FORTIVE CORP (FTV) Stock Fundamental Analysis
NYSE:FTV - New York Stock Exchange, Inc. - US34959J1088 - Common Stock - Currency: USD
FTV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 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 is not valued too expensively and it also shows a decent growth rate.
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.
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
FTV has a Return On Assets of 4.65%. This is comparable to the rest of the industry: FTV outperforms 50.78% of its industry peers.
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 10.72%.
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
FTV has a better Profit Margin (12.90%) than 82.03% of its industry peers.
FTV's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 18.51%, FTV belongs to the top 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.
With an excellent Gross Margin value of 59.98%, FTV belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
FTV's Gross Margin has improved in the last couple of years.
| 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
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 3.33 indicates that FTV is not in any danger for bankruptcy at the moment.
FTV has a Altman-Z score of 3.33. This is comparable to the rest of the industry: FTV outperforms 55.47% of its industry peers.
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.
FTV has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.29, FTV is doing good in the industry, outperforming 66.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 3.33 |
ROIC/WACC0.69
WACC9.96%
2.3 Liquidity
A Current Ratio of 0.99 indicates that FTV may have some problems paying its short term obligations.
The Current ratio of FTV (0.99) is worse than 89.06% of its industry peers.
FTV has a Quick 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'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
The Earnings Per Share has grown by an nice 11.68% over the past year.
The Earnings Per Share has been growing slightly by 2.25% on average over the past years.
The Revenue has been growing slightly by 0.85% in the past year.
The Revenue has been growing slightly by 6.43% on average over the past years.
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 9.14% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.50% on average over the next years.
EPS Next Y1.07%
EPS Next 2Y4.82%
EPS Next 3Y6.55%
EPS Next 5Y9.14%
Revenue Next Year-0.17%
Revenue Next 2Y2.15%
Revenue Next 3Y3.42%
Revenue Next 5Y3.5%
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 accelerating.
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
With a Price/Earnings ratio of 17.77, FTV is valued on the expensive side.
69.53% of the companies in the same industry are more expensive than FTV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.35. FTV is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.26, which indicates a correct valuation of FTV.
65.63% of the companies in the same industry are more expensive than FTV, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FTV to the average of the S&P500 Index (22.19), we can say FTV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 16.26 |
4.2 Price Multiples
FTV's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, FTV is valued a bit cheaper than the industry average as 67.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.02 | ||
| EV/EBITDA | 15.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FTV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)16.66
PEG (5Y)7.91
EPS Next 2Y4.82%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
FTV has a yearly dividend return of 0.46%, which is pretty low.
Compared to an average industry Dividend Yield of 1.93, FTV has a dividend in line with its industry peers.
With a Dividend Yield of 0.46, FTV pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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.
FTV has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y4.82%
EPS Next 3Y6.55%
69.65
-0.18 (-0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.38%
Inst Owner Change0.44%
Ins Owners0.25%
Ins Owner Change2.18%
Market Cap23.67B
Analysts73.6
Price Target82.26 (18.1%)
Short Float %1.97%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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)-0.77%
PT rev (3m)-7.39%
EPS NQ rev (1m)-1.45%
EPS NQ rev (3m)-10.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 16.26 | ||
| P/S | 3.83 | ||
| P/FCF | 17.02 | ||
| P/OCF | 15.66 | ||
| P/B | 2.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.84 |
EPS(TTM)3.92
EY5.63%
EPS(NY)4.28
Fwd EY6.15%
FCF(TTM)4.09
FCFY5.88%
OCF(TTM)4.45
OCFY6.39%
SpS18.19
BVpS30.12
TBVpS-9.61
PEG (NY)16.66
PEG (5Y)7.91
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 | 3.33 |
F-Score6
WACC9.96%
ROIC/WACC0.69
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 Y1.07%
EPS Next 2Y4.82%
EPS Next 3Y6.55%
EPS Next 5Y9.14%
Revenue 1Y (TTM)0.85%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-3.3%
Revenue Next Year-0.17%
Revenue Next 2Y2.15%
Revenue Next 3Y3.42%
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 5Y18.01%
FCF growth 1Y19.82%
FCF growth 3Y15.57%
FCF growth 5Y3.95%
OCF growth 1Y19.72%
OCF growth 3Y16.68%
OCF growth 5Y3.73%