FORTIVE CORP (FTV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FTV - US34959J1088 - Common Stock
53.75 USD
+0.37 (+0.69%)
53.75 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to FTV. FTV was compared to 130 industry peers in the Machinery industry. While FTV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FTV has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
FTV had positive earnings in the past year.
FTV had a positive operating cash flow in the past year.
Each year in the past 5 years FTV has been profitable.
Each year in the past 5 years FTV had a positive operating cash flow.
1.2 Ratios
FTV's Return On Assets of 5.07% is fine compared to the rest of the industry. FTV outperforms 60.77% of its industry peers.
The Return On Equity of FTV (9.26%) is comparable to the rest of the industry.
FTV's Return On Invested Capital of 8.52% is fine compared to the rest of the industry. FTV outperforms 61.54% of its industry peers.
FTV had an Average Return On Invested Capital over the past 3 years of 6.67%. This is below the industry average of 10.39%.
The last Return On Invested Capital (8.52%) for FTV is above the 3 year average (6.67%), which is a sign of increasing profitability.
| 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 78.46% of its industry peers.
FTV's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 16.42%, FTV is doing good in the industry, outperforming 77.69% of the companies in the same industry.
In the last couple of years the Operating Margin of FTV has grown nicely.
FTV has a Gross Margin of 60.33%. This is amongst the best in the industry. FTV outperforms 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
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.
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 3.17 indicates that FTV is not in any danger for bankruptcy at the moment.
FTV's Altman-Z score of 3.17 is in line compared to the rest of the industry. FTV outperforms 53.85% 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.
FTV's Debt to FCF ratio of 2.98 is fine compared to the rest of the industry. FTV outperforms 70.77% 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 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.91
WACC9.4%
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: 92.31% 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 Quick ratio of 0.58. This is amonst the worse of the industry: FTV underperforms 87.69% 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 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.
The Revenue has decreased by -8.96% 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)-11.59%
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, FTV will show a decrease in Earnings Per Share. The EPS will decrease by -0.22% on average per year.
The Revenue is expected to decrease by -5.05% on average over the next years.
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
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
Based on the Price/Earnings ratio of 16.39, the valuation of FTV can be described as correct.
Based on the Price/Earnings ratio, FTV is valued cheaper than 80.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. FTV is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.85, FTV is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as FTV.
When comparing the Price/Forward Earnings ratio of FTV to the average of the S&P500 Index (36.10), we can say FTV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.39 | ||
| Fwd PE | 18.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTV is valued a bit cheaper than 60.77% of the companies in the same industry.
80.77% 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 | 15.41 | ||
| EV/EBITDA | 14.29 |
4.3 Compensation for Growth
FTV has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as FTV's earnings are expected to decrease with -7.13% in the coming years.
PEG (NY)N/A
PEG (5Y)7.3
EPS Next 2Y-14.49%
EPS Next 3Y-7.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, FTV is not a good candidate for dividend investing.
FTV's Dividend Yield is comparable with the industry average which is at 1.86.
Compared to an average S&P500 Dividend Yield of 2.32, FTV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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
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-14.49%
EPS Next 3Y-7.13%
53.75
+0.37 (+0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.31%
Inst Owner Change1.92%
Ins Owners0.17%
Ins Owner Change2.97%
Market Cap17.07B
Revenue(TTM)5.64B
Net Income(TTM)602.30M
Analysts67.5
Price Target57.74 (7.42%)
Short Float %2.54%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)1.49%
PT rev (3m)-6.32%
EPS NQ rev (1m)1.78%
EPS NQ rev (3m)3.15%
EPS NY rev (1m)2.86%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.39 | ||
| Fwd PE | 18.85 | ||
| P/S | 3.03 | ||
| P/FCF | 15.41 | ||
| P/OCF | 14 | ||
| P/B | 2.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.29 |
EPS(TTM)3.28
EY6.1%
EPS(NY)2.85
Fwd EY5.31%
FCF(TTM)3.49
FCFY6.49%
OCF(TTM)3.84
OCFY7.14%
SpS17.76
BVpS20.48
TBVpS-9.57
PEG (NY)N/A
PEG (5Y)7.3
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 | 3.17 |
F-Score7
WACC9.4%
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-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 5 / 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 16.39 and the Price/Book (PB) ratio is 2.62.
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.