FORTIVE CORP (FTV) Stock Fundamental Analysis
USA - NYSE:FTV - US34959J1088 - Common Stock
52.03 USD
+0.15 (+0.29%)
51.3 USD
-0.73 (-1.4%)
We assign a fundamental rating of 4 out of 10 to FTV. FTV was compared to 130 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FTV had positive earnings in the past year.
In the past year FTV had a positive cash flow from operations.
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
FTV has a Return On Assets of 5.07%. This is comparable to the rest of the industry: FTV outperforms 56.92% of its industry peers.
With a Return On Equity value of 9.26%, FTV perfoms like the industry average, outperforming 55.38% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.52%, FTV is doing good in the industry, outperforming 60.77% of the companies in the same industry.
FTV had an Average Return On Invested Capital over the past 3 years of 6.67%. This is below the industry average of 10.28%.
The 3 year average ROIC (6.67%) for FTV 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
FTV has a better Profit Margin (10.68%) than 76.92% of its industry peers.
In the last couple of years the Profit Margin of FTV has declined.
The Operating Margin of FTV (16.42%) is better than 77.69% of its industry peers.
FTV's Operating Margin has improved in the last couple of years.
The Gross Margin of FTV (60.33%) is better than 96.92% of its industry peers.
FTV's Gross Margin has improved in the last couple of years.
| 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.
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.
FTV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.23 indicates that FTV is not in any danger for bankruptcy at the moment.
FTV's Altman-Z score of 3.23 is in line compared to the rest of the industry. FTV outperforms 56.92% of its industry peers.
FTV has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as FTV would need 2.98 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.98, FTV is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that FTV is not too dependend on debt financing.
FTV's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. FTV outperforms 62.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 3.23 |
ROIC/WACC0.9
WACC9.45%
2.3 Liquidity
FTV has a Current Ratio of 0.70. This is a bad value and indicates that FTV is not financially healthy enough and could expect problems in meeting its short term obligations.
FTV has a Current ratio of 0.70. This is amonst the worse of the industry: FTV underperforms 92.31% of its industry peers.
A Quick Ratio of 0.58 indicates that FTV may have some problems paying its short term obligations.
With a Quick ratio value of 0.58, FTV is not doing good in the industry: 86.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for FTV have decreased strongly by -11.59% in the last year.
FTV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.25% yearly.
Looking at the last year, FTV shows a decrease in Revenue. The Revenue has decreased by -8.96% in the last 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)-11.59%
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
The Earnings Per Share is expected to decrease by -0.22% on average over the next years.
Based on estimates for the next years, FTV will show a decrease in Revenue. The Revenue will decrease by -5.05% on average per year.
EPS Next Y-32.82%
EPS Next 2Y-14.49%
EPS Next 3Y-7.13%
EPS Next 5Y-0.22%
Revenue Next Year-33.92%
Revenue Next 2Y-17.47%
Revenue Next 3Y-10.92%
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
The Price/Earnings ratio is 15.86, which indicates a correct valuation of FTV.
Based on the Price/Earnings ratio, FTV is valued a bit cheaper than the industry average as 79.23% of the companies are valued more expensively.
FTV is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.25, the valuation of FTV can be described as rather expensive.
FTV's Price/Forward Earnings ratio is in line with the industry average.
FTV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.86 | ||
| Fwd PE | 18.25 |
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.
Based on the Price/Free Cash Flow ratio, FTV is valued a bit cheaper than 77.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.89 | ||
| EV/EBITDA | 14.72 |
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 -7.13% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)7.06
EPS Next 2Y-14.49%
EPS Next 3Y-7.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.47%, FTV is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.86, FTV has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, FTV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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
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-14.49%
EPS Next 3Y-7.13%
52.03
+0.15 (+0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.46%
Inst Owner Change-0.3%
Ins Owners0.17%
Ins Owner Change-0.01%
Market Cap17.60B
Revenue(TTM)5.64B
Net Income(TTM)602.30M
Analysts67.5
Price Target56.9 (9.36%)
Short Float %2.45%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend0.32
Dividend Growth(5Y)-7.91%
DP16.72%
Div Incr Years2
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.32%
Min EPS beat(2)-3.21%
Max EPS beat(2)17.85%
EPS beat(4)2
Avg EPS beat(4)4.27%
Min EPS beat(4)-3.21%
Max EPS beat(4)17.85%
EPS beat(8)6
Avg EPS beat(8)3.46%
EPS beat(12)9
Avg EPS beat(12)3%
EPS beat(16)13
Avg EPS beat(16)3.03%
Revenue beat(2)1
Avg Revenue beat(2)0.12%
Min Revenue beat(2)-0.65%
Max Revenue beat(2)0.89%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-2.24%
Max Revenue beat(4)0.89%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)5
Avg Revenue beat(12)-0.66%
Revenue beat(16)7
Avg Revenue beat(16)-0.55%
PT rev (1m)-1.62%
PT rev (3m)-10.39%
EPS NQ rev (1m)3.04%
EPS NQ rev (3m)6.55%
EPS NY rev (1m)3.34%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.86 | ||
| Fwd PE | 18.25 | ||
| P/S | 3.12 | ||
| P/FCF | 15.89 | ||
| P/OCF | 14.44 | ||
| P/B | 2.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.72 |
EPS(TTM)3.28
EY6.3%
EPS(NY)2.85
Fwd EY5.48%
FCF(TTM)3.27
FCFY6.29%
OCF(TTM)3.6
OCFY6.93%
SpS16.67
BVpS19.22
TBVpS-8.99
PEG (NY)N/A
PEG (5Y)7.06
Graham Number37.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 9.26% | ||
| ROCE | 9.84% | ||
| ROIC | 8.52% | ||
| ROICexc | 8.93% | ||
| ROICexgc | N/A | ||
| OM | 16.42% | ||
| PM (TTM) | 10.68% | ||
| GM | 60.33% | ||
| FCFM | 19.64% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.98 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 24.22% | ||
| Cap/Sales | 1.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.89% | ||
| Profit Quality | 183.93% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 3.23 |
F-Score7
WACC9.45%
ROIC/WACC0.9
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)-11.59%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%-29.9%
EPS Next Y-32.82%
EPS Next 2Y-14.49%
EPS Next 3Y-7.13%
EPS Next 5Y-0.22%
Revenue 1Y (TTM)-8.96%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-33.07%
Revenue Next Year-33.92%
Revenue Next 2Y-17.47%
Revenue Next 3Y-10.92%
Revenue Next 5Y-5.05%
EBIT growth 1Y-21.25%
EBIT growth 3Y12.4%
EBIT growth 5Y19.62%
EBIT Next Year-9.69%
EBIT Next 3Y0.7%
EBIT Next 5Y3.03%
FCF growth 1Y-12.16%
FCF growth 3Y15.57%
FCF growth 5Y3.95%
OCF growth 1Y-11.05%
OCF growth 3Y16.68%
OCF growth 5Y3.73%
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 for FTV stock?
ChartMill assigns a valuation rating of 4 / 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 15.86 and the Price/Book (PB) ratio is 2.71.
What is the earnings growth outlook for FORTIVE CORP?
The Earnings per Share (EPS) of FORTIVE CORP (FTV) is expected to decline by -32.82% in the next year.