FORTIVE CORP (FTV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FTV - US34959J1088 - Common Stock
54.59 USD
-0.13 (-0.24%)
54.59 USD
0 (0%)
Overall FTV gets a fundamental rating of 4 out of 10. We evaluated FTV 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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year FTV was profitable.
- FTV had a positive operating cash flow in the past year.
- 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
- 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.
- FTV's Return On Equity of 9.26% is in line compared to the rest of the industry. FTV outperforms 59.09% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.52%, FTV is in the better half of the industry, outperforming 62.12% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for FTV is below the industry average of 10.24%.
- 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
- FTV has a better Profit Margin (10.68%) than 75.76% of its industry peers.
- FTV's Profit Margin has declined in the last couple of years.
- FTV's Operating Margin of 16.42% is fine compared to the rest of the industry. FTV outperforms 78.03% of its industry peers.
- FTV's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 60.33%, FTV belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FTV is destroying value.
- Compared to 1 year ago, FTV has less shares outstanding
- 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 3.21. This indicates that FTV is financially healthy and has little risk of bankruptcy at the moment.
- With a Altman-Z score value of 3.21, FTV perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
- The Debt to FCF ratio of FTV is 2.98, which is a good value as it means it would take FTV, 2.98 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 2.98, FTV is doing good in the industry, outperforming 69.70% 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 the better half of the industry, outperforming 62.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.88
WACC9.68%
2.3 Liquidity
- A Current Ratio of 0.70 indicates that FTV may have some problems paying its short term obligations.
- FTV has a worse Current ratio (0.70) than 92.42% of its industry peers.
- A Quick Ratio of 0.58 indicates that FTV may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.58, FTV is doing worse than 87.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- FTV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.59%.
- 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 decrease in Revenue. In the last year, the revenue decreased by -8.96%.
- FTV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.43% yearly.
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
- FTV is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.22% yearly.
- FTV is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.05% yearly.
EPS Next Y-31.61%
EPS Next 2Y-14.13%
EPS Next 3Y-7.15%
EPS Next 5Y-0.22%
Revenue Next Year-33.84%
Revenue Next 2Y-17.42%
Revenue Next 3Y-10.88%
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 16.64, FTV is valued correctly.
- 84.09% of the companies in the same industry are more expensive than FTV, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, FTV is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 18.98, the valuation of FTV can be described as rather expensive.
- FTV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FTV is cheaper than 67.42% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. FTV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 18.98 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FTV is valued a bit cheaper than the industry average as 62.12% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, FTV is valued cheaply inside the industry as 84.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.65 | ||
| EV/EBITDA | 14.6 |
4.3 Compensation for Growth
- The decent profitability rating of FTV may justify a higher PE ratio.
- FTV's earnings are expected to decrease with -7.15% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)7.41
EPS Next 2Y-14.13%
EPS Next 3Y-7.15%
5. Dividend
5.1 Amount
- FTV has a yearly dividend return of 0.43%, which is pretty low.
- FTV's Dividend Yield is comparable with the industry average which is at 0.98.
- With a Dividend Yield of 0.43, FTV pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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
- FTV pays out 16.72% of its income as dividend. This is a sustainable payout ratio.
- The Dividend Rate of FTV has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP16.72%
EPS Next 2Y-14.13%
EPS Next 3Y-7.15%
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 16.64 and the Price/Book (PB) ratio is 2.67.
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.