV is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.72 indicates a rather expensive valuation of FTV.
Based on the Price/Forward Earnings ratio, FTV is valued a bit cheaper than the industry average as 66.15% 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 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.07 | ||
| Fwd PE | 17.72 |
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.
76.15% of the companies in the same industry are more expensive than FTV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.08 | ||
| EV/EBITDA | 16.98 |
4.3 Compensation for Growth
FTV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FTV may justify a higher PE ratio.
PEG (NY)1.51
PEG (5Y)N/A
EPS Next 2Y10.66%
EPS Next 3Y10.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.44%, FTV is not a good candidate for dividend investing.
FTV's Dividend Yield is comparable with the industry average which is at 1.69.
With a Dividend Yield of 0.44, FTV pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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.
As FTV did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 (12/20/2024, 8:13:35 PM)
After market: 74.45 0 (0%)74.45
+1.21 (+1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.92%
Inst Owner Change-0.39%
Ins Owners0.33%
Ins Owner Change-1.5%
Market Cap25.83B
Analysts76
Price Target87.28 (17.23%)
Short Float %0.95%
Short Ratio1.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Dividend Growth(5Y)-5.52%
DP12.59%
Div Incr Years2
Div Non Decr Years8
Ex-Date
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)-1.43%
PT rev (3m)2.61%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)2.9%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.34%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.07 | ||
| Fwd PE | 17.72 | ||
| P/S | 4.17 | ||
| P/FCF | 19.08 | ||
| P/OCF | 17.55 | ||
| P/B | 2.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.98 |
EPS(TTM)3.71
EY4.98%
EPS(NY)4.2
Fwd EY5.64%
FCF(TTM)3.9
FCFY5.24%
OCF(TTM)4.24
OCFY5.7%
SpS17.86
BVpS30.42
TBVpS-9.45
PEG (NY)1.51
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 | 3.51 |
F-Score6
WACC9.01%
ROIC/WACC0.74
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 Year3.39%
Revenue Next 2Y3.92%
Revenue Next 3Y4.38%
Revenue Next 5Y8.05%
EBIT growth 1Y5.57%
EBIT growth 3Y26.65%
EBIT growth 5Y11.83%
EBIT Next Year21.49%
EBIT Next 3Y11.76%
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%