FORTIVE CORP (FTV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FTV - US34959J1088 - Common Stock
54.14 USD
-1.31 (-2.36%)
54.14 USD
0 (0%)
FTV gets a fundamental rating of 4 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FTV was profitable.
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 of 5.07%. This is in the better half of the industry: FTV outperforms 61.36% of its industry peers.
With a Return On Equity value of 9.26%, FTV perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
FTV's Return On Invested Capital of 8.52% is fine compared to the rest of the industry. FTV outperforms 62.12% of its industry peers.
FTV had an Average Return On Invested Capital over the past 3 years of 6.67%. This is below the industry average of 10.21%.
The last Return On Invested Capital (8.52%) for FTV is above the 3 year average (6.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 9.26% | ||
| ROIC | 8.52% |
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
The Profit Margin of FTV (10.68%) is better than 75.76% of its industry peers.
In the last couple of years the Profit Margin of FTV has declined.
With a decent Operating Margin value of 16.42%, FTV is doing good in the industry, outperforming 78.03% of the companies in the same industry.
In the last couple of years the Operating Margin of FTV has grown nicely.
FTV's Gross Margin of 60.33% is amongst the best of the industry. FTV outperforms 96.97% of its industry peers.
In the last couple of years the Gross Margin of FTV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.42% | ||
| PM (TTM) | 10.68% | ||
| GM | 60.33% |
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.
Compared to 5 years ago, FTV has more shares outstanding
FTV has a worse debt/assets ratio than last year.
2.2 Solvency
FTV has an Altman-Z score of 3.24. This indicates that FTV is financially healthy and has little risk of bankruptcy at the moment.
FTV has a Altman-Z score of 3.24. This is comparable to the rest of the industry: FTV outperforms 53.79% of its industry peers.
FTV has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as FTV would need 2.98 years to pay back of all of its debts.
The Debt to FCF ratio of FTV (2.98) is better than 70.45% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that FTV is not too dependend on debt financing.
FTV has a Debt to Equity ratio of 0.33. This is in the better half of the industry: FTV outperforms 62.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.89
WACC9.58%
2.3 Liquidity
FTV has a Current Ratio of 0.70. This is a bad value and indicates that FTV is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of FTV (0.70) is worse than 91.67% of its industry peers.
A Quick Ratio of 0.58 indicates that FTV may have some problems paying its short term obligations.
FTV has a Quick ratio of 0.58. This is amonst the worse of the industry: FTV underperforms 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for FTV have decreased strongly by -11.59% in the last year.
Measured over the past 5 years, FTV shows a small growth in Earnings Per Share. The EPS has been growing by 2.25% on average per year.
FTV shows a decrease in Revenue. In the last year, the revenue decreased by -8.96%.
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)-11.59%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%-29.9%
Revenue 1Y (TTM)-8.96%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-33.07%
3.2 Future
The Earnings Per Share is expected to decrease by -0.22% 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 -5.05% on average per year.
EPS Next Y-31.61%
EPS Next 2Y-14.13%
EPS Next 3Y-7.15%
EPS Next 5Y-0.22%
Revenue Next Year-33.9%
Revenue Next 2Y-17.48%
Revenue Next 3Y-10.9%
Revenue Next 5Y-5.05%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.51, FTV is valued correctly.
FTV's Price/Earnings ratio is rather cheap when compared to the industry. FTV is cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. FTV is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.83, which indicates a rather expensive current 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 61.36% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.57. FTV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.51 | ||
| Fwd PE | 18.83 |
4.2 Price Multiples
FTV's Enterprise Value to EBITDA ratio is in line with the industry average.
81.82% 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 | 15.52 | ||
| EV/EBITDA | 14.77 |
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 -7.15% in the coming years.
PEG (NY)N/A
PEG (5Y)7.35
EPS Next 2Y-14.13%
EPS Next 3Y-7.15%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, FTV is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.85, FTV has a dividend in line with its industry peers.
With a Dividend Yield of 0.43, FTV pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
The dividend of FTV decreases each year by -7.91%.
FTV has paid a dividend for at least 10 years, which is 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
16.72% of the earnings are spent on dividend by FTV. This is a low number and sustainable payout ratio.
FTV's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP16.72%
EPS Next 2Y-14.13%
EPS Next 3Y-7.15%
54.14
-1.31 (-2.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.24%
Inst Owner Change0%
Ins Owners0.17%
Ins Owner Change0.09%
Market Cap17.20B
Revenue(TTM)5.64B
Net Income(TTM)602.30M
Analysts67.5
Price Target57.87 (6.89%)
Short Float %3.88%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.32
Dividend Growth(5Y)-7.91%
DP16.72%
Div Incr Years2
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.32%
Min EPS beat(2)-3.21%
Max EPS beat(2)17.85%
EPS beat(4)2
Avg EPS beat(4)4.27%
Min EPS beat(4)-3.21%
Max EPS beat(4)17.85%
EPS beat(8)6
Avg EPS beat(8)3.46%
EPS beat(12)9
Avg EPS beat(12)3%
EPS beat(16)13
Avg EPS beat(16)3.03%
Revenue beat(2)1
Avg Revenue beat(2)0.12%
Min Revenue beat(2)-0.65%
Max Revenue beat(2)0.89%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-2.24%
Max Revenue beat(4)0.89%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)5
Avg Revenue beat(12)-0.66%
Revenue beat(16)7
Avg Revenue beat(16)-0.55%
PT rev (1m)0.22%
PT rev (3m)0.07%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)3.34%
EPS NY rev (1m)0.3%
EPS NY rev (3m)5.19%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.51 | ||
| Fwd PE | 18.83 | ||
| P/S | 3.05 | ||
| P/FCF | 15.52 | ||
| P/OCF | 14.1 | ||
| P/B | 2.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.77 |
EPS(TTM)3.28
EY6.06%
EPS(NY)2.88
Fwd EY5.31%
FCF(TTM)3.49
FCFY6.44%
OCF(TTM)3.84
OCFY7.09%
SpS17.76
BVpS20.48
TBVpS-9.57
PEG (NY)N/A
PEG (5Y)7.35
Graham Number38.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 9.26% | ||
| ROCE | 9.84% | ||
| ROIC | 8.52% | ||
| ROICexc | 8.93% | ||
| ROICexgc | N/A | ||
| OM | 16.42% | ||
| PM (TTM) | 10.68% | ||
| GM | 60.33% | ||
| FCFM | 19.64% |
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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.98 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 24.22% | ||
| Cap/Sales | 1.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.89% | ||
| Profit Quality | 183.93% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 3.24 |
F-Score7
WACC9.58%
ROIC/WACC0.89
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)-11.59%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%-29.9%
EPS Next Y-31.61%
EPS Next 2Y-14.13%
EPS Next 3Y-7.15%
EPS Next 5Y-0.22%
Revenue 1Y (TTM)-8.96%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-33.07%
Revenue Next Year-33.9%
Revenue Next 2Y-17.48%
Revenue Next 3Y-10.9%
Revenue Next 5Y-5.05%
EBIT growth 1Y-21.25%
EBIT growth 3Y12.4%
EBIT growth 5Y19.62%
EBIT Next Year-8.64%
EBIT Next 3Y0.45%
EBIT Next 5Y3.03%
FCF growth 1Y-12.16%
FCF growth 3Y15.57%
FCF growth 5Y3.95%
OCF growth 1Y-11.05%
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 of FORTIVE CORP (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 7 / 10.
What are the PE and PB ratios of FORTIVE CORP (FTV) stock?
The Price/Earnings (PE) ratio for FORTIVE CORP (FTV) is 16.51 and the Price/Book (PB) ratio is 2.64.
Can you provide the expected EPS growth for FTV stock?
The Earnings per Share (EPS) of FORTIVE CORP (FTV) is expected to decline by -31.61% in the next year.