FORTIVE CORP (FTV) Stock Fundamental Analysis
USA - NYSE:FTV - US34959J1088 - Common Stock
48.66 USD
-0.03 (-0.06%)
48.66 USD
0 (0%)
Overall FTV gets a fundamental rating of 4 out of 10. We evaluated FTV against 130 industry peers in the Machinery industry. While FTV is still in line with the averages on profitability rating, there are 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.
In the past year FTV had a positive cash flow from operations.
FTV had positive earnings in each of the past 5 years.
In the past 5 years FTV always reported a positive cash flow from operatings.
1.2 Ratios
FTV's Return On Assets of 4.21% is in line compared to the rest of the industry. FTV outperforms 50.77% of its industry peers.
FTV has a Return On Equity of 7.41%. This is comparable to the rest of the industry: FTV outperforms 48.46% of its industry peers.
FTV's Return On Invested Capital of 6.36% is in line compared to the rest of the industry. FTV outperforms 48.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTV is below the industry average of 10.01%.
| 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
Looking at the Profit Margin, with a value of 12.51%, FTV belongs to the top of the industry, outperforming 83.85% of the companies in the same industry.
In the last couple of years the Profit Margin of FTV has declined.
The Operating Margin of FTV (17.31%) is better than 80.77% of its industry peers.
FTV's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 59.78%, FTV belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
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
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.
Compared to 5 years ago, FTV has more shares outstanding
The debt/assets ratio for FTV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.43 indicates that FTV is not a great score, but indicates only limited risk for bankruptcy at the moment.
FTV's Altman-Z score of 2.43 is in line compared to the rest of the industry. FTV outperforms 42.31% 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.
Looking at the Debt to FCF ratio, with a value of 3.47, FTV is in the better half of the industry, outperforming 66.92% of the companies in the same industry.
FTV has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
FTV has a Debt to Equity ratio of 0.28. This is in the better half of the industry: FTV outperforms 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.47 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.68
WACC9.38%
2.3 Liquidity
FTV has a Current 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.
The Current ratio of FTV (0.98) is worse than 87.69% of its industry peers.
A Quick Ratio of 0.82 indicates that FTV may have some problems paying its short term obligations.
With a Quick ratio value of 0.82, FTV is not doing good in the industry: 74.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
FTV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.56%.
The Earnings Per Share has been growing slightly by 2.25% on average over the past years.
The Revenue has decreased by -0.12% in the past 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)-0.56%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%-37.63%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-34.53%
3.2 Future
Based on estimates for the next years, FTV will show a small growth in Earnings Per Share. The EPS will grow by 0.45% on average per year.
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-34.99%
EPS Next 2Y-15.41%
EPS Next 3Y-7.33%
EPS Next 5Y0.45%
Revenue Next Year-34.05%
Revenue Next 2Y-17.43%
Revenue Next 3Y-10.84%
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.
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 13.63, which indicates a correct valuation of FTV.
FTV's Price/Earnings ratio is rather cheap when compared to the industry. FTV is cheaper than 88.46% of the companies in the same industry.
When comparing the Price/Earnings ratio of FTV to the average of the S&P500 Index (27.40), we can say FTV is valued rather cheaply.
The Price/Forward Earnings ratio is 17.44, which indicates a rather expensive current valuation of FTV.
Based on the Price/Forward Earnings ratio, FTV is valued a bit cheaper than 61.54% of the companies in the same industry.
FTV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 17.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTV is valued a bit cheaper than 63.85% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FTV is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.88 | ||
| EV/EBITDA | 12.1 |
4.3 Compensation for Growth
The decent profitability rating of FTV may justify a higher PE ratio.
A cheap valuation may be justified as FTV's earnings are expected to decrease with -7.33% in the coming years.
PEG (NY)N/A
PEG (5Y)6.07
EPS Next 2Y-15.41%
EPS Next 3Y-7.33%
5. Dividend
5.1 Amount
FTV has a yearly dividend return of 0.49%, which is pretty low.
FTV's Dividend Yield is comparable with the industry average which is at 1.81.
With a Dividend Yield of 0.49, FTV pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
FTV pays out 14.22% of its income as dividend. This is a sustainable payout ratio.
DP14.22%
EPS Next 2Y-15.41%
EPS Next 3Y-7.33%
48.66
-0.03 (-0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.46%
Inst Owner Change0.47%
Ins Owners0.17%
Ins Owner Change0.03%
Market Cap16.46B
Analysts68.33
Price Target57.83 (18.85%)
Short Float %2.84%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.32
Dividend Growth(5Y)-7.91%
DP14.22%
Div Incr Years2
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.11%
Min EPS beat(2)-3.21%
Max EPS beat(2)-1.01%
EPS beat(4)2
Avg EPS beat(4)0.63%
Min EPS beat(4)-3.21%
Max EPS beat(4)3.45%
EPS beat(8)5
Avg EPS beat(8)1.12%
EPS beat(12)9
Avg EPS beat(12)1.74%
EPS beat(16)13
Avg EPS beat(16)1.94%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-2.24%
Max Revenue beat(2)-0.65%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-2.24%
Max Revenue beat(4)-0.65%
Revenue beat(8)1
Avg Revenue beat(8)-1.47%
Revenue beat(12)4
Avg Revenue beat(12)-0.74%
Revenue beat(16)6
Avg Revenue beat(16)-0.76%
PT rev (1m)-0.03%
PT rev (3m)-14.18%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-11.44%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-2.14%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 17.44 | ||
| P/S | 2.68 | ||
| P/FCF | 11.88 | ||
| P/OCF | 10.87 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.1 |
EPS(TTM)3.57
EY7.34%
EPS(NY)2.79
Fwd EY5.73%
FCF(TTM)4.1
FCFY8.42%
OCF(TTM)4.48
OCFY9.2%
SpS18.17
BVpS30.69
TBVpS-9.52
PEG (NY)N/A
PEG (5Y)6.07
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 | 2.43 |
F-Score6
WACC9.38%
ROIC/WACC0.68
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)-0.56%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%-37.63%
EPS Next Y-34.99%
EPS Next 2Y-15.41%
EPS Next 3Y-7.33%
EPS Next 5Y0.45%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-34.53%
Revenue Next Year-34.05%
Revenue Next 2Y-17.43%
Revenue Next 3Y-10.84%
Revenue Next 5Y-5.15%
EBIT growth 1Y-9.05%
EBIT growth 3Y12.4%
EBIT growth 5Y19.62%
EBIT Next Year-9.69%
EBIT Next 3Y0.7%
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%