NYSE:FTV

Stock Analysis Report

Executive Summary

Fortive Corporation designs, develops, manufactures, markets, and services professional and engineered products, software, and services worldwide.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Fortive's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.2%

FTV

3.3%

US Machinery

0.07%

US Market


1 Year Return

-2.5%

FTV

15.1%

US Machinery

8.9%

US Market

Return vs Industry: FTV underperformed the US Machinery industry which returned 15.1% over the past year.

Return vs Market: FTV underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

FTVIndustryMarket
7 Day4.2%3.3%0.07%
30 Day6.3%3.5%-0.3%
90 Day-11.7%-0.5%-1.6%
1 Year-2.1%-2.5%17.5%15.1%11.3%8.9%
3 Year53.1%51.3%55.1%45.1%46.3%36.8%
5 Yearn/a56.6%37.5%62.1%44.3%

Price Volatility Vs. Market

How volatile is Fortive's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fortive undervalued compared to its fair value and its price relative to the market?

9.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FTV ($72.26) is trading below our estimate of fair value ($80.14)

Significantly Below Fair Value: FTV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FTV is poor value based on its PE Ratio (33.8x) compared to the Machinery industry average (20.6x).

PE vs Market: FTV is poor value based on its PE Ratio (33.8x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: FTV is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: FTV is overvalued based on its PB Ratio (3.5x) compared to the US Machinery industry average (2.3x).


Next Steps

Future Growth

How is Fortive forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FTV's forecast earnings growth (20.4% per year) is above the savings rate (2.7%).

Earnings vs Market: FTV's earnings (20.4% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FTV's revenue (6.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: FTV's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FTV's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has Fortive performed over the past 5 years?

-0.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FTV's earnings have declined by -0.8% per year over the past 5 years.

Accelerating Growth: FTV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FTV had negative earnings growth (-20.3%) over the past year, making it difficult to compare to the Machinery industry average (16.7%).


Return on Equity

High ROE: FTV's Return on Equity (11.3%) is considered low.


Return on Assets

ROA vs Industry: FTV's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: FTV's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Fortive's financial position?


Financial Position Analysis

Short Term Liabilities: FTV's short term assets ($3.4B) exceeds its short term liabilities ($2.8B)

Long Term Liabilities: FTV's short term assets (3.4B) do not cover its long term liabilities (6.7B)


Debt to Equity History and Analysis

Debt Level: FTV's debt to equity ratio (88.2%) is considered high

Reducing Debt: Insufficient data to determine if FTV's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: FTV's debt is well covered by operating cash flow (20.1%).

Interest Coverage: FTV's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet

Inventory Level: FTV has a low level of unsold assets or inventory.

Debt Coverage by Assets: FTV's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Fortive's current dividend yield, its reliability and sustainability?

0.39%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FTV's dividend (0.39%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FTV's dividend (0.39%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: FTV is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: FTV is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: FTV is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FTV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Fortive's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Jim Lico (53yo)

3.3yrs

Tenure

US$13,720,993

Compensation

Mr. James A. Lico, also known as Jim, has been Chief Executive Officer and President of Fortive Corporation since July 2016. Mr. Lico served as Executive Vice President of Danaher Corp. from September 26,  ...


CEO Compensation Analysis

Compensation vs. Market: Jim's total compensation ($USD13.72M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: FTV's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: FTV's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$42,02921 May 19
Emily Weaver
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares519
Max PriceUS$80.98
SellUS$1,582,32317 May 19
Martin Gafinowitz
EntityIndividual
Role
Senior Key Executive
Senior Vice President
Shares19,358
Max PriceUS$81.74
SellUS$52,59815 May 19
Emily Weaver
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares650
Max PriceUS$80.92
SellUS$51,31803 May 19
Emily Weaver
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares600
Max PriceUS$85.53
SellUS$662,55015 Nov 18
Jonathan Schwarz
EntityIndividual
Role
Head of Corporate Development
Vice President of Strategy & Corporate Development
Shares8,869
Max PriceUS$74.70
SellUS$33,63305 Nov 18
Emily Weaver
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares446
Max PriceUS$75.41

Ownership Breakdown


Management Team

  • Chuck McLaughlin (58yo)

    Senior VP & CFO

    • Tenure: 3.3yrs
    • Compensation: US$4.36m
  • Jim Lico (53yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$13.72m
  • Barbara Hulit (52yo)

    Senior Vice President

    • Tenure: 3.3yrs
    • Compensation: US$2.81m
  • Lisa Curran

    Vice President of Investor Relations

    • Tenure: 3.7yrs
  • Pete Underwood (49yo)

    Senior VP

    • Tenure: 3.4yrs
    • Compensation: US$2.77m
  • Martin Gafinowitz (60yo)

    Senior Vice President

    • Tenure: 3.3yrs
    • Compensation: US$2.95m
  • Jon Schwarz (47yo)

    Vice President of Strategy & Corporate Development

    • Tenure: 3.3yrs
  • Wes Pringle (51yo)

    Senior Vice President

    • Tenure: 3.3yrs
    • Compensation: US$2.80m
  • Emily Weaver (47yo)

    VP & Chief Accounting Officer

    • Tenure: 3.3yrs
  • Stacey Walker (48yo)

    Senior Vice President of Human Resources

    • Tenure: 3.3yrs

Board Members

  • Kate Mitchell (60yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$343.87k
  • Alan Spoon (68yo)

    Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: US$492.66k
  • Steven Rales (68yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$319.84k
  • Mitchell Rales (62yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$319.84k
  • Jeannine Sargent (55yo)

    Director

    • Tenure: 0.7yrs
  • Jim Lico (53yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$13.72m
  • Israel Ruiz (47yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$333.32k
  • Feroz Dewan (43yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$314.26k

Company Information

Fortive Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fortive Corporation
  • Ticker: FTV
  • Exchange: NYSE
  • Founded: 2015
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$24.246b
  • Shares outstanding: 335.53m
  • Website: https://www.fortive.com

Number of Employees


Location

  • Fortive Corporation
  • 6920 Seaway Boulevard
  • Everett
  • Washington
  • 98203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FTVNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2016
F03DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2016
FTV *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2016
0IRELSE (London Stock Exchange)YesCommon StockGBUSDJul 2016
FTV.PRANYSE (New York Stock Exchange)5% PFD CNV SER AUSUSDJun 2018

Biography

Fortive Corporation designs, develops, manufactures, markets, and services professional and engineered products, software, and services worldwide. Its Professional Instrumentation segment provides test too ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:40
End of Day Share Price2019/10/22 00:00
Earnings2019/06/28
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.