FTV Stock Overview
Fortive Corporation designs, develops, manufactures, markets, and services professional and engineered products, software, and services worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$58.30|
|52 Week High||US$79.87|
|52 Week Low||US$52.47|
|1 Month Change||-6.82%|
|3 Month Change||6.25%|
|1 Year Change||-17.91%|
|3 Year Change||-12.33%|
|5 Year Change||-18.52%|
|Change since IPO||19.96%|
Recent News & Updates
Fortive Corporation (NYSE:FTV) Shares Could Be 32% Below Their Intrinsic Value Estimate
Today we will run through one way of estimating the intrinsic value of Fortive Corporation ( NYSE:FTV ) by projecting...
Fortive: Strategic Changes And Robust Balance Sheet Hold The Key
Summary Remolding the business portfolio to look for recurring revenue and diversification is paying off for Fortive. Higher productivity, increased volume, and improved pricing kept its operating margin steady. Robust liquidity and low leverage ensure that financial risks remain limited. The stock is relatively overvalued. Fortive's Prospects And Challenges Fortive Corporation (FTV) provides intelligent engineered products, software, and services. It also sells health, safety, and quality enterprise software products for various industries, including manufacturing, healthcare, utilities, communications, and electronics. The most significant change in the company's business model has come from a shift to relying on recurring revenue and diversification. For the rest of 2022, its operating segments will likely improve revenue and profit margins. Globalizing its brands across various geographic regions will also help accelerate growth. However, the economic impact of the current recession, the supply chain issues, the China lockdown, and the adverse movement of foreign exchanges against the US dollar would take their toll on the cash flows. So, free cash flows declined in 1H 2022. The stock is relatively overvalued compared to its peers. Fortunately, it has low leverage and robust liquidity, which can expand its relative valuation multiples when the economy struggles. Nonetheless, I think the stock is still apt to hold for investors looking at the long-term return horizon. Strategies: A Critical Look Fortive Corporation's Filings Over the past few years, FTV has transformed its business portfolio, emphasized a diversified end market, and generated durable recurring revenue. The company has added software and consumables business while expanding its service business model. Earlier, retail fueling and vehicle repair markets contributed heavily to its total revenue mix. Now, healthcare has become the primary driver. The advantage of the new model is that the revenue is recurring. Plus, it caters to varied end markets. Tektronix is a case at this point. In Q2, the company saw mid-20% bookings growth at Tektronix (which provides test and measurement instruments in various industries), mid-teens growth in sensing technologies, and 20%-plus growth in Gems (Gems Sensor, a subsidiary). The company also leverages its brand value by commercializing and globalizing its brands across various geographic regions. So, the recurring revenue share doubled from 2016 to 2022. Q3 and FY2022 Forecast In Q3 and Q4, the management expects revenues to increase by "single digit to low double digits," while the adjusted operating profit margins can grow by 100 basis points year-over-year. Adjusted earnings per share can increase by 12%-16% from Q2 to Q3 and by a further 8%-11% in Q4. Each of its three operating segments will likely see topline rising. The company's revenues in FY2022 can increase by 8% to 9.5%. Better operational performance and lower taxes can produce $3.07-$3.13 in adjusted earnings per share in FY2022. So, improved performance can offset an expected $100 million charge due to adverse foreign exchange movement ($0.08 per share). Over the next three years, the company plans to achieve a "mid-single-digit" core revenue growth. It also looks to expand its operating margin by 300 basis points or a 50% growth in earnings. The profit growth can also reflect in 90% growth in free cash flow. The Outlook And Current Drivers Seeking Alpha By Q2-end, its hardware backlog was 21% higher than the beginning of the year. I expect its core business to grow for the remainder of 2022 due to a resilient product portfolio and continued customer demand. New logo generation, cross-sell bookings, and lower customer churn should keep its software sales high in 2022. In 2022, hardware orders and software revenues increased, albeit moderately, following the company's transition to a diversified product portfolio. Despite higher inflation and the loss from foreign exchange movements, its gross profit margin remained unchanged from Q1 to Q2, while the EBITDA margin expanded by 140 basis points. In Q2, on a geographic basis, the Western Europe regions proliferated (revenues up by "mid-teens"), while North America revenues were up by "high single digits." China saw ~20% order growth, despite the Shanghai lockdowns. Analyzing The Segment Performance In the Intelligent Operating Solutions segment, revenues increased by 16% in Q2 year-over-year. Sharp improvements in shipments and robust price realization led to a 205-basis point operating margin expansion in Q2 in this segment. In Precision Technologies, revenues increased by 6% in Q2 2022 compared to Q2 2021. The industrial, semi, medical, power, and energy markets witnessed steady growth. Higher usage of power and precision devices and expanded use of semiconductors led to the topline growth in this segment. Backlogs also went up during Q2. The superior operating performance of Tektronix and Sensing Technologies overcame the hurdles of Shanghai lockdowns. Favorable pricing and cost management also resulted in 90 basis point adjusted profit margin expansion. In Advanced Healthcare Solutions, revenue growth in Western Europe exceeded the revenue growth in North America in Q2. Higher ASP (Advanced Sterilization Products business) consumables increased sales in North America in Q2. However, disruptions from COVID presented challenges owing to staffing issues, and capital equipment constraints muddled the growth rate in Q2. Investors may note that FTV acquired ASP in April 2019 for $2.7 billion. Following the Provation acquisition, the company has invested in FBS (Fortive Business System) tools, which drove productivity savings and improved adjusted operating margin by 300 basis points in Q2 over a year ago. Steady Dividend Seeking Alpha FTV pays an annual dividend of $0.28 per share, translating into a 0.43% dividend yield. The dividend rate has changed little over the past five years. Dover Corporation's (DOV) forward dividend yield is 1.56%, while Snap-on Incorporated's (SNA) dividend yield is higher (2.54%). Strong Balance Sheet In 1H 2022, FTV's cash flow from operations (or CFO) increased by 20% compared to a year ago, led by higher year-over-year revenues. Capex, excluding the acquisition part, raised sharply in 1H 2022, leading to a modest 16% higher free cash flow (or FCF) in the past year.
Fortive declares $0.07 dividend
Fortive (NYSE:FTV) declares $0.07/share quarterly dividend, in line with previous. Forward yield 0.41% Payable Sept. 30; for shareholders of record Aug. 31; ex-div Aug. 30. See FTV Dividend Scorecard, Yield Chart, & Dividend Growth.
|FTV||US Machinery||US Market|
Return vs Industry: FTV matched the US Machinery industry which returned -18.3% over the past year.
Return vs Market: FTV exceeded the US Market which returned -23.2% over the past year.
|FTV Average Weekly Movement||3.9%|
|Machinery Industry Average Movement||5.4%|
|Market Average Movement||6.8%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: FTV is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: FTV's weekly volatility (4%) has been stable over the past year.
About the Company
Fortive Corporation designs, develops, manufactures, markets, and services professional and engineered products, software, and services worldwide. Its Intelligent Operating Solutions segment offers connected reliability tools; environment, health, safety, and quality enterprise software products; facility and asset lifecycle software; pre-construction planning and construction procurement solutions; ruggedized professional test tools; electric, pressure, and temperature calibration tools; and portable gas detection tools for a range of vertical end markets including manufacturing, process industries, healthcare, utilities and power, communications and electronics, and others. It markets its products and services under the ACCRUENT, FLUKE, GORDIAN, INDUSTRIAL SCIENTIFIC, INTELEX, PRUFTECHNIK, and SERVICECHANNEL brands.
Fortive Fundamentals Summary
|FTV fundamental statistics|
Is FTV overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|FTV income statement (TTM)|
|Cost of Revenue||US$2.35b|
Last Reported Earnings
Jul 01, 2022
Next Earnings Date
Oct 26, 2022
|Earnings per share (EPS)||1.85|
|Net Profit Margin||11.94%|
How did FTV perform over the long term?See historical performance and comparison
0.5%Current Dividend Yield
Is FTV undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for FTV?
Other financial metrics that can be useful for relative valuation.
|What is FTV's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does FTV's PE Ratio compare to its peers?
|FTV PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
OTIS Otis Worldwide
Price-To-Earnings vs Peers: FTV is expensive based on its Price-To-Earnings Ratio (31.5x) compared to the peer average (25.7x).
Price to Earnings Ratio vs Industry
How does FTV's PE Ratio compare vs other companies in the US Machinery Industry?
Price-To-Earnings vs Industry: FTV is expensive based on its Price-To-Earnings Ratio (31.5x) compared to the US Machinery industry average (18.5x)
Price to Earnings Ratio vs Fair Ratio
What is FTV's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||31.5x|
|Fair PE Ratio||25x|
Price-To-Earnings vs Fair Ratio: FTV is expensive based on its Price-To-Earnings Ratio (31.5x) compared to the estimated Fair Price-To-Earnings Ratio (25x).
Share Price vs Fair Value
What is the Fair Price of FTV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: FTV ($58.3) is trading below our estimate of fair value ($99.37)
Significantly Below Fair Value: FTV is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Fortive forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FTV's forecast earnings growth (15.6% per year) is above the savings rate (1.9%).
Earnings vs Market: FTV's earnings (15.6% per year) are forecast to grow faster than the US market (14.8% per year).
High Growth Earnings: FTV's earnings are forecast to grow, but not significantly.
Revenue vs Market: FTV's revenue (4.9% per year) is forecast to grow slower than the US market (7.7% per year).
High Growth Revenue: FTV's revenue (4.9% 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 (12.7%).
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How has Fortive performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FTV has high quality earnings.
Growing Profit Margin: FTV's current net profit margins (11.9%) are lower than last year (30.8%).
Past Earnings Growth Analysis
Earnings Trend: FTV's earnings have grown by 2.5% 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 (-57.8%) over the past year, making it difficult to compare to the Machinery industry average (9.8%).
Return on Equity
High ROE: FTV's Return on Equity (7%) is considered low.
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How is Fortive's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: FTV's short term assets ($2.4B) do not cover its short term liabilities ($2.6B).
Long Term Liabilities: FTV's short term assets ($2.4B) do not cover its long term liabilities ($4.0B).
Debt to Equity History and Analysis
Debt Level: FTV's net debt to equity ratio (31.7%) is considered satisfactory.
Reducing Debt: FTV's debt to equity ratio has reduced from 101.2% to 39% over the past 5 years.
Debt Coverage: FTV's debt is well covered by operating cash flow (28.4%).
Interest Coverage: FTV's interest payments on its debt are well covered by EBIT (10.4x coverage).
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What is Fortive current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Fortive Dividend Yield vs Market|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (Machinery)||2.0%|
|Analyst forecast in 3 Years (Fortive)||0.5%|
Notable Dividend: FTV's dividend (0.48%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: FTV's dividend (0.48%) is low compared to the top 25% of dividend payers in the US market (4.73%).
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.
Earnings Payout to Shareholders
Earnings Coverage: FTV is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: FTV is not paying a notable dividend for the US market.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jim Lico (56 yo)
Mr. James A. Lico, also known as Jim, has been Chief Executive Officer of Fortive Corporation since July 2016 and served as its President since July 2016. He serves as President at Fortive Corporation. Mr....
CEO Compensation Analysis
|Jim Lico's Compensation vs Fortive Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jul 01 2022||n/a||n/a|
|Apr 01 2022||n/a||n/a|
|Dec 31 2021||US$17m||US$1m|
|Oct 01 2021||n/a||n/a|
|Jul 02 2021||n/a||n/a|
|Apr 02 2021||n/a||n/a|
|Dec 31 2020||US$14m||US$897k|
|Sep 25 2020||n/a||n/a|
|Jun 26 2020||n/a||n/a|
|Mar 27 2020||n/a||n/a|
|Dec 31 2019||US$14m||US$1m|
|Sep 27 2019||n/a||n/a|
|Jun 28 2019||n/a||n/a|
|Mar 29 2019||n/a||n/a|
|Dec 31 2018||US$14m||US$1m|
|Sep 28 2018||n/a||n/a|
|Jun 29 2018||n/a||n/a|
|Mar 30 2018||n/a||n/a|
|Dec 31 2017||US$11m||US$1m|
|Sep 29 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$11m||US$920k|
|Sep 30 2016||n/a||n/a|
|Jul 01 2016||n/a||n/a|
|Apr 01 2016||n/a||n/a|
|Dec 31 2015||US$5m||US$701k|
Compensation vs Market: Jim's total compensation ($USD16.60M) is about average for companies of similar size in the US market ($USD13.04M).
Compensation vs Earnings: Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: FTV's management team is seasoned and experienced (6.3 years average tenure).
Experienced Board: FTV's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|02 May 22||BuyUS$1,013,493||Alan Spoon||Individual||17,400||US$58.54|
|03 Nov 21||SellUS$506,209||Peter Underwood||Individual||6,575||US$76.99|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||151,786||0.04%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Fortive Corporation's employee growth, exchange listings and data sources
- Name: Fortive Corporation
- Ticker: FTV
- Exchange: NYSE
- Founded: 2015
- Industry: Industrial Machinery
- Sector: Capital Goods
- Implied Market Cap: US$20.731b
- Shares outstanding: 355.60m
- Website: https://www.fortive.com
Number of Employees
- Fortive Corporation
- 6920 Seaway Boulevard
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|FTV||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jul 2016|
|F03||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jul 2016|
|FTV *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jul 2016|
|0IRE||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jul 2016|
|F1TV34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 2 REPR 1 SHS UNSPON||BR||BRL||Jan 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/02 00:00|
|End of Day Share Price||2022/09/30 00:00|
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.