FORTIVE CORP (FTV) Stock Fundamental Analysis
NYSE:FTV - New York Stock Exchange, Inc. - US34959J1088 - Common Stock - Currency: USD
Overall FTV gets a fundamental rating of 5 out of 10. We evaluated FTV against 128 industry peers in the Machinery industry. FTV has an excellent profitability rating, but there are concerns on its financial health. FTV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FTV was profitable.
FTV had a positive operating cash flow in the past year.
Each year in the past 5 years FTV has been profitable.
FTV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FTV (4.65%) is comparable to the rest of the industry.
FTV's Return On Equity of 7.79% is in line compared to the rest of the industry. FTV outperforms 45.31% of its industry peers.
FTV has a Return On Invested Capital (6.88%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTV is below the industry average of 10.69%.
The 3 year average ROIC (6.67%) for FTV is below the current ROIC(6.88%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 12.90%, FTV belongs to the top of the industry, outperforming 82.03% of the companies in the same industry.
FTV's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 18.51%, FTV belongs to the best of the industry, outperforming 85.16% of the companies in the same industry.
FTV's Operating Margin has improved in the last couple of years.
FTV has a better Gross Margin (59.98%) than 95.31% of its industry peers.
In the last couple of years the Gross Margin of FTV has grown nicely.
| 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.
Compared to 1 year ago, FTV has less shares outstanding
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
An Altman-Z score of 2.82 indicates that FTV is not a great score, but indicates only limited risk for bankruptcy at the moment.
FTV has a Altman-Z score (2.82) which is comparable to the rest of the industry.
FTV has a debt to FCF ratio of 2.78. This is a good value and a sign of high solvency as FTV would need 2.78 years to pay back of all of its debts.
FTV's Debt to FCF ratio of 2.78 is fine compared to the rest of the industry. FTV outperforms 67.97% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that FTV is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.29, FTV is doing good in the industry, outperforming 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.7
WACC9.86%
2.3 Liquidity
FTV has a Current 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.
FTV has a Current ratio of 0.99. This is amonst the worse of the industry: FTV underperforms 90.63% of its industry peers.
A Quick Ratio of 0.78 indicates that FTV may have some problems paying its short term obligations.
FTV's Quick ratio of 0.78 is on the low side compared to the rest of the industry. FTV is outperformed by 77.34% of its industry peers.
| 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.
Measured over the past 5 years, FTV shows a small growth in Earnings Per Share. The EPS has been growing by 2.25% on average per year.
Looking at the last year, FTV shows a small growth in Revenue. The Revenue has grown by 0.85% 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)11.68%
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
The Earnings Per Share is expected to grow by 7.06% on average over the next years.
Based on estimates for the next years, FTV will show a small growth in Revenue. The Revenue will grow by 3.50% on average per year.
EPS Next Y-33.56%
EPS Next 2Y-14.08%
EPS Next 3Y-6.75%
EPS Next 5Y7.06%
Revenue Next Year-33.49%
Revenue Next 2Y-16.95%
Revenue Next 3Y-10.41%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.44, the valuation of FTV can be described as correct.
86.72% of the companies in the same industry are more expensive than FTV, based on the Price/Earnings ratio.
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.
The Price/Forward Earnings ratio is 18.30, which indicates a rather expensive current valuation of FTV.
Based on the Price/Forward Earnings ratio, FTV is valued a bit cheaper than the industry average as 60.16% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FTV to the average of the S&P500 Index (21.76), we can say FTV is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 18.3 |
4.2 Price Multiples
FTV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FTV is cheaper than 64.06% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FTV is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.84 | ||
| EV/EBITDA | 12.36 |
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 -6.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5.98
EPS Next 2Y-14.08%
EPS Next 3Y-6.75%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, FTV is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.81, FTV has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, FTV's dividend is way lower than the S&P500 average.
| 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.
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
13.83% of the earnings are spent on dividend by FTV. This is a low number and sustainable payout ratio.
DP13.83%
EPS Next 2Y-14.08%
EPS Next 3Y-6.75%
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 Cap17.86B
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%
PT rev (3m)-7.07%
EPS NQ rev (1m)-32.65%
EPS NQ rev (3m)-39.2%
EPS NY rev (1m)-34.26%
EPS NY rev (3m)-36.94%
Revenue NQ rev (1m)-33.27%
Revenue NQ rev (3m)-34.2%
Revenue NY rev (1m)-33.38%
Revenue NY rev (3m)-33.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 18.3 | ||
| P/S | 2.89 | ||
| P/FCF | 12.84 | ||
| P/OCF | 11.81 | ||
| P/B | 1.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.36 |
EPS(TTM)3.92
EY7.44%
EPS(NY)2.88
Fwd EY5.46%
FCF(TTM)4.1
FCFY7.79%
OCF(TTM)4.46
OCFY8.46%
SpS18.24
BVpS30.2
TBVpS-9.64
PEG (NY)N/A
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 | 2.82 |
F-Score6
WACC9.86%
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 Y-33.56%
EPS Next 2Y-14.08%
EPS Next 3Y-6.75%
EPS Next 5Y7.06%
Revenue 1Y (TTM)0.85%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-3.3%
Revenue Next Year-33.49%
Revenue Next 2Y-16.95%
Revenue Next 3Y-10.41%
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%