FORTIVE CORP (FTV) Stock Fundamental Analysis
NYSE:FTV - New York Stock Exchange, Inc. - US34959J1088 - Common Stock - Currency: USD
Taking everything into account, FTV scores 5 out of 10 in our fundamental rating. FTV was compared to 129 industry peers in the Machinery industry. FTV scores excellent on profitability, but 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
In the past year FTV was profitable.
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 4.89%, FTV perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
FTV's Return On Equity of 8.17% is in line compared to the rest of the industry. FTV outperforms 48.06% of its industry peers.
FTV's Return On Invested Capital of 6.90% is in line compared to the rest of the industry. FTV outperforms 51.94% 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 10.67%.
The 3 year average ROIC (6.67%) for FTV is below the current ROIC(6.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 8.17% | ||
| ROIC | 6.9% |
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 13.37%. This is amongst the best in the industry. FTV outperforms 83.72% of its industry peers.
In the last couple of years the Profit Margin of FTV has declined.
Looking at the Operating Margin, with a value of 18.88%, FTV belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
FTV's Operating Margin has improved in the last couple of years.
FTV has a better Gross Margin (59.87%) than 96.90% of its industry peers.
In the last couple of years the Gross Margin of FTV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.88% | ||
| PM (TTM) | 13.37% | ||
| GM | 59.87% |
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.
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
FTV has an Altman-Z score of 3.31. This indicates that FTV is financially healthy and has little risk of bankruptcy at the moment.
FTV has a Altman-Z score (3.31) which is comparable to the rest of the industry.
FTV has a debt to FCF ratio of 2.64. This is a good value and a sign of high solvency as FTV would need 2.64 years to pay back of all of its debts.
FTV has a better Debt to FCF ratio (2.64) than 67.44% of its industry peers.
FTV has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FTV (0.33) is better than 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 3.31 |
ROIC/WACC0.69
WACC9.96%
2.3 Liquidity
A Current Ratio of 1.16 indicates that FTV should not have too much problems paying its short term obligations.
FTV has a Current ratio of 1.16. This is amonst the worse of the industry: FTV underperforms 86.82% of its industry peers.
FTV has a Quick Ratio of 1.16. This is a bad value and indicates that FTV is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.91, FTV is doing worse than 69.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
FTV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.68%, which is quite good.
FTV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.25% yearly.
Looking at the last year, FTV shows a small growth in Revenue. The Revenue has grown by 2.75% 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)11.68%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%2.41%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-3.3%
3.2 Future
Based on estimates for the next years, FTV will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.14% on average per year.
FTV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.38% yearly.
EPS Next Y4.5%
EPS Next 2Y6.41%
EPS Next 3Y7.52%
EPS Next 5Y9.14%
Revenue Next Year0.43%
Revenue Next 2Y2.62%
Revenue Next 3Y3.67%
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 17.23, the valuation of FTV can be described as rather expensive.
66.67% of the companies in the same industry are more expensive than FTV, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.22, FTV is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.30 indicates a correct valuation of FTV.
FTV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FTV is cheaper than 68.99% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, FTV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.23 | ||
| Fwd PE | 15.3 |
4.2 Price Multiples
FTV's Enterprise Value to EBITDA is on the same level as the industry average.
75.97% 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 | 16.32 | ||
| EV/EBITDA | 15.03 |
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)3.83
PEG (5Y)7.67
EPS Next 2Y6.41%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, FTV is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.05, FTV has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, FTV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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
13.35% of the earnings are spent on dividend by FTV. This is a low number and sustainable payout ratio.
DP13.35%
EPS Next 2Y6.41%
EPS Next 3Y7.52%
67.55
+0.77 (+1.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.59%
Inst Owner Change-1.25%
Ins Owners0.28%
Ins Owner Change3.43%
Market Cap22.96B
Analysts73.6
Price Target83.24 (23.23%)
Short Float %1.96%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.32
Dividend Growth(5Y)-7.91%
DP13.35%
Div Incr Years2
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.37%
Min EPS beat(2)3.3%
Max EPS beat(2)3.45%
EPS beat(4)4
Avg EPS beat(4)2.63%
Min EPS beat(4)0.16%
Max EPS beat(4)3.62%
EPS beat(8)7
Avg EPS beat(8)2.37%
EPS beat(12)11
Avg EPS beat(12)2.86%
EPS beat(16)15
Avg EPS beat(16)3.04%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-2.13%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-2.13%
Max Revenue beat(4)-1.13%
Revenue beat(8)3
Avg Revenue beat(8)-0.87%
Revenue beat(12)6
Avg Revenue beat(12)-0.14%
Revenue beat(16)8
Avg Revenue beat(16)-0.38%
PT rev (1m)-6.28%
PT rev (3m)-4.4%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-7.02%
EPS NY rev (1m)-0.82%
EPS NY rev (3m)-2.44%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-4.8%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.23 | ||
| Fwd PE | 15.3 | ||
| P/S | 3.68 | ||
| P/FCF | 16.32 | ||
| P/OCF | 15.04 | ||
| P/B | 2.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.03 |
EPS(TTM)3.92
EY5.8%
EPS(NY)4.42
Fwd EY6.54%
FCF(TTM)4.14
FCFY6.13%
OCF(TTM)4.49
OCFY6.65%
SpS18.34
BVpS29.98
TBVpS-9.73
PEG (NY)3.83
PEG (5Y)7.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 8.17% | ||
| ROCE | 7.96% | ||
| ROIC | 6.9% | ||
| ROICexc | 7.3% | ||
| ROICexgc | 217.62% | ||
| OM | 18.88% | ||
| PM (TTM) | 13.37% | ||
| GM | 59.87% | ||
| FCFM | 22.57% |
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-Score7
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.64 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 22.14% | ||
| Cap/Sales | 1.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.75% | ||
| Profit Quality | 168.86% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 3.31 |
F-Score7
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 Y4.5%
EPS Next 2Y6.41%
EPS Next 3Y7.52%
EPS Next 5Y9.14%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-3.3%
Revenue Next Year0.43%
Revenue Next 2Y2.62%
Revenue Next 3Y3.67%
Revenue Next 5Y7.38%
EBIT growth 1Y3.78%
EBIT growth 3Y12.4%
EBIT growth 5Y19.62%
EBIT Next Year38.92%
EBIT Next 3Y16.89%
EBIT Next 5Y18.84%
FCF growth 1Y12.89%
FCF growth 3Y15.57%
FCF growth 5Y3.95%
OCF growth 1Y12.8%
OCF growth 3Y16.68%
OCF growth 5Y3.73%