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. FTV scores excellent on profitability, but 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.
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
FTV's Return On Assets of 4.65% is in line compared to the rest of the industry. FTV outperforms 51.56% of its industry peers.
FTV's Return On Equity of 7.79% is in line compared to the rest of the industry. FTV outperforms 46.88% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for FTV is below the industry average of 10.30%.
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
Looking at the Profit Margin, with a value of 12.90%, FTV belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
FTV's Profit Margin has declined in the last couple of years.
FTV has a better Operating Margin (18.51%) than 85.16% of its industry peers.
FTV's Operating Margin has improved in the last couple of years.
The Gross Margin of FTV (59.98%) is better than 96.88% of its industry peers.
In the last couple of years the Gross Margin of FTV has grown nicely.
| 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
FTV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FTV has less shares outstanding
Compared to 5 years ago, FTV has more shares outstanding
FTV has a worse debt/assets ratio than last year.
2.2 Solvency
FTV has an Altman-Z score of 3.36. This indicates that FTV is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.36, FTV is in line with its industry, outperforming 58.59% of the companies in the same industry.
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.
FTV's Debt to FCF ratio of 2.78 is fine compared to the rest of the industry. FTV outperforms 67.19% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that FTV is not too dependend on debt financing.
The Debt to Equity ratio of FTV (0.29) is better than 66.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.7
WACC9.83%
2.3 Liquidity
FTV has a Current 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 Current ratio of 0.99 is on the low side compared to the rest of the industry. FTV is outperformed by 89.06% of its industry peers.
A Quick Ratio of 0.78 indicates that FTV may have some problems paying 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
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.
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 7.38% 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-0.13%
Revenue Next 2Y2.18%
Revenue Next 3Y3.42%
Revenue Next 5Y7.38%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
FTV is valuated rather expensively with a Price/Earnings ratio of 17.91.
Compared to the rest of the industry, the Price/Earnings ratio of FTV indicates a somewhat cheap valuation: FTV is cheaper than 68.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.25, FTV is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.38, which 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 62.50% of the companies in the same industry.
FTV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.91 | ||
| Fwd PE | 16.38 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FTV.
69.53% 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 | 17.15 | ||
| EV/EBITDA | 16.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FTV does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of FTV may justify a higher PE ratio.
PEG (NY)16.79
PEG (5Y)7.97
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.
FTV's Dividend Yield is comparable with the industry average which is at 1.90.
Compared to an average S&P500 Dividend Yield of 2.40, FTV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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
FTV pays out 13.83% of its income as dividend. This is a sustainable payout ratio.
DP13.83%
EPS Next 2Y4.82%
EPS Next 3Y6.55%
70.19
-0.88 (-1.24%)
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 Cap23.86B
Analysts73.6
Price Target82.9 (18.11%)
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 | 17.91 | ||
| Fwd PE | 16.38 | ||
| P/S | 3.86 | ||
| P/FCF | 17.15 | ||
| P/OCF | 15.78 | ||
| P/B | 2.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.09 |
EPS(TTM)3.92
EY5.58%
EPS(NY)4.28
Fwd EY6.1%
FCF(TTM)4.09
FCFY5.83%
OCF(TTM)4.45
OCFY6.34%
SpS18.19
BVpS30.12
TBVpS-9.61
PEG (NY)16.79
PEG (5Y)7.97
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 | 3.36 |
F-Score6
WACC9.83%
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%