| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 1/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
FTV Overview
Fortive Corporation designs, develops, manufactures, markets, and services professional and engineered products, software, and services worldwide.
Fortive Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$72.74 |
| 52 Week High | US$60.82 |
| 52 Week Low | US$82.12 |
| Beta | 1.22 |
| 1 Month Change | -0.94% |
| 3 Month Change | 4.63% |
| 1 Year Change | -4.02% |
| 3 Year Change | -16.37% |
| 5 Year Change | 42.96% |
| Change since IPO | 49.67% |
Recent News & Updates
Is Now The Time To Look At Buying Fortive Corporation (NYSE:FTV)?
Let's talk about the popular Fortive Corporation ( NYSE:FTV ). The company's shares saw a decent share price growth in...
Is Fortive Corporation (NYSE:FTV) Trading At A 30% Discount?
How far off is Fortive Corporation ( NYSE:FTV ) from its intrinsic value? Using the most recent financial data, we'll...
Fortive Setting Out To Show It Has Crafted A Durable And Superior Compounder Business Model
Fortive surpassed sell-side expectations in the second quarter, with strong short-cycle momentum, but also double-digit growth in the software businesses. The short-cycle rebound isn't over, and businesses like Accruent and Gordian should accelerate further, while the healthcare ops are more vulnerable to COVID-19 in the short term. Fortive is back to M&A; the $1.2B deal for ServiceChannel could be a template for future deals - relatively high initial multiples for higher longer-term recurring revenue and margins. Between a comparable multiple approach using other compounder-type companies and a cash flow model including estimated M&A, I believe Fortive is more or less fairly-valued.
Shareholder Returns
| FTV | US Machinery | US Market | |
|---|---|---|---|
| 7D | -3.4% | -1.7% | -0.6% |
| 1Y | -4.0% | 31.4% | 33.8% |
Return vs Industry: FTV underperformed the US Machinery industry which returned 31.4% over the past year.
Return vs Market: FTV underperformed the US Market which returned 33.8% over the past year.
Price Volatility
| FTV volatility | |
|---|---|
| FTV Beta | 1.22 |
| Industry Beta | 1.25 |
| Market Beta | 1 |
Stable Share Price: FTV is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: FTV's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2015 | 17,000 | Jim Lico | https://www.fortive.com |
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, FLUKE NETWORKS, GORDIAN, INDUSTRIAL SCIENTIFIC, INTELEX, and PRUFTECHNIK brands.
Valuation
Is Fortive undervalued compared to its fair value and its price relative to the market?
33.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FTV ($72.74) is trading below our estimate of fair value ($109.56)
Significantly Below Fair Value: FTV is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FTV is good value based on its PE Ratio (16.7x) compared to the US Machinery industry average (29.4x).
PE vs Market: FTV is good value based on its PE Ratio (16.7x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: FTV is poor value based on its PEG Ratio (10.5x)
Price to Book Ratio
PB vs Industry: FTV's PB Ratio (2.8x) is in line with the US Machinery industry average.
Future Growth
How is Fortive forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
1.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FTV's forecast earnings growth (1.6% per year) is below the savings rate (2%).
Earnings vs Market: FTV's earnings (1.6% per year) are forecast to grow slower 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 (5.1% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: FTV's revenue (5.1% 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 (11.3%).
Past Performance
How has Fortive performed over the past 5 years?
-1.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FTV has a large one-off gain of $1.0B impacting its July 2 2021 financial results.
Growing Profit Margin: FTV became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: FTV's earnings have declined by 1.6% per year over the past 5 years.
Accelerating Growth: FTV has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: FTV has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (22.1%).
Return on Equity
High ROE: FTV's Return on Equity (17.7%) is considered low.
Financial Health
How is Fortive's financial position?
Financial Position Analysis
Short Term Liabilities: FTV's short term assets ($3.1B) exceed its short term liabilities ($2.6B).
Long Term Liabilities: FTV's short term assets ($3.1B) exceed its long term liabilities ($2.7B).
Debt to Equity History and Analysis
Debt Level: FTV's debt to equity ratio (28%) is considered satisfactory.
Reducing Debt: FTV's debt to equity ratio has reduced from 142.1% to 28% over the past 5 years.
Debt Coverage: FTV's debt is well covered by operating cash flow (46.2%).
Interest Coverage: FTV's interest payments on its debt are well covered by EBIT (6.5x coverage).
Balance Sheet
Dividend
What is Fortive current dividend yield, its reliability and sustainability?
0.38%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FTV's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: FTV's dividend (0.38%) is low compared to the top 25% of dividend payers in the US market (3.6%).
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?
5.2yrs
Average management tenure
CEO
Jim Lico (55 yo)
5.17yrs
Tenure
US$13,624,063
Compensation
Mr. James A. Lico, also known as Jim, has been Chief Executive Officer of Fortive Corporation since July 2016 and served as its President since July 2016. He serves as President at Fortive Corporation. Mr....
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD13.62M) is about average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: FTV's management team is seasoned and experienced (5.2 years average tenure).
Board Members
Experienced Board: FTV's board of directors are considered experienced (3.9 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 been diluted in the past year, with total shares outstanding growing by 6.3%.
Top Shareholders
Company Information
Fortive Corporation's 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$26.069b
- Shares outstanding: 358.39m
- Website: https://www.fortive.com
Number of Employees
Location
- Fortive Corporation
- 6920 Seaway Boulevard
- Everett
- Washington
- 98203
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/19 22:11 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/07/02 |
| Annual Earnings | 2020/12/31 |
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.