FORTIVE CORP (FTV)
US34959J1088 - Common Stock
Taking everything into account, FTV scores 6 out of 10 in our fundamental rating. FTV was compared to 132 industry peers in the Machinery industry. FTV has an excellent profitability rating, but there are some minor concerns on its financial health. FTV is valied quite expensively at the moment, while it does show a decent 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.
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 has a better Return On Assets (5.12%) than 61.24% of its industry peers.
FTV's Return On Equity of 8.39% is in line compared to the rest of the industry. FTV outperforms 55.04% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.52%, FTV is in line with its industry, outperforming 50.39% of the companies in the same industry.
FTV had an Average Return On Invested Capital over the past 3 years of 6.27%. This is below the industry average of 10.73%.
The 3 year average ROIC (6.27%) for FTV is below the current ROIC(6.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 8.39% | ||
| ROIC | 6.52% |
ROA(3y)4.45%
ROA(5y)5.36%
ROE(3y)7.41%
ROE(5y)9.7%
ROIC(3y)6.27%
ROIC(5y)5.09%
1.3 Margins
With an excellent Profit Margin value of 14.27%, FTV belongs to the best of the industry, outperforming 86.82% of the companies in the same industry.
FTV's Profit Margin has declined in the last couple of years.
The Operating Margin of FTV (18.69%) is better than 87.60% of its industry peers.
FTV's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 59.26%, FTV belongs to the best of the industry, outperforming 96.90% of the companies in the same industry.
FTV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.69% | ||
| PM (TTM) | 14.27% | ||
| GM | 59.26% |
OM growth 3Y15.79%
OM growth 5Y1.85%
PM growth 3Y-24.62%
PM growth 5Y-28.38%
GM growth 3Y1.73%
GM growth 5Y0.59%
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
Compared to 1 year ago, FTV has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.77 indicates that FTV is not in any danger for bankruptcy at the moment.
The Altman-Z score of FTV (3.77) is better than 64.34% of its industry peers.
FTV has a debt to FCF ratio of 2.93. This is a good value and a sign of high solvency as FTV would need 2.93 years to pay back of all of its debts.
FTV has a better Debt to FCF ratio (2.93) than 69.77% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that FTV is not too dependend on debt financing.
FTV's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. FTV outperforms 58.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.93 | ||
| Altman-Z | 3.77 |
ROIC/WACC0.71
WACC9.18%
2.3 Liquidity
FTV has a Current Ratio of 2.05. This indicates that FTV is financially healthy and has no problem in meeting its short term obligations.
FTV has a Current ratio of 2.05. This is comparable to the rest of the industry: FTV outperforms 46.51% of its industry peers.
A Quick Ratio of 1.75 indicates that FTV should not have too much problems paying its short term obligations.
The Quick ratio of FTV (1.75) is better than 72.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.89% over the past year.
The Earnings Per Share has been decreasing by -0.17% on average over the past years.
Looking at the last year, FTV shows a small growth in Revenue. The Revenue has grown by 4.11% in the last year.
FTV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.80% yearly.
EPS 1Y (TTM)8.89%
EPS 3Y3.88%
EPS 5Y-0.17%
EPS growth Q2Q11.36%
Revenue 1Y (TTM)4.11%
Revenue growth 3Y9.38%
Revenue growth 5Y9.8%
Revenue growth Q2Q3.52%
3.2 Future
The Earnings Per Share is expected to grow by 11.35% on average over the next years. This is quite good.
FTV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.80% yearly.
EPS Next Y11.72%
EPS Next 2Y10.7%
EPS Next 3Y10.98%
EPS Next 5Y11.35%
Revenue Next Year7.16%
Revenue Next 2Y5.97%
Revenue Next 3Y6.57%
Revenue Next 5Y9.8%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
FTV is valuated rather expensively with a Price/Earnings ratio of 22.22.
Compared to the rest of the industry, the Price/Earnings ratio of FTV is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.25, FTV is valued at the same level.
The Price/Forward Earnings ratio is 19.89, which indicates a rather expensive current valuation of FTV.
FTV's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of FTV to the average of the S&P500 Index (21.67), we can say FTV is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.22 | ||
| Fwd PE | 19.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTV indicates a slightly more expensive valuation: FTV is more expensive than 62.02% of the companies listed in the same industry.
FTV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FTV is cheaper than 65.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.5 | ||
| EV/EBITDA | 17.91 |
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)1.9
PEG (5Y)N/A
EPS Next 2Y10.7%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, FTV is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.71, FTV has a dividend in line with its industry peers.
With a Dividend Yield of 0.40, FTV pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
The dividend of FTV decreases each year by -5.52%.
FTV has been paying a dividend for over 5 years, so it has already some track record.
FTV has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-5.52%
Div Incr Years1
Div Non Decr Years7
5.3 Sustainability
11.78% of the earnings are spent on dividend by FTV. This is a low number and sustainable payout ratio.
DP11.78%
EPS Next 2Y10.7%
EPS Next 3Y10.98%
FORTIVE CORP
NYSE:FTV (4/25/2024, 3:20:02 PM)
After market: 76.21 0 (0%)76.21
+0.16 (+0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.22 | ||
| Fwd PE | 19.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.9
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 8.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.69% | ||
| PM (TTM) | 14.27% | ||
| GM | 59.26% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.89%
EPS 3Y3.88%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.11%
Revenue growth 3Y9.38%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y