FORTIVE CORP (FTV)
US34959J1088 - Common Stock
FTV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. While FTV belongs to the best of the industry regarding profitability, 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.
In the past year FTV had a positive cash flow from operations.
In the past 5 years FTV has always been profitable.
FTV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 5.10%, FTV perfoms like the industry average, outperforming 59.06% of the companies in the same industry.
The Return On Equity of FTV (8.43%) is comparable to the rest of the industry.
FTV's Return On Invested Capital of 6.66% is in line compared to the rest of the industry. FTV outperforms 51.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTV is below the industry average of 11.01%.
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.
In the last couple of years the Profit Margin of FTV has declined.
FTV's Operating Margin of 18.99% is amongst the best of the industry. FTV outperforms 85.83% of its industry peers.
FTV's Operating Margin has improved in the last couple of years.
FTV has a Gross Margin of 59.74%. This is amongst the best in the industry. FTV outperforms 96.85% of its industry peers.
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
FTV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
FTV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.58 indicates that FTV is not in any danger for bankruptcy at the moment.
FTV's Altman-Z score of 3.58 is in line compared to the rest of the industry. FTV outperforms 59.06% of its industry peers.
FTV has a debt to FCF ratio of 2.85. This is a good value and a sign of high solvency as FTV would need 2.85 years to pay back of 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 72.44% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that FTV is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.33, FTV is in line with its industry, outperforming 59.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 3.58 |
ROIC/WACC0.73
WACC9.11%
2.3 Liquidity
A Current Ratio of 1.25 indicates that FTV should not have too much problems paying its short term obligations.
FTV's Current ratio of 1.25 is on the low side compared to the rest of the industry. FTV is outperformed by 87.40% of its industry peers.
A Quick Ratio of 0.99 indicates that FTV may have some problems paying its short term obligations.
With a Quick ratio value of 0.99, FTV is not doing good in the industry: 68.50% 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.
FTV shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.17% yearly.
The Revenue has been growing slightly by 3.06% in the past 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
FTV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.53% yearly.
Based on estimates for the next years, FTV will show a quite strong growth in Revenue. The Revenue will grow by 9.02% on average per year.
EPS Next Y13.25%
EPS Next 2Y10.83%
EPS Next 3Y10.44%
EPS Next 5Y11.53%
Revenue Next Year3.5%
Revenue Next 2Y4.08%
Revenue Next 3Y4.47%
Revenue Next 5Y9.02%
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
A Price/Earnings ratio of 20.74 indicates a rather expensive valuation of FTV.
FTV's Price/Earnings ratio is a bit cheaper when compared to the industry. FTV is cheaper than 66.14% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, FTV is valued a bit cheaper.
FTV is valuated rather expensively with a Price/Forward Earnings ratio of 18.26.
66.93% of the companies in the same industry are more expensive than FTV, based on the Price/Forward Earnings ratio.
FTV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 18.26 |
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.
FTV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FTV is cheaper than 75.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.72 | ||
| EV/EBITDA | 17.49 |
4.3 Compensation for Growth
FTV's 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)1.57
PEG (5Y)N/A
EPS Next 2Y10.83%
EPS Next 3Y10.44%
5. Dividend
5.1 Amount
FTV has a yearly dividend return of 0.42%, which is pretty low.
Compared to an average industry Dividend Yield of 1.54, FTV has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, FTV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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 Years1
Div Non Decr Years7
5.3 Sustainability
FTV pays out 12.59% of its income as dividend. This is a sustainable payout ratio.
DP12.59%
EPS Next 2Y10.83%
EPS Next 3Y10.44%
FORTIVE CORP
NYSE:FTV (11/21/2024, 8:04:00 PM)
After market: 76.95 0 (0%)76.95
+1.2 (+1.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 18.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 8.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.99% | ||
| PM (TTM) | 14.35% | ||
| GM | 59.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.41%
EPS 3Y3.88%
EPS 5Y
EPS Q2Q%
EPS Next Y13.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.06%
Revenue growth 3Y9.38%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y