FORTIVE CORP (FTV) Stock Fundamental Analysis
USA - NYSE:FTV - US34959J1088 - Common Stock
51.88 USD
+0.55 (+1.07%)
51.88 USD
0 (0%)
Taking everything into account, FTV scores 4 out of 10 in our fundamental rating. FTV was compared to 130 industry peers in the Machinery industry. FTV has an excellent profitability rating, but there are some minor 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.
FTV had a positive operating cash flow in the past year.
In the past 5 years FTV has always been profitable.
FTV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FTV has a Return On Assets (5.07%) which is in line with its industry peers.
FTV has a Return On Equity of 9.26%. This is comparable to the rest of the industry: FTV outperforms 55.38% of its industry peers.
The Return On Invested Capital of FTV (8.52%) is better than 60.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FTV is below the industry average of 10.27%.
The last Return On Invested Capital (8.52%) for FTV is above the 3 year average (6.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 9.26% | ||
| ROIC | 8.52% |
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 10.68% is fine compared to the rest of the industry. FTV outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of FTV has declined.
FTV has a better Operating Margin (16.42%) than 77.69% of its industry peers.
In the last couple of years the Operating Margin of FTV has grown nicely.
FTV has a Gross Margin of 60.33%. This is amongst the best in the industry. FTV outperforms 96.92% of its industry peers.
In the last couple of years the Gross Margin of FTV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.42% | ||
| PM (TTM) | 10.68% | ||
| GM | 60.33% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FTV is destroying value.
The number of shares outstanding for FTV has been reduced compared to 1 year ago.
The number of shares outstanding for FTV has been increased compared to 5 years ago.
The debt/assets ratio for FTV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.21 indicates that FTV is not in any danger for bankruptcy at the moment.
FTV has a Altman-Z score of 3.21. This is comparable to the rest of the industry: FTV outperforms 56.92% of its industry peers.
The Debt to FCF ratio of FTV is 2.98, which is a good value as it means it would take FTV, 2.98 years of fcf income to pay off all of its debts.
FTV has a Debt to FCF ratio of 2.98. This is in the better half of the industry: FTV outperforms 69.23% 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 62.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.9
WACC9.46%
2.3 Liquidity
A Current Ratio of 0.70 indicates that FTV may have some problems paying its short term obligations.
FTV has a Current ratio of 0.70. This is amonst the worse of the industry: FTV underperforms 92.31% of its industry peers.
A Quick Ratio of 0.58 indicates that FTV may have some problems paying its short term obligations.
With a Quick ratio value of 0.58, FTV is not doing good in the industry: 86.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
FTV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.59%.
Measured over the past 5 years, FTV shows a small growth in Earnings Per Share. The EPS has been growing by 2.25% on average per year.
FTV shows a decrease in Revenue. In the last year, the revenue decreased by -8.96%.
FTV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.43% yearly.
EPS 1Y (TTM)-11.59%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%-29.9%
Revenue 1Y (TTM)-8.96%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-33.07%
3.2 Future
The Earnings Per Share is expected to decrease by -0.22% 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 -5.05% on average per year.
EPS Next Y-32.82%
EPS Next 2Y-14.49%
EPS Next 3Y-7.13%
EPS Next 5Y-0.22%
Revenue Next Year-33.92%
Revenue Next 2Y-17.47%
Revenue Next 3Y-10.92%
Revenue Next 5Y-5.05%
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 decreasing.
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
Based on the Price/Earnings ratio of 15.82, the valuation of FTV can be described as correct.
Based on the Price/Earnings ratio, FTV is valued a bit cheaper than the industry average as 79.23% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.28, FTV is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.19, the valuation of FTV can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTV is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 33.61. FTV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 18.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTV is on the same level as its industry peers.
78.46% 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 | 15.84 | ||
| EV/EBITDA | 14.59 |
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 -7.13% in the coming years.
PEG (NY)N/A
PEG (5Y)7.04
EPS Next 2Y-14.49%
EPS Next 3Y-7.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.47%, FTV is not a good candidate for dividend investing.
FTV's Dividend Yield is comparable with the industry average which is at 1.85.
With a Dividend Yield of 0.47, FTV pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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 16.72% of its income as dividend. This is a sustainable payout ratio.
FTV's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP16.72%
EPS Next 2Y-14.49%
EPS Next 3Y-7.13%
51.88
+0.55 (+1.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.46%
Inst Owner Change-0.3%
Ins Owners0.17%
Ins Owner Change-0.01%
Market Cap17.55B
Revenue(TTM)5.64B
Net Income(TTM)602.30M
Analysts67.5
Price Target56.9 (9.68%)
Short Float %2.45%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend0.32
Dividend Growth(5Y)-7.91%
DP16.72%
Div Incr Years2
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.32%
Min EPS beat(2)-3.21%
Max EPS beat(2)17.85%
EPS beat(4)2
Avg EPS beat(4)4.27%
Min EPS beat(4)-3.21%
Max EPS beat(4)17.85%
EPS beat(8)6
Avg EPS beat(8)3.46%
EPS beat(12)9
Avg EPS beat(12)3%
EPS beat(16)13
Avg EPS beat(16)3.03%
Revenue beat(2)1
Avg Revenue beat(2)0.12%
Min Revenue beat(2)-0.65%
Max Revenue beat(2)0.89%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-2.24%
Max Revenue beat(4)0.89%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)5
Avg Revenue beat(12)-0.66%
Revenue beat(16)7
Avg Revenue beat(16)-0.55%
PT rev (1m)-1.62%
PT rev (3m)-10.39%
EPS NQ rev (1m)3.04%
EPS NQ rev (3m)6.55%
EPS NY rev (1m)3.34%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 18.19 | ||
| P/S | 3.11 | ||
| P/FCF | 15.84 | ||
| P/OCF | 14.39 | ||
| P/B | 2.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.59 |
EPS(TTM)3.28
EY6.32%
EPS(NY)2.85
Fwd EY5.5%
FCF(TTM)3.27
FCFY6.31%
OCF(TTM)3.6
OCFY6.95%
SpS16.67
BVpS19.22
TBVpS-8.99
PEG (NY)N/A
PEG (5Y)7.04
Graham Number37.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 9.26% | ||
| ROCE | 9.84% | ||
| ROIC | 8.52% | ||
| ROICexc | 8.93% | ||
| ROICexgc | N/A | ||
| OM | 16.42% | ||
| PM (TTM) | 10.68% | ||
| GM | 60.33% | ||
| FCFM | 19.64% |
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%
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.98 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 24.22% | ||
| Cap/Sales | 1.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.89% | ||
| Profit Quality | 183.93% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 3.21 |
F-Score7
WACC9.46%
ROIC/WACC0.9
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)-11.59%
EPS 3Y12.49%
EPS 5Y2.25%
EPS Q2Q%-29.9%
EPS Next Y-32.82%
EPS Next 2Y-14.49%
EPS Next 3Y-7.13%
EPS Next 5Y-0.22%
Revenue 1Y (TTM)-8.96%
Revenue growth 3Y5.85%
Revenue growth 5Y6.43%
Sales Q2Q%-33.07%
Revenue Next Year-33.92%
Revenue Next 2Y-17.47%
Revenue Next 3Y-10.92%
Revenue Next 5Y-5.05%
EBIT growth 1Y-21.25%
EBIT growth 3Y12.4%
EBIT growth 5Y19.62%
EBIT Next Year-9.69%
EBIT Next 3Y0.7%
EBIT Next 5Y3.03%
FCF growth 1Y-12.16%
FCF growth 3Y15.57%
FCF growth 5Y3.95%
OCF growth 1Y-11.05%
OCF growth 3Y16.68%
OCF growth 5Y3.73%
FORTIVE CORP / FTV FAQ
Can you provide the ChartMill fundamental rating for FORTIVE CORP?
ChartMill assigns a fundamental rating of 4 / 10 to FTV.
What is the valuation status for FTV stock?
ChartMill assigns a valuation rating of 4 / 10 to FORTIVE CORP (FTV). This can be considered as Fairly Valued.
Can you provide the profitability details for FORTIVE CORP?
FORTIVE CORP (FTV) has a profitability rating of 7 / 10.
What are the PE and PB ratios of FORTIVE CORP (FTV) stock?
The Price/Earnings (PE) ratio for FORTIVE CORP (FTV) is 15.82 and the Price/Book (PB) ratio is 2.7.
What is the earnings growth outlook for FORTIVE CORP?
The Earnings per Share (EPS) of FORTIVE CORP (FTV) is expected to decline by -32.82% in the next year.