FORTIVE CORP (FTV) Stock Fundamental Analysis
NYSE:FTV - US34959J1088 - Common Stock
49.31 USD
+1.55 (+3.25%)
49.31 USD
0 (0%)
Taking everything into account, FTV scores 4 out of 10 in our fundamental rating. FTV was compared to 127 industry peers in the Machinery industry. FTV has a medium profitability rating, but doesn't score so well on its financial health evaluation. FTV has a valuation in line with the averages, but it does not seem to be growing.
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.
FTV had positive earnings in each of the past 5 years.
Each year in the past 5 years FTV had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 4.21%, FTV perfoms like the industry average, outperforming 49.61% of the companies in the same industry.
FTV's Return On Equity of 7.41% is in line compared to the rest of the industry. FTV outperforms 47.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.36%, FTV is in line with its industry, outperforming 47.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FTV is below the industry average of 10.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 7.41% | ||
| ROIC | 6.36% |
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 12.51% is amongst the best of the industry. FTV outperforms 81.89% of its industry peers.
In the last couple of years the Profit Margin of FTV has declined.
With a decent Operating Margin value of 17.31%, FTV is doing good in the industry, outperforming 79.53% 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 59.78%. This is amongst the best in the industry. FTV outperforms 96.06% of its industry peers.
In the last couple of years the Gross Margin of FTV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.31% | ||
| PM (TTM) | 12.51% | ||
| GM | 59.78% |
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.
FTV has less shares outstanding than it did 1 year ago.
FTV has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FTV is higher compared to a year ago.
2.2 Solvency
FTV has an Altman-Z score of 2.45. This is not the best score and indicates that FTV is in the grey zone with still only limited risk for bankruptcy at the moment.
FTV's Altman-Z score of 2.45 is on the low side compared to the rest of the industry. FTV is outperformed by 60.63% of its industry peers.
FTV has a debt to FCF ratio of 3.47. This is a good value and a sign of high solvency as FTV would need 3.47 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.47, FTV is doing good in the industry, outperforming 62.99% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that FTV is not too dependend on debt financing.
FTV has a Debt to Equity ratio of 0.28. This is in the better half of the industry: FTV outperforms 65.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.47 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.65
WACC9.8%
2.3 Liquidity
A Current Ratio of 0.98 indicates that FTV may have some problems paying its short term obligations.
FTV's Current ratio of 0.98 is on the low side compared to the rest of the industry. FTV is outperformed by 88.98% of its industry peers.
FTV has a Quick Ratio of 0.98. 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 Quick ratio of 0.82. This is in the lower half of the industry: FTV underperforms 74.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
FTV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.36%, which is quite good.
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 decrease in Revenue. The Revenue has decreased by -0.12% in the last year.
FTV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.43% yearly.
EPS 1Y (TTM)8.36%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%-3.23%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-2.16%
3.2 Future
The Earnings Per Share is expected to grow by 0.45% on average over the next years.
Based on estimates for the next years, FTV will show a decrease in Revenue. The Revenue will decrease by -5.15% on average per year.
EPS Next Y-34.97%
EPS Next 2Y-15.45%
EPS Next 3Y-7.33%
EPS Next 5Y0.45%
Revenue Next Year-34.09%
Revenue Next 2Y-17.4%
Revenue Next 3Y-10.86%
Revenue Next 5Y-5.15%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 12.68, FTV is valued correctly.
FTV's Price/Earnings ratio is rather cheap when compared to the industry. FTV is cheaper than 89.76% of the companies in the same industry.
FTV is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.68 indicates a rather expensive valuation of FTV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTV indicates a somewhat cheap valuation: FTV is cheaper than 65.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, FTV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 17.68 |
4.2 Price Multiples
FTV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FTV is cheaper than 65.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FTV is valued cheaper than 90.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.04 | ||
| EV/EBITDA | 12.23 |
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 -7.33% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5.64
EPS Next 2Y-15.45%
EPS Next 3Y-7.33%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, FTV is not a good candidate for dividend investing.
In the last 3 months the price of FTV has falen by -29.22%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.87, FTV has a dividend in line with its industry peers.
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 | 0.67% |
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
14.22% of the earnings are spent on dividend by FTV. This is a low number and sustainable payout ratio.
DP14.22%
EPS Next 2Y-15.45%
EPS Next 3Y-7.33%
49.31
+1.55 (+3.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.45%
Inst Owner Change-7.43%
Ins Owners0.17%
Ins Owner Change1.53%
Market Cap16.68B
Analysts71.2
Price Target61.64 (25.01%)
Short Float %2.72%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.32
Dividend Growth(5Y)-7.91%
DP14.22%
Div Incr Years2
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)24.59%
Min EPS beat(2)-1.01%
Max EPS beat(2)50.18%
EPS beat(4)3
Avg EPS beat(4)13.98%
Min EPS beat(4)-1.01%
Max EPS beat(4)50.18%
EPS beat(8)6
Avg EPS beat(8)7.79%
EPS beat(12)10
Avg EPS beat(12)6.19%
EPS beat(16)14
Avg EPS beat(16)5.28%
Revenue beat(2)1
Avg Revenue beat(2)23.11%
Min Revenue beat(2)-2.24%
Max Revenue beat(2)48.47%
Revenue beat(4)1
Avg Revenue beat(4)10.72%
Min Revenue beat(4)-2.24%
Max Revenue beat(4)48.47%
Revenue beat(8)2
Avg Revenue beat(8)4.67%
Revenue beat(12)5
Avg Revenue beat(12)3.35%
Revenue beat(16)7
Avg Revenue beat(16)2.31%
PT rev (1m)-8.53%
PT rev (3m)-25.64%
EPS NQ rev (1m)-11.34%
EPS NQ rev (3m)-41.42%
EPS NY rev (1m)-2.11%
EPS NY rev (3m)-35.65%
Revenue NQ rev (1m)-6.48%
Revenue NQ rev (3m)-35.52%
Revenue NY rev (1m)-0.91%
Revenue NY rev (3m)-34.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 17.68 | ||
| P/S | 2.71 | ||
| P/FCF | 12.04 | ||
| P/OCF | 11.02 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.23 |
EPS(TTM)3.89
EY7.89%
EPS(NY)2.79
Fwd EY5.65%
FCF(TTM)4.1
FCFY8.31%
OCF(TTM)4.48
OCFY9.08%
SpS18.17
BVpS30.69
TBVpS-9.52
PEG (NY)N/A
PEG (5Y)5.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 7.41% | ||
| ROCE | 7.34% | ||
| ROIC | 6.36% | ||
| ROICexc | 7.28% | ||
| ROICexgc | N/A | ||
| OM | 17.31% | ||
| PM (TTM) | 12.51% | ||
| GM | 59.78% | ||
| FCFM | 22.54% |
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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.47 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 23.6% | ||
| Cap/Sales | 2.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.19% | ||
| Profit Quality | 180.25% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.45 |
F-Score6
WACC9.8%
ROIC/WACC0.65
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)8.36%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%-3.23%
EPS Next Y-34.97%
EPS Next 2Y-15.45%
EPS Next 3Y-7.33%
EPS Next 5Y0.45%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-2.16%
Revenue Next Year-34.09%
Revenue Next 2Y-17.4%
Revenue Next 3Y-10.86%
Revenue Next 5Y-5.15%
EBIT growth 1Y-9.05%
EBIT growth 3Y12.4%
EBIT growth 5Y19.62%
EBIT Next Year-9.09%
EBIT Next 3Y0.52%
EBIT Next 5Y3.16%
FCF growth 1Y16.96%
FCF growth 3Y15.57%
FCF growth 5Y3.95%
OCF growth 1Y17.43%
OCF growth 3Y16.68%
OCF growth 5Y3.73%