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 128 industry peers in the Machinery industry. While FTV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FTV has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years FTV has been profitable.
In the past 5 years FTV always reported a positive cash flow from operatings.
1.2 Ratios
FTV has a Return On Assets (4.65%) which is comparable to the rest of the industry.
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.
FTV has a Return On Invested Capital of 6.88%. This is comparable to the rest of the industry: FTV outperforms 51.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTV is below the industry average of 10.30%.
The last Return On Invested Capital (6.88%) for FTV is above the 3 year average (6.67%), which is a sign of increasing profitability.
| 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
FTV has a better Profit Margin (12.90%) than 82.81% of its industry peers.
FTV's Profit Margin has declined in the last couple of years.
FTV's Operating Margin of 18.51% is amongst the best of the industry. FTV outperforms 85.16% of its industry peers.
In the last couple of years the Operating Margin of FTV has grown nicely.
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
The debt/assets ratio for FTV is higher compared to a year ago.
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.
FTV has a Altman-Z score (3.36) which is comparable to the rest of the 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.
With a decent Debt to FCF ratio value of 2.78, FTV is doing good in the industry, outperforming 67.19% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that FTV is not too dependend on debt financing.
FTV has a Debt to Equity ratio of 0.29. This is in the better half of the industry: FTV outperforms 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
WACC9.87%
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 has a Current ratio of 0.99. This is amonst the worse of the industry: FTV underperforms 89.06% of its industry peers.
FTV has a Quick 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 has a worse Quick ratio (0.78) than 75.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.68% over the past year.
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.
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)0.85%
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 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
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
The Price/Earnings ratio is 18.13, which indicates a rather expensive current valuation of FTV.
Based on the Price/Earnings ratio, FTV is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.19, FTV is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.59, FTV is valued correctly.
62.50% of the companies in the same industry are more expensive than FTV, based on the Price/Forward Earnings ratio.
FTV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 16.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FTV.
FTV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FTV is cheaper than 69.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.36 | ||
| 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.
FTV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)17
PEG (5Y)8.07
EPS Next 2Y4.82%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.46%, FTV is not a good candidate for dividend investing.
FTV's Dividend Yield is comparable with the industry average which is at 1.90.
With a Dividend Yield of 0.46, FTV pays less dividend than the S&P500 average, which is at 2.40.
| 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.
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
13.83% of the earnings are spent on dividend by FTV. This is a low number and sustainable payout ratio.
DP13.83%
EPS Next 2Y4.82%
EPS Next 3Y6.55%
71.07
-0.44 (-0.62%)
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 Cap24.16B
Analysts73.6
Price Target82.9 (16.65%)
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 | 18.13 | ||
| Fwd PE | 16.59 | ||
| P/S | 3.91 | ||
| P/FCF | 17.36 | ||
| P/OCF | 15.98 | ||
| P/B | 2.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.09 |
EPS(TTM)3.92
EY5.52%
EPS(NY)4.28
Fwd EY6.03%
FCF(TTM)4.09
FCFY5.76%
OCF(TTM)4.45
OCFY6.26%
SpS18.19
BVpS30.12
TBVpS-9.61
PEG (NY)17
PEG (5Y)8.07
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
WACC9.87%
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%