NYSE:FTV

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Mediocre balance sheet and overvalued.


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

Stable Share Price: FTV is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FTV's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

FTV

1.7%

US Machinery

2.1%

US Market


1 Year Return

-0.7%

FTV

18.2%

US Machinery

19.8%

US Market

Return vs Industry: FTV underperformed the US Machinery industry which returned 18.2% over the past year.

Return vs Market: FTV underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

FTVIndustryMarket
7 Day0.8%1.7%2.1%
30 Day12.9%13.7%8.1%
90 Day-1.3%15.2%6.0%
1 Year19.3%-0.7%21.3%18.2%22.5%19.8%
3 Year16.5%-3.7%31.2%21.8%46.5%36.8%
5 Yearn/a127.2%101.8%96.9%75.3%

Long-Term 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?

8.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FTV ($71.87) is trading below our estimate of fair value ($78.33)

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 (47.7x) compared to the US Machinery industry average (29.8x).

PE vs Market: FTV is poor value based on its PE Ratio (47.7x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: FTV is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: FTV is overvalued based on its PB Ratio (3.2x) compared to the US Machinery industry average (2.8x).


Next Steps

Future Growth

How is Fortive forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FTV's forecast earnings growth (13.2% per year) is above the savings rate (2.2%).

Earnings vs Market: FTV's earnings (13.2% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: FTV's earnings are forecast to grow, but not significantly.

Revenue vs Market: FTV's revenue is expected to decline over the next 3 years (-3.2% per year).

High Growth Revenue: FTV's revenue is forecast to decline over the next 3 years (-3.2% 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 (8.4%).


Next Steps

Past Performance

How has Fortive performed over the past 5 years?

-8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FTV has a large one-off loss of $244.3M impacting its September 25 2020 financial results.

Growing Profit Margin: FTV's current net profit margins (7.1%) are lower than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: FTV's earnings have declined by 8.1% 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 (-29.2%) over the past year, making it difficult to compare to the Machinery industry average (-15.6%).


Return on Equity

High ROE: FTV's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

How is Fortive's financial position?


Financial Position Analysis

Short Term Liabilities: FTV's short term assets ($3.8B) exceed its short term liabilities ($3.0B).

Long Term Liabilities: FTV's short term assets ($3.8B) do not cover its long term liabilities ($6.5B).


Debt to Equity History and Analysis

Debt Level: FTV's debt to equity ratio (74.1%) 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 (28.6%).

Interest Coverage: FTV's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet


Next Steps

Dividend

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

0.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FTV's dividend (0.39%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: FTV's dividend (0.39%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Jim Lico (54 yo)

4.33yrs

Tenure

US$14,141,477

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 ($USD14.14M) is above average for companies of similar size in the US market ($USD10.79M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Lico
President4.33yrsUS$14.14m0.092%
$ 22.3m
Charles McLaughlin
Senior VP & CFO4.33yrsUS$4.61m0.012%
$ 2.9m
Patrick Murphy
Senior Vice President4.33yrsUS$3.86m0.012%
$ 2.8m
William Pringle
Senior Vice President4.33yrsUS$5.39m0.030%
$ 7.3m
Barbara Hulit
Senior Vice President4.33yrsUS$5.46m0.024%
$ 5.8m
Christopher Mulhall
VP & Chief Accounting Officer1.08yrsno data0.0045%
$ 1.1m
Griffin Whitney
Vice President of Investor Relationsno datano datano data
Peter Underwood
Senior VP4.5yrsUS$2.77m0.010%
$ 2.5m
Jonathan Schwarz
Vice President of Strategy & Corporate Development4.33yrsno data0.0062%
$ 1.5m
Stacey Walker
Senior Vice President of Human Resources4.33yrsno data0.0072%
$ 1.7m
Martin Gafinowitz
Senior Vice President4.33yrsUS$2.95m0.013%
$ 3.1m
Daniel Kim
VP, Associate General Counsel & Secretaryno datano datano data

4.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: FTV's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Lico
President4.33yrsUS$14.14m0.092%
$ 22.3m
Kate Mitchell
Independent Director4.33yrsUS$299.00k0.00059%
$ 143.0k
Alan Spoon
Independent Chairman of the Board4.83yrsUS$459.24k0.018%
$ 4.4m
Steven Rales
Independent Director4.33yrsUS$278.61k2.39%
$ 580.1m
Mitchell Rales
Independent Director4.33yrsUS$278.61k1.19%
$ 288.6m
Jeannine Sargent
Independent Director1.75yrsUS$315.58k0%
$ 0
Sharmistha Dubey
Director0.25yrno datano data
Feroz Dewan
Independent Director4.33yrsUS$287.31k0%
$ 0

4.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: FTV's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FTV insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$24.234b
  • Shares outstanding: 337.20m
  • 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
F1TV34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

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 Analysis2020/11/26 23:04
End of Day Share Price2020/11/25 00:00
Earnings2020/09/25
Annual Earnings2019/12/31


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.