FORTIVE CORP (F03.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:F03 - US34959J1088 - Common Stock
46.81 EUR
-0.66 (-1.39%)
We assign a fundamental rating of 4 out of 10 to F03. F03 was compared to 111 industry peers in the Machinery industry. While F03 has a great profitability rating, there are some minor concerns on its financial health. F03 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year F03 was profitable.
- F03 had a positive operating cash flow in the past year.
- F03 had positive earnings in each of the past 5 years.
- Each year in the past 5 years F03 had a positive operating cash flow.
1.2 Ratios
- F03 has a Return On Assets of 5.07%. This is in the better half of the industry: F03 outperforms 64.86% of its industry peers.
- F03 has a Return On Equity (9.26%) which is comparable to the rest of the industry.
- With a decent Return On Invested Capital value of 8.52%, F03 is doing good in the industry, outperforming 67.57% of the companies in the same industry.
- F03 had an Average Return On Invested Capital over the past 3 years of 6.67%. This is below the industry average of 9.21%.
- The 3 year average ROIC (6.67%) for F03 is below the current ROIC(8.52%), indicating increased profibility in the last year.
| 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
- F03's Profit Margin of 10.68% is amongst the best of the industry. F03 outperforms 83.78% of its industry peers.
- In the last couple of years the Profit Margin of F03 has declined.
- With an excellent Operating Margin value of 16.42%, F03 belongs to the best of the industry, outperforming 83.78% of the companies in the same industry.
- F03's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 60.33%, F03 belongs to the best of the industry, outperforming 82.88% of the companies in the same industry.
- In the last couple of years the Gross Margin of F03 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), F03 is destroying value.
- Compared to 1 year ago, F03 has less shares outstanding
- The number of shares outstanding for F03 has been increased compared to 5 years ago.
- The debt/assets ratio for F03 is higher compared to a year ago.
2.2 Solvency
- F03 has an Altman-Z score of 3.24. This indicates that F03 is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.24, F03 is in the better half of the industry, outperforming 72.07% of the companies in the same industry.
- F03 has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as F03 would need 2.98 years to pay back of all of its debts.
- F03 has a better Debt to FCF ratio (2.98) than 70.27% of its industry peers.
- A Debt/Equity ratio of 0.33 indicates that F03 is not too dependend on debt financing.
- F03 has a Debt to Equity ratio of 0.33. This is comparable to the rest of the industry: F03 outperforms 51.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.9
WACC9.49%
2.3 Liquidity
- F03 has a Current Ratio of 0.70. This is a bad value and indicates that F03 is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.70, F03 is doing worse than 94.59% of the companies in the same industry.
- F03 has a Quick Ratio of 0.70. This is a bad value and indicates that F03 is not financially healthy enough and could expect problems in meeting its short term obligations.
- F03's Quick ratio of 0.58 is on the low side compared to the rest of the industry. F03 is outperformed by 86.49% 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 F03 have decreased strongly by -11.59% in the last year.
- Measured over the past 5 years, F03 shows a small growth in Earnings Per Share. The EPS has been growing by 2.25% on average per year.
- F03 shows a decrease in Revenue. In the last year, the revenue decreased by -8.96%.
- F03 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
- Based on estimates for the next years, F03 will show a decrease in Earnings Per Share. The EPS will decrease by -0.22% on average per year.
- F03 is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.05% yearly.
EPS Next Y-31.48%
EPS Next 2Y-14.18%
EPS Next 3Y-7.37%
EPS Next 5Y-0.22%
Revenue Next Year-33.84%
Revenue Next 2Y-17.41%
Revenue Next 3Y-10.86%
Revenue Next 5Y-5.05%
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 decreasing.
- 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
- Based on the Price/Earnings ratio of 16.90, the valuation of F03 can be described as correct.
- F03's Price/Earnings ratio is a bit cheaper when compared to the industry. F03 is cheaper than 74.77% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, F03 is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 19.29, F03 is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as F03.
- F03's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.9 | ||
| Fwd PE | 19.29 |
4.2 Price Multiples
- F03's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. F03 is more expensive than 63.06% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, F03 is valued a bit cheaper than the industry average as 63.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.88 | ||
| EV/EBITDA | 14.75 |
4.3 Compensation for Growth
- The decent profitability rating of F03 may justify a higher PE ratio.
- A cheap valuation may be justified as F03's earnings are expected to decrease with -7.37% in the coming years.
PEG (NY)N/A
PEG (5Y)7.52
EPS Next 2Y-14.18%
EPS Next 3Y-7.37%
5. Dividend
5.1 Amount
- F03 has a yearly dividend return of 0.44%, which is pretty low.
- F03's Dividend Yield is slightly below the industry average, which is at 1.48.
- With a Dividend Yield of 0.44, F03 pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
5.2 History
- The dividend of F03 decreases each year by -7.91%.
Dividend Growth(5Y)-7.91%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 16.72% of the earnings are spent on dividend by F03. This is a low number and sustainable payout ratio.
- The Dividend Rate of F03 has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP16.72%
EPS Next 2Y-14.18%
EPS Next 3Y-7.37%
FORTIVE CORP / F03.DE FAQ
What is the ChartMill fundamental rating of FORTIVE CORP (F03.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to F03.DE.
What is the valuation status of FORTIVE CORP (F03.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to FORTIVE CORP (F03.DE). This can be considered as Fairly Valued.
What is the profitability of F03 stock?
FORTIVE CORP (F03.DE) has a profitability rating of 7 / 10.
What is the valuation of FORTIVE CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FORTIVE CORP (F03.DE) is 16.9 and the Price/Book (PB) ratio is 2.71.
What is the expected EPS growth for FORTIVE CORP (F03.DE) stock?
The Earnings per Share (EPS) of FORTIVE CORP (F03.DE) is expected to decline by -31.48% in the next year.