FORTIVE CORP (FTV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FTV - US34959J1088 - Common Stock
56.15 USD
+0.46 (+0.83%)
56.1 USD
-0.05 (-0.09%)
We assign a fundamental rating of 4 out of 10 to FTV. FTV was compared to 132 industry peers in the Machinery industry. While FTV has a great profitability rating, there are some minor concerns on its financial health. FTV is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FTV was profitable.
FTV had a positive operating cash flow in the past year.
In the past 5 years FTV has always been profitable.
FTV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.07%, FTV is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
The Return On Equity of FTV (9.26%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 8.52%, FTV is in the better half of the industry, outperforming 62.12% 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 10.27%.
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's Profit Margin of 10.68% is fine compared to the rest of the industry. FTV outperforms 75.76% of its industry peers.
In the last couple of years the Profit Margin of FTV has declined.
FTV has a Operating Margin of 16.42%. This is in the better half of the industry: FTV outperforms 78.79% of its industry peers.
In the last couple of years the Operating Margin of FTV has grown nicely.
FTV has a better Gross Margin (60.33%) than 96.97% of its industry peers.
In the last couple of years the Gross Margin of FTV 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
FTV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FTV has less shares outstanding
Compared to 5 years ago, FTV has more shares outstanding
FTV has a worse debt/assets ratio than last year.
2.2 Solvency
FTV has an Altman-Z score of 3.27. This indicates that FTV is financially healthy and has little risk of bankruptcy at the moment.
FTV has a Altman-Z score of 3.27. This is comparable to the rest of the industry: FTV outperforms 55.30% of its industry peers.
The Debt to FCF ratio of FTV is 2.98, which is a good value as it means it would take FTV, 2.98 years of fcf income to pay off all of its debts.
FTV has a better Debt to FCF ratio (2.98) than 70.45% of its industry peers.
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 62.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 3.27 |
ROIC/WACC0.91
WACC9.39%
2.3 Liquidity
A Current Ratio of 0.70 indicates that FTV may have some problems paying its short term obligations.
With a Current ratio value of 0.70, FTV is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.58 indicates that FTV may have some problems paying its short term obligations.
FTV has a worse Quick ratio (0.58) than 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
FTV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.59%.
The Earnings Per Share has been growing slightly by 2.25% on average over the past years.
FTV shows a decrease in Revenue. In the last year, the revenue decreased by -8.96%.
FTV 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
FTV is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.22% yearly.
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-31.61%
EPS Next 2Y-14.13%
EPS Next 3Y-7.15%
EPS Next 5Y-0.22%
Revenue Next Year-33.9%
Revenue Next 2Y-17.48%
Revenue Next 3Y-10.9%
Revenue Next 5Y-5.05%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 17.12, which indicates a rather expensive current valuation of FTV.
FTV's Price/Earnings ratio is rather cheap when compared to the industry. FTV is cheaper than 81.06% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.84, FTV is valued a bit cheaper.
A Price/Forward Earnings ratio of 19.52 indicates a rather expensive valuation of FTV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTV is on the same level as its industry peers.
FTV is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 19.52 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FTV.
79.55% of the companies in the same industry are more expensive than FTV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.1 | ||
| EV/EBITDA | 14.93 |
4.3 Compensation for Growth
FTV has a very decent profitability rating, which may justify a higher PE ratio.
FTV's earnings are expected to decrease with -7.15% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)7.62
EPS Next 2Y-14.13%
EPS Next 3Y-7.15%
5. Dividend
5.1 Amount
FTV has a yearly dividend return of 0.43%, which is pretty low.
FTV's Dividend Yield is comparable with the industry average which is at 0.98.
With a Dividend Yield of 0.43, FTV pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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
16.72% of the earnings are spent on dividend by FTV. This is a low number and sustainable payout ratio.
FTV's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP16.72%
EPS Next 2Y-14.13%
EPS Next 3Y-7.15%
56.15
+0.46 (+0.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.31%
Inst Owner Change1.94%
Ins Owners0.17%
Ins Owner Change0.61%
Market Cap17.83B
Revenue(TTM)5.64B
Net Income(TTM)602.30M
Analysts67.5
Price Target57.87 (3.06%)
Short Float %4.06%
Short Ratio4.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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)0.22%
PT rev (3m)0.03%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)3.43%
EPS NY rev (1m)1.79%
EPS NY rev (3m)5.19%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 19.52 | ||
| P/S | 3.16 | ||
| P/FCF | 16.1 | ||
| P/OCF | 14.62 | ||
| P/B | 2.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.93 |
EPS(TTM)3.28
EY5.84%
EPS(NY)2.88
Fwd EY5.12%
FCF(TTM)3.49
FCFY6.21%
OCF(TTM)3.84
OCFY6.84%
SpS17.76
BVpS20.48
TBVpS-9.57
PEG (NY)N/A
PEG (5Y)7.62
Graham Number38.87
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 | 3.27 |
F-Score7
WACC9.39%
ROIC/WACC0.91
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-31.61%
EPS Next 2Y-14.13%
EPS Next 3Y-7.15%
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-33.9%
Revenue Next 2Y-17.48%
Revenue Next 3Y-10.9%
Revenue Next 5Y-5.05%
EBIT growth 1Y-21.25%
EBIT growth 3Y12.4%
EBIT growth 5Y19.62%
EBIT Next Year-8.64%
EBIT Next 3Y0.45%
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 17.12 and the Price/Book (PB) ratio is 2.74.
What is the earnings growth outlook for FORTIVE CORP?
The Earnings per Share (EPS) of FORTIVE CORP (FTV) is expected to decline by -31.61% in the next year.