FORTIVE CORP (FTV) Stock Fundamental Analysis
NYSE:FTV - New York Stock Exchange, Inc. - US34959J1088 - Common Stock - Currency: USD
Taking everything into account, FTV scores 5 out of 10 in our fundamental rating. FTV was compared to 128 industry peers in the Machinery industry. While FTV belongs to the best of the industry regarding profitability, there are 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
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.
In the past 5 years FTV always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.65%, FTV is in line with its industry, outperforming 50.78% of the companies in the same industry.
FTV has a Return On Equity (7.79%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.88%, FTV perfoms like the industry average, outperforming 50.78% 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 10.69%.
The last Return On Invested Capital (6.88%) for FTV is above the 3 year average (6.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 7.79% | ||
| ROIC | 6.88% |
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 (12.90%) than 82.03% of its industry peers.
FTV's Profit Margin has declined in the last couple of years.
FTV's Operating Margin of 18.51% is amongst the best of the industry. FTV outperforms 85.16% of its industry peers.
In the last couple of years the Operating Margin of FTV has grown nicely.
FTV has a Gross Margin of 59.98%. This is amongst the best in the industry. FTV outperforms 95.31% of its industry peers.
FTV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.51% | ||
| PM (TTM) | 12.9% | ||
| GM | 59.98% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 2.83. This is not the best score and indicates that FTV is in the grey zone with still only limited risk for bankruptcy at the moment.
FTV has a Altman-Z score (2.83) which is comparable to the rest of the industry.
The Debt to FCF ratio of FTV is 2.78, which is a good value as it means it would take FTV, 2.78 years of fcf income to pay off all of its debts.
FTV has a Debt to FCF ratio of 2.78. This is in the better half of the industry: FTV outperforms 67.97% of its industry peers.
FTV has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
FTV's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. FTV outperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.7
WACC9.79%
2.3 Liquidity
A Current Ratio of 0.99 indicates that FTV may have some problems paying its short term obligations.
FTV's Current ratio of 0.99 is on the low side compared to the rest of the industry. FTV is outperformed by 90.63% of its industry peers.
FTV has a Quick Ratio of 0.99. 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 0.78, FTV is doing worse than 77.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
FTV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.68%, which is quite good.
FTV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.25% yearly.
The Revenue has been growing slightly by 0.85% in the past year.
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)11.68%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%2.41%
Revenue 1Y (TTM)0.85%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-3.3%
3.2 Future
Based on estimates for the next years, FTV will show a small growth in Earnings Per Share. The EPS will grow by 7.06% on average per year.
FTV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.50% yearly.
EPS Next Y0.42%
EPS Next 2Y3.97%
EPS Next 3Y6.63%
EPS Next 5Y7.06%
Revenue Next Year-2.08%
Revenue Next 2Y0.32%
Revenue Next 3Y3.39%
Revenue Next 5Y3.5%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FTV is valuated correctly with a Price/Earnings ratio of 13.44.
Based on the Price/Earnings ratio, FTV is valued cheaper than 87.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of FTV to the average of the S&P500 Index (27.30), we can say FTV is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.50, the valuation of FTV can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTV indicates a rather cheap valuation: FTV is cheaper than 84.38% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. FTV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
64.06% of the companies in the same industry are more expensive than FTV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FTV is valued cheaper than 88.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.87 | ||
| EV/EBITDA | 12.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of FTV may justify a higher PE ratio.
PEG (NY)32.09
PEG (5Y)5.98
EPS Next 2Y3.97%
EPS Next 3Y6.63%
5. Dividend
5.1 Amount
FTV has a yearly dividend return of 0.60%, which is pretty low.
Compared to an average industry Dividend Yield of 1.81, FTV has a dividend in line with its industry peers.
With a Dividend Yield of 0.60, FTV pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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
13.83% of the earnings are spent on dividend by FTV. This is a low number and sustainable payout ratio.
DP13.83%
EPS Next 2Y3.97%
EPS Next 3Y6.63%
52.69
-0.37 (-0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.38%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change4.6%
Market Cap17.91B
Analysts73.6
Price Target82.26 (56.12%)
Short Float %2.14%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend0.32
Dividend Growth(5Y)-7.91%
DP13.83%
Div Incr Years2
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.22%
Min EPS beat(2)-1.01%
Max EPS beat(2)3.45%
EPS beat(4)3
Avg EPS beat(4)1.48%
Min EPS beat(4)-1.01%
Max EPS beat(4)3.45%
EPS beat(8)6
Avg EPS beat(8)2.05%
EPS beat(12)10
Avg EPS beat(12)2.61%
EPS beat(16)14
Avg EPS beat(16)2.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-2.24%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-2.24%
Max Revenue beat(4)-1.2%
Revenue beat(8)2
Avg Revenue beat(8)-1.36%
Revenue beat(12)5
Avg Revenue beat(12)-0.42%
Revenue beat(16)7
Avg Revenue beat(16)-0.63%
PT rev (1m)-0.77%
PT rev (3m)-7.07%
EPS NQ rev (1m)-31.83%
EPS NQ rev (3m)-38.7%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-4.69%
Revenue NQ rev (1m)-32.11%
Revenue NQ rev (3m)-33.1%
Revenue NY rev (1m)-1.91%
Revenue NY rev (3m)-2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 12.5 | ||
| P/S | 2.9 | ||
| P/FCF | 12.87 | ||
| P/OCF | 11.85 | ||
| P/B | 1.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.46 |
EPS(TTM)3.92
EY7.44%
EPS(NY)4.22
Fwd EY8%
FCF(TTM)4.09
FCFY7.77%
OCF(TTM)4.45
OCFY8.44%
SpS18.19
BVpS30.12
TBVpS-9.61
PEG (NY)32.09
PEG (5Y)5.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 7.79% | ||
| ROCE | 7.94% | ||
| ROIC | 6.88% | ||
| ROICexc | 7.33% | ||
| ROICexgc | 6194.95% | ||
| OM | 18.51% | ||
| PM (TTM) | 12.9% | ||
| GM | 59.98% | ||
| FCFM | 22.5% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 22.27% | ||
| Cap/Sales | 1.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.67% | ||
| Profit Quality | 174.45% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.83 |
F-Score6
WACC9.79%
ROIC/WACC0.7
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)11.68%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%2.41%
EPS Next Y0.42%
EPS Next 2Y3.97%
EPS Next 3Y6.63%
EPS Next 5Y7.06%
Revenue 1Y (TTM)0.85%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-3.3%
Revenue Next Year-2.08%
Revenue Next 2Y0.32%
Revenue Next 3Y3.39%
Revenue Next 5Y3.5%
EBIT growth 1Y-1.33%
EBIT growth 3Y12.4%
EBIT growth 5Y19.62%
EBIT Next Year32.91%
EBIT Next 3Y15.82%
EBIT Next 5Y11.65%
FCF growth 1Y19.82%
FCF growth 3Y15.57%
FCF growth 5Y3.95%
OCF growth 1Y19.72%
OCF growth 3Y16.68%
OCF growth 5Y3.73%