FORTIVE CORP (FTV) Stock Fundamental Analysis
NYSE:FTV - New York Stock Exchange, Inc. - US34959J1088 - Common Stock - Currency: USD
Taking everything into account, FTV scores 6 out of 10 in our fundamental rating. FTV was compared to 127 industry peers in the Machinery industry. FTV has an excellent profitability rating, 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.
FTV had a positive operating cash flow in the past year.
FTV had positive earnings in each of the past 5 years.
FTV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FTV (4.89%) is comparable to the rest of the industry.
FTV's Return On Equity of 8.17% is in line compared to the rest of the industry. FTV outperforms 51.97% of its industry peers.
FTV has a Return On Invested Capital of 6.88%. This is comparable to the rest of the industry: FTV outperforms 51.97% of its industry peers.
FTV had an Average Return On Invested Capital over the past 3 years of 6.61%. This is below the industry average of 10.84%.
The 3 year average ROIC (6.61%) for FTV is below the current ROIC(6.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 8.17% | ||
| ROIC | 6.88% |
ROA(3y)4.92%
ROA(5y)5.57%
ROE(3y)8.12%
ROE(5y)9.53%
ROIC(3y)6.61%
ROIC(5y)5.82%
1.3 Margins
FTV's Profit Margin of 13.37% is amongst the best of the industry. FTV outperforms 85.04% of its industry peers.
In the last couple of years the Profit Margin of FTV has declined.
FTV's Operating Margin of 18.82% is amongst the best of the industry. FTV outperforms 85.04% of its industry peers.
In the last couple of years the Operating Margin of FTV has grown nicely.
FTV has a better Gross Margin (59.87%) than 96.85% of its industry peers.
In the last couple of years the Gross Margin of FTV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.82% | ||
| PM (TTM) | 13.37% | ||
| GM | 59.87% |
OM growth 3Y5.18%
OM growth 5Y11.75%
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.
FTV has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FTV has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.64 indicates that FTV is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.64, FTV is in the better half of the industry, outperforming 63.78% 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 70.08% of the companies in the same industry.
FTV has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
FTV has a Debt to Equity ratio of 0.33. This is in the better half of the industry: FTV outperforms 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 3.64 |
ROIC/WACC0.62
WACC11.03%
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 87.40% of its industry peers.
FTV has a Quick Ratio of 1.16. This is a bad value and indicates that FTV is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.91, FTV is doing worse than 72.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
FTV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.70%, which is quite good.
The Earnings Per Share has been growing slightly by 2.25% on average over the past years.
Looking at the last year, FTV shows a small growth in Revenue. The Revenue has grown by 2.75% in the last year.
FTV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.43% yearly.
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 10.18% yearly.
FTV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.29% yearly.
EPS Next Y5.58%
EPS Next 2Y6.74%
EPS Next 3Y7.82%
EPS Next 5Y10.18%
Revenue Next Year1.06%
Revenue Next 2Y2.87%
Revenue Next 3Y3.91%
Revenue Next 5Y9.29%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.03, FTV is valued on the expensive side.
Based on the Price/Earnings ratio, FTV is valued a bit cheaper than the industry average as 62.20% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.71, FTV is valued a bit cheaper.
FTV is valuated rather expensively with a Price/Forward Earnings ratio of 18.97.
Based on the Price/Forward Earnings ratio, FTV is valued a bit cheaper than 61.42% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.34, FTV is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.03 | ||
| Fwd PE | 18.97 |
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 74.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.95 | ||
| EV/EBITDA | 17.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FTV does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of FTV may justify a higher PE ratio.
PEG (NY)3.59
PEG (5Y)8.92
EPS Next 2Y6.74%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, FTV is not a good candidate for dividend investing.
FTV's Dividend Yield is comparable with the industry average which is at 1.75.
With a Dividend Yield of 0.40, FTV pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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
13.35% of the earnings are spent on dividend by FTV. This is a low number and sustainable payout ratio.
DP13.35%
EPS Next 2Y6.74%
EPS Next 3Y7.82%
78.11
+0.9 (+1.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.59%
Inst Owner Change-0.32%
Ins Owners0.28%
Ins Owner Change1.49%
Market Cap26.65B
Analysts74.4
Price Target88.4 (13.17%)
Short Float %2.05%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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)1.53%
PT rev (3m)1.29%
EPS NQ rev (1m)-6.46%
EPS NQ rev (3m)-7.39%
EPS NY rev (1m)-1.43%
EPS NY rev (3m)-1.97%
Revenue NQ rev (1m)-4.29%
Revenue NQ rev (3m)-4.53%
Revenue NY rev (1m)-2.84%
Revenue NY rev (3m)-3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.03 | ||
| Fwd PE | 18.97 | ||
| P/S | 4.28 | ||
| P/FCF | 18.95 | ||
| P/OCF | 17.46 | ||
| P/B | 2.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.21 |
EPS(TTM)3.9
EY4.99%
EPS(NY)4.12
Fwd EY5.27%
FCF(TTM)4.12
FCFY5.28%
OCF(TTM)4.47
OCFY5.73%
SpS18.26
BVpS29.86
TBVpS-9.69
PEG (NY)3.59
PEG (5Y)8.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 8.17% | ||
| ROCE | 7.93% | ||
| ROIC | 6.88% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 216.9% | ||
| OM | 18.82% | ||
| 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)6.61%
ROIC(5y)5.82%
ROICexc(3y)7.17%
ROICexc(5y)6.45%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.62%
ROCE(5y)6.72%
ROICexcg growth 3YN/A
ROICexcg growth 5Y21.59%
ROICexc growth 3Y5.64%
ROICexc growth 5Y16.82%
OM growth 3Y5.18%
OM growth 5Y11.75%
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 | 88.95% | ||
| Profit Quality | 168.86% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 3.64 |
F-Score7
WACC11.03%
ROIC/WACC0.62
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 Y5.58%
EPS Next 2Y6.74%
EPS Next 3Y7.82%
EPS Next 5Y10.18%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%2.31%
Revenue Next Year1.06%
Revenue Next 2Y2.87%
Revenue Next 3Y3.91%
Revenue Next 5Y9.29%
EBIT growth 1Y3.43%
EBIT growth 3Y11.33%
EBIT growth 5Y18.93%
EBIT Next Year45.68%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y12.89%
FCF growth 3Y15.57%
FCF growth 5Y3.95%
OCF growth 1Y12.8%
OCF growth 3Y16.68%
OCF growth 5Y3.73%