FORTIVE CORP (FTV) Stock Fundamental Analysis
NYSE:FTV - New York Stock Exchange, Inc. - US34959J1088 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FTV. FTV was compared to 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FTV was profitable.
In the past year FTV had a positive cash flow from operations.
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 has a Return On Assets (4.65%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 7.79%, FTV is in line with its industry, outperforming 46.88% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.88%, FTV is in line with its industry, outperforming 51.56% 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 10.30%.
The last Return On Invested Capital (6.88%) for FTV is above the 3 year average (6.67%), which is a sign of increasing profitability.
| 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 Profit Margin of 12.90%. This is amongst the best in the industry. FTV outperforms 82.81% of its industry peers.
FTV's Profit Margin has declined in the last couple of years.
The Operating Margin of FTV (18.51%) is better than 85.16% of its industry peers.
In the last couple of years the Operating Margin of FTV has grown nicely.
Looking at the Gross Margin, with a value of 59.98%, FTV belongs to the top of the industry, outperforming 96.88% 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.
FTV has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FTV has been increased compared to 5 years ago.
FTV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.32 indicates that FTV is not in any danger for bankruptcy at the moment.
FTV's Altman-Z score of 3.32 is in line compared to the rest of the industry. FTV outperforms 57.03% of its industry peers.
The Debt to FCF ratio of FTV is 2.78, which is a good value as it means it would take FTV, 2.78 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.78, FTV is in the better half of the industry, outperforming 67.19% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that FTV is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, FTV is in the better half of 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 | 3.32 |
ROIC/WACC0.7
WACC9.88%
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.
With a Quick ratio value of 0.78, FTV is not doing good in the industry: 75.78% of the companies in the same industry are doing better.
| 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.
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 9.14% on average over the next years. This is quite good.
Based on estimates for the next years, FTV will show a small growth in Revenue. The Revenue will grow by 7.38% on average per year.
EPS Next Y1.07%
EPS Next 2Y4.82%
EPS Next 3Y6.55%
EPS Next 5Y9.14%
Revenue Next Year-0.13%
Revenue Next 2Y2.18%
Revenue Next 3Y3.42%
Revenue Next 5Y7.38%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.08, the valuation of FTV can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FTV indicates a somewhat cheap valuation: FTV is cheaper than 67.19% of the companies listed in the same industry.
FTV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
With a Price/Forward Earnings ratio of 16.54, FTV is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTV indicates a somewhat cheap valuation: FTV is cheaper than 61.72% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FTV to the average of the S&P500 Index (21.77), we can say FTV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 16.54 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FTV.
FTV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FTV is cheaper than 69.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.31 | ||
| EV/EBITDA | 15.81 |
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)16.95
PEG (5Y)8.05
EPS Next 2Y4.82%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.46%, FTV is not a good candidate for dividend investing.
FTV's Dividend Yield is comparable with the industry average which is at 1.90.
With a Dividend Yield of 0.46, FTV pays less dividend than the S&P500 average, which is at 2.40.
| 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%
70.86
+1.19 (+1.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.59%
Inst Owner Change0.44%
Ins Owners0.28%
Ins Owner Change1.88%
Market Cap24.08B
Analysts73.6
Price Target82.9 (16.99%)
Short Float %2.06%
Short Ratio2.22
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)-6.35%
PT rev (3m)-6.23%
EPS NQ rev (1m)-9.07%
EPS NQ rev (3m)-9.37%
EPS NY rev (1m)-3.28%
EPS NY rev (3m)-4.27%
Revenue NQ rev (1m)-1.4%
Revenue NQ rev (3m)-1.71%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 16.54 | ||
| P/S | 3.9 | ||
| P/FCF | 17.31 | ||
| P/OCF | 15.93 | ||
| P/B | 2.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.81 |
EPS(TTM)3.92
EY5.53%
EPS(NY)4.28
Fwd EY6.05%
FCF(TTM)4.09
FCFY5.78%
OCF(TTM)4.45
OCFY6.28%
SpS18.19
BVpS30.12
TBVpS-9.61
PEG (NY)16.95
PEG (5Y)8.05
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 | 3.32 |
F-Score6
WACC9.88%
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 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-0.13%
Revenue Next 2Y2.18%
Revenue Next 3Y3.42%
Revenue Next 5Y7.38%
EBIT growth 1Y-1.33%
EBIT growth 3Y12.4%
EBIT growth 5Y19.62%
EBIT Next Year32.91%
EBIT Next 3Y15.82%
EBIT Next 5Y18.84%
FCF growth 1Y19.82%
FCF growth 3Y15.57%
FCF growth 5Y3.95%
OCF growth 1Y19.72%
OCF growth 3Y16.68%
OCF growth 5Y3.73%